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Below is a complimentary excerpt from an institutional research note written by our Cannabis analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
Yesterday, Pennsylvania Senate Democrats sent a letter to Gov. Tom Wolf (D) and legislative officials were pushing for adult-use legalization to generate state revenue to offset the economic fallout from COVID-19.
The Pennsylvania Independent Fiscal Office anticipates that the state’s General Fund revenues would take a $3.9 billion hit due to COVID-19 in the 2019-2020 fiscal year, of which $2.1 billion would be shifted to the next fiscal year and $1.8 billion would be permanently lost from a contraction of economic activity.
The letter states, “Through legalizing adult-use cannabis, we can protect Pennsylvanians from harmful tax hikes and spending cuts and raise new revenue to continue providing vital services and assistance for our constituents. We urge you to consider this issue during this year’s budget negotiations, and work with us to enact a responsible budget that will benefit all Pennsylvanians.”
Currently, Pennsylvania’s medical marijuana market is thriving – The Marijuana Business Factbook estimates that sales in the nation’s fifth-most populous state could double YoY to $400-$500 million in 2020.
