Dive Brief:
- Colorado’s sale of recreational marijuana has created a pool of additional tax money, a portion of which is earmarked for schools through the Building Excellent Schools Today (BEST) program.
- Denver’s local NBC affiliate reports the BEST program received $35 million last year, and Roaring Fork School District is using $9 million of it to support a massive addition to the Glenwood Springs Elementary School.
- In total, Colorado collected $130 million in state taxes last year on wholesale marijuana sales, and some cities like Aurora and Pueblo are collecting their own sales tax on the drug, allocating that money to address homelessness and give high school students scholarships.
Dive Insight:
Recreational marijuana use is also legal in Oregon, Washington and Alaska, while other states are debating passing similar laws, which go against federal drug policy. One of the key arguments on the side of legalization is that it would bring an area of commerce off the black market and contribute to state and local budgets. Many states have serious budget constraints, which filter down to schools with limited funding for day-to-day operations as well as construction projects.
According to a study of marijuana legalization by the Tax Foundation, revenues from tax collection programs in both Colorado and Washington exceeded initial expectations. But that was only after a lead time that created new regulatory frameworks. Still, educators and administrators who fight drug use in their schools have had a hard time advocating for more money from one of those same drugs.