ϳԹ

Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Local governments worry Ohio will cut off their marijuana revenue stream

The Ohio ϳԹ in February 2025.
Sarah Donaldson
/
ϳԹ News Bureau
The Ohio ϳԹ in February 2025.

Under current Ohio statute, municipalities with marijuana dispensaries are poised to profit from recreational sales through what’s known as the Host Community Cannabis Fund, but lawmakers are looking to cut the fund.

At 36%, more than one-third of tax revenue from the state’s relatively young recreational cannabis program was earmarked for the fund, as outlined in Issue 2, the initiated statute.

Gov. Mike DeWine’s budget proposal, released Monday, eliminates that community fund, as does . Under the budget DeWine proposed, that pool of money would instead go to jail projects. SB 56 redirects all revenue to the General Revenue Fund managed by the state, but that’s subject to change, lawmakers have said.

Some local officials feel cheated.

David Kubicki, president of the Columbia Township Trustees in Hamilton County, said he sold residents on the idea of economic benefits cannabis dispensaries could bring.

“This is a good deal for us,” Kubicki said in an interview Wednesday. “Forget how you feel about marijuana morally, philosophically, emotionally—and by the way, I've never smoked before in my life.”

Kubicki said he sees it as bait-and-switch, calling it a “tax cash grab.”

“I'm just mortified that the state can just come in and change the rules,” Kubicki said “It's like somebody said, 'I'm going to take your lunch money,' and you're like, ‘Well, you're not allowed to.’ It's like, ‘No, we are.’”

The Ohio Township Association, which lobbies for township governments in the state, sent a statement to its members on Tuesday outlining their opposition. “While your revenue would be eliminated by the General Assembly, you would not be permitted to revoke permits,” the statement read in part.

One lawmaker on the House Finance committee said his office had received several calls Tuesday about the issue. When asked Wednesday, House Speaker Matt Huffman (R-Lima) said he believes money should go directly to the social services he sees as most affected by legalization.

“There does need to be a portion of the marijuana tax revenue that needs to go to local law enforcement. Not every local community has a poison control center, but many of them do,” Huffman said.

Kubicki said he sees that as “rhetoric.”

“There’s no way that I'm not going to say, ‘Hey, we need a police officer or whatever over in Columbia Township, can you help us?’” Kubicki said.

Since voters ratified an initiated statute, rather than a constitutional amendment in 2023, lawmakers can make changes at any time.

Sarah Donaldson covers government, policy, politics and elections for the Ohio Public Radio and Television ϳԹ News Bureau. Contact her at sdonaldson@statehousenews.org.