California raises over $600 million from legalizing cannabis

The State of California has collected approximately $635 million in taxes related to the recreational cannabis industry, legalized through the Proposition 64, in 2016, announced the Leafly. California revenue increased about 35% from 2018 to 2019, contributing to more support and improvements in education and health.

In fiscal year 2019-2020, cannabis tax revenues were used to:

• Anti-drug programs for youth (60%)
• Environment (20%)
• Public safety subsidies (20%)

In the first fiscal year 2019-2020, approximately $200 million in revenue was totaled, with an estimated $332,8 million for the fiscal year 2020-2021.

The money is distributed as follows:

• $140 million for 8 low-income children in childcare
• $44,8 million in public health and safety subsidies in cities that allow free drug and care facilities to low-income patients (with subsidies only for cities and districts that allow the sale of cannabis)
• 39,9 million donations to combat illegal growth and restoration of wilderness
• $25,3 million in cannabis taxes earmarked for activities such as removing weapons, methamphetamines, herbicides, river contaminants, etc.
• $37,5 million to help thousands of at-risk youth
• $30 million in community grants for reinvestment in social workers
• 21 million dollars for safer roads
• $57,8 million to license and regulate the cannabis industry
• $15 million for scientific and policy research on cannabis
• $100 million in local taxes to apply to new parks, police cars and ambulances in California.

Colorado follows in California's footsteps
California's two-year program is larger than Colorado's six-year program, which is another state that has seen its revenue rise sharply after legalization. according to website from the american channel CNBC, it took the Colorado government about three and a half years to reach $500 million in total revenue from cannabis sales and about two years to double revenue. Despite this, cannabis sales contributed to the state's general reserve fund, in addition to education and health care, including mental health services and drug prevention programs for youth.

According to website new Yorker Observer, economics and psychology researchers at California State Polytechnic University and the University of New Mexico analyzed sales of drugs to treat sleep disorders and concluded that there was a 236% reduction after cannabis was legalized in Colorado. The study was published in the journal Complementary Therapies in Medicine and while scientists have been unable to explain why the plant helps with sleep disorders, research has revealed that cannabis regulation has contributed to decreasing drug consumption (prescription and non-prescription).

Colorado has already generated over $1 million in revenue from the cannabis industry alone.
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