Michigan Cannabis Market Brings $60 Million Windfall For Local Governments

Tens of millions of dollars have been distributed to local governments throughout Michigan as a result of the state’s cannabis industry.

FOX 2 Detroit reports that the state has paid out nearly $60 million to counties and local governments.

“Local governments that have approved recreational weed sales in their county, city, village or township will see approximately $51,800 for each retail store and micro-business they license to,” the channel says.

According to FOX 2 Detroit, “Only 30% of total adult sales goes to communities, with the other 70% going to schools and streets. When posts from last year are paired alongside numbers from 2021 and 2020, they reveal an industry that shows no signs of slowing down.”

Voters in the state legalized adult-use cannabis in 2018 when they approved Proposal 1.

This initiative made smoking legal for adults over the age of 21 and paved the way for a regulated cannabis market that was launched in 2019.

But despite strong sales, Michigan, like other regulated cannabis markets, is oversupplied with pot.

Politico reported last year that “the number of cannabis grow operations serving the state’s recreational market nearly doubled in the past year” and that “the number of active marijuana plants now exceeds 1.2 million, about six times the 2020 volume” .

“Michigan has way too much weed,” Politico said at the time.

“By one estimate, Michigan has enough growing capacity to supply three times as much weed as the state’s consumers buy — and that doesn’t include the huge illegal market, which appears to account for a large portion of sales.”

That makes Michigan, according to Politico, “symbolic of what’s happening across the country throughout the year — and why the industry has been in a frenzy despite spreading legalization: Unhappy hopes that a Democrat-controlled Washington could ease decades-old restrictions on the drug.” has given way to a glut in markets and falling prices that have threatened scores of businesses.”

That’s not to say Michigan’s recreational cannabis industry hasn’t seen growth, though.

As FOX 2 Detroit noted, “224 municipalities had registered 1,148 business licenses” last year. That’s an increase from 163 parishes and 748 licenses in 2021 and 104 parishes and 356 licenses in 2020.

The broadcaster has more details on the state’s latest cannabis sales figures:

“The latest figures come from the Michigan Department of Treasury, which reported $198.4 million in revenue from recreational cannabis last year. Another $69.4 million will go to the School Aid Fund, while $69.4 million will go to the Transportation Fund. Overall, weed sales were $1.8 billion last year. To put that in context, in 2020 it had total sales of $341 million. In 2021, the state reported $1.1 billion in sales.”

Gretchen Whitmer, Gov. of Michigan, a Democrat, supported Proposal 1.

Late last year, Whitmer vetoed several Republican-sponsored bills aimed, among other things, at increasing access for both patients and potential users to the state’s medical cannabis program, which began in 2008.

In her veto message, Whitmer said the proposals were hastily passed by lawmakers and require closer scrutiny.

“I look forward to working with the new Legislature in January on priorities that will continue our economic momentum, help reduce costs and expand educational support for Michigan students. It’s time to start seriously solving problems and doing things that are now improving the lives of working families,” Whitmer said at the time.