An independent analysis by FTI Consulting on the potential of the Pennsylvania recreational marijuana market found that the state could hit up to $2.8 billion in sales in the first year of operations and create nearly 45,000 jobs.
The study, paid for by nonprofit coalition Responsible PA, is part of a push to break through a political deadlock in the state legislature over full cannabis legalization, with several competing legislative efforts introduced and Democratic Gov. Josh Shapiro vocally on record supporting legalization.
FTI found that a new recreational marijuana market in Pennsylvania would likely result in between 26,250 and 44,500 jobs in the first year after its launch, with sales likely to reach between $1.7 billion and $2.8 billion. That is expected to help create $2.6 billion in state GDP, with $338 million in new tax revenues going to state coffers.
The calculation is based in part on the existing performance of the state’s medical marijuana market, which sold $1.2 billion last year alone, FTI noted in its analysis.
Responsible PA spokeswoman Brittany Crampsie noted during a press briefing that the organization isn’t throwing its weight behind one proposal by lawmakers over any other, but she noted the group is encouraging lawmakers to work together to find a workable market plan.
“There’s an enormous economic impact to the state of Pennsylvania that has been left on the table year after year,” Crampsie said after FTI Consulting finished presenting the findings. “It would be irresponsible of the state legislature to seriously consider the creation of an adult-use market as part of its state budget package … We strongly believe this is the best revenue source on the table, and can accomplish many if not all of the legislature’s goals.”
The legislature is in session until November, but it’s an open question as to whether the Democrat-controlled state House of Representatives can come to terms with the Republican-controlled state Senate on a legalization bill this year.
Six states bordering Pennsylvania – all except West Virginia – have legalized recreational marijuana and will be pulling in tax revenue while Pennsylvania leaves that income on the table, Crampsie pointed out.
FTI PA Adult Use Market Economic Impacts 06.17.24