High Profits: Legalizing Adult-Use Cannabis in Pennsylvania Could Yield Billions and Create Thousands of Jobs

A new report highlights the significant economic benefits and job creation potential of legalizing adult-use cannabis in Pennsylvania. Despite Gov. Josh Shapiro's push for legalization in his preliminary 2024-25 budget proposal, the recent fiscal budget passed without mention of an adult-use cannabis market, marking another missed opportunity for the state.

The report, released by ResponsiblePA—a coalition supporting the legalization of adult-use cannabis—was prepared by global business advisory firm FTI Consulting. According to the findings, legalizing cannabis for adult use in Pennsylvania could lead to an additional $4.2 billion in economic output and a $2.6 billion increase in the state gross domestic product (GDP). Furthermore, the state could generate $126 million in new sales taxes and $212 million in wholesale cannabis excise taxes.

One of the most significant impacts would be on employment. The report estimates the creation of approximately 33,350 jobs, with close to 13,000 being direct retail positions in the adult-use industry and over 8,000 supported by cannabis cultivation. The remainder would be indirect jobs resulting from increased consumer spending.

FTI Consulting's projections for adult-use sales in Pennsylvania are based on historical data from states with both medical and adult-use markets, such as Arizona, Illinois, Massachusetts, and New Jersey. In 2023, Pennsylvania's retail medical cannabis sales reached approximately $1.2 billion. Using this data, FTI projected that first-year adult-use retail sales could reach $2.1 billion.

“With 90% of Pennsylvania’s neighboring states already legalizing cannabis and a robust medical operation in the state for nearly a decade, we believe now is the time to legalize cannabis,” said Brittany Crampsie of ResponsiblePA.

Public support for adult-use cannabis legalization in Pennsylvania is strong, with a recent poll by Franklin and Marshall College indicating that two-thirds of voters are in favor. Despite this, legislative action has been slow. Although numerous bills have been introduced and public hearings held, no legislation has passed to date.

The delay in legalizing adult-use cannabis represents a missed opportunity for significant economic gains and job creation. Advocates argue that with neighboring states moving forward with legalization, Pennsylvania risks falling behind in capitalizing on this burgeoning industry.

The report from ResponsiblePA and FTI Consulting underscores the potential economic and social benefits of legalizing adult-use cannabis in Pennsylvania. As the state continues to debate the issue, the potential for billions in economic output and tens of thousands of new jobs remains a compelling argument for legalization.

Do you support the legalization of adult-use cannabis in Pennsylvania to boost the economy and create jobs?