FOCUS 2024 | Governor: Recreational cannabis spurring economic growth

Feb. 23—CUMBERLAND — Maryland voters made a bold move in the 2022 general election when they approved recreational cannabis use, and so far it seems the move has paid dividends for the economy.

The vote came via referendum favoring recreational use for adults 21 and older. The Maryland legislature developed guidelines and recreational use became law on July 1, 2023.

Maryland Gov. Wes Moore said at the time that legalization of recreational cannabis was "a positive step."

"We are writing a new chapter in the story of cannabis in America," he said, "one that will lift communities harmed by criminalization and build a more competitive and more equitable economy."

William Valois, CEO of Grow West MD, which includes a cultivation facility and dispensary in Cumberland, told the Times-News that continued growth and expansion in the industry allowed Grow West to reach a significant milestone recently when the company hired its 200th employee.

"Many of our employees have established families, purchased homes and vehicles and are actively contributing to the community," Valois said. "Grow West has played a role in retaining individuals who might have otherwise left the area, and they are now firmly establishing roots in the community."

According to the Maryland Cannabis Administration, since launching in July 2023, the combined medical and recreational marijuana sales reached $796.3 million. The median price per gram was $9.21, while the average spent per patient was $1,638 with the median caregiver spending $415.

Recreational cannabis sales accounted for $331.8 million for the six-month 2023 time period. The total represents a monthly average of roughly $55.3 million in recreational sales per month.

However, the legalization of recreational use has negatively impacted medical marijuana sales which have fallen since the bill passed.

Medical cannabis sales in Maryland, represented by a full 12 months, totaled $464.5 million in 2023, a monthly average of about $38.7 million.

Maryland took in $12.2 million in tax revenue for the first fiscal quarter of cannabis sales since recreational marijuana usage was legalized, however second quarter totals have yet to be released.

Comptroller Brooke E. Lierman recently announced that tax revenue from marijuana sales in July, August and September was $12.2 million based on 9% of roughly $135 million in total sales. Since the state, by law, will distribute a portion of the tax to Maryland's 23 counties and Baltimore city, Allegany County could potentially receive up to $200,000.

Lierman said in a press release that collection of the taxes was "positioning our state for a more prosperous future."

Cannabis in Maryland is expected to be a billion dollar industry by 2027. The state is planning to issue 75 more dispensary licenses this year.

In a statement, the governor said: "The strong revenues collected in the first quarter reflect the strength of the rollout of Maryland's newly formed adult recreational cannabis industry. These funds are critical to supporting social equity and economic growth, which are central to the Moore-Miller Administration's values, and we'll continue to work in partnership to promote inclusion, accountability, and fairness across Maryland's cannabis industry."

Greg Larry is a reporter at the Cumberland Times-News. To reach him, call 304-639-4951, email glarry@times-news.com and follow him on Twitter @GregLarryCTN.