Yo, what’s good? This is Dan, bringing you the latest news on Michigan’s cannabis industry. Apparently, the state has been handing out tens of millions of dollars to local governments as a result of this booming market. FOX 2 Detroit reports that nearly $60 million has been sent out to counties and cities across Michigan.
Now, get this – local governments that have given the green light to recreational weed sales are seeing some serious cash flow. They’re getting around $51,800 for every retail store and micro-business that they’ve given licenses to. That’s some serious dough, my friend.
But that’s not all – only 30% of total adult-use sales go to local governments, with the other 70% going towards schools and roads. Talk about putting your money where your mouth is, am I right?
Michigan voters legalized adult-use cannabis back in 2018 when they approved Proposal 1. Basically, if you’re 21 or older, you can get your smoke on legally. And since then, a regulated cannabis market has been launched.
Sure, sales numbers are high, but Michigan is facing an oversupply of pot. According to Politico, the number of cannabis grow operations in the state has almost doubled in the past year. The number of active marijuana plants now exceeds 1.2 million, which is roughly six times the volume seen in 2020. So yeah, Michigan has way too much weed.
But don’t get it twisted – Michigan’s recreational cannabis industry is still growing. In fact, last year, 224 municipalities had registered 1,148 business licenses. That’s up from 163 municipalities and 748 licenses in 2021 and 104 municipalities and 356 licenses in 2020.
The latest figures from the Michigan Department of Treasury show that revenue from recreational pot was at $198.4 million last year. Another $69.4 million will go towards the School Aid Fund and another $69.4 million will go towards the transportation fund. In total, there were $1.8 billion in sales from weed last year – that’s a lot of green!
Michigan Governor Gretchen Whitmer supported Proposal 1 and vetoed several Republican-sponsored bills aimed at easing access to the state’s medical cannabis program for both patients and prospective operators. In her veto message, Whitmer said that these proposals were passed hastily by lawmakers and required closer examination.
So there you have it folks – Michigan’s cannabis industry is in full effect and local governments are reaping the benefits. With sales numbers continuing to rise, it looks like this market isn’t slowing down anytime soon. Stay tuned for more updates on this high-flying industry!