Many people fear that the passage of Amendment 64 in Colorado will threaten the safety and well-being of our children. At least that’s what the group No On 64 states on their website. Colorado’s Amendment 64 proposes the legalization and regulation of marijuana for recreational use—similar to alcohol, the proposal prohibits those under the age of 21 from buying or possessing the substance and additionally imposes a possession limit of one ounce to allow police to continue to crackdown on illegal dealers who divert marijuana to underage users. Opponents’ fears of mass distribution of legally produced marijuana have not come to fruition despite the states marijuana production in conjunction with the states medical marijuana program. Despite the anxiety surrounding the Amendment 64 and bills like it, passing similar legislation at the state-level, across the nation could save state governments from impending fiscal doom and should be considered as a viable policy option.
According to a 2011 Colorado DOC statistical report, 62 non-violent marijuana offenders were admitted into the corrections system in 2011. These offenders cost the state over $2 million dollars a year at an estimated $32,344 per inmate. This does not include probations and community corrections programs which although far less costly are commonly utilized. As years pass and these and new offenders get cycled through the system the cost increases. Coupled with the high cost of enforcement and prosecution of non-violent offenders, decriminalization and legalization policies that reduce prison population are an attractive option for progressively minded officials in a fiscally conservative political climate. In Colorado, the gains would be modest compared with the possibilities in the mass-incarceration capitals of Louisiana and Texas, and states facing fiscal crises with large prison populations, like California, could benefit greatly from a much needed cut in corrections spending. Two fiscal impact reports have been published on Amendment 64 in Colorado—one by the Colorado Center on Law and Policy (CCLP) and one by the Colorado Legislative Council.
The Legislative Council’s Blue Book projects sales tax and licensing net revenues to the state at between $21.1 million to state coffers, taking into account the cost of regulation and enforcement. However, the Blue Book does not include the excise tax in its estimates because the level of the tax has must be set by the state legislature and approved by the voters but can range up to 15% until 2017. If the excise tax is set at 15%, the CCLP estimates state revenue from Amendment 64 will reach $24 million, with an additional 8.7 million from sales tax. Additionally, The CCLP believes local taxes could bring in $14.5 million in revenue. The Legislative Council’s analysis does not account for local sales tax because of varying tax rates and regulation. Negative local reactions to the law could create impediments to licensing or excessive regulation on marijuana establishments, which makes the impact of the law on the local level hard to determine.
The Legislative Council also does not account for the reduced criminal costs associated with legalization, which the CCLP study estimates would save the state $12 million in the year following legislation and up to $40 million annually in following years as enforcement and corrections spending trends adjust to the reduced number of offenders. Overall, the CCLP study concludes that the law could produce $60 million worth of revenue and savings annually, with the potential for that number to increase after 2017.
Finally, despite the fact that African Americans only make up about 4% of the population, they account for 11% of all drug arrests, according to the Drug Policy Alliance. Thus, Colorado not only faces a fiscal problem with regard to drug policy but also must examine the implications those policies have on racial justice in the state. Those arrested on drug charges face multiple sanctions imposed to varying degrees depending on the details of each case. Individuals face high, often crippling court costs and are often subject to collateral sanctions such as imposed barriers to certain kinds of employment. In Colorado, voting rights are denied until the offender is released from prison and discharged from parole. This leads to a total disenfranchised population of over 35,000 people, .9 percent of the population According to The Sentencing Project. Staggeringly, the rate is four times higher among African Americans. Worst of all, status as an ex-con brings with it a stigma that leads to general exclusion and a tendency toward recidivism. An increase in the number of people, who will be able to find gainful employment and provide for themselves and their families with pride, will benefit with society as a whole and improve general well-being. Because these people are not being strapped with conditions of parole or probation, subject to collateral sanctions and labeled as criminals in society, they will be able to become productive citizens, contributing to the recovery our economy and society rather acting as a burden upon it.
According to a 2011 Colorado DOC statistical report, 62 non-violent marijuana offenders were admitted into the corrections system in 2011. These offenders cost the state over $2 million dollars a year at an estimated $32,344 per inmate. This does not include probations and community corrections programs which although far less costly are commonly utilized. As years pass and these and new offenders get cycled through the system the cost increases. Coupled with the high cost of enforcement and prosecution of non-violent offenders, decriminalization and legalization policies that reduce prison population are an attractive option for progressively minded officials in a fiscally conservative political climate. In Colorado, the gains would be modest compared with the possibilities in the mass-incarceration capitals of Louisiana and Texas, and states facing fiscal crises with large prison populations, like California, could benefit greatly from a much needed cut in corrections spending. Two fiscal impact reports have been published on Amendment 64 in Colorado—one by the Colorado Center on Law and Policy (CCLP) and one by the Colorado Legislative Council.
The Legislative Council’s Blue Book projects sales tax and licensing net revenues to the state at between $21.1 million to state coffers, taking into account the cost of regulation and enforcement. However, the Blue Book does not include the excise tax in its estimates because the level of the tax has must be set by the state legislature and approved by the voters but can range up to 15% until 2017. If the excise tax is set at 15%, the CCLP estimates state revenue from Amendment 64 will reach $24 million, with an additional 8.7 million from sales tax. Additionally, The CCLP believes local taxes could bring in $14.5 million in revenue. The Legislative Council’s analysis does not account for local sales tax because of varying tax rates and regulation. Negative local reactions to the law could create impediments to licensing or excessive regulation on marijuana establishments, which makes the impact of the law on the local level hard to determine.
The Legislative Council also does not account for the reduced criminal costs associated with legalization, which the CCLP study estimates would save the state $12 million in the year following legislation and up to $40 million annually in following years as enforcement and corrections spending trends adjust to the reduced number of offenders. Overall, the CCLP study concludes that the law could produce $60 million worth of revenue and savings annually, with the potential for that number to increase after 2017.
Finally, despite the fact that African Americans only make up about 4% of the population, they account for 11% of all drug arrests, according to the Drug Policy Alliance. Thus, Colorado not only faces a fiscal problem with regard to drug policy but also must examine the implications those policies have on racial justice in the state. Those arrested on drug charges face multiple sanctions imposed to varying degrees depending on the details of each case. Individuals face high, often crippling court costs and are often subject to collateral sanctions such as imposed barriers to certain kinds of employment. In Colorado, voting rights are denied until the offender is released from prison and discharged from parole. This leads to a total disenfranchised population of over 35,000 people, .9 percent of the population According to The Sentencing Project. Staggeringly, the rate is four times higher among African Americans. Worst of all, status as an ex-con brings with it a stigma that leads to general exclusion and a tendency toward recidivism. An increase in the number of people, who will be able to find gainful employment and provide for themselves and their families with pride, will benefit with society as a whole and improve general well-being. Because these people are not being strapped with conditions of parole or probation, subject to collateral sanctions and labeled as criminals in society, they will be able to become productive citizens, contributing to the recovery our economy and society rather acting as a burden upon it.