The Buzz Is off the Bud in Santa Barbara
County’s Cannabis Industry Generates $10 Million Less Than Projected
Santa Barbara’s cannabis industry generated $6.1 million in county revenues, roughly $10 million less than projected, according to a year-end financial report presented to the Board of Supervisors on Tuesday.
When all costs to county government are factored in — permitting, planning, enforcement — that’s a net gain of $1.5 million. If the costs of law enforcement are excluded — on the grounds that illegal operations are targeted for enforcement action, not the legal ones — it’s a net gain just north of $3 million. Either way, that’s a steep drop from two years ago, when cannabis generated more than $15 million in county revenues. Given that the county finished the fiscal year with a $27 million more in its coffers than budgeted, the poor performance by cannabis was easily absorbed.
Driving the drop in cannabis revenues has been a steady decline in prices due to overall overproduction. That drop, reportedly, is starting to reverse itself. Currently, there are two cannabis dispensaries operating within the county’s jurisdiction, and two to three are expected to open up sometime in the next year.
