Will Cannabis Bail Out County in COVID-19 Crisis?
Santa Barbara County Supervisors Bank on $10 Million in Additional Tax Revenues
There were far more unknowns than knowns this week as the county supervisors contemplated just how big a hole the COVID crisis has blasted in their budget, but one number stood out and poked everyone in the eye. That’s the $10 million they’re banking on cannabis to generate in tax revenues over the coming year.
The supervisors have tentatively set aside $3 million of that to cover the cost of COVID-related expenses. Another $7 million would backfill other revenues — sales tax and bed taxes — that will be lost because of the economic violence inflicted by the virus and the state’s emergency shutdown in response to it.
Every year this time, the supervisors take a preliminary crack at the budget they are legally required to submit by June. This year’s exercise was uncertain in the extreme. “No one really has any idea how bad this thing is going to hurt,” said 5th District Supervisor Steve Lavagnino. By that, he meant that the supervisors don’t know yet how much the state or federal governments will provide — if anything — to the county to offset various losses and expenses incurred as a result of the virus.
