02-12-2025
Ohio cities could lose out on money from recreational marijuana under competing plans from Gov. Mike DeWine and state lawmakers to revamp the program.
DeWine unveiled his 2026-2027 budget proposal last week, kickstarting negotiations over the state's spending plan for the next two fiscal years. The governor pitched a higher tax on adult-use cannabis to pay for police training, jail construction, the 988 suicide lifeline and a new program to expunge certain marijuana convictions.
What's not included: A fund for municipalities that voters approved in 2023 as part of the recreational marijuana law.
Now, some local officials are wondering how to cover services without an infusion of cash from dispensaries. And absent the promise of extra revenue, they may pull the plug on recreational marijuana sales altogether.
"We never would have allowed (recreational) marijuana in our community if there was not a local host sharing agreement," said David Kubicki, president of the Columbia Township trustees in Hamilton County. "That's why we did it. ... We truly feel like we got bait-and-switched."
How does DeWine want to spend marijuana revenue?
Ohio divides marijuana revenue into four different funds: 36% for municipalities with dispensaries, 36% for a social equity and jobs program, 25% for substance use services and 3% for administrative costs. Local governments can ban recreational marijuana sales − and dozens have − but that also means they don't get money from the program.
DeWine isn't the only one eyeing major changes to the voter-backed marijuana law.
Senate Republicans introduced legislation last month that, like the governor's budget, would eliminate funding for municipalities and social equity. The Senate bill would increase the tax rate on adult-use marijuana from 10% to 15% and put money in the state's general revenue fund.
DeWine wants to tax products at 20%, with revenue going toward:
Jail construction and renovations (25%).
Peace officer training (16%).
988 crisis hotline and substance use education (14%).
Law enforcement training (14%).
Drivers education in schools (8%).
A program to expunge marijuana possession offenses (5%).
Grants for local drug task forces (5%).
The Ohio Investigative Unit, which handles cases involving tobacco, alcohol and food stamp fraud (4%).
Poison control and lab testing (4%).
Administrative costs (2.5%).
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"We all want more money to go back to local communities, but frankly, that was almost a lottery in the sense that some got money and some didn't get money," DeWine told reporters Monday. "It would've been nice to be able to do it, but we also have jails that need to be dealt with. We have police training."
A spokesperson for the Office of Budget and Management said local governments would still get a "significant portion" of the revenue under DeWine's proposal, such as money for police and task forces. But current law gives cities the freedom to decide where that money should go − and they want to keep that autonomy.
"Our people know where the needs are individually in each community," said Kent Scarrett, executive director of the Ohio Municipal League. "Each community is different. Each community has its own set of issues and circumstances."
How money could change Ohio's recreational marijuana program
Dispensaries have sold over $319 million in recreational marijuana products since sales launched last summer, according to the Division of Cannabis Control. Municipalities haven't received their share of the tax revenue yet, but money will be allocated in the upcoming state budget.
Local leaders have already planned for it. Kubicki said Columbia Township chose not to raise its waste collection levy in November because officials expected to have dispensary money. Anderson Township hopes to use an estimated $1.5 million annually from marijuana sales to extend a public safety levy and reduce the property tax burden on residents.
"It's dangled out there that if you allow this type of operation in our community, if you want this type of operation in your community, there will be revenue that comes to your community," Anderson Township Administrator Vicky Earhart said. "And then it's swept by the state."
Scarrett said some municipalities are threatening to cut off adult-use marijuana sales if they don't get money in return. He urged lawmakers to maintain existing revenue for host communities and use any additional funds from a tax increase on the state's pet projects.
"They need that revenue," state Sen. Casey Weinstein, D-Hudson, said. "It really is bad policy to override the will of the voters and take back promises that were made in law to these municipalities."
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