New Analysis by Fiscal Experts Says Prop 64 Will Generate Almost $1 Billion for State & Local Govts

New Revenue Will Fund Youth Education, Substance Abuse Prevention and Treatment, Law Enforcement Training and Environmental Protection; 64 Will Also Save Taxpayers Up to $100 Million in Reduced Criminal Justice Costs

SACRAMENTO, CA—A new report released today by state fiscal experts at Blue Sky Consulting Group projects that Proposition 64, the Adult Use of Marijuana Act, will generate almost $1 Billion in new, increased state and local revenue annually when fully implemented.

The report, commissioned by the Yes on Proposition 64 campaign, provides the most comprehensive and detailed analysis yet of the new revenue and savings the measure is expected to generate. 
“This expert fiscal report paints the clearest picture yet of both the vast savings and revenue benefits that Proposition 64 will bring to California,” said Jason Kinney, Spokesperson for Proposition 64.  “Proposition 64 creates a safe, legal and regulated system that not only saves state and local government millions of dollars by ending marijuana criminalization, but also funds previously underfunded programs to protect children, train and equip law enforcement, make our roads safer, and safeguard our water and environment.”
The report shows that by the fifth full fiscal year after implementation, nearly $1 Billion will be generated annually, including:

  • $733 million from two new marijuana taxes (Excise tax and Cultivation tax)
  • $309 million from the state’s pre-existing sales tax, personal income and corporate tax

The state would ultimately forgo $90 million in sales tax due to Proposition 64’s provisions excluding medical marijuana from sales tax – for a net increase of $952 million annually.
The report also projects the state will save up to $100 million a year on criminal justice costs by alleviating pressure on local jails – where thousands of California are still incarcerated for non-violent marijuana-only crimes -- reducing the number of marijuana related arrests and reduced court costs.
Proposition 64 pays for itself by requiring revenue generated by the measure be reserved for costs related to administering the new law.  All remaining revenue would be allocated as follows:

  • $374 million to the California Department of Health Care Services to fund youth education, health and prevention programs;
  • $125 million for the California Department of Fish and Wildlife and Parks and Recreation to mitigate environmental impacts of illegal marijuana cultivation; AND
  • $125 million for state and local law enforcement including funding for training to further the detection, apprehension and prosecution of impaired drivers.

A full copy of the report is available here:
The following California newspapers have endorsed Proposition 64:

  • Los Angeles Times (article)
  • San Diego Union Tribune
  • San Francisco Chronicle (article)
  • San Jose Mercury News (article)
  • East Bay Times (formerly Contra Costa Times and the Oakland Tribune) (article)
  • Modesto Bee (article)
  • Los Angeles Daily News (article)
  • Santa Cruz Sentinel (article)
  • Orange County Register (article)
  • Riverside Press-Enterprise (article)
  • Daily Breeze (article)
  • Inland Valley Daily Bulletin (article)
  • Long Beach Press Telegram (article)
  • Pasadena Star News (article)
  • Redlands Daily Facts (article)
  • San Bernardino Sun (article)
  • San Gabriel Valley Tribune (article)
  • Whittier Daily News (article)

You can learn more about Proposition 64 here and view our advertisements at
these links: 
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Other endorsers include: California League of Conservation Voters, California Council of Land Trusts, California State NAACP, California Democratic Party, Courage Campaign, Equality California, Law Enforcement Against Prohibition, National Latino Officers Association, William C. Velasquez Institute and United Food and Commercial Workers Western States Council.
Current and former elected officials in support include Lieutenant Governor Gavin Newsom, Sacramento Mayor-elect Darrell Steinberg, Democratic U.S. Reps. Ted Lieu and Jared Huffman, Republican U.S. Reps Dana Rohrabacher and Tom McClintock, State Senator Mark Leno, Assembly Speaker Emeritus Toni G. Atkins, Assemblymembers Rob Bonta, David Chiu, Susan Eggman, Cristina Garcia, Reggie Jones-Sawyer, Kevin McCarty and Bill Quirk and Tom Campbell, the former Republican Congressman and Finance Director for the State of California.

Proposition 64 is a consensus measure based on recognized best practices and recommendations from hundreds of engaged citizens and organizations. It includes strong safeguards for children, workers, local governments and small businesses and strict anti-monopoly provisions and the toughest warning label and marketing-to-kids laws in the nation.