The City of Hillsdale has not legalized marijuana. Courtesy | Wikimedia Commons
Governments in Hillsdale County are receiving nearly $1 million in state tax revenue from marijuana sales in 2023, according to County Commissioner Doug Ingles.
“It is a significant number of dollars, so has a big impact helping to create funding in many departments,” Ingles said.
Of the $945,381 distributed, the county government received half – or $472,690 – in state marijuana revenue because it has eight licensed dispensaries, according to Ingles. Three localities in the county split the other half, as Jefferson Township received $59,086 with one dispensary, the City of Reading received $177,259 with three dispensaries, and the Village of Camden received $236,345 with four dispensaries.
The state paid each local government in the county $59,086 in marijuana revenue per licensed dispensary, according to County Commissioner Brent Leininger. The Michigan Department of Treasury announced it would begin distributing $87 million to localities statewide the week of Feb. 29.
Since 2020, the state has paid the county increasing amounts totaling more than $1.2 million, according to Ingles. The money this year was not dedicated to anything specific, so it will help fund various county departments after the budgeting process.
“Those funds are included as revenue in the county general fund and are used by the county to meet current financial obligations,” Leininger said. “This has been deemed the best use of these funds.”
Camden Clerk Robin Vasko said the state marijuana revenue accounts for more of the village’s funding than anything else “by far.” She said the money would go toward funding infrastructure.
Localities, not the county commissioners, decide on whether to allow marijuana dispensaries.
“I will say that there is an element of crime that follows these types of establishments,” Leininger said.
City of Hillsdale Mayor Adam Stockford said the city did not receive money because it opted out of Michigan’s marijuana legalization in 2018. He said allowing dispensaries simply because the state promises funding would be a “slap in the face” to residents.
“I’m sure the money is nice for the townships who receive it, but it’s not elected officials’ jobs to tell their constituents that we know best; it’s our job to represent their wishes,” Stockford said. “At this time I would not be in favor of allowing dispensaries in the city.”
Stockford said Hillsdale could take advantage of many revenue-generating businesses, but cited economist Thomas Sowell to say nothing comes without drawbacks.
“There’s no solutions in government policy,” Stockford said, “only trade-offs.”