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Proposed portion of cannabis tax revenue a concern for WNY county leaders

'We're asking state legislative leaders to establish a balance,' Dutchess County Executive Marc Molinaro said on Thursday.

BUFFALO, N.Y. — Additional costs that could be created by New York's imminent recreational marijuana program are a concern for county leaders.

"We're asking state legislative leaders to establish a balance," Dutchess County Executive Marc Molinaro (R) said on Thursday.

The legislation has not been finalized, but Molinaro, who also serves as President of the NYS Association of County Executives, says the rumored 1% of total tax revenue would not be enough.

"[Counties] are going to be responsible for new services, new support, and really important support so getting more revenue to offset that expense is key," Molinaro said.

Programs for substance use and mental health are largely funded at the county level, the same for public safety. Molinaro expects once legalization takes effect in 2023 (18 months or 2 years) these programs could see cost increases.

Assembly Majority Leader Crystal Peoples-Stokes (D) told 2 On Your Side on Wednesday that she had hoped to have the legislation in hand by Thursday night, but a source in the state senate says details are still being worked out.

That includes the cut of tax revenue for county and local governments.

Molinaro said the 1% of revenue is part of a larger 4% that's shared with cities, towns, and villages. Those municipalities would receive 3% of tax revenue.

The Governor's Office has projected the state cannabis market could yield as much as $350 million in tax revenue. However, other studies have cut that projection to $160 million in the first few years and ramp up from there.

With those projections, even small tweaks to the percentages could mean thousands more or less for counties.

Under the state's shared services initiative, counties also already share their tax revenue in different ways, Molinaro said, so if counties were given a larger percentage, smaller municipalities would likely benefit in the end anyways.

"We think at least the revenue ongoing should come to the level of government responsible for providing those services and we will continue to coordinate effectively with local governments," Molinaro said.

A spokesperson for Erie County Executive Mark Poloncarz told 2 On Your Side he shares in Molinaro's concerns and would like to see the proposed 1% increased before the legislation is signed into law.

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