Photo Courtesy of Comptroller Stringer’s Office
“As we move towards creating a legal market that will generate billions of dollars, we have to ensure that we correct historic injustices and backwards policies of the past,” Comptroller Stringer said.
By Forum Staff
If the State were to “legalize it,” new marijuana revenues need to go to the communities most impacted by cannabis enforcement, a new report released on Thursday by City Comptroller Scott Stringer suggests.
“Addressing the Harms of Prohibition: What NYC can do to Support an Equitable Cannabis Industry,” revealed disparities in marijuana enforcement across not only racial and ethnic but also socioeconomic lines; city neighborhoods with the highest marijuana-related arrest rates have lower incomes, higher unemployment, lower credit scores, and lower rates of home ownership, according to Stringer’s analysis.
With the Empire State moving closer to a legal marijuana market, Stringer is calling for City and State leaders to develop a robust cannabis equity program, directing capital and technical assistance to impacted communities interested in participating in the adult-use industry. An analysis done by the Stringer’s office in May estimated the cannabis market could result in $336 million in annual tax revenue for NYC, on top of $436 million for the State.
Report findings include:
• Seven of the 10 neighborhoods in the city with the lowest median household incomes fall among the top 10 for marijuana-related arrest rates and account for more than one-third (34.3 percent) of all such arrests. The 10 neighborhoods with the highest median household income account for only one-tenth (11 percent) of all arrests;
• In four of the five highest-ranking neighborhoods by arrest rate, the unemployment rate exceeds 10 percent; citywide, the unemployment rate is half that (5.2 percent);
• Among the 10 highest-ranking neighborhoods, roughly one in 10 homes are owner-occupied (homeownership rate of 11.4 percent), compared to one in two homes among the 10 lowest-ranking neighborhoods (51.5 percent); and
• The marijuana-related arrest rate tracks closely with credit score, with Brownsville, Brooklyn having both the highest arrest rate and lowest median credit score (598) in the five boroughs.
The comptroller made several recommendations to the State should it consider developing an adult-use cannabis program:
• Invest tax revenue in impacted communities: A portion of the tax revenue generated by legalization should be awarded on a competitive basis to localities and community-based organizations working in neighborhoods with the highest proportion of marijuana-related arrests and that meet other criteria, such as high rates of unemployment and a demonstrated need for mental health or substance use treatment.
• Adopt inclusive licensee eligibility requirements: Any legislation that seeks to create an adult-use marijuana program should include explicit equity provisions so that the adult-use market reflects the communities most impacted by prohibition.
• Establish a NYC cannabis equity program: The City should create a citywide equity program that would function as an incubator hub for local entrepreneurs interested in participating in the new adult-use marijuana industry.
“This report shows that the City has long targeted communities that are among the most economically insecure, resulting in damaged credit, loss of employment, housing, and more,” Stringer added. “As we move towards creating a legal market that will generate billions of dollars, we have to ensure that we correct historic injustices and backwards policies of the past.”
