Medical marijuana has created Erie jobs. Is recreational use next for Pennsylvania? (2024)

Pennsylvania's history with legalized marijuana is not a long one.

It's been a little over fouryears since Gov. Tom Wolf signed legislationlegalizing medical marijuana. And just 30 months have passed since dispensaries began selling products to patients with medical marijuana cards.

But in that brief time, dispensary sales in Pennsylvania have topped $1 billion and the number of approved patients has surpassed 300,000.

During that time, the fledgling industry has taken root in Erie, which is home to both a dispensary and a grower-processor facility.

"Business is booming. We have seen steady sales even during COVID," said Laura Guncheon, vice president of Erie Management Group, owner of Calypso Enterprises, which grows and processes marijuana at a facility on Downing Avenue on Erie's east side.

"This industry is the fastest-growing industry across the United States," she said. "It is unheard of for a business to start and almost instantly be profitable and almost instantly be considering expansion."

But that's exactly where Calypso finds itself.

The company, which has 90 employees in Erie, is completing a 50,000-square-foot expansion, essentially doubling the size of its facility. The completion of the project will allow the company to add an additional 60 employees.

Guncheon describes the positions as family-sustaining jobs that offer 401(k) plans and health insurance.

More:Erie’s new medical marijuana site has research ties

Rise Erie, which operates a dispensary at 2108 W. Eighth St., has seen sales grow throughout the pandemic, said Tim Hawkins, vice president of retail operations at parent company Green Thumb Industries, which operates 50 dispensaries across the United States.

The company expects to open another local dispensary in January in Summit Township, doubling local employment to about 40.

In short, medical marijuana is shaping up to be an economic force, both in Erie and across the state.

The next step?

There is a growing moveafoot, however, that could disrupt the status quo in the commonwealth, whereGov. Gifford Pinchot outlawed marijuana in 1933.

Wolf, who legalized medical marijuana, has indicated a desire to take the next step by legalizing recreational use for those age 21 or older.

Lt. Gov. John Fetterman, who visited all 67 Pennsylvania counties in 2019 to discuss the possible legalization of recreational marijuana, has emerged as a vocal advocate for the cause.

Fetterman, who has made extensive use of social media to make the case for legalization, talked last week to the Erie Times-News.

He offers a laundry list of reasons to legalize,including jobs, a benefit to farmers, social justice and tax revenue.

He thinks the public is ready, saying "support is at almost 70%."

The growing number of states that already have legalized recreational marijuana has many believing that Pennsylvania will eventuallydo the same.

Voters in the border state of New Jersey voted in the Nov. 3 election to legalize cannabis.

"It's inevitable that New York is going to go to," Fetterman said. "(Gov. Andrew) Cuomo is on record saying we are going to do it this year. When New York drops, how long is it going to take for people from Erie to get to New York?"

Fetterman argues that marijuana legalization has become a mainstream issue that's become a reality in places like Arizona and South Dakota.

"These aren't just a bunch of hippy-dippy states," he said."South Dakota is arguably the most conservative state in America. If you are to the right of South Dakota (politically), that would be enough to say, 'We should take a look at this.' "

Fetterman said there are misconceptions about his support for legalizing marijuana.

"There is this idea that if you are for legal weed you somehow want to let your 16-year-old kid smoke it. I don't want my kid smoking weed any more than I want them drinking Jack Daniels," Fetterman said. "It's part of a basket of things that we as a society allow adults to partake in."

Fetterman sees cost savings and social justice benefits to decriminalizing marihuana.

"It breaks my heart to know there are tens of thousands of people whose lives have been harmed over some stupid weed conviction 10 to 15 years ago," he said.

Financial benefits

A change in the law could also mean a financial benefit to Erie, said Guncheon, who called an additional expansion "a distinct possibility."

"Calypso has an Erie-first mentality," she said. "All of our design projects, ourcontractors for the expansion and themajority of our employees come from Erie. We did that on purpose."

Some advocates are stressing the potential to boost the state's budget at a difficult time. The state Auditor General's Office has estimated annual tax revenues of up to $518 million.

"Let's take half of that," Fetterman said. "Over 20 years, that is $5 billion in free money. Pennsylvania already has a thriving weed market. It's just a black market. That money is not going to fix our roads or impact our schools."

The concept of legalizing marijuana already has the support of most Democrats, Fetterman said.

But he acknowledged they can't do it alone, especially when Republicans control both the House and the Senate.

"It's going to take a couple of courageous Republicans to speak the truth, and they know it's the truth," Fetterman said.

Reluctant support

Sen. Dan Laughlin,of Millcreek Township, R-49th Dist., might fit Fetterman's description. He's expressed for months a willingness to consider the right legislation to legalize.

Laughlindoesn't count himself as an enthusiastic supporter.

But he sees the writing on the wall at a time when 12 states have legalized recreational use and President-Elect Joe Biden is said to be considering decriminalization.

"I'm not a fan," he said. "I view it as my responsibility to work on this legislation because we know it's coming."

In Laughlin's view, that means crafting legislation that will keep marijuana out of the hands of those under 21 and working to ensure how best to tax it and ensure that the marijuana on the market isn't too strong.

Laughlin said a desire to bolster the state budget shouldn't be a key consideration, especially after additional social costs associated with legal marijuana are taken into account.

"I also find it extremely insulting when I hear other elected officials talk about legalizing recreational marijuana, and the first words you hear are about the revenue," Laughlin said in a written statement given to the Erie Times-News. "Revenue should not even be part of the discussion; revenue is the same reason the average street level drug dealer is selling it. We as a state should be better than that."

But revenues produced by taxes on recreational marijuana will inevitably be a factor in this debate.

And there is adifference between medical marijuana— taxed minimally, with growers paying a 5% tax on product sold to dispensaries — and recreational marijuana, which is taxed at 40% or higher in some locations.

On top of the tax revenue, Hawkins said employment would increase substantially.

"The job number that has already been created in Pennsylvania is impressive," he said. "Now, they need to look at it and say, are we ready to take that number and (multiply) it bytwo or three times?"

Those potential financial benefits seem to be just another factor driving what Hawkins and many others see as a sense of inevitability.

He said it's up tolawmakers in Harrisburg "to find a bill that works for all."

Timing of that legislation remains uncertain.

"We don't know the details and we don't know the timing, but it will happen," Hawkins said. "It's a matter of when."

Contact Jim Martin at jmartin@timesnews.com. Follow him on Twitter at@ETNmartin.