In addressing diminished revenues as a result of the COVID-19 pandemic—aka Crisis Classic—Gov. Gavin Newsom said California has adjusted projections based on the idea that government-regulated cannabis’ downturn distress will be worse than alcohol’s and tobacco’s.
Los Angeles Times
- “While similar products like alcohol and tobacco tend to be recession-resistant, the forecast assumes that cannabis businesses will be more negatively impacted by the COVID-19 pandemic,” according to the budget. “Cannabis businesses have less access to banking services that could provide liquidity, have a younger consumer base likely to be disproportionately affected by the COVID-19 recession, and still must contend with competition from the black market.”
- Newsom revised his excise tax projections to $479M for this year and $590M for the fiscal year beginning on the first of July to $443M this year and a decline to $435M next year.
- For comparison purposes, bookmark these numbers.