City can’t budget without pot numbers, Iveson says
Edmonton city council is antsy to reach an agreement with the province on how cannabis revenue will be filtered into municipalities.
“I’d like resolution on this question of cannabis revenue sharing … before the city does its next fouryear budget,” Mayor Don Iveson said Tuesday, adding that without a resolution by the end of the year, it would make the city ’s multi-year budgeting system “burdensomely difficult.”
He has repeatedly said property taxpayers shouldn’t be on the hook for policing costs or bylaw costs related to Alberta’s burgeoning cannabis industry. He estimated Edmonton faces $4.5 million annually in direct costs plus $5 million to $7 million in policing costs.
But Alberta Finance Minister Joe Ceci said it’s too soon to spell out what will happen with cannabis revenue as it trickles in.
Budget 2018 projected $26 million in cannabis tax revenue in 2018-19, growing to $99 million by 2020-21. That’s against a projected loss of $90 million over two years due to setup costs, until the net income jumps into the black in 2020-21 bringing in $37 million.
It means by 2019-20, the Alberta government will pull in a total profit of $33 million and that will increase to $136 million the following year. But there’s no word on how much of that will go to Edmonton or other cities.
“We’re so uncertain about what the revenues will be at this point, we know there will be lots of expenses,” Ceci said earlier this week. “Until we get a more clear understanding of what revenue streams from cannabis will be in the future, it’s problematic to agree on any sharing at this point.”
The federal government and provinces agreed to a 75-25 split on tax revenues from cannabis sales — one dollar per gram, or 10 per cent of the producer price, whichever is greater.
I’d like resolution on this question of cannabis revenue sharing … before the city does its next four-year budget.
Coun. Michael Walters echoed Iveson’s stance that the city needs to cover costs, which are set to ramp up in 2019.
“Until we have an in-earnest conversation … I will remain concerned,” Walter said. “We’ve never said we want to … make money from this.” Walters said the discussion on the issue should have happened “yesterday.”
“That’s a conversation we want to have with the province very quickly,” he said.
The Alberta Gaming, Liquor and Cannabis Commission (AGLC) still needs to confirm several key details around licensing and distribution, including the number of producers that will provide product to the agency, said director of policy and communications Angelle Sasseville.
“Until these key pieces have been finalized, the AGLC continues to refine cost estimates as we learn more about the business,” she said in an email.
On Tuesday, the AGLC launched its SellSafe Cannabis Staff Training program for those wanting to pursue a career in recreational cannabis. After completing the program, people can apply to the AGLC to become Qualified Cannabis Workers.