Provincial funds for pot policing ‘inadequate’
Nenshi warns city businesses could be burdened with additional fees, tax hikes
Calgary’s mayor says provincial funding to offset policing and regulatory costs once recreational cannabis becomes legal Wednesday is “woefully inadequate” and could force additional costs on city businesses.
Finance Minister Joe Ceci announced the Alberta government will provide $11.2 million over two years to help municipalities with more than 5,000 residents.
“We know much of the impacts of cannabis legalization will be felt locally,” Ceci said Monday at a news conference in Calgary.
“These grants are intended to provide short-term funding until we know the real-world impacts of cannabis legislation.”
The City of Calgary is to receive $3.84 million over the next two years. It has already spent $3.7 million ahead of legalization, Mayor Naheed Nenshi told reporters.
“What they have brought forward, with two days before legalization, when they ’ve known about this for months and months and months, is so woefully inadequate they may as well have done nothing,” he said.
Nenshi said the Alberta government stands to take in $136 million from cannabis sales, proceeds the federal government intended to be split among municipalities under a revenue-sharing program.
“Now, two days before legalization, one month before passing our budget, we’re told there ain’t no more money for you and we’re going to have to eat the operating costs, between eight and 13 million dollars a year,” the mayor said.
“They’ve clearly listened to no consultation, they took into account no facts and they pocketed all the money. This is pretty shocking.”
Nenshi said cannabis policing costs will have to be built into the city’s operating budget, possibly through additional business licence fees or tax increases.
Only 52 municipalities will be eligible for the grants, meaning
They’ve clearly listened to no consultation, they took into account no facts and they pocketed all the money.
hundreds of municipalities that will pay for regulation, enforcement and education won’t receive the funding, said Barry Morishita, president of the Alberta Urban Municipalities Association.
The association wants the province to give 70 per cent of the excise tax it collects on cannabis to municipalities to cover the frontline costs and provide $30 million to prepare for legalization.
The provincial government, which will receive 75 per cent of the excise tax on cannabis sales, expects to have a net loss during the first two years of legalization due to startup costs.
About 60 per cent of the cannabis transition funding will be available to municipalities this fiscal year, and the rest, the following year.
“This is a clear example of the provincial government hanging their municipal partners out to dry,” said Alberta Party MLA Karen McPherson.
The Alberta Gaming, Liquor and Cannabis Commission said 17 retail shops — including two in Calgary — have been approved to open with interim licences Wednesday. It expects another 250 locations will open within one year.