Gov. Ned Lamont’s biennial budget proposal unveiled Wednesday has several implications for the state’s new legal cannabis industry, from funding community reinvestment efforts to prevention campaigns and recovery programs.
Lamont’s two-year, $50.5 billion budget proposal includes several allocations related to cannabis, including specific appropriations to:
- The Cannabis Social Equity and Innovation Fund: $5.8 million in fiscal 2024 and $10.2 million in fiscal 2025. This money will support the Social Equity Council’s funded positions and functions, including community reinvestment efforts.
- The Cannabis Prevention and Recovery Services Fund: $2.4 million in fiscal 2024 and $3.4 million in fiscal 2025. This money will go to fund three positions and for media campaigns, secret shopper programs, and grants to local prevention organizations.
In total, Lamont’s proposal would utilize $10.1 million in fiscal 2024 and $10.3 million in fiscal 2025 in the General and Special Transportation funds for 10 state agencies to regulate and administer the adult-use cannabis market.
The governor’s proposal also repeals the recent expansion of the state’s angel investor tax credit program that benefits those who invest at least $25,000 in a qualified cannabis business. This would save the state $27.5 million over the next two fiscal years combined.
Lamont said the expansion is no longer needed “given the overwhelming interest in entities seeking to be part of the cannabis market.” Through the program, investors are eligible for a 40% income tax credit for investments in cannabis firms.
A CT Mirror report is used in this story.
