Public education needs a new source of tax revenue: legalize marijuana and impose a ‘sin tax’ dedicated to support of public education

Mary Jo Pitzl and Yvonne Wingett Sanchez of the Arizona Republic framed the issue in their report on Sunday Plans for Arizona school funding short on details this way:

Both Doug Ducey and Fred DuVal talk a lot about education as they campaign for governor. But neither has a long-range plan to deal with the funding crisis facing Arizona’s K-12 system.

The funding crisis facing Arizona’s K-12 system is due to a structural tax revenue deficit directly resulting from 22 years of GOP tax cuts that cannot be undone by a simple majority of vote of the Arizona legislature thanks to Prop. 108 (1992), Ariz. Const. Article IX, which requires a two-thirds vote of the legislature for passage and three-fourths vote to override a governor’s veto of any legislation that would provide a net increase in state revenues through certain changes in taxes, tax rates, tax deductions, fees or assessments, or that results in a reduction or elimination of a tax deduction, exemption, exclusion, credit or other tax exemption feature in computing tax liability.

But the voters can and have approved new tax revenues by citizen initiative over the past 22 years. And there is one citizen initiative that, if it is drafted properly to provide a dedicated tax revenue stream to support public education, could provide the much needed boost in education funding. Marijuana advocates kick off 2016 initiative:

Supporters of an effort to legalize recreational marijuana in 2016 have filed paperwork with state elections officials, allowing them to raise money to campaign for the citizens initiative.

The Marijuana Policy Project of Arizona initiative almost certainly will be modeled after the voter-approved marijuana program in Colorado. For about a year, Colorado has allowed adults 21 and older to use and possess up to an ounce of pot, which is purchased at one of the many marijuana shops that are allowed under the law.

Andrew Myers, who is affiliated with the initiative, said the group will bring together a “diverse coalition” to help draft the initiative’s language, adding that marijuana advocates are closely watching Colorado’s program to determine what should be replicated in Arizona — and what should be avoided.

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Representatives of the Washington, D.C.-based Marijuana Policy Project, which advocates for marijuana legalization and regulation, said it will pursue full legalization in Arizona in 2016 because of marijuana-legalization efforts are more successful during presidential elections, which draw more voters to the polls.

David Aitkins writes at the Political Animal Blog, If you want to raise revenue, look to CO and WA:

It’s almost as if legalization were a no brainer:

If a pair of new government forecasts prove true, Washington and Colorado would see more than $800 million in extra revenue over the next few years thanks to marijuana sales. At the least. The estimates, both released in recent days, differ greatly in what they predict and over what time period. But together they show that the plant, now legal to purchase in both states, could generate at least $811.2 million for the trailblazing states before 2020. Washington can expect $637 million by 2019, while Colorado can expect $174.5 million through the fiscal year that ends in 2017, according to state estimates. Such estimates are, of course, difficult to make as there is no precedence for what is being forecast: Marijuana for recreational use has never before been sold legally.

And that doesn’t even get into the cost savings from avoiding socially destructive jail time for the “offense” of marijuana possession.

 A “sin tax” on marijuana, like we do for tobacco and alcohol, to provide a dedicated tax revenue stream to support public education on the front end, and budget savings realized for reduced law enforcement and prison incarceration costs on the back end, is a policy solution that should be given serious consideration.