Key Takeaways from the November 29 JLARC Meeting

The Joint Legislative Audit and Review Committee met on November 29, 2023. Here's what you should know:

Report presented: Dedicated Cannabis Account Appropriations and Expenditures

KEY POINTS

• The Account was created with passage of Initiative 502, which legalized recreational cannabis. It is primarily funded with excise tax revenue from retail cannabis sales.
• State and local agencies spent $3.3 billion from the Dedicated Cannabis Account between fiscal years 2015 and 2023. Spending was consistent with legislative direction.
• The state spent 54% on health care for low-income children. Another 12% was spent on cannabis-specific activities such as market regulation and prevention, education, and treatment. The remaining 34% went to the state general fund and local governments. Details by agency and year are available in the report.
• While no entity is responsible for reporting how the funds are spent, the Liquor and Cannabis Board (LCB) has made information about revenues and major distributions available.
• Opportunities exist to improve financial transparency.

JLARC members asked about health care expenditures, local government distributions, comparisons to other states, and funding for social equity programs.

LEARN MORE

• Study lead: Melanie Stidham
• View the full report here.
• Additional materials: One-page overview, 2 minute video, presentation

Committee voted to distribute six tax preference reviews

JLARC staff presented the proposed final reports for reviews of tax preferences for transportation, rural job creation, and more. The committee initially heard the reports in July.

• Each includes a Legislative Auditor recommendation to the Legislature.
• The Citizen Commission for Performance Measurement of Tax Preference endorsed the Legislative Auditor’s recommendation for all six reviews.

Commission Chair Dr. Grant Forsyth discussed the Commission’s comments and the public testimony it received. Member questions explored the impact of interstate transportation preferences on job creation and where the preference for historic properties was used.

LEARN MORE

• Download a one-page overview of the preferences
• Read the studies:

1. Interstate transportation
2. Rural county and CEZ new jobs
3. International services
4. Pesticides sold out of state
5. Historic ships and vessels
6. Rehabilitated historic properties

January meeting will feature reports on public records and farmworker programs

JLARC will meet on Thursday, January 4, 2024, to hear these reports:

• Public records data collection - briefing report
• ESD administration of the H-2A temporary worker visa program – preliminary report
• Pesticide safety programs to protect farmworkers – preliminary report

View the status of all upcoming studies here.

Find upcoming meetings and more information about JLARC here.

Sincerely,

Eric Thomas
Legislative Auditor (he/him)
Joint Legislative Audit and Review Committee, WA State Legislature
(360) 786-5182 | eric.thomas@leg.wa.gov | www.jlarc.leg.wa.gov

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