Cannabis Control Board seeks larger state appropriation to cover lab startup and staffing
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Summary
The Cannabis Control Board told the Senate Appropriations Committee Jan. 30 that a newly activated testing lab and expanded operating needs push its FY27 budget request above prior years, asking roughly two-thirds from the general fund and about $2.5 million from the cannabis regulations fund.
The Cannabis Control Board on Jan. 30 asked the Senate Appropriations Committee for increased state funding to support a new testing laboratory and expanded operating costs.
Executive Director (Cannabis Control Board) told the committee the board expects about one-third of its operating budget to be covered by fees and penalties collected from the regulated market and the remainder to come from the general fund: “We usually collect up to $2,600,000 in fees and revenue… and our budget, as you'll see, is around $10,000,000,” the executive director said. The board also expects about $2.5 million to come from the cannabis regulations fund, a special fund tracked separately from the general fund.
The presentation laid out seven core principles guiding board work — including social equity, environmental stewardship, consumer protection and support for the medical cannabis program — and described recent revenue and forecast trends. The board said updated forecasts project excise-tax revenue for the coming fiscal year; the presenter cited a figure in the slide packet for FY27 and said the revenue forecast was updated in January.
Board officials emphasized the laboratory as the primary driver of the year-over-year budget increase. The lab was described as newly licensed and staffed, with equipment in place and a goal of becoming fully operational by the summer. The board requested funds for recurring subscriptions and maintenance, proficiency testing, waste removal contracts and consumables necessary to run the lab.
On staffing, the board said it currently employs five exempt positions (including the chair, executive director and general counsel), 16 staff dedicated to licensing, compliance and the medical program, four business/data/outreach staff and three lab staff, for roughly 20 full-time positions.
Committee members asked whether fee schedules could be raised to cover more costs. The executive director replied that earlier fee-setting intentionally aimed to keep fees below full cost to encourage market entry, and said the Joint Fiscal Office evaluated alternative fee proposals and found that even high fees would likely not fully fund the board given market conditions and entry dynamics.
The board described enforcement and inspection work as a mix of announced and unannounced visits and said compliance staff are cross-trained from agriculture and health backgrounds to cover technical inspection needs. The board is working with consultants to develop key performance indicators and supply/demand analyses to inform future rulemaking and budget planning.
Committee members thanked the board for the presentation and closed the cannabis-related discussion before moving to the auditor's office budget request.
What’s next: The committee did not take formal action during the hearing; the board’s request will be considered as part of the committee’s budget work in the coming week.