With failed and broken promises of success and prosperity for our communities, cannabis cultivation in Lake County is at a crossroads.

Recall in 2016, ballot Measure C proposed a tax on cannabis cultivation within our county. The measure promised a tax rate of “ … $1.00 per square foot of an outdoor cultivation site, $2.00 per square foot of a mixed-light cultivation site, and $3.00 per square foot of an indoor cultivation site, subject to annual Consumer Price Index increases, and generating annual revenue of approximately $8 million per average year …”

With these promises, on Nov. 8, 2016, Lake County voters overwhelmingly voted “Yes” on Measure C. So what has happened since then?

In 2018, the county approved a new cannabis ordinance, and the floodgates opened. Permits of all sizes were presented and approved by the Lake County Planning Department and the Planning Commission. Today, more than 150 approved cultivation projects are in Lake County, totaling over 20 million square feet. Based on Measure C’s rates, cannabis should provide over $24 million of annual tax revenue to help our communities.

But the county isn’t realizing $24 million in tax revenue — not even close. After 2020, the cannabis industry began spiraling relentlessly downward — not just in Lake County but statewide and nationwide. In an effort to support the failing industry, in 2022 the Board of Supervisors approved a temporary 50% cannabis tax cut and applied it to the smaller canopy area, further reducing anticipated revenues – this was extended through December 2025. Still, the county should be realizing about $11 million in cannabis tax revenue.

But the county isn’t receiving $11 million in cannabis tax revenue — again, not even close. At the Jan. 28 governance presentation to the Board of Supervisors, Lake County's Administrative Office reported 2023-24 cannabis tax revenue of $2,582,315 — a vast reduction from what was promised by Measure C. Equally concerning is that the expenditures to manage cannabis were $2,517,150 — a difference of barely $65,165.

Now we are at a crossroads. In the county treasurer’s Aug. 27, 2024 report to the Board of Supervisors, active cultivation is down 80%. Many growers opt out, scale back or abandon their sites altogether.

The dream of cannabis-funded success promised by Measure C is gone. As a community we need to be proactive and take a fact-based approach — are we better off placing our limited staff resources in more productive areas?

We request the Board of Supervisors hold a public meeting to address these financial discrepancies, look at the cannabis revenue generated versus the expenses and determine if the county is receiving the return on investment the voters expected.

Also, as 70% of the permits in Lake County are for small cannabis growers — many struggling to make it work — we request a robust discussion on how to restore their prosperity. With another 100 pending small and large cannabis applications in the queue, does the county run the risk of dooming these remaining growers to failure?

Lake County Community Action Project’s founding members are Peter Luchetti, Angela Amaral, Jesse Cude, Holly Harris, Margaux Kambara, Tom Lajcik, Chuck Lamb and Monica Rosenthal.