“A New Revenue Source for Mass Transit: Legalizing and Taxing Cannabis”

The title of this post is the title of this notable report authored by the Rudin Center for Transportation Policy and Management at NYU.  Here is part of its introduction:

The centrality of the subways to the life of New York is the very reason why the public is alarmed about the condition of mass transit.  The Citizens Budget Commission has systematically analyzed the failure of the Metropolitan Transportation Authority (MTA) to maintain a state of good repair and the need for fundamental reform of the MTA’s capital spending processes.  A new plan, “Fast Forward,” has been proposed to improve accessibility, deploy new technologies, update signals, and acquire 21st century subway cars.

Clearly, increased fares and congestion pricing are insufficient to deal with the long-term financial needs of the subway system.  This report argues that the subways need a dedicated revenue source with the potential for growth in future decades — one that does not divert funds from other public services, and that has yet to be tapped by the state and local government.  The legalization of recreational cannabis offers New York State a unique opportunity to generate a new revenue stream dedicated to mass transit.