MEDICAL POT COULD EASE PAIN OF LOCAL FISCAL CRISIS

Our local public officials shouldn't say another word about how tough
things are until they get real about medical-marijuana
dispensaries.

Instead of pandering to the Just Say No crowd, the politicians should
allow patients to buy medical pot locally and help strained budgets by
getting a local cut of the sales tax.

Nor should the revenue stream end there. Cities also could place
measures on the November ballot asking voters whether they want
special business taxes imposed on dispensaries.

And what if Proposition 19 is approved?

Forward-looking local governments could have something on the ballot
taxing recreational marijuana sales. This is allowed by the
initiative, which legalizes marijuana use for California adults 21 and
older and permits residential cultivation.

Medical marijuana is big. The state Board of Equalization estimates
that it collects $58 million to $105 million a year in sales taxes on
medical marijuana. The reason for the broad estimate is that
dispensaries aren't required to identify what they sell.

But even if collections are at the low end, Fresno is missing out on
money that could help its public-safety agencies, maintain parks and
keep pools open for kids during summer.

Some cities have figured this out. Others are contemplating what Prop.
19 may bring.

Oakland voters put a 1.8% tax on dispensaries last year. Sacramento is
seeking a 2% tax on medical-marijuana sales and 5% on potential
recreational pot sellers in November. The city estimates the
dispensary tax would raise $300,000 to $500,000 a year on top of its
sales tax slice. Berkeley wants to levy a 2.5% dispensary tax and a
10% tax on recreational sales.

San Jose and Long Beach are considering similar proposals. Rancho
Cordova, which has banned dispensaries, is looking into a retail tax,
as well as a tax on home-grown pot in preparation for Prop. 19.

Regardless of what happens with the initiative, a smarter approach to
medical marijuana is needed locally.

Fresno -- county and city -- should figure out how many dispensaries
to allow, where they should go and what hours they should be open.

All dispensaries should be required to adhere to guidelines issued by
Attorney General Jerry Brown in 2008.

For many years, the city and county simply pretended that voters
didn't legalize medical marijuana in 1996. Some dispensaries finally
opened, and City Hall decided to shut them down -- even as it was
issuing businesses licenses and congratulating collectives for
locating in Fresno.

The ban -- based on a zoning ordinance requiring businesses to comply
with state and federal law -- predictably pushed dispensaries into
unincorporated county areas.

Last week, the Board of Supervisors passed a dispensary
moratorium.

It was the right thing to do. We don't need a dispensary on every
corner. We don't need shady operators. We need prudent regulation that
helps local patients and general funds.

Don't expect City Hall to budge from its anti-medical marijuana,
anti-improved cash flow stance.

It would rather lay off more folks and finance more long-term debt
than let a cancer patient toke on a pain-relieving joint.

But the county has a chance to get it right.