A new kind of green is finding its ways into the coffers of Arizona's community colleges.
Arizona's legalization of recreational marijuana has significantly impacted the state's community colleges, with Pima Community College being a primary beneficiary.
In 2023, PCC received $6.7 million from marijuana tax revenue, during a year the state saw nearly $1.4 billion in sales. In 2024, officials expect close to $7 million.
David Bea, Executive Vice Chancellor for Finance and Administration at PCC, highlighted the importance of these funds, especially given the drastic reduction in state aid.
“Back in fiscal year '08, we were receiving about $23 million of state aid. We now get less than $2 million of state aid,” Bea said. The decline in state funding has made marijuana tax dollars crucial for the college's operations.
State law mandates that a third of the marijuana tax revenue goes to community colleges, specifically for workforce training and STEM programs.
At PCC, those funds have been invested in various workforce training initiatives.
“We’ve built an automotive training facility, state-of-the-art automotive training goes there. The advanced manufacturing building is the most recent to be completed,” Bea said.
The new facilities include a 50,000-square-foot Automotive Technology Center, which represents a significant upgrade from the previous 10,000-square-foot space.
The tax revenue has also supported PCC’s aviation programs at the campus near the airport and renovations in the allied health programs at the West Campus.
Without these funds, many projects would be more challenging, particularly in acquiring expensive equipment necessary for training.
"It’s really important for us to get a new stream of revenue that’s constant each year so that we can replace that equipment,” Bea added.
The distribution of marijuana tax revenue is based on a formula that considers the number of students each college serves.
PCC, serving a larger student population than all but the Maricopa Community College District, receives about 12% of the total funds allocated to community colleges.
The recreational marijuana tax revenue has provided a stable funding source that allows PCC to continue developing and enhancing its workforce training programs, ensuring students are well-prepared for the job market.
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Eddie Celaya is a multimedia journalist at KGUN 9. Born in Tucson and raised in the Phoenix area, Eddie is a life-long Arizonan and graduate of the University of Arizona who loves the desert and mountains and hates the cold. Previously, Eddie worked in print media at the Arizona Daily Star. Share your story ideas with Eddie at edward.celaya@kgun9.com , or by connecting on Facebook or Instagram .
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