09 May 2017

Crime, homelessness, economics, & the politics of cannabis

Local policy makers are touting the economic benefits of commercial cannabis cultivation as a meansNational Public Radio’s Central California affiliate, a one-acre grow operation could bring in $19 million a year![1] While profits vary, jobs in the 420-industry, such as bud trimmer earn $12-13 an hour, according to Forbes. The grow master or cultivator can expect to earn $100,000+ per year.[2] to replenish depleted coffers. Looking at the numbers, it is hard to deny their claims. According to a report by

Colorado’s Amendment 64 was passed by the voters in November 2012; and the commercial sale of marijuana to adults, 21 years of age and over, for recreational use began on January 1, 2014.[3] This date is important, because in the March 15, 2017 issue of the Grand Junction Daily Sentinel, it was reported that property crimes and all crimes reported saw a major increase from 2014 onwards. While violent crimes declined in the year 2014, thereafter, violent crimes have also seen a significant increase.[4]

One hypothesis is that crime and homeless have increased in Colorado since the legalisation of recreational marijuana.

The Sentinel article quotes Grand Junction Police Chief, John Camper, as saying, “I talk to police chiefs throughout the state and they’re seeing the same thing that we’re seeing – a level of violence that we haven’t seen before,” noting that it’s hard to pinpoint the reason for the rise.[5] Chief Camper is quoted later in the article as saying increases in property crimes are “often an indication of an increase in drug activity.”[6]

From 2014 to 2016, School District 51 students, who are broadly identified as homelessness, soared nearly 55% from 388 to 600, according to a Daily Sentinel article at the time.[7]

The 2016 Housing and Urban Development Report on Homelessness, reports that “Between 2015 and 2016, the number of individuals experiencing homelessness increased in 22 states. The largest absolute increases were in California (4,504 people), Washington (1,374 people), and Colorado (721 people).” [8] Percentwise, this was 13 points up from the previous year and represented a reversal of the trend which showed homelessness slightly declining over the past decade.[9]

In privileged conversations, some Western Colorado policymakers have expressed to this author their belief that the legalisation of recreational cannabis has led to an increase in crime and homelessness.

Looking at the numbers state-wide, the Colorado Bureau of Investigation reports that all major crime classes have increased 6.20% since the beginning of 2014.[10] Between 2013 and 2014, crime actually decreased by one percent. Looking at the aggregate picture of crime in Colorado for the decade 2005 to 2015, crime generally was decreasing annually until 2012.[11]

Comparing these state-wide numbers with more pronounced local findings, there does suggest a slight correlation between increased crime and legalisation of recreational cannabis. More data and in-depth analysis will be required to know for sure, but certainly those who have expressed concern are not without merits.

The Financial Crisis 2007-08, sparked by the subprime mortgage market and excessive global barrowing and risk taking, had major ramifications at the local level. By 2009, Colorado hit the high-water mark with 46,394 home foreclosure filings.[12] Smaller jurisdictions, such as Delta County saw their worst numbers in 2010, with 264 foreclosure filings.[13]

In 2009, a small group of Delta citizens, from various churches, concerned by seeing homeless people lingering around town, organized to start a homeless shelter. As the Financial Crisis became entrenched and foreclosures mounted, industries such as the local lumber company and saw mill closed, followed by the North Fork coal mines. At the same time, Mesa County saw a major reduction in the Oil and Gas industries. As the layoffs, failures, and foreclosures mounted, so did the homeless situation.

Homelessness had increased enough locally, that in November 2014, the Abraham Connection (Delta County’s Homeless Shelter), made the decision to move out of the Delta Methodist Church’s basement and begin construction of a $750,000 facility,[14] which opened in November 2015.

During the Nov. 2013–May 2014 season, the Abraham Connection provided 840 bed nights. Contrast that number with 2,665 which was the total number of bed nights provided during the Nov. 2016–May 2017 season.[15] In three years’ time, that is a 217% increase in homelessness.

Looking at Delta County as a case study, with over 1,000 coal mining jobs gone, a couple hundred timber related jobs chopped, and countless ‘mom and pop’ stores shut for good, a rising homeless population and a school district and hospital struggling under declining revenues due to ratcheted-down property valuations, many policy makers have turned to marijuana as the saviour.

Delta County Commissioner, Mark Roeber, told the Denver Post that he receives calls “almost daily, saying marijuana is going to save us.”[16] While Delta County, and the municipalities within the county, have sustained a prohibition on commercial retail and cultivation since 2013, some towns have explored the retail pot question.

In 2014 Paonia voters rejected a retail pot question, as was the case in Hotchkiss in 2016. By 2017, Orchard City considered repealing their prohibition on commercial marijuana, as did the Paonia town council.[17]

Aside from the cultivation operation owner, the grow master or cultivator is the only employee who would earn what a displaced coal miner had earned annually.[18] Other jobs in the 420-industry would pay comparable to entry level west slope salaries.[19]

While the Green Rush has more likely than not increased crime and homelessness, the costs of these increases to local societies should be calculated when setting budgets for social serves, programs, and law enforcement. Communities should factor in all costs when considering the economics of boosting a city or county’s coffers.



[1] Romero, Ezra David. "California Farmers Consider Cashing In On A New Crop . . . Marijuana." Valley Public Radio. NPR, 15 Dec. 2015. Web. 15 Mar. 2017.
[2] Borchardt, Debra. "The Five Best Marijuana Jobs." Forbes. Forbes Magazine, 27 May 2016. Web. 15 Mar. 2017.
[3] Healy, Jack. "Up Early and in Line for a Marijuana Milestone in Colorado." The New York Times. The New York Times, 01 Jan. 2014. Web. 15 Mar. 2017.
[4] McIntyre, Erin. "All Categories of Crime in GJ rising Sharply." GJSentinel.com. The Grand Junction Daily Sentinel, 15 Mar. 2017. Web. 15 Mar. 2017
[5] Ibid.
[6] Ibid.
[7] Langford, Katie. “Homelessness on rise for kids in District 51: Increase due to better identification, economic and family reasons.” The Grand Junction Daily Sentinel, 18 April 2016. A1+
[8] “The 2016 Annual Homeless Assessment Report (AHAR) to Congress.” US Department of Housing and Urban Development. Office of Community Planning And Development, Nov. 2016. Web. 1 May 2017. Pg.14.
[9] Ibid.
[10] “Crime in Colorado Annual Reports 2005-2015.” Colorado Bureau of Investigation. Colorado Department of Public Safety, 2016. Web. 8 May 2017.
[11] Ibid.
[12] “Foreclosure Reports and Statistics 2002-2015.” Division of Housing. Colorado Department of Local Affairs, 2017. Web. 8 May 2017.
[13] Delta County Treasurer’s Office Report 2006-2016.
[14] Press Release Nov 2014. Abraham Connection / Delta County Homeless Shelter.
[15] Facebook announcement 1 May 2017. Abraham Connection / Delta County Homeless Shelter. Web. Accessed 8 May 2017.
[16] Finley, Bruce. “Collapse of Colorado coal industry leaves mining towns unsure what’s next.” The Denver Post, 14 May 2016. Web. Accessed 8 May 2017.
[17] Soper, Matt. “Timeline details Marijuana votes and regulations (Delta County, Colorado).” Delta County Independent, 1 March 2017.
[18] Op. Cit. see Finley article and Borchardt article.
[19] Ibid. 

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