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Arroyo Grande considering allowing cannabis businesses

June 16, 2026

By JOSH FRIEDMAN

The Arroyo Grande City Council voted unanimously last week to place a cannabis tax measure on the November ballot.

Arroyo Grande currently prohibits commercial cannabis activity, with the exception of allowing deliveries by retailers licensed outside the city limits. If voters pass the measure, the city council will then decide whether to allow individual cannabis businesses to operate in Arroyo Grande. 

City officials are promoting the ballot measure as an opportunity to generate revenue and help overcome potential future budget shortfalls. Arroyo Grande currently has a $2.8 million budget shortfall for fiscal year 2026-2027. 

If approved, the cannabis measure is expected to generate approximately $500,000 annually for Arroyo Grande’s general fund, according to a city news release. Officials say the cannabis tax funding would go toward city services such as road maintenance, public safety and recreation programs.

“We are focused on maintaining and improving the services that our residents rely upon,” City Manager Matthew Downing said in a statement. “This measure gives voters the opportunity to vote on a new revenue source that could be invested directly back into maintaining Arroyo Grande’s infrastructure and services.”

 


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4 Comments

I really idiotic idea. How about cutting overhead, meaning payroll headcount first. Second have a 3rd party audit the books and see where the money goes. Then make suggestions as to what to cut and where to find revenue that makes sense. But no new taxes!


16

In my humble opinion, the ‘ Pot Shop’ ship has already sailed. Due to crazy – as -usual taxes and regulations the cities and county have driven pot consumers back into the arms of those in the black and ‘gray’ market. The traffic in the existing shops is way down and has been that way for a while.

As I recall it was last year that the county spent about $500,000 more on enforcement and bureaucracy to regulate the existing shops than they took in. It appears they have helped once again kill the Golden Goose. Only more government is what we get.

Opening pot shops and delivery in A G makes no sense with the current low demand in Grover and elsewhere. It would be like opening a restaurant with the same menu as a failing restaurant right next door. Anybody who votes for this should be required to get a “ Born to Lose” tattoo!


27

Remember, the government couldn’t successfully run a whorehouse attached to a bar…


4

No, city officials have failed to this point financially, not understanding to leave within their means, why give them more money to squander? Plus, the money goes into “Arroyo Grande’s general fund”, that’s where money goes when officials want to use it for anything they want, if they truly wanted it to go to say maintenance and infrastructure or public safety restrict the money to only those items.


28