Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Public Health

Could Ending the ‘War on Drugs’ Help Ease Urban Budget Crises?

Despite talk of a nascent economic recovery, the brutal toll exacted on state budgets by the recession continues -- with palpable consequences for transit riders and already lower-income urbanites. Could the cure for cities' fiscal woes be a dramatic shift in drug policy?

ba_oaksterdam_u_050.jpgA class on dispensary management in Oakland, where drug sales are taxed by the local government. (Photo: SF Chronicle)

Quite possibly, according to an op-ed in today's Washington Post written by two veteran Baltimore police officers, one of whom now teaches at New York's John Jay College of Criminal Justice.

Though the revenue-raising potential of decriminalized drug use is not their primary rationale for ending the nation's "war on drugs," the duo argues that legalizing -- and taxing -- drug sales would help fill strained local coffers.

We simply urge the federal government to retreat. Let cities and states(and, while we're at it, other countries) decide their own drugpolicies. Many would continue prohibition, but some would try somethingnew. California and its medical marijuana dispensaries provide a goodworking example, warts and all, that legalized drug distribution doesnot cause the sky to fall.

Having fought the war on drugs, we know that ending the drug war isthe right thing to do -- for all of us, especially taxpayers. While thefinancial benefits of drug legalization are not our main concern, theyare substantial. In a July referendum, Oakland, Calif., voted to taxdrug sales by a 4-to-1 margin. Harvard economist Jeffrey Mironestimates that ending the drug war would save $44 billion annually,with taxes bringing in an additional $33 billion.

The prospects for broad federal de-escalation of the "war on drugs" are slim, but a significant test of the idea's fiscal potential could come next year, when California voters may decide on a ballot initiative that would expand and tax drug dispensaries. That state's $26 billion budget gap forced a round of painful cuts that hit almost all sectors of city life.

On Capitol Hill, legislation by Sen. Jim Webb (D-VA) that would set up a commission to recommend drug policy and criminal justice reforms is slowly gaining momentum, though its potential impact on state budgets would take years to materialize.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday Video: The Utopia of London’s Low-Traffic Neighborhoods

Streetsfilms follows an urban planner around the “low-traffic neighborhood” of St. Peter’s in the London borough of Islington.

November 7, 2025

Friday’s Headlines Got Lucky

Crash data doesn't nearly capture the near misses cyclists have to endure.

November 7, 2025

San Diego Is Latest California City to Welcome Waymo

The Alphabet-owned company announced plans to begin mapping city streets and launching limited operations sometime next year — but whether that move will help advance San Diego’s safety and climate goals remains to be seen.

November 6, 2025

Talking Headways Podcast: Why Are We Going Backwards?

A very special discussion about why America keeps building highways, how President Trump is targeting transit and how we can all get a better federal transportation bill if we want it.

November 6, 2025

Thursday’s Headlines Won Big

It was a good day for transit on Election Day Tuesday.

November 6, 2025

Transit Wins Big Again In Local Elections Across America

Several candidates who ran on ambitious transportation reform platforms won at the ballot box on Tuesday — but even more communities said yes to supporting transit directly.

November 6, 2025
See all posts