Illinois takes in hundreds of millions of dollars in cannabis tax revenue, with much of it going to general state spending.

That money goes to four main categories:

Administrative expenses fund the agencies overseeing cannabis, including the Illinois State Police and Department of Agriculture.

Reinvestment dollars go to the Restore, Reinvest, Renew (R3) program, meant to support communities affected by crime and disinvestment.

Statewide budget support sends an equal share to general state spending, including the Budget Stabilization Fund and general revenue funds. Lawmakers can spend this money however they choose, and a significant portion likely goes to the five statewide pension systems, which consume about 20% of the state budget.

Other uses receive a smaller portion.

Legalization was supposed to expand opportunity via “social equity” licensing. Instead, the rollout under Gov. J.B. Pritzker was plagued by delays, litigation and shifting rules.

Dozens of lawsuits followed the initial licensing lotteries, with applicants arguing the process was unfair and undermined the state’s equity goals.

Some applicants with perfect scores failed to win licenses and alleged that ineligible entries were allowed into lotteries and diluted their chances.

Although some equity applicants ultimately received licenses, many were left behind, and established operators have seemingly maintained their dominance.

Missouri legalized recreational marijuana 2023 with a state tax rate of 6%, one of the lowest in the country, tempting Illinois consumers to cross the border. Illinois cannabis taxes range from 10% to 25%.

High taxes push buyers to other states — or to the illicit market — undermining both revenue growth and public safety goals.