Colorado Springs Advances Security Ordinance Funded by Marijuana Tax Revenue

City council gave first-reading approval to a security measure funded through cannabis tax proceeds, as the state's marijuana market shows mixed signals on sales and enforcement.

FILE — statehouse · B.D. Gilfry / CC BY-SA 2.0

Colorado Springs City Council has approved the first reading of an ordinance that would fund security measures using marijuana tax revenue, according to KKTV, which first reported the vote.

The measure arrives amid a broader statewide conversation about how cannabis tax dollars are allocated and enforced. The Marijuana Herald reported that Colorado's marijuana tax revenue reached $113 million in the first half of 2026, underscoring the scale of funds available for municipal programs tied to the industry. At the same time, CBS News has reported on the extent of illegal activity within the state's marijuana industry, including a SWAT operation that seized 1,900 plants at an illegal grow house — context that may inform why security-focused ordinances are gaining traction at the local level.

The ordinance also comes as Colorado's licensed cannabis sector shows signs of contraction. MJBizDaily reported PharmaCann's exit from the Colorado market in March and Cannabist's closure of a Denver cultivation facility amid bankruptcy proceedings in July, alongside a separate report of a retail chain acquisition. MJBizDaily also noted that Colorado cannabis sales declined for a fourth consecutive year as of February 2026 reporting.

The Numbers

State license data show 935 open retail licenses, 632 cultivation licenses, 323 manufacturing licenses, and 14 labs currently active in Colorado as of late July 2026. Monthly sales figures show a slight month-over-month dip: combined reported sales streams for March 2026 totaled roughly $217.5 million, compared with about $210.2 million in April 2026, consistent with the broader multi-year decline trend flagged by MJBizDaily.

With no pending applications listed in the state's most recent license snapshot, the market appears stable in licensing terms even as revenue and sales trends soften. The security ordinance's funding mechanism, tied to marijuana tax revenue collected amid this $113 million first-half haul, suggests municipalities may be leaning on cannabis proceeds to address enforcement concerns raised by recent illegal-market seizures.

What to Watch

Further council readings of the Colorado Springs ordinance will clarify the scope and funding levels involved, details not yet specified in current reporting. Separately, regulatory developments — including Colorado's review of lab contaminant testing standards and scrutiny of intoxicating hemp products, both reported by ProPublica — may intersect with local security funding priorities as the state continues to navigate federal rescheduling responses and a federal directive easing cannabis regulations, per the Colorado Sun and Colorado Public Radio.