No Smoke Detectors – No Fire Sprinklers – No 24 Hour Security Patrol to Detect Fires Early – No Technology – No Security Cameras – Not Even a Webcam – there's More Security at a 7-Eleven – No Nothin' – No One Will Buy Your House Now Either – "Remember there's Another Hangar Too"!
Jerry Garcia is one of the most iconic pot smokers in California history. Born in San Francisco, Garcia led the Grateful Dead for 30 years as the city became an international beacon of counterculture, and he did it all while casually and openly smoking weed. His pot pipe is considered an artifact of California cannabis history.
But even the iconic Jerry Garcia name couldn’t survive California’s turbulent legal pot market.
The Garcia Hand Picked brand, launched by the deceased musician’s family in 2020, has pulled out of the state, a spokesperson confirmed to SFGATE. Garcia’s exit comes as cannabis insiders predict a “mass extinction event” for California’s pot industry, with thousands of companies expected to go out of business this year.
Andrew DeAngelo, a cannabis consultant and former owner of Harborside, one of the state’s pioneering medical cannabis dispensaries, said the Garcia brand probably learned the same thing that all of California’s pot companies have realized: “You can’t make any money in this market.”
“Not only is Garcia leaving, a lot of people are leaving,” DeAngelo told SFGATE. “It’s a real shame that California is losing out. We’re losing out on jobs and economic activity and other places are benefiting from that.”
Garcia Hand Picked, like most celebrity brands, contracted out its cannabis growing and manufacturing to partner companies and then stamped Jerry Garcia’s face on the packaging. The company said they are looking for a new cannabis supplier, but declined to be interviewed for this story and did not elaborate on how long the brand would be on hiatus in California. Garcia Hand Picked is still available in five other states.
“We’re taking a pause in California. We want to ensure CA consumers have the highest quality flower for the long term, so we are in the process of choosing a new local partner for cultivation, production, sales and distribution of Garcia Hand Picked in CA,” a spokesperson from Holistic Industries, the brand’s parent company, said in an email to SFGATE.
California’s cannabis industry has faced huge economic hurdles in its first four years of legal sales. The state’s complicated cannabis regulations and high taxes add costs to legal operators, while widespread illegal farms and retailers undercuts legitimate companies. Limited access to banking means these companies pay exorbitant fees for simple banking services and have almost no access to loans. Federal law blocks pot companies from deducting most business taxes from their federal taxes, making pot businesses pay an effective federal tax rate as high as 80%.
These factors have come together to make California a painful place to run a legal pot business. The majority of small legacy cannabis farms are on their way out of business and even the country’s biggest cannabis companies are leaving the state.
Nearly a dozen states had legalized cannabis by the time Jerry Garcia’s surviving family members decided to start a pot brand built around the Grateful Dead frontman, who died of a heart attack in 1995. But the Garcias chose to launch their brand in California, the same place that Jerry was born, spearheaded an artistic movement, and died.
The Golden State featured prominently in that initial launch. An airstream painted with swirling psychedelic colors crisscrossed the state in late 2020 announcing the new brand. Esquire profiled the family as they smoked a bong in Oakland and asked, “If Jerry Garcia were a kind of weed, what would the high feel like?” The family told Esquire they were planning on opening a Jerry Garcia-themed cannabis consumption lounge at a dispensary in San Francisco, which never materialized.
Nearly a dozen states had legalized cannabis by the time Jerry Garcia’s surviving family members decided to start a pot brand built around the Grateful Dead frontman, who died of a heart attack in 1995. But the Garcias chose to launch their brand in California, the same place that Jerry was born, spearheaded an artistic movement, and died.
The Golden State featured prominently in that initial launch. An airstream painted with swirling psychedelic colors crisscrossed the state in late 2020 announcing the new brand. Esquire profiled the family as they smoked a bong in Oakland and asked, “If Jerry Garcia were a kind of weed, what would the high feel like?” The family told Esquire they were planning on opening a Jerry Garcia-themed cannabis consumption lounge at a dispensary in San Francisco, which never materialized.
The Garcia brand’s departure is also a sign that customers could be getting tired of celebrity pot brands. There are so many famous people selling weed that even the rock stars are noticing that it might not be an easy business to get into: David Crosby told the Los Angeles Times last year that he wanted to start his own pot brand but said, “Celebrity brands didn’t turn out to work nearly as well as anyone thought they were gunna.”
Indeed, Garcia Hand Picked isn’t even the first Grateful Dead pot brand. Drummer Mickey Hart launched his own pre-rolled joint brand called Mind your Head in 2019, although that brand also appears to be on hiatus. Its website is down and a brand representative could be contacted for this story.
Garcia Hand Picked and Mind Your Head could come back to the state, but for now, Deadheads in California will have to get by without smoking any cannabis blessed by the legendary band.
Is your Orange County city at risk of financial meltdown?
Column: State auditor’s analysis finds 11 local cities carry ‘moderate’ risk, 23 are ‘low’ risk
Here’s a riddle wrapped in a mystery inside an enigma: How does a little city teetering on the brink of financial doom transform into one of the most fiscally sound in the state, all within the span of a single decade?
Ding ding ding! If you guessed it might have something to do with raising taxes, you’d be right.
Before we examine the Saga of Stanton, let’s get the view from 30,000 feet on the fiscal health of Orange County’s 34 cities (and apologize to Winston Churchill’s memory for stealing the opening line). None of O.C.’s cities — not a one! — is in such dire financial straits that it’s forced to wear the state auditor’s Scarlet Letter of Shame denoting “high risk of financial meltdown.” Things are better than last year, when Anaheim was red, and better than our red-spackled pals in Los Angeles, not to be smug or anything.
But — and there’s always a but, isn’t there? — 11 of O.C.’s cities are perhaps too close for comfort. They’re the yellow Proceed With Caution cities, offering “moderate risk” to their residents. Main culprit? All that money they’ve promised public service workers (mainly cops and firefighters) for retirements, which they haven’t quite saved up yet. Annual revenues are also trending down for several cities, which is troubling, since expenses are pretty firmly heading in the opposite direction.
The vast majority of O.C. cities, though — 23! — are firmly Go-Go Green for the lower financial risk they pose to their residents.
Some rest easier because they’re younger, “contract cities” that don’t have their own (very expensive) police and fire departments (and the expensive pension obligations that come with them), instead hiring the Sheriff’s Department or Fire Authority to provide emergency services (which allows cities to share cost burdens).
Some got greener by hiking taxes and fees, as well and paying down pension debt and setting aside money to cover the health benefits they’ve promised retirees. And all that federal stimulus money certainly didn’t hurt.
Now look. We’ve spent a gazillion hours poring over audited financial statements to do this kind of analysis for you dear readers in the years before there was an auditor’s high-risk data dashboard. We’re not ashamed to admit that it’s one of our favorite new toys, and we encourage you to play with it, too.
But not everyone shares our enthusiasm: The League of California Cities has quarreled with the auditor’s approach, saying it doesn’t provide necessary context or analysis to make the information useful, and that it lags behind current conditions because it uses audited financial statements (which are usually a year behind).
We’re a big fan of audited financial statements, however; they’re the most reliable window into a government’s true finances because they sum up what has actually happened, and include long-term debt. Annual budgets are essentially estimates that remain in flux until the fiscal year ends, and don’t give you a picture of the city’s obligations over time.
“Local governments have the most direct impact on our daily lives, so it’s critical that they have their finances in order,” the auditor’s primer on the dashboard explains. “When they don’t, essential services are at risk of being downsized. … Understanding the financial situation and the factors that impact it allows city officials to tackle challenges and leverage their successes. And you can use that same information to advocate for your community and hold city officials accountable.”
So how’s your city doing?
Of these 10 moderate-risk cities, the most exposed was Fullerton, ranking No.15 (when No. 1 means “PANTS ON FIRE FINANCIAL MESS”) out of more than 400 cities statewide. This is not a list you want to rank high on.
Anaheim wasn’t far behind Fullerton, clocking in at No. 19, but at least it’s not red; followed by Costa Mesa at 26; Orange, 62; Newport Beach, 90; La Habra, 94; Huntington Beach, 95; Placentia, 102; Westminster, 104; Santa Ana, 115; and Brea, 144.
“Moderate” sounds sort of nice, but while these cities emerged with an overall moderate risk rank, many hit pants-on-fire-red in several individual categories, so residents should pay attention.
Fullerton, for example, faces general fund reserve issues (“This city may have insufficient reserves to cover its expenses in the event of a fiscal emergency, such as an economic recession. It has saved enough funds to cover about 2 months of expenses, and its reserves have been declining, on average, by 10 percent annually”) as well as revenue trends (“Rather than increasing, this city’s revenues have remained flat over the last few years.
This may constrain the city’s ability to respond to economic changes and pay rising costs of services”). Several pension-related funding categories and funding for retiree health benefits are also areas of concern (The city’s plan has enough assets to fund 0% of employees’ costs).
Anaheim, while celebrating a move off the Scarlet Red list, hits pants-on-fire-red for its debt burden (“This city’s long-term debts equate to 177 percent of the city’s total government revenues, which may be too high for the city to pay back its debts without significant financial strain.
In order to be low risk for debt burden, a city’s debt should ideally not exceed 40 percent of total government revenue”), revenue trends (“Rather than increasing, this city’s general fund revenues have decreased, on average, by 8 percent over the last few years. This may constrain the city’s ability to respond to economic changes and pay rising costs of services”), the burden of future pension costs as well as retiree health benefits (though it has more socked away here than Fullerton, at 38%).
Costa Mesa also struggled with downward revenue trends, which dropped by about 1 percent a year over the past few years, as well as the burden posed by pension costs. For Orange, Newport Beach, Placentia, Westminster, Santa Ana and Brea, the red was all about pension and retiree health costs. Pensions were an issue in Huntington Beach as well, though its retiree health benefits are well-covered.
But the revenue situation is looking up this year, Costa Mesa said, with sales taxes surpassing pre-pandemic levels and hitting the highest level ever at the close of Fiscal Year 2022 in June (about $77.3 million). General fund reserves also increased despite the pandemic, and at 33% of general fund revenue far exceed the “industry baseline of 10%,” said finance director Carol Molina.
Newport Beach said it’s “committed to an aggressive payment schedule” to eliminate its pension debt by 2030, which will ease the burden on future city budgets. In 2018, the city council decided to increase annual payments to at least $35 million a year, $9 million more than required, and has since raised the annual payment to $40 million. “We believe that Newport Beach is in a strong financial position relative to many other cities and public agencies,” a statement from the city said.
One of the most financially fragile cities in the county has long been little Placentia, which is “pleased and optimistic” about how things are going. A new 1% sales tax hike in 2019 is providing millions for “much-needed investments in infrastructure and staff retention” (consider this foreshadowing on the Stanton saga). Also helping: Economic development projects like a new Marriott hotel, Audi dealership, retail center redevelopment, residential housing developments that bolster property and sales tax revenues, pay-down of pension debt. A general fund reserve policy — aiming to provide a stable revenue structure — has “blown past” its initial goal of 25%, and is now at 42%, a statement from the city said.
Santa Ana, too, is pleased that its score has been steadily improving each year, with half of the categories now green. “We have a strong reserve fund, a low debt burden and have increased our revenue through our diversified business base and new revenue sources such as legal recreational cannabis,” a statement said. “Our public safety pension costs are relatively high due to our public safety retirement formula, but our new …formulas are much more affordable in the long term. To improve our financial outlook, last year we refinanced our pension debt at a lesser interest rate, which is projected to save $138 million in the long run.”
Reminder: Retirement formulas were sweetened by your elected officials back when the stock market was roaring some 20 years ago. Officials were told that stellar returns on investments would cover the increased costs and everyone would be happy. Unfortunately, that was, how shall we say, dead wrong.
These Go-Go Green folks are doing better at book-balancing and debt management than their brethren. The 24 cities in this group, going from best to less-best (remember, higher numbers are better), are:
The aforementioned Stanton, clocking in at No. 419 statewide; Laguna Woods, 413; Lake Forest, 403; Laguna Niguel, 367; Rancho Santa Margarita, 360; Aliso Viejo, 336; Yorba Linda, 330; San Juan Capistrano, 327; La Palma, 301; Dana Point, 279; Tustin, 278; Mission Viejo, 273; Villa Park, 272; Laguna Beach, 268; Irvine, 255; Fountain Valley, 240; Laguna Hills, 238; Seal Beach, 237; Buena Park, 227; Garden Grove, 218; Cypress, 217; Los Alamitos, 213; and San Clemente, 175.
Note that more than half of them are those newer, “contract” cities. But don’t pop the champagne just yet: There are still concerns, even in green-land.
Downward revenue trends have earned red ratings for Laguna Woods, Lake Forest, Rancho Santa Margarita, Aliso Viejo, San Juan Capistrano, Irvine and Cypress. And many of these green folks still face serious issues with looming pension obligations, as well as retiree benefits they’ve promised but have been largely ignoring.
Garden Grove had the distinction of advancing from yellow to green this year, as its revenues have increased some 11% a year over the last few years. “Substantial growth in general fund revenues gives the city greater flexibility to respond to economic changes and pay rising costs of services,” the auditor says.
But the morality tale here is Stanton.
“Park closed due to budget cuts,” said the sign on the chain link fence around Hollenbeck Park back in 2012. “No trespassing allowed.”
Stanton teetered on the brink of bankruptcy. There was the Great Recession, of course. And the governor had nixed redevelopment agencies, which erased some taxes it used to keep. There was also, according to some critics, an extremely ill-timed purchase of land for a big park, not to mention those escalating pension costs.
The city declared a fiscal emergency, warning residents that, without an additional $1.2 million, it would tank. City Hall’s electronic sign flashed “FISCAL EMERGENCY.” Officials tried to sell folks on utility tax hike (only 10 O.C. cities have such a tax, we’ll note here), but it was soundly rejected. Parks closed. Workers lost jobs.
In 2014, the city tried again. This time, it was a 1-cent sales tax. It passed. In 2019, the hotel bed tax was hiked.
Some criticized the city for not reducing expenses rather than raising taxes, but it clearly worked. The amount Stanton collects in sales and use taxes has more than doubled, from $3.6 million in 2012 to $8.7 million in 2020, according to its own figures. Property taxes shot up tremendously as well, from $1.3 million to $6.6 million. As did revenue from fees and permits, and other taxes.
All told, Stanton’s revenue went from $13.9 million to $22.7 million. That’s an increase of 63% (over a span of time where inflation rose 29%). And that, folks, is one way to get from the brink of bankruptcy to go-go green.
(CNN) Using recreational marijuana is associated with a higher risk of emergency room care and being hospitalized for any reason, a new study has found.
“Cannabis use is not as benign and safe as some might think,” said study author Nicholas Vozoris, assistant professor and clinician investigator in the division of respirology at the department of medicine at the University of Toronto.
“Our study demonstrates that the use of this substance is associated with serious negative outcomes, specifically, ED (emergency department) visits and hospitalizations,” Vozoris said in an email.
Significant risk of hospitalization.
The study, published Monday in the journal BMJ Open Respiratory Research, looked at national health records data for over 30,000 Ontario, Canada, residents between the ages of 12 and 65 over a six-year period.
When compared with people who did not use marijuana, cannabis users were 22% more likely to visit an emergency department or be hospitalized, the study revealed.
Respiratory problems from smoking weed was the second leading reason users seek emergency care, the study found.
The finding held true even after adjusting the analysis for over 30 other confounding factors, including other illicit drug use, alcohol use and tobacco smoking.
“Physical bodily injury was the leading cause of emergency department visits and hospitalizations among the cannabis users, with respiratory reasons coming in a close second,” Vozoris said.
Marijuana smokers had higher blood and urine levels of several smoke-related toxins such as naphthalene, acrylamide and acrylonitrile than nonsmokers, a 2021 study found. Naphthalene is associated with anemia, liver and neurological damage, while acrylamide and acrylonitrile have been associated with cancer and other health issues.
Another study done last year found teenagers were about twice as likely to report “wheezing or whistling” in the chest after vaping marijuana than after smoking cigarettes or using e-cigarettes.
Growing body of research.
A number of studies have shown an association between marijuana use and injury, both physical and mental.
Marijuana may make sleep worse, especially for regular users, study finds
Heavy use of marijuana by teens and young adults with mood disorders — such as depression and bipolar disorder — has been linked to an increased risk of self-harm, suicide attempts and death, according to a 2021 study.
Another 2021 study found habitual users of cannabis, including teenagers, are increasingly showing up in emergency rooms complaining of severe intestinal distress that’s known as “cannabis hyperemesis syndrome,” or CHS.
The condition causes nausea, severe abdominal pain and prolonged vomiting “which can go on for hours,” Dr. Sam Wang, a pediatric emergency medicine specialist and toxicologist at Children’s Hospital Colorado, told CNN in a prior interview.
A review published earlier this year looked at studies on over 43,000 people and found a negative impact of tetrahydrocannabinol or THC, the main psychoactive compound in cannabis, on the brain’s higher levels of thinking.
For youth, this impact may “consequently lead to reduced educational attainment, and, in adults, to poor work performance and dangerous driving. These consequences may be worse in regular and heavy users,” coauthor Dr. Alexandre Dumais, associate clinical professor of psychiatry at the University of Montreal told CNN in a prior interview.
At a time when “health care systems are already stretched thin around the world following the Covid pandemic and with difficult economic times … cannabis use is on the rise around the world,” Vozoris said.
“Our study results should set off ‘alarm bells’ in the minds of the public, health care professionals, and political leaders,” he said in his email.
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