Wednesday, July 30, 2014
Inquirer Daily News

Some good news for the LCB....

Some good news for the LCB....

 

The state Liquor Control Board is having a good summer so far: not only has it survived yet another effort to privatize it, but on Monday reported what it called record profits.

The LCB said in a statement that its 600-plus state-run stores - which are gradually being renamed as Fine Wine & Good Spirits stores - generated about $2.2 billion in revenue in the last fiscal year.  That amounted to a 4.5 increase over the previous year, which the board called a record.

Of that $2.2 billion, about $512 million was returned to the state treasury, including a cool $80 million transferred to state's general fund (commonly known as "the budget").

The LCB also reported a net income of $128.4 million for the fiscal year - a 24 percent increase over the previous one.

Some groups that support privatizing the agency, however, argued that those numbers are no reason to celebrate and only tell half the story.

The Commonwealth Foundation, a Harrisburg-based free market think tank, noted that more than 80 percent of the LCB's $500 million-plus in profits generated last fiscal year came from taxes - and argued that privately-owned liquor stores would produce the same, if not more, revenue, since they would be paying licensing fees and additional taxes.

 

"No matter how the [LCB] spins the numbers," the Commonwealth Foundation's statement reads, "the government-run liquor system is not a cash cow for the state."

 

Click here for Philly.com's politics page.

About this blog

Commonwealth Confidential gives you regularly updated coverage of the state legislature, the governor and the workings of the state bureaucracy. It is written by Angela Couloumbis and Amy Worden in the Inquirer's Harrisburg bureau, based right in the statehouse, and by the newspaper's far-flung campaign reporters.



Commonwealth Confidential team
Also on Philly.com
Stay Connected