The Pennsylvania Liquor Control Board (LCB) released its financial statements for the 2014-15 fiscal year in late October, causing many in both the capitol and the press to question the viability of the state-run liquor and wine system. In the report, the LCB declared a record number generated from sales and taxes, $2.34 billion. This would lead the reader to believe that the result would be greater net income.
It was not. The LCB reported a $40.1 million drop in net income compared to the previous year. In its report, the LCB accredited it to “accounting changes altering the agency’s income statements.” But the report later concedes the LCB took on additional personnel costs of $49.2 million, comprised primarily of increased workers compensation premiums and pension obligations, and a 15 percent spike in operational expenses from 2013-14 to 2014-15
These numbers were observed by many at the capitol.
According to House Republican spokesperson Steve Miskin, “The overhead is just too high- — no amount of ‘rebranding’ will change that.”
If there are any efforts to privatize wine and spirits in Pennsylvania, these expenses will be a large focus in the debate.
It was not. The LCB reported a $40.1 million drop in net income compared to the previous year. In its report, the LCB accredited it to “accounting changes altering the agency’s income statements.” But the report later concedes the LCB took on additional personnel costs of $49.2 million, comprised primarily of increased workers compensation premiums and pension obligations, and a 15 percent spike in operational expenses from 2013-14 to 2014-15
These numbers were observed by many at the capitol.
According to House Republican spokesperson Steve Miskin, “The overhead is just too high- — no amount of ‘rebranding’ will change that.”
If there are any efforts to privatize wine and spirits in Pennsylvania, these expenses will be a large focus in the debate.
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