Governor Tom Corbett campaigned that he would eliminate the State Stores but despite a majority of Republicans in the House and the Senate, it didn’t happen. As you know, all drinking alcohol is sold exclusively by the State Government of PA thru State Run Stores. All alcohol sales are at retail. There is no free market or wholesale discounts on alcohol in PA. The State of PA has granted itself and enforces with criminal penalties, a monopoly. Competition against the monopoly is forbidden. The enforcement against the private manufacture of beer or wine is strictly followed. The penalties are covered in the Criminal Code of PA.
Here’s some of the 2013 financial info from the State’s Website: http://www.auditorgen.state.pa.us/Reports/Federal/fedPALiquorControlBoard121013.pdf
The financial report is lengthy so some of the info was put into a sort of summary. There were also some accounting irregularities reported by the auditors.
The State Store System collects almost half a billion in Liquor and Sales taxes each year. It also makes a gross profit of $152 Million but Pension costs offset all but about $$49 Million and the “Accrued Liabilities” mean the costs were greater than the sum of the profit and all of the taxes it collected. It’s all a bit mysterious. The numbers in brackets: ( ) are losses but technically the State never loses money because it collects more tax money when that happens. Remember; the State Stores are not businesses. Businesses are not indemnified against losses. Businesses are not forced on the backs of the taxpayers. Businesses are part of the free market. The State Stores are part of the coercive apparatus of government.
|Post Retirement Health Care Liabilities:||$ (57,379,000)|
|Self Insurance for Workers Comp:||(25,920,000)|
|Compensated Absences: –||(19,972,000)|
|Subtotal: –||$ (103,271,000)|
|SUB-TOTAL PROFIT||$ 48,579,000||2.81%|
|SERS pension liabilities*:||$ (501,200,000)|
|Balance w/ all costs accounted:||$ (452,621,000)||-26.14%|
|LIQUOR AND SALES TAXES||