It hard work to mis-spend all the money the LCB controls.

In 2013, according to page 15 in their own financial report the PA Liquor Control Board spent $80 million by giving it to the State of PA while they had Unpaid Liabilities of Hundreds of Millions. Why did they refuse to pay down their loans? Probably to try to make themselves look better than they are. They owe hundreds of millions but they want to show how generous they are by giving money to the State. The problem is they first claim the $80 million as part of their “Operating Profit” then claim it again when they spent it. That’s double counting. It’s counting the same money twice and showing the same amounts two times. That’s misleading.

The $80 million is either profit or not. If it’s profit the State of PA, not the LCB, should spend it. But it’s not profit. It’s money that should have been used to pay down the debt of the LCB. the $80 million is nothing more than another phony accounting claim. In addition, it’s double counting, that is the LCB spent the same money twice. But either way, the LCB is out of the control of the rest of the PA government and it’s certainly not controlled by the people of PA. And it’s in deep debt. It owes more money than it makes and it makes a lot of money. It’s spending of money it does not have means it  should be operating under bankruptcy rules. It’s wrong when it borrows money and it’s wrong when it fibs about it.

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:

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.


 $         1,731,463,000











Post Retirement Health Care   Liabilities:

 $          (57,379,000)       


Self Insurance for Workers   Comp:



Compensated Absences: –






Subtotal: –

 $         (103,271,000)



 $            48,579,000


SERS pension   liabilities*:

 $        (501,200,000)


Balance w/ all costs   accounted, – a NET LOSS !

 $         (452,621,000)






 $           440,483,384

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