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June 10, 2009
2009 Operating Budget and Impact to Liquor Control Board
In her January inaugural address, Governor Gregoire asked the
Legislature to summon the courage and the spirit of sacrifice to
confront the challenge of a generation, and that's exactly what
they did.
The responsible budget recently approved by the Legislature
contains significant pain and sacrifice for Washingtonians. In
the weeks, months and years to come, Washingtonians will feel
the impacts of the hard decisions the Legislature and Governor
were required to make after our mortgage and financial markets
set off the deep national recession in which we find ourselves.
Even those programs and services left intact in this budget must
adjust for significant reductions in "administrative" spending,
which means there will be fewer people to deliver the services
in their current forms.
The Legislature and Governor also prepared our state for a 21st
century economy - especially in the monumental steps taken to
build a transportation system that will create thousands of jobs
and help us emerge stronger from this recession. What they did
is truly monumental - not just for the most-populated part of
this state but for Washington's economic future as a whole. The
Legislature also moved forward on a long-range strategy to
revitalize the ferry service by constructing new vessels while
keeping fares affordable.
Agency Reductions and Cost Savings
The Washington State Liquor Control Board (WSLCB) has a dual
mission of promoting public safety and generating revenue.
Successfully carrying out these important expectations is
critical and will drive agency decision making throughout the
biennium.
The WSLCB used a variety of cuts and costs savings to cover the
$3.8 million budget gap that emerged when the 2009-11 Operating
Budget removed the entire funding for the Tobacco Tax Unit. The
WSLCB is expected to absorb the cuts while continuing to enforce
tobacco tax laws.
The agency closely analyzed its budget to determine the
reductions in service that will be required as a result of the
spending reductions. While we have made sacrifices and
instituted efficiencies, ultimately the WSLCB had to make
difficult decisions to address the shortfall.
Reductions in Force
The WSLCB has eliminated more than 20 positions, including three
management positions. The WSLCB is working closely with affected
employees to review employment options.
Transition to Voluntary Board
The three-member Board is preparing to transition from 60 percent time and
pay to voluntary status. The move will require legislation in
2010.
Closing Selected Field Offices
The WSLCB will close five enforcement field offices beginning in
July 2009. Liquor and tobacco enforcement officers will continue
to serve licensees by using specialized laptops while out in the
field. “Responsible liquor and tobacco sales” classes will be
held at regional offices, alternative locations and at licensed
businesses.
New Revenue Projects
As the agency implements cuts and efficiencies, it is also hard
at work implementing new Budget-directed projects that will
generate an additional $12.7 million in revenue for state and
local services during the next biennium. The new projects will
be rolled out over the next biennium.
New State and Contract Liquor Stores ($1.3 million)
- 15 new retail stores (beginning fall 2009)
- 5 new state
- 10 new contract
- New locations to be based on population growth
- Need for new stores based on 2005 study
Most State Stores Open on 7 Holidays ($4.7 million)
- New Years Day, Martin Luther King Jr. Day, Presidents
Day, Memorial Day, Independence Day, Labor Day, Veterans Day
- Check the WSLCB Web site for open holiday stores
Seasonal Stores in Malls ($3.8 million)
- Open a limited number of stores for 60 days in shopping malls during
winter holiday season
- Limited product selection
- Emphasis on gift packages
Expand Sunday Sales ($1.2 million)
- Add 9 additional stores on Sundays (49 currently)
- Optional for contract stores
Expand Lottery Sales ($0.9 million)
- Expand to include full line of Washington State Lottery
products in state stores
- Electronic Lotto
- Double offering of scratch tickets: 4 bays to 8 bays
Looking to the Future
Many hard decisions had to be made during these tough economic
times. It's not over, as now the state and its citizens will
have to adjust and respond to the changes ahead. The WSLCB will
continue to focus on its mission and the core business of the
agency: public safety and generating revenue to support state
and local programs.
More information about the state 2009-11 Biennial Budget is
available on Governor Gregoire's Web site at
www.governor.wa.gov. |
