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Pennsylvania Liquor Control Board Issues Statement on Proposed Monetization of PLCB Profits

HARRISBURG, Pa., Oct. 4, 2017 /PRNewswire-USNewswire/ -- Following Governor Wolf's announcement today regarding securitization of Pennsylvania Liquor Control Board (PLCB) profits, Board Chairman Tim Holden and Board Members Mike Negra and Michael Newsome issued the following joint statement:

"The PLCB recognizes the difficult budget situation the commonwealth faces and the need to support Pennsylvania's schools, health and human services programs, law enforcement, and public safety initiatives with sustainable revenue sources.

"The PLCB has provided more than $15.8 billion in taxes and cash transfers to the General Fund since the agency's inception, plus an additional $1 billion in funding supporting liquor law enforcement efforts, alcohol prevention and treatment services, grants to reduce underage and dangerous drinking, and local municipalities. Annual cash transfers to the General Fund – transfers of our own profit and operating capital – have not dipped below $80 million for more than a decade.

"As our recently released fiscal year 2016-17 financial statements indicate, we have a strong cash position, and both our net income and gross profit increased modestly last year. We can certainly understand the appeal of monetizing the PLCB as a commonwealth asset.

"Although we have yet to discuss the proposal as a Board or begin to delve into details of a potential arrangement, we pledge to work collaboratively with the Governor's Budget Office to explore a revenue-backed contract to deliver significant immediate revenue while capitalizing on the PLCB's long-term profitability."

The PLCB regulates the distribution of beverage alcohol in Pennsylvania, operates more than 600 wine and spirits stores statewide and licenses more than 20,000 beverage alcohol producers and retailers. The PLCB also works to reduce and prevent dangerous and underage drinking through partnerships with schools, community groups and licensees. Taxes and store profits – totaling $15.8 billion since the agency's inception – are returned to Pennsylvania's General Fund, which finances Pennsylvania's schools, health and human services programs, law enforcement, and public safety initiatives, among other important public services. The PLCB also provides financial support for the Pennsylvania State Police Bureau of Liquor Control Enforcement, the Department of Drug and Alcohol Programs, other state agencies and local municipalities across the state. For more information visit www.lcb.state.pa.us.

MEDIA CONTACT: Elizabeth Brassell, 717.783.8864

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SOURCE Pennsylvania Liquor Control Board