HARRISBURG, Pa. -

The Pennsylvania Liquor Control Board's finance director is advocating the agency's markup on liquor and wine be increased for the first time in two decades.

In an internal memo obtained by The Associated Press, August Hehemann said the agency's net income is expected to shrink in the fiscal year that started July 1, to $96 million from $121 million in the previous year.

Hehemann proposes that the markup be raised from 30 percent to 35 percent to offset double-digit increases in expenses such as pensions, health care and computer upgrades.

Chairman Joseph "Skip" Brion said the three-member board has privately discussed Hehemann's analysis, but that there's no proposal before the board to increase the markup. He said he regards any such action as a last resort.

Former longtime U.S. Rep. Tim Holden, a Schuylkill County Democrat who also represented Berks County, is one of the three board members.