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Officials say securitization of PLCB isn't enough to end budget deficit

HARRISBURG, Pa. - Since Gov. Wolf announced the securitization of Pennsylvania Liquor Control Board profits, the board released a statement offering its support. 

According to the release, the PLCB has provided more than $15 billion in taxes and cash transfers to the general fund since the agency's inception. In addition, the board has provided $1 billion in funding to support liquor law enforcement efforts and grants to reduce underage and dangerous drinking. 

"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 board said in its release. 

Marc Stier, Director of the Pennsylvania Budget and Policy Center, said Gov. Wolf's plan to borrow $1.2 billion in Liquor Control Board profits is not ideal, nor is it a complete solution to the state budget crisis. 

He did say, however, it is a step made necessary by a General assembly unwilling to meet its responsibility to pass a budget.

"The Governor will have to carefully monitor spending in many areas, while protecting new funding for education and human services," Stier said. "This action does not provide the recurring revenue the state needs to avoid a deficit at the start of the next fiscal year."
 


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