Compendium of Budget Information for the 2011 General Session

Business, Economic Development, & Labor
Appropriations Subcommittee

Line Item: Alcoholic Beverage Control

Function

Liquor sales provide a major source of income to the State's General Fund. Net profits are deposited in the General Fund and used to support state government operations. State law also requires a transfer of 10% of gross sales to support the school lunch program. A portion of the tax on beer goes to local governments to help cover their costs of liquor law enforcement.

Funding Detail

The main DABC line item, Alcoholic Beverage Control, contains the following programs: Executive Director, Administration, Operations, Warehouse & Distribution, and Stores & Agencies.

Sources of Finance	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
General Fund, One-time	$1,631,300	$0	$0	$0	$0
Liquor Control Fund	$23,396,400	$27,066,000	$28,704,500	$27,934,900	$29,544,000
Transfers	$0	$100,000	$0	$0	$0
Beginning Nonlapsing	$0	$125,100	$0	$0	$0
Closing Nonlapsing	($125,000)	$0	$0	$0	$0
Closing Nonlapsing - Highway Safety	$0	$0	$100,000	$0	$0
Lapsing Balance	$0	$8,300	$17,200	($9,100)	$0
Total	$24,902,700	$27,299,400	$28,821,700	$27,925,800	$29,544,000

Programs:	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Executive Director	$3,236,300	$1,393,500	$1,916,600	$1,781,200	$3,275,100
Administration	$1,070,800	$1,206,500	$1,116,500	$1,088,200	$1,103,300
Operations	$2,185,900	$2,432,500	$1,719,000	$1,507,800	$1,808,900
Warehouse and Distribution	$1,578,100	$1,310,200	$1,711,500	$1,662,200	$1,558,200
Stores and Agencies	$16,831,600	$19,023,100	$20,939,200	$21,886,400	$21,798,500
Eliminate Alcohol Sales to Youth	$0	$1,933,600	$1,418,900	$0	$0
Total	$24,902,700	$27,299,400	$28,821,700	$27,925,800	$29,544,000

Categories of Expenditure	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Personnel Services	$12,978,800	$14,290,600	$15,872,200	$15,894,900	$15,771,500
In-state Travel	$37,800	$68,700	$46,200	$48,600	$46,200
Out-of-state Travel	$12,300	$12,500	$20,600	$7,100	$20,600
Current Expense	$9,789,500	$10,696,800	$11,038,200	$10,273,700	$11,765,100
DP Current Expense	$1,832,800	$1,914,400	$1,673,200	$1,515,000	$1,867,400
DP Capital Outlay	$8,600	$217,000	$0	$45,700	$0
Capital Outlay	$242,900	$66,700	$171,300	$140,800	$73,200
Transfers	$0	$32,700	$0	$0	$0
Total	$24,902,700	$27,299,400	$28,821,700	$27,925,800	$29,544,000

Other Indicators	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Budgeted FTE	345.0	341.5	352.0	352.0	352.0
Vehicles	20	20	20	22	20

Subcommittee Table of Contents

Program: Executive Director

Function

The Executive Director's Office sets Department policies and procedures. The Office provides information to the part-time Commission to decide where to locate liquor stores, issuance of licenses and permits, and other direction in keeping with state statute. Within this budget is funding for licensing and liquor compliance specialists. They train licensees to comply with Utah's liquor laws and make recommendations regarding license applications, suspensions, and revocations.

The Department of Public Safety also has liquor enforcement officers who police the licensees. They are funded through another subcommittee.

Funding Detail

The Department draws the majority of its funding from the Liquor Control Fund.

Sources of Finance	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
General Fund, One-time	$1,631,300	$0	$0	$0	$0
Liquor Control Fund	$1,730,000	$1,160,100	$1,899,400	$1,790,300	$3,275,100
Transfers	$0	$100,000	$0	$0	$0
Beginning Nonlapsing	$0	$125,100	$0	$0	$0
Closing Nonlapsing	($125,000)	$0	$0	$0	$0
Lapsing Balance	$0	$8,300	$17,200	($9,100)	$0
Total	$3,236,300	$1,393,500	$1,916,600	$1,781,200	$3,275,100

Categories of Expenditure	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Personnel Services	$1,315,800	$1,206,900	$1,402,600	$1,503,900	$1,424,800
In-state Travel	$9,400	$11,900	$11,700	$12,700	$11,700
Out-of-state Travel	$10,400	$7,900	$18,400	$5,800	$18,400
Current Expense	$1,900,600	$133,900	$482,300	$247,500	$1,818,600
DP Current Expense	$100	$200	$1,600	$11,300	$1,600
Transfers	$0	$32,700	$0	$0	$0
Total	$3,236,300	$1,393,500	$1,916,600	$1,781,200	$3,275,100

Other Indicators	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Budgeted FTE	18.0	17.0	17.0	17.0	17.0

Subcommittee Table of Contents

Program: Administration

Function

Administration provides centralized administrative services to other programs within the Department. This includes budgeting, accounting, and auditing stores and package agencies.

Funding Detail

The funding for the Administration of the Department of Alcoholic Beverage Control comes from the Liquor Control Fund.

Sources of Finance	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Liquor Control Fund	$1,070,800	$1,206,500	$1,116,500	$1,088,200	$1,103,300
Total	$1,070,800	$1,206,500	$1,116,500	$1,088,200	$1,103,300

Categories of Expenditure	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Personnel Services	$547,200	$579,800	$605,400	$564,700	$624,300
In-state Travel	$600	$2,000	$2,800	$1,700	$2,800
Out-of-state Travel	$500	$0	$0	$500	$0
Current Expense	$480,200	$624,300	$465,000	$519,200	$470,800
DP Current Expense	$6,000	$400	$5,400	$2,100	$5,400
Capital Outlay	$36,300	$0	$37,900	$0	$0
Total	$1,070,800	$1,206,500	$1,116,500	$1,088,200	$1,103,300

Other Indicators	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Budgeted FTE	9.0	9.0	9.0	9.0	9.0

Subcommittee Table of Contents

Program: Operations

Function

Operations provides data processing to the Department and manages the operation of the warehouse, delivery, stores and package agencies. All liquor is traced by computer from when it is delivered to the warehouse to when it is sold to the consumer. Liquor is sold through several channels in the state including: state stores, package agencies, clubs, restaurants, airport lounges, and on premise banquet businesses.

As menionted previously, Utah is one of 18 liquor control states and one of only two that have totally state-run systems, Pennsylvania being the other state. Utah buys from the manufacturer, stores, distributes and sells the products and collects the taxes in state-run stores. The state sets the types of retail establishments by law, based on population.

The State currently operates 44 stores. These stores are located in large and medium-sized communities where the volume of business is high enough to support the costs of operating a store. The State owns 39 stores and leases the other 5. Employees working in the stores are state employees.

Package agencies are liquor outlets operated by private individuals or corporate entities under contract with the state for the purpose of selling packaged liquor, wine and heavy beer to the general public for off premise consumption. Package agencies are located in communities too small to warrant the establishment of a state store, and in resorts and hotels where the outlets exist primarily for the benefit of their guests. Package agencies are also located in Utah breweries, wineries, and Utah's newest distillery.

Funding Detail

The funding for the Operations of the Department of Alcoholic Beverage Control comes from the Liquor Control Fund.

Sources of Finance	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Liquor Control Fund	$2,185,900	$2,432,500	$1,719,000	$1,507,800	$1,808,900
Total	$2,185,900	$2,432,500	$1,719,000	$1,507,800	$1,808,900

Categories of Expenditure	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Personnel Services	$293,200	$333,200	$349,900	$348,200	$329,600
In-state Travel	$0	$200	$0	$0	$0
Out-of-state Travel	$800	$0	$0	$0	$0
Current Expense	$58,800	$52,300	$42,300	$34,900	$1,100
DP Current Expense	$1,820,300	$1,885,600	$1,278,200	$1,124,700	$1,478,200
DP Capital Outlay	$0	$161,200	$0	$0	$0
Capital Outlay	$12,800	$0	$48,600	$0	$0
Total	$2,185,900	$2,432,500	$1,719,000	$1,507,800	$1,808,900

Other Indicators	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Budgeted FTE	14.0	14.0	14.0	14.0	14.0
Vehicles	2	2	2	2	2

Subcommittee Table of Contents

Program: Warehouse and Distribution

Funding Detail

The funding for the Warehouse and Distribution of the Department of Alcoholic Beverage Control comes from the Liquor Control Fund.

Sources of Finance	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Liquor Control Fund	$1,578,100	$1,310,200	$1,711,500	$1,662,200	$1,558,200
Total	$1,578,100	$1,310,200	$1,711,500	$1,662,200	$1,558,200

Categories of Expenditure	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Personnel Services	$1,122,500	$912,500	$1,299,900	$1,320,100	$1,153,100
Out-of-state Travel	$0	$200	$0	$0	$0
Current Expense	$347,700	$325,000	$298,400	$231,600	$298,400
DP Current Expense	$0	$0	$39,300	$0	$33,500
DP Capital Outlay	$8,600	$5,800	$0	$45,700	$0
Capital Outlay	$99,300	$66,700	$73,900	$64,800	$73,200
Total	$1,578,100	$1,310,200	$1,711,500	$1,662,200	$1,558,200

Other Indicators	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Budgeted FTE	25.0	22.0	25.0	25.0	25.0

Subcommittee Table of Contents

Program: Stores and Agencies

Funding Detail

The funding for the Stores and Agencies of the Department of Alcoholic Beverage Control comes from the Liquor Control Fund.

Sources of Finance	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Liquor Control Fund	$16,831,600	$19,023,100	$20,939,200	$21,886,400	$21,798,500
Total	$16,831,600	$19,023,100	$20,939,200	$21,886,400	$21,798,500

Categories of Expenditure	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Personnel Services	$9,700,100	$11,146,300	$12,214,400	$12,158,000	$12,239,700
In-state Travel	$27,800	$52,200	$31,700	$34,200	$31,700
Out-of-state Travel	$600	$0	$2,200	$800	$2,200
Current Expense	$7,002,200	$7,747,100	$8,331,300	$9,240,500	$9,176,200
DP Current Expense	$6,400	$27,500	$348,700	$376,900	$348,700
DP Capital Outlay	$0	$50,000	$0	$0	$0
Capital Outlay	$94,500	$0	$10,900	$76,000	$0
Total	$16,831,600	$19,023,100	$20,939,200	$21,886,400	$21,798,500

Other Indicators	2007 Actual	2008 Actual	2009 Actual	2010 Actual	2011 Approp
Budgeted FTE	279.0	279.5	287.0	287.0	287.0
Vehicles	18	18	18	20	18

Subcommittee Table of Contents