COBI 2015 - Operations

Overview
Issues
Financials

Sources Uses

FY 2016 Appropriation

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 mentioned previously, Utah is one of 17 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.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $2,986,100 from all sources for Operations. This is a 45.4 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Backfill IT Efficiencies in FY 2016$0$200,000

OngoingOne-TimeFinancing Source

$0$200,000Liquor Control Fund

Funding was reduced for efficiencies that will begin in FY 2017 when the new data system is in place. To prevent a reduction to operations funding is proposed to backfill the ongoing cut with one-time funding.

Credit Card Processing Fees$724,000$0

OngoingOne-TimeFinancing Source

$724,000$0Liquor Control Fund

When sales volume increases, the overall credit card processing fees and shipping cost increase as a cost of doing business. Funding is needed to keep up with caseload growth. Licensees are also asking to be able to use credit cards for purchases.

Intent Language

HB0003: Item 65

Under Section 63J-1-603 of the Utah Code, the Legislature intends that any remaining amount from the $2,050,000 one-time bond payment savings appropriation provided by Item 19, Chapter 10, Laws of Utah 2014 for the Department of Alcoholic Beverage Control - DABC Operations not lapse at the close of Fiscal Year 2015. These funds will be used for completion of the warehouse management software project.

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

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Liquor Control Fund	2,284,200	2,002,800	1,802,100	2,031,900	2,053,400	0	2,053,400	932,700	2,986,100
Markup Holding Fund	0	0	0	57,700	0	0	0	0	0
Lapsing Balance	0	0	0	(972,200)	0	0	0	0	0
Total	$2,284,200	$2,002,800	$1,802,100	$1,117,400	$2,053,400	$0	$2,053,400	$932,700	$2,986,100

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	378,600	223,000	0	0	0	0	0	0	0
Current Expense	38,600	419,700	630,500	12,700	630,200	83,600	713,800	724,000	1,437,800
DP Current Expense	1,810,300	1,212,200	1,171,600	1,104,700	1,423,200	(83,600)	1,339,600	208,700	1,548,300
DP Capital Outlay	56,700	147,900	0	0	0	0	0	0	0
Total	$2,284,200	$2,002,800	$1,802,100	$1,117,400	$2,053,400	$0	$2,053,400	$932,700	$2,986,100

Show Table | Show Additional Information

Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	5	3	5	3	3	0	3	0	3
Actual FTE	5	3.10	0	0	0	0	0	0	0
Vehicles	2	2	1	1	2	(1)	1	1	2

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.