Division of Alcoholic Beverage Control
The enacted budget makes no changes to the Executive Budget; the Division’s SFY 2010-11 All Funds appropriation is a $3.9 million increase from its SFY 2009-10 enacted budget All Funds appropriation (analysis as of June 23, 2010).
The Assembly Budget resolution took the following actions on the Executive Budget:
The Senate Resolution recommends the following changes to the Executive Budget (analysis as of 3/22/10):
The Executive Budget recommends (analysis as of January 25, 2010):
A SFY 2010-11 workforce of 175. This increases the level of FTEs from the adjusted FTE level for SFY 2009-10 by 20. The 20 FTE increase will be achieved through the attrition of 20 FTEs offset by 40 new fills. According to the Senate analysis this 20 FTE increase reflects the Executive Budget proposal to permit the sale of wine in grocery stores. The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in FY 2010-11 FTEs by program:
|
Program |
FY 2009-10 Adjustment |
FY 2010-11 Est.
FTEs 3/31/11 |
FY 2010-11 Difference |
|
Administration |
-12 |
16 |
0 |
|
Compliance |
-25 |
74 |
0 |
|
Licensing and Wholesaler Services |
-23 |
85 |
+20 |
|
Total |
-60 |
175 |
+20 |
· The difference between the estimated FTEs for SFY 2009-10 and the adjusted level of 2009-10 FTEs is -60 FTEs. 20 FTEs were associated with the rejection last year of the proposal to permit the sale of wine in grocery stores, but the loss of the remaining 40 FTEs should be addressed at statewide labor management.
·
The total
appropriation for Personal Service is $10.3 million, an $837,000 or 8.8%
increase from SFY 2009-10.
This reflects a $1 million (100%) increase in personal service funds for
the Licensing and Wholesaler Services Program’s new Maintenance Undistributed
account for services and expenses related to the processing of license
applications, enforcement, and implementation of a bill authorizing the sale of
wine in grocery stores.
This increase
is offset by the following personal service
decreases: Administration Program
(-$44,000 or -3.2%); Compliance Program (-$71,000 or -1.5%); and Licensing and
Wholesaler Services Program (-$48,000 or -1.5%).
According to the Assembly Yellow
Book, these proposed reductions reflect the impact of SFY 2010-11 collective
bargaining savings, which we assume to reflect ABC’s share of the $250 million
of proposed union concessions.
·
Both the
Assembly and Senate analysis state
that the new MU account within the Licensing and Wholesaler Services Program
will be appropriated as follows: $2.4 million for a two-year effort to modernize
and improve the licensing processes of the Division; and $1.2 million to support
the implementation of a proposal to permit the sale of wine in grocery stores
(this proposal includes the 20 FTE increase).
·
An All Funds
appropriation of $22.3 million, a $3.9 million or 20.9% increase from SFY
2009-10. This increase includes the
above state personal service increase and a $1.55 million (+56.9%) increase in
contractual services. All of the
contractual services increases were in the Licensing and Wholesaler Service
Program (+$49,000 or 18.1%) and in this program’s new MU (+$1.5 million or
+100%).
·
The Division
of Alcoholic Beverage Control employed an estimated 17 employees under
consultant contracts in SFY 2009-10 at a cost of $369,300. It is estimated
that the same amount of funding and number employees will be allocated for
consultant contracts in SFY 2010-11.
·
Article VII
legislation will allow for the sale of wine in grocery and drug stores, impose a
franchise fee, and modify several sections of law governing the operation of
liquor stores.
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