JFAC nixes plan for two additional state liquor stores in the Treasure Valley

With no discussion or debate, the Joint Finance-Appropriations Committee this morning rejected plans to add two new state liquor stores in the Treasure Valley; the change would have bumped Idaho from 66 to 68 state-owned liquor stores, the first change since 2009.

Sen. Fred Martin, R-Boise, said, “I was just not ready to do that.”

He said he supported the state Liquor Division’s plan to remodel and relocate some existing stores to better match market trends, but drew the line at adding the two new Treasure Valley stores.

Rep. Phylis King, D-Boise, agreed. “I don’t have anybody writing me saying they’re not able to get liquor on Saturdays,” she said. “I’m not sure it was necessary.” Plus, she said, “It’s a lot of money.”

The budget that the two crafted for the state Liquor Division allows the division to spend $428,000 to remodel or relocated stores next year; the division had requested and Gov. Butch Otter had approved $1.2 million, to include the two additional stores along with the remodels and moves.

The state Liquor Division receives no state general funds; instead, it operates entirely on the proceeds from state-controlled liquor sales, and turns over several times what it spends to the state. In fiscal year 2016, the Liquor Division distributed $68.7 million to the state general fund, cities, counties, court services, and substance abuse and treatment programs. This year, it’s forecasting a $72.2 million distribution.

The budget approved for the division in JFAC this morning comes to $20.1 million, a 2.3 percent increase over this year; that compares to the governor’s recommended $20.9 million, a 6.5 percent increase. It passed on an 11-9 vote, after Sen. Mary Souza, R-Coeur d’Alene, proposed an additional cut below what Martin and King advocated: Slicing out a request to restore a deputy director position that was cut during the recession. Gov. Butch Otter had recommended funding the position.

King said the division had four deputy directors in 2010, and went down to three; now, one of the three has been facing major health problems, so it’s essentially down to a little over two. “They really could use some help,” she said. “Their workload has almost doubled since 2010.”

Souza said, “I just believe that in the times when we have additional moneys coming in, we need to be careful. … They want an additional deputy director now because they desire the capacity to respond to industry trends. I believe that at this time we need to be careful, so I am willing to put that forward and say that we could wait on that position.”

Rep. Sage Dixon, R-Ponderay, seconded Souza’s motion. When it passed on an 11-9 vote – with Martin supporting it – that meant the original motion from Martin and King wasn’t considered.

The plan to add two new state liquor stores drew a question from Sen. Dean Mortimer, R-Idaho Falls, during the division’s budget hearing last month. “I’ve got some concerns,” Mortimer said then. “I really question the return. … If it’s just a matter of convenience, I’m not sure I want to expend our dollars for convenience.”

State Liquor Division Director Jeff Anderson, who also serves as director of the state Lottery Commission, two state agencies that used to each have their own director, responded that the changes would bring very significant return on investment. “We believe if we’re going to be in this business, we should be in it and be responsible, and serve the patrons,” Anderson said then. “We haven’t asked for new stores since I’ve been there.” He’s headed the liquor division since 2010.

The budget still needs passage in the House and Senate and the governor’s signature to become law, but budget bills rarely change once they’re set by the joint committee.