Division of Alcoholic Beverage Control
The enacted budget makes the following changes to the Executive Budget (analysis as of 4/2/2007):
- Adds $700,000 to the division’s All Funds budget. All of it is in a maintenance undistributed appropriation in the Compliance program, $400,000 of which is for personal services. This additional funding is to support new investigators and the efforts of the new Problem Premises Task Force created last year.
The Senate recommends (analysis as of March 16, 2007):
Senate: Adds $1.015 million to the State Operations budget; $700,000 in a personal services appropriation for the Compliance program for nine new field investigators and $315,000 in the fringe benefit appropriation for this program to cover these costs for the nine new positions.
The Executive Budget recommends (analysis as of February 5, 2007):
A FY 2007-08 workforce of 156. This maintains the level of FTEs from the adjusted FTE level for FY 2006-07. The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in FY 2007-08 FTEs by program (if the FTE’s are the same the program is not listed):
Program
FY 2006-07 Adjustment
FY 2007-08 Difference
Administration
3
0
Compliance
-26
0
Licensing and Wholesaler Services
-5
0
- The reduction of 28 FTE’s in the current fiscal year reflects the Legislature’s rejection of increased fees in the enacted SFY2006-07 budget. The revenue from these fees would have supported 28 additional beverage inspectors.
- The total appropriation for Personal Service is $8.1 million, a 4.6% increase from SFY 2006-07.
- An All Funds decrease of $350,000, (2.1%) from SFY 2006-07. The Agency Budget Presentation and both the Assembly Ways and Means and Senate Finance Committee analyses show an increase of $600,000 from current allocations, indicating that adjustments in funding were made in the current year.
- An increase of $285,000 or 6.7% in the Administration Program, which was primarily due to a $190,000 (19%) increase in Personal Service funding for this program. This increase is not associated with an increase in FTEs in SFY 2007-08, but may reflect the annualized increase of 3 FTEs in the 2006-07 adjusted budget.
- A decrease of $613,000 (8.4%) in the Compliance Program can be attributed to the elimination of funding for the following SFY 2006-07 allocations: Nine Field Investigators ($700,000) and the Problem Premise Task Force ($250,000). Since the Agency Budget Presentation does not show a decrease in funding from SFY 2006-07, it is unclear if these programs were consolidated into regular Personal Services during the current year. The SFY 2007-08 Personal Service funding for this program increased by $255,000. According to Assembly Ways and Means Committee, this reflects $165,000 for salary increases and $82,000 for indirect costs and personnel alignments. The increase in Personal Service funding is not associated with an increase in FTEs in SFY 2007-08. This funding and position changes should be clarified with management.
- A decrease of $89,000 (2.9%) in the License and Wholesaler Services Program’s Personal Service funding. This decrease is not associated with a decrease in FTEs for SFY 2007-08. The Agency Budget Presentation shows a $215,000 increase in total funding in this program ($146,000 increase in personal services) from SFY 2006-07 indicating an adjustment was made to this program’s appropriation during SFY 2006-07
- The Division of Alcoholic Beverage Control employed an estimated 3 employees under consultant contracts in SFY 2006-07 at an estimated cost of $363,000 or an average cost of $121,000 per consultant contract employee. It is estimated that no funds will be allocated for consultant contracts in SFY 2007-08 and no consultants will be employed by the Board.
- Article VII legislation extends for two years the increased penalties in the Alcoholic Beverage Tax for violations of law including but not limited to: importation without registration, possession without registration, production without registration, removal from a warehouse and failure to pay the tax.
Alcoholic Beverage Control Program Details-State Operations Enacted Proposed Enacted Change in Percent Program 2006-07 Budget 2007-08 Budget 2007-08 Budget Appropriation Change All Funds $16,688,000 $16,338,000 $17,038,000 $350,000 2.1% Special Revenue-Other $16,688,000 $16,338,000 $17,038,000 $350,000 2.1% $0 Personal Services $7,755,000 $8,111,000 $8,511,000 $756,000 9.7% Contractual Services $2,633,000 $2,633,000 Administration $4,242,000 $4,527,000 $4,527,000 $285,000 6.7% Personal Service $1,000,000 $1,190,000 $1,190,000 $190,000 19.0% Regular $1,185,000 $1,185,000 Holiday/overtime compensation $5,000 $5,000 Nonpersonal Service $3,242,000 $3,337,000 $3,337,000 $95,000 2.9% Supplies and materials $117,000 $117,000 Travel $32,000 $32,000 Contractual Services $1,993,000 $1,993,000 Equipment $592,000 $592,000 Fringe benefits $470,000 $563,000 $563,000 Indirect costs $40,000 $40,000 $40,000 Compliance Program $7,319,000 $6,706,000 $7,406,000 $87,000 1.2% Personal Service $3,691,000 $3,946,000 $3,946,000 $255,000 6.9% Regular $3,916,000 $3,916,000 Holiday/overtime compensation $30,000 $30,000 Nonpersonal Service $2,678,000 $2,760,000 $2,760,000 $82,000 3.1% Supplies and materials $107,000 $107,000 Travel $178,000 $178,000 Contractual Services $370,000 $370,000 Equipment $160,000 $160,000 Fringe benefits $1,733,000 $1,814,000 $1,814,000 $81,000 4.7% Indirect costs $130,000 $131,000 $131,000 $1,000 0.8% Maintenance Undistributed $0 $0 $700,000 Personal Service $0 $0 $400,000 Regular $0 $0 $400,000 Nonpersonal Service $0 $0 $300,000 Equipment $0 $0 $100,000 Fringe benefits $0 $0 $200,000 Nine Field Investigators $700,000 $0 $0 Problem Premise Task Force $250,000 $0 $0 Lic & Wholesaler Serv Prog $5,127,000 $5,105,000 $5,105,000 ($22,000) -0.4% Personal Service $3,064,000 $2,975,000 $2,975,000 ($89,000) -2.9% Regular $2,958,000 $2,958,000 Temporary service $17,000 $17,000