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 A Good Place to Cut Bloated Bureaucracy
by Tom Campbell
December 11, 2008
The legislature recently heard a report saying our state’s Alcoholic Beverage Control system needs major revisions and modernization. They were wrong. It needs to be abolished. North Carolina is one of few states that still control liquor sales and the only one to designate that control to local ABC boards.
We got into the liquor business when prohibition was repealed. There were two basic models used by states to control the sale of “Demon Rum.” The first method was to have the state license liquor stores and oversee their operations to ensure laws were enforced and taxes collected. The second, chosen by our state, was total control over the distribution and sales process. What may have made sense in 1937 is a Dinosaur today.
Our 100 counties boast 158 local ABC boards and 405 stores across the state. Collectively these stores sold 2 million in liquor in 2007, averaging .7 million per store. At least 47 percent of them are not profitable. Imagine having a monopoly like liquor and not being able to make a profit. Those profits are to be used by governments for law enforcement, alcoholism treatment and for state and local government funding. In 2005-06 these stores yielded 4 million in revenues to the state and million to local governments, a token amount considering the huge mark-ups between wholesale and retail liquor prices.
The report concluded the three-member state ABC board should be given more control over local boards in order to improve efficiency and profitability. The data may be accurate but the conclusions are totally wrong. North Carolina’s ABC system needs to be abolished. We do not need to be in the business of selling liquor and the sooner we rid ourselves of this antiquated system, the better all will be.
We have a bloated bureaucracy with too many employees operating ineffectively. Durham Representative Paul Luebke summed up part of the problem saying, “I have never seen a government employee who has less work to do than an ABC store employee.” Appointed members of the local and state ABC boards have used their positions for power and control. Former ABC Board Chairman Marvin Speight became a power broker in state government through his position. Others have done likewise.
If our goals are to provide more law enforcement and alcoholism treatment we could easily double or triple the amount available for these purposes by licensing outlets to sell alcoholic spirits and collecting taxes on the sale of product, much like we do with beer and wine. We would eliminate many leases on stores and warehouses used to store liquor. The only argument for keeping the current system is that “having liquor stores on every corner” will increase the numbers drinking and the number who abuse liquor. But those same arguments were made when our state voted on selling liquor in restaurants and there is no proof problems are significantly worse. Anyone wanting liquor can get it now. And the only losers would appear to be the under worked ABC employees.
This would be a good place to cut government, to show it could be done, to eliminate payroll that could be used to hire more probation officers, more mental health workers, more teachers while also increasing revenues to our state and local governments. This decision is such a “no brainer” that the fact it hasn’t been made is a tribute either to political influence or a total lack of desire to reform government. North Carolina needs to get out of the liquor business.
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