By GARRY RAYNO, InDepthNH.org
CONCORD — Liquor Commission officials told Senate budget writers Friday the agency could experience unknown disruptions in revenues and operations with the House-approved elimination of 20 enforcement officers.
Under the House-passed, $18.67 billion two-year operating budget, 20 liquor law enforcement positions are eliminated in the second year of the biennium with budget writers citing a Legislative Budget Assistant’s audit of the agency in making the decision.
“It will take years and millions of state revenue dollars to rebuild and retrain this division,” said Liquor Commissioner Joseph Mollica, “only to accomplish what the division can do today.”
The elimination of the positions would save an estimated $2.3 million. The agency is self-funded from liquor revenue and sends its profits to the state’s general fund, this current fiscal year about $133 million.
Mollica told budget writers his agency and the enforcement division have increased revenues over the last five years and he cannot understand why there is any need to make significant changes in his agency.
He noted enforcement revenue increased from $17.2 million to $18.5 million between 2015 and 2020, while total sales have increased from $647 million to $766 million or 18 percent. He said licensees have also grown.
“I’m not 100 percent sure where this (job eliminations) came from,” Mollica said, “but I do not believe our customers, or licensees or anyone we do business with around the state wants this.”
Committee member Sen. Lou D’Allesandro, D-Manchester, noted he probably has the highest concentration of license holders in his district and when he approaches the commission with an issue or suggestion, it is always positive.
“This change in enforcement is mind boggling to me,” D’Allesandro said. “What is the rationale behind this?”
“I can’t speak to the mindset behind this idea of defunding the police at the liquor commission,” Mollica said, but noted it is a total disconnect to customer service which is paramount to any successful business.
Committee member Sen. Bob Giuda, R-Warren, said he had not read the audit but heard the enforcement division is not well managed as officers frequently visit nearby establishments and do not consistently visit all establishments.
Mollica said the enforcement division visits establishments more frequently where there are problems.
“We fish where the fish are,” Mollica said, “and go where the problems are.”
Enforcement division chief Mark C. Armaganian said when he took over the division in 2018 the agency’s compliance plan needed consistency and he worked to achieve that.
He said the division was not as efficient as it could be but noted they were short seven positions.
Armaganian said they needed to take a broader approach and expand the education program with license holders to achieve compliance.
“Everything we do starts with education,” he said. “Successful compliance is education.”
He said the industry has supported what the division is doing and its relationship with the industry is beyond reproach.
Commission officials said they cannot do their legal duties under the House approved budget.
“The budget presented is the level of funding passed by the House and does not support the level of funding necessary to accomplish the commission’s legislative duties,” the commission’s chief financial officer Tina Demers told the Senate Finance Committee members.
Mollica said the House budget would begin the dismantling of the liquor commission’s control system.
He said the House budget would leave enforcement to local police who are not trained to do that.
And, he said, as the hospitality industry comes out of the pandemic, the change in the division would cause delays in reopening businesses and seasonal establishments.
The commission operates 69 retail outlets that generated more than $617 million in retail sales in fiscal year 2020.
The commission believes it will produce $133 million in general fund revenue for the current 2021 fiscal year, $141.62 million in fiscal year 2022 and $141.24 million in 2023.
The Senate Finance Committee is hearing from state agencies through the end of the month before it begins developing its version of the budget.
The Senate has a June 3 deadline to approve its version of the state’s two-year operating budget.
Garry Rayno may be reached at garry.rayno@yahoo.com.