Pennsylvania May Be Backing Off Plans to Borrow Against State Liquor Profits

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During recent budget debates in Pennsylvania, Gov. Tom Wolf floated the idea of using profits derived from the state's Liquor Control Board as security for a state loan (previously covered here). This novel use of state liquor proceeds raised eyebrows--and sparked a lawsuit--but it appears, for now, that the governor will not pursue the idea after all. Law360.com reports:

"A Pennsylvania advocacy group withdrew Tuesday its bid for a preliminary injunction to stop the governor from borrowing $1.25 billion against the state Liquor Control Board's future earnings to balance the state budget amid reports he was backing off the proposal...

That's because Wolf on Monday signed into law a budget deal approved by the General Assembly that instead borrows $1.5 billion from the state's tobacco settlement fund to pay for the $31.38 billion spending plan approved in June..."

More here.

R Street's Jarrett Dieterle recently wrote about the PLCB and how its liquor markups function like taxes.