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


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. 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.