Note: This year IFF rated maintenance bills according to a more refined system. This is an enhancement bill, and will be rated as a standalone bill. IFF will only consider enhancement line items in these ratings. This means that FTP reductions passed in maintenance legislation will not be evaluated here, among other things.

Bill Description: House Bill 924 is an enhancement of $1,673,000 and an additional 0.00 full-time positions for the State Liquor Division for fiscal year 2027. This legislation appropriates a total of $33,270,900 and 253.25 full-time positions to the agency.

Rating: 0

Is the continuation or growth in ongoing spending, if any, inappropriate for the changes in circumstances, scope of the agency, or current economic environment? Conversely, is the continuation or growth in ongoing spending appropriate given any change in circumstances or economic pressures?

This legislation authorizes an ongoing spending enhancement for the State Liquor Division of $113,900, adding onto last year’s (FY26) ongoing spending increase of $284,500. FY26’s ongoing spending is wrapped into FY27’s base increase, making ongoing spending especially important to scrutinize. Volatility in these increases (or decreases) is to be expected, and makes discernment on the propriety of new spending imperative.

The increase in ongoing spending solely consists of General Inflation increases for utilities ($113,900).

(0)

Does this budget incur any wasteful spending among discretionary funds, including new line items? Conversely, does this budget contain any provisions that serve to reduce spending where possible (i.e. base reductions, debt reconciliation, etc.)?

This legislation authorizes onetime spending for the State Liquor Division of $1,559,100, adding additional expenditures after last year’s (FY26) onetime spending of $514,900. Onetime spending is often even more volatile than ongoing spending, which is to be expected due to these onetime expenses generally being utilized for projects or capital outlay. This also calls for special scrutiny and discernment.

The onetime expenditures consist of OITS Hardware ($427,900 DF) recommendations and replacement items ($1,131,200 DF). The agency did not receive requested funding for replacement items last year, partially explaining the large request compared to agency size. OITS funding is also relatively high compared to other similar sized agencies, although the Liquor Division has a large number of physical spaces (67 stores) as compared to other agencies.

Replacement items “funding to replace obsolete security systems at 10 stores, security panels at 2 stores, and point of sale battery backups at 40 stores; funding to replace broken signage at 4 stores and aging shelving at 21 stores; service and safety repairs on flooring, lighting, walls, window wraps, and coolers at multiple stores; funding to replace fencing, parking lot repairs/resurfacing, warehouse rack supports, and motorized equipment used daily in its transport orders; and to replace one fleet vehicle with modifications to secure cargo. “

(0)