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Senate repeals budget cuts for liquor stores

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On Thursday, April 21 the New Hampshire Senate voted to repeal a law that requires the Liquor Commission to cover revenue shortfalls with budget cuts.

During last year’s budget debate, the House and Senate passed a law that says if the Liquor Commission does not generate the planned revenue for a fiscal year, the Liquor Commission must cut spending equal to that shortfall, up to 5% of appropriations.

The Union Leader reports that this law was passed in response to reports of corruption and mismanagement of New Hampshire’s liquor stores. 

This year the Liquor Commission is reporting revenue 1.8% below expectations, which could translate into a $2 million budget cut.

However, members of the Senate believe that forcing a budget cut will further lower revenue.

“In my opinion, we do not want the Liquor Commission to have to make cuts to staff or close stores as a result of this 5% penalty provision,” testified Sen. Jeb Bradley.  “In particular going into the busy summer season we need to make sure our liquor stores, our retail stores, are well prepared to do their job.” 

The Liquor Commission attributes this year’s revenue shortfall to increased competition on the Massachusetts border and lower tourism during the warm winter season.

The proposed change now heads to the Senate Finance Committee.

Do you think the state should penalize the Liquor Commission if revenue does not meet expectations?  Comment below.

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