North Carolina Boards 2012

NORTH CAROLINA ASSOCIATION OF ABC BOARDS It is the mission of the North Carolina Association of ABC Boards to (a) strive to assure that the sale of alcoholic beverages is handled in a responsible and controlled manner, and that sales are made only to those individuals legally entitled to make such purchases; (b) to foster good relations among the local ABC boards and with other entities by providing education and information on ABC issues; (c) to assist local ABC boards in managing their resources in order to enhance their operations and maximize the revenues that they distribute to their local governmental bodies; and (d) to work with governmental agencies to preserve and improve the state’s ABC system.

General Fund $229,226,025 County - City Distributions$55,044,565 NCABC & ABC Distribution Center$12,008,700 Local Alcohol Education$9,308,118 Local Law Enforcement$7,113,055 Counties - Rehabilitation$2,570,187 Dept. of Health & Human Resources$1,401,457 Liquor Revenues Climb

Revenues From Spirituous Liquor - North Carolina ABC Boards July 1, June 30, 2012 IncreasePercent 06/30/1206/30/11-DecreaseChange Liquor Sales - Regular639,985,257600,642,64739,342, % Mixed Beverage Sales155,392,184145,880,8749,511, % Total Sales795,377,441746,523,52148,853, % State Excise Tax170,378,967159,722,76510,656, % Liquor Sales Tax44,832,81048,105,158-3,272, % Mixed Beverage Tax - Revenue14,014,24813,413,026601, % Mixed Beverage Tax - DHHS1,401,4571,341,59159, % Rehabilitation Tax2,570,1872,469,031101, % Cost of Goods Sold409,940,662385,937,64524,003, % Operating Expenses120,032,781120,446, , % Interest Income343,690416,850-73, % Other Income737,8101,363, , % Profit Before Distribution78,172,58463,784,94814,387, % Profit Percent To Sales9.83%8.54%1.28% Law Enforcement7,113,0556,999,731113, % Alcohol Education9,308,1188,577,516730, % Net Profit61,751,41148,207,70113,543, % County - City Distributions55,044,56542,815,16712,229, % Mixed Beverage Tax Retained12,613,38112,071,627541, % Surcharge Collected4,105,0003,895,342209, % Bailment Collected7,903,7005,206,0812,697, % Bottles Sold:924,774,645108,364,042 Regular41,591,10040,163,4471,427, % Mixed Beverage7,220,0756,957,667262, % Total48,811,17547,121,1141,690, % Miniatures12,883,41011,242,8241,640, % Number Of Stores Note: Sales tax decreased from 8% to 7% July 2011 Bailment increased from $1.20 per case to $1.65 August 2011

Wayne County Distributions (Example)

1.NC has controlled the sale of alcoholic beverages since the repeal of prohibition and is unique among other control states in that North Carolina ABC boards are established by town or county elections and the profits flow to that local government unit 2. North Carolina ranks 5th among the 50 states in revenue per capita from the sale of spirits and 49th in per capita consumption - NC's control system for the sale of sprits works, and it accomplishes important public health and revenue objectives - Research consistently shows that control states have lower consumption rates – on average 14 percent less for sprits. 3. No State funds are spent to distribute or sell spirits - Privatization would not result in any downsize of State government - The system generates substantial revenue for state and local governments, while engaging in responsible sales 4. Privatization will result in a marked increase in the number of outlets (currently there are 418 ABC stores). - More consumption results in greater harms and greater costs to society - Cost of irresponsible and destructive use of all alcohol in this state is estimated to be $6.9 billion/year. The North Carolina Institute of Medicine Task Force on Substance Abuse Services reported to the North Carolina General Assembly in 2008 that the price tag for underage drinking alone is estimated at $1.2 billion annually.

- In 2006, alcohol abuse and addiction cost the nation $220 billion, more than cancer ($196 billion) or obesity ($133 billion) 4.Privatization would mean a loss of jobs for ABC board employees (2,331) and significant expense for unemployment benefits for those employees 5. Privatization is a complex and controversial issue - Washington State went private last year and the system has fallen apart -- Prices have risen 33% -- Projected income/revenue is significantly lower than estimated prior to privatization - Virginia has yet to formulate a workable plan that does not cause significant annual revenues losses, and the Governor has pulled back on plans for a special session to consider privatization 6.Bill 1717 introduced more regulation for the North Carolina ABC System. Requirements such as a Finance Officer and mandatory training have increased transparency and accountability for local ABC Boards. Information and communication are essential between local ABC Boards and their appointing authorities. 7. “North Carolina Customers give their local ABC Liquor Stores high Marks”. (From Apr 2012 Report – UNC Frank Hawkins Kenan Institute of Private Enterprise) 8.“This is a product that is extremely regulated for a purpose” North Carolina Governor Beverly Purdue said as she announced her decision not to privatize last year and went further to call ABC a “core service” for North Carolina. 9. Privatization does not make sense for North Carolina from a public health, public safety or economic standpoint.

Our thanks to the hosting ABC Boards and Cities: High Country ABC --- Sugar Mountain, NC Triad Municipal ABC ---- Winston-Salem, NC Shallotte ABC Shallotte, NC Catawba Co. ABC ---- Newton, NC Onslow Co. ABC ---- Jacksonville, NC Pitt Co. ABC Greeneville, NC Anson Co. ABC ---- Wadesboro, NC Cumberland Co. ABC ---- Faytteville, NC Wake Co. ABC --- Raleigh, NC Chowan Co. ABC ---- Edenton, NC Sylva ABC ---- Sylva, NC