Study favors liquor bond over upfront payment
A nonpartisan legislative office estimates Gov. Paul LePage's liquor renegotiation plan would increase the state's share of liquor distribution proceeds by $32 million over 10 years versus a competing plan proposed by Democratic leaders.
The Bangor Daily News reported the review by the Legislature's Office of Fiscal and Program Review found that Democrat Sen. Seth Goodall's plan to seek an upfront payment from the next winner of the state's 10-year liquor distribution pact would increase the state's share of liquor revenue by an estimated $352.8 million. LePage's plan would increase the state share by $384.8 million, or $32 million more, according to the agency's study. LePage's plan hinges on issuing a revenue bond to repay $186 million in debt to Maine hospitals.
At the same time, the state's Veterans and Legal Affairs Committee, which heard the fiscal analysis Monday, is seeking to draft its own bill outlining how the state will renegotiate the liquor distribution contract, currently held by Maine Beverage Co. Sen. John Tuttle, D-Sanford and co-chair of that committee, told the paper that the committee will pursue its own bill in hopes of defusing the political charge surrounding the issue.
Gerry Reid, director of the state's Bureau of Alcoholic Beverages and Lottery Operations, told the paper that he agrees with the general conclusion of the review that LePage's plan would produce more revenue for the state.
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