Hehemann said personnel and benefit costs will rise by
Although wine and spirits sales are expected to grow this year, expenses are outstripping that growth by nearly 12 percent, the memo states.
"As is usual in these discussions, we talk about initiatives to increase sales, discuss options to control and/or reduce expenses and review the agency's product markup structure," Kriedeman said. "An increase in the product markup is typically discussed as part of the budget process. ... We continue to look at alternate ways to increase revenue in an effort to leave the markup as it is."
The LCB has not increased the markup in more than 20 years.
Hehemann said in his memo that higher markups may lead vendors to lower their prices so the shelf price for consumers remains unchanged, but noted many unknowns remain.
"Many vendors will wait and see how their competition responds to the increase before revising their prices," Hehemann wrote.
If the LCB raises the markup on
"Either somebody was intentionally not telling the truth or as an agency they made a decision to mislead the legislature and the public," Miskin said. "There was never even a hint of anything negative, anything in the red."
Kriedeman said the agency is in strong financial shape.
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