Budget Cuts at State ABC

Your editorial (“Easy as ABC?” Oct. 30) on budget cuts at the state Department of Alcohol Beverage Control raised some issues which should be clarified.

First, ABC is committed to fulfilling its constitutional mandate to license and regulate the sale of alcoholic beverages. There is no basis to the claim that licenses could take years to be approved. The priority of the department will continue to be licensing.

Second, there should be no significant revenue loss. More than 90% of the revenue generated by ABC is from its licensing function and we expect little change in this licensing revenue. In addition, there will be no layoffs in the staff of attorneys who bring enforcement actions against license holders, thus mitigating loss of revenue from enforcement actions.

You noted in your editorial that ABC is an issue which deserves a closer look and I agree. For example, you might ask why members of the Legislature who voted for a budget containing these cuts are now criticizing their own efforts and blaming the Wilson Administration. You might ask what programs critics of the ABC cuts would reduce in order to restore funds to the ABC. You might also ask about the number of ABC positions that could be restored if state employees would accept a 5% pay cut (we estimate 40).

Balancing the state budget during sluggish economic times requires making tough decisions and living with them. The only good solution is a revitalized economy, one that generates the revenues required to meet our needs. I hope that those critical of these budget decisions will join with Gov. Wilson in helping to make our business environment nationally competitive once again.

CARL D. COVITZ, Secretary, Business, Transportation and Housing Agency, Sacramento