Spelling out the need for ABC reform
Monday, January 25th, 2010
By Barlow Herget
Some of the local ABC executives around the state must be over-sampling their wares.
Thanks to good reporting by Mark Johnson of the Charlotte Observer, we have learned that Alcoholic Beverage Control Board members are behaving like drunken Wall Street bankers in giving their executives high salaries and raises.
The Asheville ABC Board not only gave its CEO a nice raise in this Great Recession but a $22,000 incentive bonus. The man's base salary is a generous $119,000 and he drives a car furnished by the Board.
The news story listed a number of excesses approved by local boards of which there are 163 across the state. There were instances of boards giving their managers raises even when their revenues declined or lost money for the year. Talk about Wall Street banker habits.
The state's ABC system is a leftover from its prohibition past. North Carolina was legally dry before the 18th Amendment was adopted nationally. Like other Bible Belt Southern states, North Carolina has long wrestled with hard drink, and there are still two mountain counties where liquor is prohibited. The current ABC system got its start in 1935 with the passage of the Pasquotank Act, permitting local ABC boards. Today, the state oversees the central warehouse and regulates the sale of mixed drinks in bars and restaurants but it's the local boards that manage and operate ABC stores.
Some free-market advocates argue the state should get out of the alcoholic beverage control business altogether. I don't see how allowing Wal-Mart to sell whiskey at bargain prices helps the state's substance abuse problem.
The current ABC system is a reasonable way to control liquor sales. But the press reports make clear that changes are warranted.
The state ABC Commission should have more oversight of local board management. There is no rhyme or reason in a system in which the Orange County ABC general manager makes $83,600 a year and the New Hanover manager makes $245,000 and his assistant, his very own son, makes $127,000.
That's outrageous.
Governor Beverly Perdue recognizes this out-of-whack status quo as does the new state ABC Chairman Jon Williams. Mr. Williams has called for state guidelines for compensation and transparency of the same.
But Williams can only suggest such changes. The Governor and General Assembly need to change the law. Until then, the Governor might invite local ABC chairmen to the Mansion for a drink and candid discussion about showing some common sense in doing their jobs.
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