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House Co-Sponsorship Memoranda
House of Representatives
Session of 2017 - 2018
Regular Session
MEMORANDUM
| Posted: | October 17, 2017 09:10 AM |
|---|---|
| From: | Representative Garth D. Everett |
| To: | All House members |
| Subject: | Prohibiting Use of State Store System for Securing Loan |
| I plan to introduce legislation prohibiting the use of the assets or revenue of the PA Liquor Control Board (PLCB) to securitize or monetize loans or other debt not associated with the operations of the state store system without the approval of the General Assembly. As you are aware, the Governor recently announced plans to take on $1.25 billion in debt securitized by PLCB profits to resolve this year’s budget deficit. Not only is the $1.25 billion in debt approximately 10 times the PLCB’s FY 2016/17 operating income, but the PLCB had a bottom line loss of over $100 million in this past fiscal year. The PLCB is already floundering under its current obligations and any proposal that would add any additional financial burden, such as debt service payments, is not feasible. Although specific details about what the Governor is proposing remain unknown, in light of the PLCB’s current financial position, any such use of PLCB revenues could potentially lead to another $100 million hole in the state budget for the next 10 to 20 years. Please join me in cosponsoring this legislation. Contact Chanin Zwing with any questions at 787-5270 or via e-mail at czwing@pahousegop.com. |