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Ohio’s state-run liquor operation reported a record profit of $794 million in liquor sales in 2011. The amount is $40 million more than in 2010. It could be a sign of an improving economy, although liquor sales didn’t take much of a hit when Ohio was in the height of a recession. The record can also be credited to higher retail prices.
After declining for the past three years, the amount of booze purchased by restaurants, bars and clubs increased by nearly $11 million.
Gov. John Kasich is ready to use liquor proceeds to fund his JobsOhio program. JobsOhio is Kasich’s non-profit, private economic development program designed to help spur job creation and job retention. These efforts had previously been controlled by the Ohio Department of Development.
Kasich will ask the state Controlling Board for permission to transfer job development efforts to the privatized JobsOhio and for authorization to transfer Ohio’s liquor profits to JobsOhio for nearly $1.4 billion.
The 25-year contract would give the state initial payments of $500 million for its general revenue fund, $750 million to pay down debts backed by liquor profits, and $150 million for Clean Ohio environmental ventures.
JobsOhio would submit annual payments to the state based on increases on yearly liquor profits. JobsOhio would also be liable to pay up to $43 million per year for Clean Ohio projects after Jan. 1.
Although wholesale profits would go to JobsOhio, Ohio’s Department of Commerce would remain in control of Ohio’s liquor operations.
