Michigan liquor control fund allocates $600M to community programs and services

The Appropriations Subcommittee on LARA and Insurance and Financial Services convened on April 24, 2025, to discuss budgetary allocations and operational updates. The meeting focused on personnel funding, revenue distribution from liquor control, and ongoing IT projects.

The session began with a review of the Full-Time Equivalent (FTE) count. The department is budgeted for 150 FTEs but currently has funding for only 148. Presently, there are 131 personnel actively employed, with approval to backfill eight vacant positions. The department is in the process of posting these positions to address staffing shortages.

A significant portion of the discussion centered on the financial impact of the Michigan Liquor Control Commission (MLCC). The MLCC reported that nearly $2 billion worth of spirits were sold, with substantial revenue generated for the state. After expenses, approximately $600 million is expected to be allocated back into various state funds, including the School Aid Fund and the Road Patrol Fund. The committee highlighted that local governments benefit from nearly $9 million for liquor regulation, while the Department of Health and Human Services receives about $3 million for alcoholism prevention programs.

The meeting also addressed the executive budget request of just under $300,000 to fully fund the two additional FTEs needed to reach the budgeted total. Furthermore, two active work projects related to the Sales Inventory and Purchasing System (SIPs) were discussed. The current system, which is nearly 50 years old, is being replaced to improve operational efficiency.

In conclusion, the meeting underscored the importance of staffing and funding in supporting the MLCC's regulatory functions and the broader economic contributions to Michigan's communities. The committee plans to follow up on the budget request and monitor the progress of the IT project as it develops.