Idaho State Liquor Division asks JFAC for store, IT and pay funding as reserves decline

The Idaho State Liquor Division told the Joint Finance-Appropriations Committee on the morning of the department's budget hearing that it is requesting a mix of ongoing and one-time funding for store upgrades, security and modest pay increases for temporary retail staff.

The request, presented by Kellen McGurkin, budget and policy analyst with the Legislative Services Office, and answered by Director Andrew Arulanandam, included a FY2026 ongoing request of $131,400 for small pay increases for temporary retail staff and the operational cost of shrink-wrap pallets, plus several one-time requests for store replacements, IT security, and network modernization.

The matter matters because the Liquor Division's net distributions help fund magistrate courts, cities, counties and the general fund; the agency's dedicated fund balance has declined from about $38 million in FY2022 to $14 million in FY2024, the analyst told the committee.

McGurkin summarized the statutory framework and distribution flow for the committee. Under Idaho Code Title 23, Chapter 2, the division manages importation and distribution of beverage alcohol and allocates available funds each fiscal year. McGurkin said FY2024 distributions totaled about $118.3 million; a 2% surcharge on all liquor sales sends roughly $6.7 million to the court services fund, and approximately half of available funds are distributed to cities, counties and magistrate…