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State liquor control

Pennsylvania's liquor monopoly sent the state $876.6 million. Its own profit fell 44%.

Summary

The Pennsylvania Liquor Control Board's FY2024-25 Annual Report shows net income collapsed to $135.2 million — down 44% from $242.1 million the year before — even as its transfer to the General Fund rose to $194.6 million and total payments to state and local government reached $876.6 million. Behind the counter, seasonal store positions sat 43% vacant and part-time clerks turned over at a 46.3% annual rate.

By Nero · July 10, 2026

Pennsylvania is one of 17 U.S. states where the government itself sells the wine and spirits. The Pennsylvania Liquor Control Board (PLCB) buys, warehouses, prices, and retails alcohol through more than 560 Fine Wine & Good Spirits stores, then routes the proceeds — an 18% liquor tax, the 6% state sales tax, and whatever net income is left over — into public budgets. For fiscal year 2024-25, the PLCB's own Annual Report puts a number on both halves of that machine at once: the state's cut kept climbing, and the operation generating it made much less money doing it.

Net income, FY2024-25
$135.2M
down 44.2% from $242.1M
Sent to state & local government
$876.6M
General Fund transfer up to $194.6M
Part-time clerk turnover
46.3%
vs. 10.3% for salaried staff

Where the money goes

Of the $876.6 million the PLCB returned to government and other beneficiaries in FY2024-25, the bulk — $815 million — lands in the General Fund: the 18% liquor tax ($444.4 million), the 6% state sales tax ($176.0 million), and a direct net-income transfer ($194.6 million) mandated under 47 P.S. §8-802. The rest is carved out for specific beneficiaries: Pennsylvania State Police liquor-law enforcement, the counties and municipalities that host the stores, and grants for alcohol education and the state's own wine, beer, and spirits industry.

PLCB distributions, FY2024-25
Where $876.6 million in liquor tax, sales tax, and store profit went
General Fund
$815M
State Police enforcement
$36.3M
Philadelphia & Allegheny counties
$11.5M
Local municipalities
$4.4M
PA wine, beer & spirits grants
$3.7M
Dept. of Drug & Alcohol Programs
$2.7M
Alcohol education grants
$1.7M
Source: Pennsylvania Liquor Control Board, Annual Report FY 2024-25, p.12
View data as table
PLCB distributions by recipient, FY2024-25
General Fund$815.0Mliquor tax + sales tax + net-income transfer
State Police (Liquor Code enforcement)$36.3M
Philadelphia & Allegheny counties$11.5Mlocal sales tax
Local municipalities$4.4Mlicensing fees
PA wine, beer & spirits industry grants$3.7M
Dept. of Drug and Alcohol Programs$2.7M
Alcohol education grants$1.7M

The profit funding it is shrinking

The General Fund's cut didn't shrink — the $194.6 million net-income transfer is actually up from the $185.1 million the PLCB sent for four consecutive prior years. What shrank is the profit the transfer is carved out of. Net income fell to $135.2 million in FY2024-25, a $106.9 million, or 44.2%, drop from the year before — the sharpest single-year decline in the five-year record the PLCB itself publishes. The agency attributes it to rising payroll and benefits costs and unfavorable pension and post-employment-benefit valuation changes, layered on a falling gross margin (down to 30.8% from 32.2%). An independent audit by the Pennsylvania Department of the Auditor General, published December 2025, confirms both the net-income figure and the General Fund transfer.

PLCB net income, five-year trend
Fiscal years 2020-21 through 2024-25
FY2020-21
$264.9M
FY2021-22
$330.9M
FY2022-23
$260.8M
FY2023-24
$242.1M
FY2024-25
$135.2M
Source: Pennsylvania Liquor Control Board, Annual Report FY 2024-25, Financial Summary, p.46
View data as table
Net income by fiscal year
FY2020-21$264.9M
FY2021-22$330.9Mfive-year high
FY2022-23$260.8M
FY2023-24$242.1M
FY2024-25$135.2Mdown 44.2% year over year

Fiscal year 2024-25 also brought new retail competition to the model: Act 86 of 2024 let grocery stores, convenience stores, and beer distributors begin selling ready-to-drink spirits cocktails off-premises — more than 1,400 permits were issued on the law's first day. The PLCB doesn't attribute its margin decline to that reform in its own reporting, but it marks the first year Fine Wine & Good Spirits stores weren't the only off-premises retailer of a spirits-based product in the state.

The counter is short-staffed

The workforce collecting that revenue is thinning out from the bottom. As of June 30, 2025, the PLCB reported 6,252 budgeted store positions, of which 713 sat vacant — and the vacancy rate is sharply uneven by employment type. Full-time posts were 95% filled. Seasonal posts, the ones stores lean on for holiday-season demand, were only 57% filled.

PLCB store-position vacancy rate, by employment type
As of June 30, 2025
Full-time
5%
Part-time
8.2%
Seasonal
42.9%
Source: Pennsylvania Liquor Control Board, Annual Report FY 2024-25, Employment Demographics, p.45
View data as table
Vacancy rate by store employment type
Full-time5.0%133 of 2,678 posts vacant
Part-time8.2%224 of 2,745 posts vacant
Seasonal42.9%356 of 829 posts vacant

The same report's turnover figures point the same direction: salaried employees turned over at 10.3% for the year, while part-time store clerks — the workforce that actually staffs the registers — turned over at 46.3%. Average tenure for a store employee is five years; for an administrator, it's 13.

The takeaway

  • The state's cut isn't the problem — the operation earning it is. The General Fund transfer rose to $194.6 million even as the profit funding it fell 44%, because the transfer is partly a fixed statutory obligation, not a share of a shrinking pie.
  • $876.6 million moved through a system running on part-time labor with 46% annual turnover. Nearly half of PLCB's non-salaried store staff turn over every year, and 43% of seasonal positions sat empty at fiscal year-end — the same workforce responsible for the sales that fund the transfer.
  • Retail exclusivity just got a crack in it. Act 86 of 2024 opened ready-to-drink spirits cocktails to grocery and convenience stores for the first time — a small but real erosion of the monopoly that has always been PLCB's structural advantage.

Figures are for Pennsylvania's PLCB only; other U.S. control states (16 others as of 2026) run separately audited systems with their own revenue and staffing patterns that may differ substantially. The $875.3 million sum of individually published distribution categories is about $1.3 million short of PLCB's own stated $876.6 million total, a gap attributable to rounding in the source document.

Sources

  • Pennsylvania Liquor Control Board, Annual Report 2024-25 — net income, General Fund transfers, the $876.6 million distribution breakdown, and store/administrative employment demographics and turnover rates as of June 30, 2025. pa.gov/agencies/lcb
  • Pennsylvania Department of the Auditor General, Liquor Control Board — State Stores Fund / Liquor License Fund Audit Report for the Years Ended June 30, 2025 and June 30, 2024 (published Dec. 21, 2025) — independent confirmation of net income and General Fund transfer figures. paauditor.gov
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