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HomeMy WebLinkAboutFY 2026 (Department of Liquor Control)` DEPARTMENT OF LIQUOR CONTROL FY 2026 BUDGET AND OPERATIONS SYNOPSIS Gerald T. Rapozo Director 1 Department: LIQUOR Fund: LIQUOR FUND 1. FY 2025 to FY 2026 BUDGET COMPARSION FY 2025 FY 2026 $ + / - % + / - Salary and Wages 664,260 641,751 -22,509 -3.4% Benefits 458,332 479,326 20,994 4.6% Utilities 6,630 6,700 70 1.1% Vehicle/Equip, Lease 8,000 8,000 0 0.0% Operations 375,586 335,618 -39,968 -10.6% 1,512,808 1,471,395 -41,413 -2.7% 44% 30% 0% 1%25% FY 2025 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 44% 33% 0% 0%23% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2025 and FY 2026 Comparison FY 2025 FY 2026 2 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET During the previous fiscal year, the Department of Liquor Control received a new position to handle all liquor licensing procedures. As the job responsibilities expanded beyond licensing procedures, technical tasks were included. As a result, the Licensing Clerk position was converted to an Assistant Program Coordinator position, which allowed for more versatility and potential for career growth. During the previous fiscal year, a variance in the staffing budget occurred as a Liquor Control Investigator II with seven (7) years of experience resigned in October. Conversely, two Liquor Control Investigator Trainees were hired in July and September. One has since resigned prior to the completion of her probationary period. Currently, the Department is operating with two of the four authorized and budgeted investigators. Recruitment to fill those vacancies is on-going. Although our salaries have decreased, we are requesting an increase to Benefits in the amount of $20,994, or 4.6%. To ensure we are adequately positioned to meet future obligations, we have made a strategic decision to increase the allocation of our Other Post-Employment Benefits account across the board. This will provide for flexibility in addressing any potential increases. Also, the projected travel budget for this year will slightly decrease as Kaua‘i will be hosting the Annual State Liquor Conference later this year. Reductions in other areas of the travel budget were reduced. 3. OPERATIONAL CHALLENGES Our department has been able to maintain adequate staffing levels to meet the needs of our licensees. We faced a setback in March 2024 when two investigators left their positions. We immediately started recruiting to fill the vacancies. We face difficulties in attracting qualified applicants due to the entry-level salary established for the positions. As noted, recruitment for the vacant investigator trainee positions is on-going. As of this writing, none of the applicants of interest passed the qualifying exam. In the meantime, current investigators will temporarily take on additional inspections and investigations to ensure compliance with state liquor laws and rules and regulations of the Liquor Control Commission. 4. OPERATIONAL HIGHLIGHTS FROM FY 2025 The Department has continued to make significant changes this year by following through with streamlining our licensing process while utilizing an online portal. Currently, all new applicants can begin their liquor licensing process online and pay applicable fees online. The Department has continued to provide an online training program and exam focused on our licensees’ managers by providing a convenient and consistent method to obtain their certification as required by Commission Rule. The Department oversaw the sale and distribution of liquor sales in the year ending June 30, 2024, which was $176,724,044. This was made possible by a diligent staff processing all necessary 3 licensing special requests, permits, and licenses as required by Commission Rules and Hawaii Revised Statute. The Department’s current staff has transitioned very well while enduring numerous personnel changes and vacancies. All have accepted additional duties and responsibilities and have continued to move the department forward towards its goals and objectives. Everyone has maintained their professionalism with the public and one another while experiencing leadership uncertainty.