20110901

Pennsylvania audit: Wine kiosks a dud

From the Philadelphia Inquirer

HARRISBURG, PA --  - The Pennsylvania Liquor Control Board's oft-criticized wine kiosks have cost taxpayers more than $1 million and should be scrapped unless dramatic improvements are made, according an audit by state Auditor General Jack Wagner.

"We think the wine-kiosk program has failed, and it needs dramatic, radical changes if the program is going to continue to exist," Wagner said Tuesday at a news conference in the Capitol.
The audit found that wine-dispensing machines fell short in large part because of numerous mechanical problems late last year that, in an embarrassing move, forced the LCB to shut them down for a month.

Beyond that, the audit also found that the machines never lived up to the goal of making it more convenient for customers to buy wine, nor did they deliver on the promise of making money for the LCB and state government.

As of this summer, the LCB has spent more to operate the 32 kiosks than it took in, resulting in an operating shortfall of about $1.1 million, Wagner said.

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