Mac Gipson

William E. Thigpen
Assistant Administrator

Robert W. "Bubba" Lee
Board Chairman

Samuetta H. Drew
Board Member

Michael Ingram, MD
Board Member

October 1, 2015

Budget Cuts Force Closure of ABC Stores

October 1, 2015 FOR IMMEDIATE RELEASE CONTACT: Dean R. Argo (334) 213-6330 Budget Cuts Force Closure of ABC Stores Based on the Fiscal Year 2016 General Fund Budget developed and passed by the Alabama Legislature that went into effect today, ABC Administrator Mac Gipson announced a plan to close or consolidate at least 15 state-owned ABC stores. The intended closings are expected to take three to six months to implement. Lawmakers transferred more than $5.5 million from the ABC Board budget for the use of other operations funded by the General Fund Budget. “Legislators arbitrarily reduced the ABC Board’s spending authority by more than $5.5 million dollars,” said Mr. Gipson. By transferring $5,512,000 from our spending authority to the General Fund, the legislature has seriously jeopardized our ability to meet our financial obligations. Therefore, we have made a business decision to close 15 stores as soon as possible.” The ABC Board submitted a FY2016 budget request of approximately $77 million to the Executive Budget Office. That number was reduced by $3 million, essentially giving ABC the same amount of spending authority as FY2015. Legislators cut the additional $5,512,000 on the last night of the second special session. In Fiscal 2014, the Alabama ABC Board generated and gave to the General Fund $215,000,000 that was used to fund state agencies, local school systems, and county and city governments. “Once the budget was adopted we began the process of identifying ways the Board could reduce costs, streamline operations, protect our employees and not harm our customers,” Gipson said. “Decisions like these take time to plan and implement. We are going to make every effort to transfer affected employees to other, nearby stores. Also, it is our goal to minimize the effects of these closings on our customers. Through the remaining 160 stores, we will continue to provide premier service that our customers expect and deserve.” Stores recommended for closing are: Store #16 – Montgomery Store #34 – Dothan Store #37 – Abbeville Store #47 – York Store #54 – Marion Store #63 – Pike Road Store #81 - Montgomery Store #88 – Montgomery Store #91 – Luverne Store #105 – Spanish Fort Store #112 – Hayneville Store #117 – Linden Store #130 – Orange Beach Store #147 – Guntersville Store #149 – Florence A listing of the stores with the corresponding financial information is attached to this release. A complete listing of ABC stores, addresses, and hours of operation can be found on the ABC Board website under the Stores tab or by clicking -30-

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