Beech Tree News Network

The science of economics can be pretty complicated at times.  What looks like a cut and dry business transaction most often has a much greater impact.  The economic impact of keeping money local can significantly change a community.  The American Independent Business Alliance shows that for every dollar spent at a local independent business 48% is locally recirculated and for every dollar spent at a local “chain” store 14% of that money is locally recirculated (http://www.amiba.net/resources/multiplier-effect/).  This multiplier effect continues on and on.  So one dollar spent, over time, could produce a very significant impact to a local economy.  Growing a local economy is beneficial to everyone in the community.  When more money is being circulated earning potential is increased, thus drawing in more competition.  Imagine a scenario in which one week a month several families in Butler County decided not to go to Bowing Green, but instead stayed in Morgantown.  A trip to Bowling Green will almost always include grocery shopping, buying gas and going to a restaurant.  This one trip alone can easily result in spending $150-$250.  What benefit could that have long term on our county using the multiplier effect of local spending?  For this to be a possibility, first the need of local citizens to travel out of county must be reduced. 
In the upcoming election on alcohol sales, Butler County citizens will have an opportunity to eliminate one of those restrictions.  Will allowing the sale of alcohol in Butler County get Morgantown a Greenwood Mall, Bass Pro Shop and Red Lobster?  Of course not.  But could it keep some money local by eliminating one reason that forces people out of the county?  The answer has to be yes.  As the issues of tax revenue goes, I see it as a positive that Morgantown wouldn’t be able to initially tax alcohol sales.  I am a fiscal conservative.  I feel that money is better spent by the private sector than the government.  As a government’s budget grows so does spending.  Sometime this spending is beneficial and sometime it is not.  We see wasteful spending of our tax dollars in every government from city all the way to the federal level.  By a lesser tax on alcohol sales, Butler County would gain an advantage over other areas where it is taxed more.  A business in Butler County could sell alcohol at either a lower price because of the lower taxes or have slightly higher prices resulting in higher profit while still remaining competitive with other counties.
It seems the main focus on determining the costs of having alcohol sales, from a governmental standpoint, is the position of ABC administrator.  There have been numerous mentions that this cost would be in the thousands of dollars per year, made up of hiring a new employee, office space, equipment, utilities, technology and communication expenses.  It is my understanding that this job automatically falls to the Judge Executive if there is no area administrator.  In every profession extra duties are added to us over time and this could become one of those for the judge and his department. 
The ABC administrator in Bowling Green is the chief of police Doug Hawkins.  I contacted both he and David Lyne who is the occupational license manager for Bowling Green.  The main question I posed to them was the amount of time and number of employees Bowling Green utilizes to comply with the city being wet.  Mr. Lyne informed me that he and another employee “provide assistance to new applicants and review and process all City and State Alcohol license submitted for approval of our City Administrator”.  He also stated that “there are no additional funds budgeted to our department for this service”.   Mr. Hawkins said that in addition to him and the two employees in the licenses department, one police major has a part time duty for ABC licensee compliance.  The bottom line is that the city of Bowling Green uses 4 people, all whom have very significant other duties to comply with the regulations and administration of the city being wet.  They also informed me that the city of Bowling Green currently has 264 alcohol licenses issued.  I think it would be a stretch to say Butler County would issue 10 licenses for the sale of alcohol.  If Butler County votes in favor of allowing the sale of alcohol there would be no reason that any additional salary or overhead costs would be needed.  As stated before the judges’ office and either the sheriff or a deputy could easily handle the extra duties.  It is my hope that the people who are saying otherwise just have not done adequate research on the topic and are not intentionally trying to mislead the voters of Butler County.  
No matter how the vote turns out I am proud to say that I live and raise my family in Butler County, Kentucky.  I wish nothing but the best for the community and the citizens that live here.  I encourage everyone to do some research and not just accept “the facts” from either side.  This vote will have long lasting effects on our community no matter which way it goes.  Voting is the greatest duty and privilege that we have as Americans. 

Travis Johnson, MBA
Morgantown, KY