(WELCHES) – The state budget cuts have hit the rocks.

More specifically, the stuff that gets poured over the rocks.

On a mandate from the Oregon Legislature, the Oregon Liquor Control
Commission passed a 50-cent surcharge per bottle on all liquor stores – which
includes the state store in the Hoodland Shopping Center.

Coupled with the price increase, a 30-percent cut in agent commissions was
put in place.

These changes have caused a headache of hangover proportions for Glenda
Peterson, the 13-year agent/owner of the Welches Liquor Store.

“I understand they (state) need to balance their budget, and the OLCC has to
do what it’s told,” Peterson said. “I even agree with it. But what it’s doing to
my store is devastating.”

Besides the extra work of changing price tags on every item, she has been
forced to reduce the hours of her two employees.

“I had no choice,” she said. “My OLCC commission has already been reduced,
retroactive to February. I feel awful about it.”

The OLCC has also demanded that agents reduce inventory. This has put
Peterson in the unenviable position of cutting back on select items at the time
when customer demands usually increase.

“It will be inconvenient for them, and me,” she said.

As archaic as it seems, and as much of a head-scratcher for out-of-staters as
it is, the OLCC controls all liquor in Oregon, and licenses the stores that sell it.
The way it works is the OLCC purchases all of the state’s liquor from
distributors, stocks their stores, collects the money, then pays back the
store’s agent by commission.

The agent owns the store and pays the overhead and operation costs out of
the commission. But the agent does not buy or own the inventory.

The agent then sells the liquor to the public at an OLCC regulated price, as
well as to bars and restaurants at a 5-percent discount.

The OLCC buys, sells, regulates, licenses and polices – itself.

The cutback is supposed to run through June, or so agents have been told.
However, Peterson fears the worst.

“There’s talk of it being extended to July, even August,” she said.

Already, many agents have started closing on Sundays and holidays,
according to Peterson, but so far she hasn’t done so at her store.

“That could change,” she said. “If these cuts get extended, I don’t know what
I’ll do.”

Prior to the new OLCC mandates, Peterson was contemplating stepping back
into semi-retirement.

“But not now,” she said. “And what’s worse, we don’t know what the state
might do next. They could make more changes in the way we operate.”

Peterson finished off the conversation as dry as a perfect martini:

“It’s scary.”