FY 2024-25 Budget Hearing Materials

Budget Hearing Materials

Fiscal Year 2024-25

TABLE OF CONTENTS Page No.

Mission Statement .............................................................................................................................................................................................2

Appropriations:

Summary by Fund and Executive Authorization ...........................................................................................................................................3

Executive Authorization - General Operations of PLCB (Agency Total)

1. Summary Financial Data ............................................................................................................................................................4
2. Detail by Major Object ..............................................................................................................................................................4
3. History of Lapses .......................................................................................................................................................................5
4. Complement Information ..........................................................................................................................................................5
5. Program Description .............................................................................................................................................................. 6-9
6. Performance Measures ............................................................................................................................................................10
7. Explanation of Changes ..........................................................................................................................................................11
8. Other Information ....................................................................................................................................................................11
9. FY 2022-23 Obligations ..........................................................................................................................................................11
10. FY 2023-24 Supplemental Authorization ...............................................................................................................................11
11. Restricted Receipts ..................................................................................................................................................................11
12. Consulting Contracts & Interagency Agreements ............................................................................................................. 12-35
13. Consulting Contracts --- FY 2022-23 ............................................................................................................................... 12-22
14. Consulting Contracts --- FY 2023-24 ............................................................................................................................... 23-31
15. Consulting Contracts --- FY 2024-25 .....................................................................................................................................32
16. Consulting Contracts --- FY 2025-26 .....................................................................................................................................33
17. Interagency Agreements & Memorandums of Understanding ......................................................................................... 34-35 Executive Authorization - Transfers to the General Fund ........................................................................................................................36

Executive Authorization - Purchase of Liquor ............................................................................................................................................37

Executive Authorization - Comptroller Operations ....................................................................................................................................38

State Stores Fund Statement of Cash Receipts & Disbursement ................................................................................................................39

Mission Statement

The mission of the Pennsylvania Liquor Control Board is to responsibly sell wine and spirits as a retailer and wholesaler, regulate Pennsylvania's alcohol industry, promote alcohol education and social responsibility and maximize financial returns for the benefit of all Pennsylvanians.

LIQUOR CONTROL BOARD SUMMARY BY FUND AND EXECUTIVE AUTHORIZATION

The Pennsylvania Liquor Control Board (PLCB) regulates the manufacture, importation, sale, distribution and disposition of liquor, alcohol, and malt or brewed beverages in the Commonwealth. As Pennsylvania's primary retailer of wine and spirits, the PLCB operates approximately 585 Fine Wine & Good Spirits (FW&GS) stores, including 112 Premium Collection stores, plus an e-commerce website and fulfillment center. As the commonwealth's wholesale distributor of wines and spirits to retail licensees and FW&GS stores, the PLCB manages warehousing and transportation of products from two privately contracted distribution centers and operates 13 licensee service centers. The PLCB's Bureau of Alcohol Education works to prevent underage and dangerous drinking through grants awarded to community partners in alcohol deterrence efforts, advertising and education efforts, and the Responsible Alcohol Management Program (RAMP), which provides training and certification to licensees to help owners, managers and servers conscientiously run a business serving alcohol, serve alcohol responsibly and minimize the risks and dangers associated with alcohol service. The dollar amounts shown below include executive authorizations from, and augmentations to, the State Stores Fund, a special enterprise fund. They are reflected herein as "Other Funds". The sole source of operating funds for the PLCB's operations is the Governor's Executive Authorization of Expenditure from the revenues and retained earnings of the State Stores Fund. The State Stores Fund serves as the general operating fund for the PLCB. This fund receives revenues from the sale of wine and spirits, fees not credited to the Liquor License Fund, fines and penalties for law violations by licensees, and losses and damages recovered. Expenditures cover all costs associated with the operation and administration of all PLCB functions as outlined and prescribed by the Pennsylvania Liquor Code. In addition, the fund also provides monies to the Pennsylvania State Police for enforcement of the Liquor Code, the Department of Drug and Alcohol Programs for alcohol abuse and prevention programs, the Office of Auditor General for auditing services and the Office of the Comptroller assigned to the PLCB for accounting services. Annual transfers are made from this fund to the General Fund. ($ Amounts in Thousands)

Budget Available Budgeted STATE STORES FUND

General Operations (EA) $ 750,865 $ 761,049 $ 840,232 Purchase of Liquor (EA) 1,758,000 1,706,300 1,757,200 Comptroller Operations (EA) 6,333 6,333 6,650 Transfer to the General Fund (EA) 185,100 185,100 185,100

LIQUOR CONTROL BOARD TOTAL………………….. $2,700,298 $2,658,782 $2,789,182

1. SUMMARY FINANCIAL DATA ($ Amounts in Thousands)

Budget Available Budgeted Budgeted vs.

2022-23 2023-24 2024-25 Available State Funds $ 0 $ 0 $ 0 $ 0 Federal Funds 0 0 0 0 Other Funds (State Stores) 750,865 761,049 840,232 79,183 Total $750,865 $761,049 $840,232 $ 79,183

1. DETAIL BY MAJOR OBJECT General Operations ($ Amounts in Thousands)

Budget Available Budgeted Budgeted vs. Personnel 2022-23 2023-24 2024-25 Available State Funds $ 0 $ 0 $ 0 $ 0

Federal Funds 0 0 0 0 Other Funds (State Stores) 395,570 418,731 464,840 46,109 Total $395,570 $418,731 $464,840 $ 46,109

Operating

State Funds $ 0 $ 0 $ 0 $ 0 Federal Funds 0 0 0 0 Other Funds (State Stores) 303,290 306,408 330,435 24,027 Total $303,290 $ 306,408 $330,435 $ 24,027

Fixed Assets

State Funds $ 0 $ 0 $ 0 $ 0 Federal Funds 0 0 0 0 Other Funds (State Stores) 47,325 32,210 40,957 8,747 Total $ 47,325 $ 32,210 $ 40,957 $ 8,747

Grants and Subsidies

State Funds $ 0 $ 0 $ 0 $ 0 Federal Funds 0 0 0 0 Other Funds (State Stores) 4,700 3,700 4,000 300 Total $ 4,700 $ 3,700 $ 4,000 $ 300 4

1. HISTORY OF LAPSES ($ Amounts in Thousands)

Fiscal Year Authorization Lapse

2022-23 $750,865 $47,449 2021-22 $676,467 $43,872 2020-21 $624,440 $28,342

1. COMPLEMENT INFORMATION ReBud Req 22-23 ReBud Req 23-24 Budget Req 24-25

Authorized Filled Authorized Filled Authorized Filled

State Funds 0 0 0 0 0 0 Federal Funds 0 0 0 0 0 0 Other Funds (State Stores) 3,517 3,226 3,577 3,201 3,577 3,194 Total 3,517 3,226 3,577 3,201 3,577 3,194 Salary # Positions 3,517 3,577 3,577 Salary $171,033,000 $182,834,000 $198,603,000 Benefits 133,392,000 156,931,000 171,277,000 % Benefits 78.0% 85.8% 86.2% Wage # Positions 3,650 3,650 3,650 Wages 47,259,000 60,100,000 72,019,000 Benefits 15,886,000 18,866,000 22,941,000 % Benefits 33.6% 31.4% 31.9% Total # Positions 7,167 7,227 7,227 Salary/Wages 218,292,000 242,934,000 270,622,000 Benefits 149,278,000 175,797,000 194,218,000 % Benefits 68.1% 72.4% 71.8% $367,570,000 $418,731,000 $464,840,000

1. PROGRAM DESCRIPTION The statutory authority for the Liquor Control Board is Act 21 of April 12, 1951, P.L. 90; as reenacted by Act 14 of June 29, 1987, P.L. 32. In conformance with the Pennsylvania Liquor Code, the mission of the Pennsylvania Liquor Control Board (PLCB) is to responsibly sell wine and spirits as a retailer and wholesaler, regulate Pennsylvania's alcohol industry, promote alcohol education and social responsibility, and maximize financial returns for the benefit of all Pennsylvanians. Funds to cover the general operating expenditures of the PLCB are generated by the sale of wine and spirts and come from the State Stores Fund. The PLCB regulates the manufacture, importation, sale, distribution, and disposition of alcohol in the commonwealth. The agency does not sell malt and brewed beverages, rather it regulates those sales through the licensing of distributors and other retailers. The agency is responsible for wholesale sales of wine and spirits to licensees through state-operated Fine Wine & Good Spirits (FW&GS) stores and licensee service centers supported by contracted distribution centers. All retail sales of spirits in Pennsylvania, except for those sold at licensed distilleries, are made through FW&GS stores operated by the PLCB. Wine sales are also made through the PLCB's FW&GS stores, although wine can also be purchased from properly licensed and permitted private market retailers (in limited quantities) and producers. For FY 2024-25, the PLCB is submitting a budget request of $840 million for its general operations, which are funded through an executive authorization to spend from revenues of the State Stores Fund. This request funds the operation of approximately 575 FW&GS stores, 13 licensee service centers, an e-commerce fulfillment center, and two distribution centers, which deliver wines and spirits to both FW&GS stores and nearly 800 licensees. This request also funds the regulatory functions of the PLCB including Licensing, the Office of the Administrative Law Judge and Alcohol Education, as well as administrative and central office functions that support retail, wholesale, and regulatory functions. This budget request represents an increase of $79.2 million, or 10.4%, from the PLCB's $761 million executive authorization for FY 2023-24. In 2020, the PLCB embarked on Project New Horizon, a multi-year effort to upgrade and replace its enterprise resource planning (ERP) platform. In January 2022, the PLCB implemented the first of four phases (Release 1) of its new cloud-based solution, which replaced its on-premises Oracle financials platform (EBS) with Oracle cloud financials (CFIN). In July 2023, the PLCB completed the implementation of Release 2 which established a wholesale and retail infrastructure on the Oracle cloud solution and replaced the Licensee Online Order Portal and FWGS.com with new platforms integrated to retail, supply chain, financial, order management and other cloud applications. Release 3 and Release 4 remain for implementation in FY 2023-2024. Release 3 will introduce new merchandising and financial planning tools, while Release 4 will update retail, inventory, and point of sale systems to tie FW&GS stores into the overall cloud solution. The FY 24-25 budget includes $7.1 million for the completion of these two releases initiated in FY 2023-24.

This budget requests $464.8 million for personnel services, an increase of $46.1 million, or 11%, from the FY 2023-24 re-budget. This amount consists of direct compensation for salaries and wages and employee benefits. Direct compensation is projected to increase by $27.7 million or 11.4%. Salaries are planned to increase by $18.4 million (10.3%), primarily due to contractual raises of 5% annually commencing FY 2023. Wages and overtime are expensed to increase by $8.6 million (15%) and $0.7 million (9.7%), based on hourly experience, respectively. The principal expansion is within Store Operations, which operates about 575 FW&GS stores. As a result of the substantial rise in employee direct compensation, benefits are increasing by $18.4 million (10.5%). Health benefits for active employees are anticipated to increase $8.5 million (16.1%). The increase primarily consists of retirement contributions of $6.4 million (9.2%) and Social Security contributions of $1.7 million (11.3%) and represents an increase of $59 (10%) per pay period. Health benefit contributions are projected to rise from $590 per full-time employee per pay period for FY 2023-24 to $649 per pay period for FY 2024-25, a 10.0% increase. Total health benefit contributions for active full-time employees and annuitants combined are rising from $865 per pay period in FY 2023-24 to $924 per pay period in FY 2024-25, an increase of 6.8%. This budget submission requests $330.4 million for operational expenses, an increase of $24 million (7.9%), from FY 2023-24 Re-budget. Freight and storage expenses for distribution operations are expected to increase $3.5 million (4%). Store rents are forecasted to increase $3.8 million (5.4%), with approximately 15 to 20 stores projected to be renovated and remodeled. Debit and credit card usage fees are projected to increase $1.7 million, or 4%, at a faster rate than sales, as electronic forms of payment continue to grow. To support growth, IT consulting, Saas, and maintenance expenses are expected to increase by $8.4 million, IT managed services infrastructure costs are expected to increase $5.7 million, and IT Hardware/Software Maintenance expenses are expected to increase by $0.4 million. The budget includes $10.5 million of expense for Project New Horizon. Interagency billings are projected to increase $1.7 million (9.9%), mostly related to FY 2021- 22 and FY 2022-23 increases that were not known for the FY 2022-23 budget request. The combined costs for warehouse operations, store leases and credit card expenses account for more than $207 million, approximately two- thirds of the PLCB's operational expense request and represent about 40% of the operational expense increase. More than 1,700 licensees, including nearly 1,400 grocery and convenience stores, are permitted to sell limited quantities of wine-to-go. Many of these licensees, as well as on- premises licensees like bars and restaurants, utilize the PLCB's Licensee Delivery Program (LDP). The PLCB continues to encourage chain licensees to use the LDP program which incorporates deliveries to their warehouses, trailer-drops, and back-haul deliveries, all of which are more efficient distribution methods for both the PLCB and licensed retailers. This budget requests $41 million for fixed assets, an increase of $8.7 million, or 18.5% from FY 2022-24 Re-budget. The increase in funds is primarily required for the completion of Project New Horizon Releases 3 and 4. This budget also requests $3.9 million for grants, with $1 million each for grants supporting Pennsylvania's wine and beer industries, and $1.9 million for alcohol education grants, which aim to reduce underage and dangerous drinking.

FY 2024-25 Initiatives

Key initiatives for FY 2024-25 are identified below, and the amounts identified reflect the combined operating and fixed asset costs for these projects. The PLCB's largest initiative remains Project New Horizon, which began in FY 2020-21. In July 2023, the PLCB completed the implementation of Release 2, which established a wholesale and retail infrastructure on the Oracle cloud solution and replaced the Licensee Online Order Portal and FWGS.com with new platforms integrated to retail, supply chain, financial, order management and other cloud applications. The proposed spend in FY 24-25 is largely related to the completion of Release 3 and Release 4 of the project. Release 3 will introduce new merchandising and financial planning tools, while Release 4 will update retail, inventory, and point of sale systems to tie FW&GS stores into the overall cloud solution.

Release 4 Oracle XStore Retail, EFT Link, Customer 5.3 Engagement Cloud Service, Retail Order Management Suite Cloud Service, Commerce Cloud, Retail Store Inventory The PLCB remains committed to customer service excellence and social responsibility in all facets of our operation while maintaining a strong revenue stream for the Commonwealth. The primary revenue source for the State Stores Fund is the PLCB's sale of wine and spirits. In FY 2022-23, the PLCB achieved record sales net of taxes of $2.5 billion. This was an increase of $108 million or 4.5% over FY 2021-22. By product category, spirit sales increased 6.3% and wine sales increased 1.6%. Overall unit sales increased 2.8%, with spirit unit sales increasing 5.3% and wine unit sales decreasing 1% from prior year. The PLCB saw its mix of retail and licensee sales shift slightly versus prior year, with retail sales comprising 74.4% of sales and sales to licensees comprising 25.6%. In FY 2021-22, these amounts were 75.1% retail sales and 24.9% licensee sales. Gross profit from the sale of wine and spirits rose $12.2 million, or 1.6%, over prior year. Gross profit margin decreased 0.9% to 30.4%, as compared to 31.3% in the prior year. In January 2023, the PLCB increased retail prices by 4%, however, higher product costs, inventory adjustments, the increase in the proportion of licensee sales (with a statutory 10% discount in retail prices) and product liquidations negatively Management 8 Release 3 - Oracle Retail Merchandise Financial Planning 7.1 $ Cloud Service and Oracle Cloud Enterprise Performance Operations Cloud Service, and Oracle Commerce Cloud 1.8 $ Initiative ($ Millions) FY 24-25

impacted gross margin. Operating income decreased $77.3 million, or 21.1%, to $288.6 million. The increase in operating expenses was primarily due to increases in long-term liabilities for pension and workers compensation as well as an increase in personnel costs. The PLCB's net income for FY 2022-23 was $260.8 million, a $70.1 million or 21.2% decrease over the prior year. The decrease in net income was primarily due to increased operating expenses related to workers compensation and pension. Sales revenues cover the cost of all merchandise inventory maintained and sold by the PLCB, as well as operating costs for the PLCB. After payment of these operating expenses, PLCB contributions to the General Fund, state and local governments and other beneficiaries totaled $869.7 million in FY 2022-23. PLCB contributed $813.4 million to the State Treasury through liquor and sales tax collections and cash transfers to the Commonwealth's General Fund. An additional $11.5 million in local sales taxes were collected and remitted to Philadelphia and Allegheny County. In addition to the General Fund transfer and taxes, the PLCB also funds enforcement efforts of the Pennsylvania State Police Bureau of Liquor Control Enforcement (BLCE). The Bureau of Liquor Control Enforcement within the Pennsylvania State Police received $32.3 million in funding in FY 2022-23, an increase of $1.6 million (5.2%) over the previous year. A $5.2 million liability for the Department of Drug & Alcohol Programs was accrued in June 2023 for the FY 2022-23 statutory obligation (2 percent of net income as mandated by law). License fees returnable to local municipalities from the Liquor License Fund totaled $4.3 million for FY 2022-23, compared to $2.7 million the prior year. The $1.6 million increase was due to the waiving of many license fees for calendar year 2021. In FY 2023-24, the PLCB will transfer $185.1 million to the General Fund, and the agency is committed to maintain the transfer to the General Fund at $185.1 million in FY 2024-25 and FY 2025-26.

1. 1. PROGRAM DESCRIPTION - Performance Measures
   The most effective program performance measures used by the Liquor Control Board are those that report the financial results of the business enterprise we operate. Monthly financial statements prepared in accordance with Generally Accepted Accounting Principles provide information on gross sales, taxes collected, cost of goods sold, operating expenses and net income. The Board has developed metrics and key performance indicators that give the PLCB visibility into expenses and variances from planned expense and revenue goals. Tools have been developed for improved forecasting of income and cash flow. In addition to financial information, various other performance measures are regularly reported to PLCB operating managers. Increased use of business ratios, such as Expense to Net Sales and Sales per Square Foot, are utilized for comparative purposes with increased emphasis on market impact of store relocations, closings and openings to maximize service level to the customer base. Comparative measures are utilized to monitor daily store performance by tracking sales challenges, inventory shrink and other measures. Tools have been developed to analyze the effectiveness of our advertising expenditures, allowing us to maximize advertising benefits. The PLCB devotes significant resources to improve the efficiency of regulatory services to licensees. Program performance measures used include the number of applications processed, turnaround time, inquiries handled personally or by telephone, fees processed and detailed monitoring of investigative activities. Measures of alcohol education program performance include the number of owners/managers/servers completing Responsible Alcohol Management Training (RAMP) and number of alcohol education materials distributed to the targets of our various alcohol education programs as well as definable measurements for activities funded through our grant programs.

2. EXPLANATION OF CHANGES ($ Amounts in thousands)
   PERSONNEL 1. Increase in benefit costs $18,400

3. Increase in cost of direct compensation (Salaries +$18.4, Wages +$8.6 and Overtime +$0.7M) $27,700
   Subtotal - Personnel Change: $46,100

OPERATING EXPENSE 1. Increased funding primarily for Project New Horizon & IT Expenses $11,200

1. Increased Store Rent $ 3,800
2. Increased Freight and Storage Expense $ 3,500
3. Increased Debit and Credit Card Usage Fees $ 1,700
4. Increased Interagency Expense $ 1,700
5. All Other Expenses $ 2,200

6. Subtotal - Operating Expense Change: $ 24,100
   FIXED ASSETS 1. Increased funding for information technology (ERP software licensing) $ 8,700 Subtotal - Fixed Asset Change: $ 8,700 GRANTS

7. Slight increase for Alcohol Education grants (+$0.3 million)

8. Level funding level for PA Wine Marketing & Malt Beverage Board Grants $ 300

Subtotal - Grants Change $ 300 State Stores Fund - Total Change: $79,200

1. OTHER INFORMATION
2. FY 2022-23 Obligations - There was no carryover of FY 22-23 obligations into FY 23-24.
3. FY 2023-24 Supplemental Authorization - ESN 23-090 December 18, 2023 increased the FY 23-24 Liquor Purchase Fund by $50M.

4. Restricted Receipts - No restricted receipts are received or budgeted for the general operations of the Liquor Control Board.

5. FISCAL YEAR 2022-23
   2022-23 80000729 $ 264,385.00 AVAAP USA, LLC Data Governance Support for 1400 Goodale Blvd, Ste. 100 Oracle Cloud ERP Platform Bexley, OH 43212 Implementation 2022-23 80000670 $ 49,999.99 Commonwealth Prevention Pennsylvania Collaborative Report Alliance Dissemination and Taskforce PO Box 142 Development Services Beaver Falls, PA 15010-0142 2022-23 63012322 $ 144,314.28 Computronix USA, Inc Provide a scalable, hosted 3900 S. Wadsworth Blvd. Regulatory Affairs software system Suite 510 that is a single gateway for Lakewood, CO 80235-2208 businesses and individuals to apply. 2022-23 63013717 $ 1,483,509.81 Deloitte Consulting LLP Production support and enhancement 300 Corporate Center Drive services for the PLCB's legacy Camp Hill, PA 17011-1760 Oracle ERP platform. 2022-23 63021629 $ 399,800.00 Deloitte Consulting LLP Gap Analysis of PLCB 300 Corporate Center Drive Merchandising Activities and Camp Hill, PA 17011-1760 Recommendations for Process and Organization Improvement Services

2022-23 80000113 $ 302,279.50 Enterprise Mobility Solutions LLC Software Implementation Services DBA Pathways Consulting Group for the ServiceNow Customer Service 33 Wood Ave., Ste. 600 Management Platform Iselin, NJ 08830-2717 2022-23 63020792 $ 4,551.00 FedEx Supply Chain Inc. Professional Services for PLCB to 700 Cranberry Woods Dr. Receive updates to the Manhattan Cranberry Township, PA 16066 Scope Warehouse Management Services 2022-23 80000576 $ 8,750.00 Genesys Cloud Services, Inc. Genesys professional services for 1302 El Camino Real, Suite 300 support with call center services San Mateo, CA 94025 2022-23 80001129 $ 70,000.00 Genesys Cloud Services, Inc. Genesys professional services to 1302 El Camino Real, Suite 300 deploy the DaVinci Connector for San Mateo, CA 94025 ServiceNow for Engage Cloud to PLCB's Engage Cloud tenant 2022-23 80000790 $ 32,400.00 GLI Capital Group DBA Annual PCI Penetration Testing Bulletproof Solutions Inc. Services 3040 Williams Drive, Ste. 510 Fairfax City, VA 22031 2022-23 80000791 $ 36,125.00 GLI Capital Group DBA Annual PCI Audit Compliance Bulletproof Solutions Inc. Services 3040 Williams Drive, Ste. 510 Fairfax City, VA 22031

2022-23 63021851 $ 234,391.04 Grant Thornton Public Sector LLC Project Management Support for 1000 Wilson Blvd., Ste. 1400 Oracle Cloud Enterprise Resource Arlington, VA 22209-3904 Planning Platform Implementation 2022-23 80001341 $ 753,882.23 Guidehouse Inc. Project Management Support for 2022-23 63021521 $ 223,120.00 Information and Computing RF Smart for Oracle Cloud

2022-23 80000628 $ 97,134.83 Kronos Incorporated Initiation, Collaboration, Solution 900 Chelmsford Street Build, Cutover and Go Live Lowell, MA 01851 Deliverables Related to the Workforce Management Solution Project 2022-23 80000629 $ 242,450.00 Kronos Incorporated Professional, Education and Mission 900 Chelmsford Street Critical Help Desk Services related to Lowell, MA 01851 the Workforce Management Solution Project 2022-23 80000287 $ 59,955.00 Microsoft Corporation Microsoft Unified Enterprise

2022-23 63019475 $ 296,100.00 Oracle America Inc. Oracle RDF SaaS Cloud Services 2022-23 63020172 $ 1,400,637.44 Oracle America Inc. Oracle Fusion Cloud Services 2022-23 63020825 $ 320,160.00 Oracle America Inc. Oracle Commerce SaaS Cloud 500 Oracle Parkway Services 2022-23 63020831 $ 2,837,683.72 Oracle America Inc. Oracle Retail SaaS Cloud 500 Oracle Parkway Services 2022-23 63020834 $ 809,627.23 Oracle America Inc. Oracle IAAS/PAAS Public Cloud 500 Oracle Parkway Services 2022-23 63021519 $ 8,020.16 Oracle America Inc. Oracle Test 2 SaaS for Data 500 Oracle Parkway Migration Services 2022-23 63021520 $ 17,932,248.66 Oracle America Inc. Release 2 Build, Test & Deploy 500 Oracle Parkway Phase of Oracle Fusion, Retail Redwood City, CA 94065-1677 and Commerce Cloud Services

2022-23 63021582 $ 2,640,579.21 Oracle America Inc. Release 2 Business to Business 500 Oracle Parkway Commerce Design, Data Migration Redwood City, CA 94065-1677 and Implementation Services 2022-23 63021590 $ 53,250.00 Oracle America Inc. Oracle Non Production Environment 500 Oracle Parkway Commerce Cloud Services 2022-23 63021758 $ 2,702,403.46 Oracle America Inc. Release 2 Business to Consumer 500 Oracle Parkway Commerce Design, Data Migration Redwood City, CA 94065-1677 and Implementation Services 2022-23 63021832 $ 62,865.40 Oracle America Inc. OCC and OCE Static Content 500 Oracle Parkway Assets Planning, Defining, and Redwood City, CA 94065-1677 Developing Services 2022-23 80000208 $ 160,000.00 Oracle America Inc. Oracle Data Governance Services 2022-23 80000321 $ 3,772,000.00 Oracle America Inc. Oracle Release 2 Step by Steps, 500 Oracle Parkway Facilitator Guides and Training Redwood City, CA 94065-1677 Materials, and Train the Trainer Deliverables 2022-23 80000612 $ 800,000.00 Oracle America Inc. Oracle Data Governance Meeting 500 Oracle Parkway Minutes, Updated Data Standards, Redwood City, CA 94065-1677 and Lead Support Deliverables

1. FISCAL YEAR 2022-23 (Cont'd) 2022-23 63021841 $ 68,586.96 OST, Inc. Unix Administrator and Oracle Cloud DBA Optimal Solutions Migration Support 2022-23 63021842 $ 100,947.20 OST, Inc. Oracle and Azure SQL Database DBA Optimal Solutions Administrator Support 2022-23 80000444 $ 95,093.32 OST, Inc. Oracle Hypercare Support

2022-23 80000542 $ 30,043.52 OST, Inc. Oracle Cloud Administrator DBA Optimal Solutions Support 2022-23 80000552 $ 200,638.88 OST, Inc. WebSphere Commerce Support DBA Optimal Solutions to support the current WebSphere 2101 L St NW, Suite 800 E-Commerce Fine Wine & Good Washington, DC 20037-1637 Spirits site on the Azure Version 8 Platform

2022-23 80000562 $ 83,481.72 OST, Inc. Java Developer and Technical DBA Optimal Solutions Architecture Specialist Support 2022-23 80000650 $ 127,150.00 OST, Inc. RESA Production Support

2022-23 80000854 $ 49,490.88 OST, Inc. Production Support to continue DBA Optimal Solutions work on the E-Commerce Team to 2101 L St NW, Suite 800 develop and support the existing Washington, DC 20037-1637 website 2022-23 80000855 $ 111,320.00 OST, Inc. Oracle Database and Application DBA Optimal Solutions Server Support to support the New 2101 L St NW, Suite 800 Horizons Project 2022-23 80000856 $ 69,211.74 OST, Inc. Unix Administrator Support to DBA Optimal Solutions provide Oracle Cloud migration 2101 L St NW, Suite 800 assistance

2022-23 80000965 $ 23,061.68 OST, Inc. To assist with large PC/Laptop DBA Optimal Solutions Deployment Project 2022-23 63013714 $ 710,086.00 SkillNet Solutions, Inc. Configuration and deployment 1151 Sonora Court, Suite 2 services for the PLCB's Oracle Sunnyvale, CA 94086 Retail Point of Service solution 2022-23 80000156 $ 5,218.75 Tierney & Partners, Inc Fine Wine & Good Spirits 2022 DBA Tierney Communications Spring Ampersand Campaign

2022-23 80000277 $ 52,367.40 Tierney & Partners, Inc Alcohol Education Website DBA Tierney Communications Updates and Hosting for Floor Know When Know How th 2022-23 80000322 $ 172,400.37 Tierney & Partners, Inc Fine Wine & Good Spirits 2022 DBA Tierney Communications Happier Holidays Campaign Floor Execution Part 1 Account Services th 2022-23 80000324 $ 189,924.95 Tierney & Partners, Inc Fine Wine & Good Spirits Social DBA Tierney Communications Media Planning and Outreach

2022-23 80000325 $ 188,158.25 Tierney & Partners, Inc Fine Wine & Good Spirits Radio DBA Tierney Communications Production Account Services Floor th 2022-23 80000326 $ 74,375.00 Tierney & Partners, Inc Fine Wine & Good Spirits Media DBA Tierney Communications Relations Account Services Floor th 2022-23 80000327 $ 12,531.25 Tierney & Partners, Inc Fine Wine & Good Spirits Print DBA Tierney Communications Resize, Traffic and Asset Floor Collection Account Services th 2022-23 80000457 $ 301,500.00 Tierney & Partners, Inc Fine Wine & Good Spirits Account DBA Tierney Communications Administration and Scoping Floor th 2022-23 80000460 $ 43,687.50 Tierney & Partners, Inc Fine Wine & Good Spirits Email DBA Tierney Communications Marketing Support Floor th

2022-23 80000621 $ 303,755.37 Tierney & Partners, Inc Alcohol Education Know When DBA Tierney Communications Know How Creative Campaign Floor Development Account Services th 2022-23 80000626 $ 145,135.17 Tierney & Partners, Inc Fine Wine & Good Spirits 2022 DBA Tierney Communications Happier Holidays Execution Floor Part 2 Account Services th 2022-23 80000736 $ 41,744.40 Tierney & Partners, Inc Fine Wine & Good Spirits In-Store DBA Tierney Communications Photography Shoot Account Services Floor th 2022-23 80001028 $ 43,923.25 Tierney & Partners, Inc Fine Wine & Good Spirits 2023 DBA Tierney Communications Ampersand Spring Campaign

2022-23 80001093 $ 146,968.75 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications FWGS.COM Launch Floor Creative Campaign th Philadelphia, PA 19102 Execution Phase 1 Account Services

2022-23 80001344 $ 20,000.00 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications 2023 Happier Holidays Floor Campaign Execution Part 1 th 2022-23 80000690 $ 2,700.00 VACO LLC DBA Plantensive Space Automation Pro Script 5501 Virginia Way, Ste. 120 Development Services Brentwood, TN 37027-7682

1. FISCAL YEAR 2023-24 2023-24 80000729 $ 127,205.00 AVAAP USA, LLC Data Governance Support for 1400 Goodale Blvd, Ste. 100 Oracle Cloud ERP Platform Bexley, OH 43212 Implementation 2023-24 80064741 $ 49,999.00 Commonwealth Prevention Pennsylvania Collaborative Report Alliance Dissemination and Taskforce PO Box 142 Development Services Beaver Falls, PA 15010-0142 2023-24 63012322 $ 142,168.71 Computronix USA, Inc Provide a scalable, hosted 3900 S. Wadsworth Blvd. Regulatory Affairs software system Suite 510 that is a single gateway for Lakewood, CO 80235-2208 businesses and individuals to apply 2023-24 80050710 $ 1,822,080.00 Deloitte Consulting LLP Production support and associated 300 Corporate Center Drive services for Oracle Cloud ERP Camp Hill, PA 17011-1760 and Oracle Applications 2023-24 80000113 $ 38,680.50 Enterprise Mobility Solutions LLC Software Implementation Services DBA Pathways Consulting Group for the ServiceNow Customer Service 33 Wood Ave., Ste. 600 Management Platform Iselin, NJ 08830-2717 2023-24 80001295 $ 8,750.00 Genesys Cloud Services, Inc. Genesys professional services for 1302 El Camino Real, Suite 300 support with call center services San Mateo, CA 94025

2023-24 80084856 $ 48,960.00 GLI Capital Group DBA Annual PCI Penetration Testing Bulletproof Solutions Inc. and NIST CSF Assessment 3040 Williams Drive, Ste. 510 Services Fairfax City, VA 22031 2023-24 80086995 $ 37,700.00 GLI Capital Group DBA Annual PCI Audit Compliance Bulletproof Solutions Inc. Services 3040 Williams Drive, Ste. 510 Fairfax City, VA 22031 2023-24 80001341 $ 618,528.82 Guidehouse Inc. Project Management Support for 2023-24 63021521 $ 219,360.00 Information and Computing RF Smart for Oracle Cloud

2023-24 80000628 $ 550,410.67 Kronos Incorporated Initiation, Collaboration, Solution 900 Chelmsford Street Build, Cutover and Go Live Lowell, MA 01851 Deliverables Related to the Workforce Management Solution Project

2023-24 80001312 $ 88,091.31 Microsoft Corporation Microsoft Unified Enterprise 2023-24 63019475 $ 222,075.00 Oracle America Inc. Oracle RDF SaaS Cloud Services 2023-24 63020172 $ 186,991.29 Oracle America Inc. Oracle Fusion Cloud Services 2023-24 63020825 $ 80,039.99 Oracle America Inc. Oracle Commerce SaaS Cloud 500 Oracle Parkway Services 2023-24 63020831 $ 1,529,543.75 Oracle America Inc. Oracle Retail SaaS Cloud 500 Oracle Parkway Services 2023-24 63020834 $ 382,028.71 Oracle America Inc. Oracle IAAS/PAAS Public Cloud 500 Oracle Parkway Services

2023-24 63021519 $ 4,010.08 Oracle America Inc. Oracle Test 2 SaaS for Data 500 Oracle Parkway Migration Services 2023-24 63021590 $ 13,312.50 Oracle America Inc. Oracle Non Production Environment 500 Oracle Parkway Commerce Cloud Services 2023-24 80000321 $ 93,500.00 Oracle America Inc. Oracle Release 2 Step by Steps, 500 Oracle Parkway Facilitator Guides and Training Redwood City, CA 94065-1677 Materials, and Train the Trainer Deliverables 2023-24 80001404 $ 3,170,525.00 Oracle America Inc. Release 2 Hypercare Services 2023-24 80098256 $ 997,500.00 Oracle America Inc. Release 2 Hypercare Services 2023-24 80122329 $ 1,035,000.00 Oracle America Inc. Design and Build Phase Report 500 Oracle Parkway and UAT and Cutover Phase Redwood City, CA 94065-1677 Report Deliverables

2023-24 80000650 $ 26,250.00 OST, Inc. RESA Production Support

2023-24 80000855 $ 208,670.00 OST, Inc. Oracle Database and Application DBA Optimal Solutions Server Support to support the New 2101 L St NW, Suite 800 Horizons Project 2023-24 80000856 $ 128,774.10 OST, Inc. Unix Administrator Support to DBA Optimal Solutions provide Oracle Cloud migration 2101 L St NW, Suite 800 assistance 2023-24 80000965 $ 53,421.36 OST, Inc. To assist with large PC/Laptop DBA Optimal Solutions Deployment Project 2023-24 80019812 $ 523,424.00 OST, Inc. Advanced troubleshooting of the DBA Optimal Solutions ORPOS system, related databases, 2101 L St NW, Suite 800 processes and as a SME to support Washington, DC 20037-1637 the legacy system

2023-24 80027978 $ 63,485.40 OST, Inc. Technical Architecture Specialist DBA Optimal Solutions to continue New Horizon Cloud 2101 L St NW, Suite 800 migrations in upcoming releases 2023-24 80085472 $ 46,620.00 OST, Inc. Java Developer performing analysis, DBA Optimal Solutions design, development and imple- 2101 L St NW, Suite 800 mentation of components for Washington, DC 20037-1637 Oracle ERP upgrade 2023-24 80091135 $ 144,144.00 OST, Inc. Identity and Access Management DBA Optimal Solutions Administrator supporting PLCB 2101 L St NW, Suite 800 Security Team to maintain appro- Washington, DC 20037-1637 priate access to applications agency- wide 2023-24 80104846 $ 114,400.00 OST, Inc. Oracle SME/Database Administrator DBA Optimal Solutions for on-premise database supporting 2101 L St NW, Suite 800 New Horizons/Oracle ERP Cloud 2023-24 63013714 $ 74,064.00 SkillNet Solutions, Inc. Configuration and deployment 1151 Sonora Court, Suite 2 services for the PLCB's Oracle Sunnyvale, CA 94086 Retail Point of Service solution

2023-24 80001028 $ 3,406.25 Tierney & Partners, Inc Fine Wine & Good Spirits 2023 DBA Tierney Communications Ampersand Spring Campaign

2023-24 80001093 $ 22,312.50 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications FWGS.COM Launch Floor Creative Campaign th Philadelphia, PA 19102 Execution Phase 1 Account Services 2023-24 80001221 $ 62.50 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Print Resize, Traffic and Floor Asset Collection Account th Philadelphia, PA 19102 Services 2023-24 80001248 $ 18,937.50 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Media Relations Account Floor Services th 2023-24 80001290 $ 27,853.04 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Radio Production Account Floor Services th

2023-24 80001319 $ 66,088.21 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Social Media Planning and Floor Outreach Account th Philadelphia, PA 19102 Services 2023-24 80001331 $ 10,812.50 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Email Marketing Support

2023-24 80001344 $ 141,271.89 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications 2023 Happier Holidays Floor Campaign Execution Part 1 th 2023-24 80001376 $ 119,656.25 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Administration and Scoping

2023-24 80003640 $ 70,421.64 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications FWGS.COM Launch Creative Floor Campaign Execution Phase 2 th

2023-24 80051330 $ 106,350.86 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Happier Holidays Execution Floor Part 2 Account Services th 2023-24 80080433 $ 375.00 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Customer Experience Research

2023-24 80085178 $ 1,781.25 Tierney & Partners, Inc Fine Wine & Good Spirits DBA Tierney Communications Brand Identity Guidelines Floor Refresh Account Services th 2023-24 80066237 $ 59,525.00 VACO LLC DBA Plantensive Space Automation Data 5501 Virginia Way, Ste. 120 Extraction and Transfer Brentwood, TN 37027-7682 Technical Automation Services

1. FISCAL YEAR 2024-25 2024-25 80001341 $ 145,658.26 Guidehouse Inc. Project Management Support for 2024-25 63021521 $ 219,360.00 Information and Computing RF Smart for Oracle Cloud

2024-25 80001312 $ 108,017.00 Microsoft Corporation Microsoft Unified Enterprise 2024-25 63019475 $ 222,075.00 Oracle America Inc. Oracle RDF SaaS Cloud Services

1. FISCAL YEAR 2025-26 2025-26 63021521 $ 219,360.00 Information and Computing RF Smart for Oracle Cloud

2025-26 80001312 $ 122,838.00 Microsoft Corporation Microsoft Unified Enterprise

1. INTERAGENCY AGREEMENTS & MEMORANDUMS OF UNDERSTANDING

2. Department of General Services - Agreement for the PLCB to participate in consolidated warehousing and warehouse functions provided by
   DGS. As a cost savings move by the PLCB, all PLCB materials were removed from DGS warehousing locations on October 2015 and are being handled internally by the PLCB. The Interagency Agreement Memorandum of Understanding for warehousing remains in effect at no cost to PLCB in the event the PLCB has a future need to use DGS warehousing.

3. Department of General Services - Agreement for the PLCB to reimburse DGS for vehicle purchases. Effective date of 8/29/2012 with
   indefinite term.

4. Department of General Services - Agreement to transfer certain PLCB real estate responsibilities and staff to DGS. Effective 10/13/13 with
   indefinite term.

5. Department of General Services - Agreement between the PLCB and DGS for the PLCB to pay a monthly proportional share of the payment
   obligation to DGS's contractor for installation and financing costs associated with energy conservation measures installed in the Northwest Office Building under DGS's contract to implement Pennsylvania's Guaranteed Energy Savings Act (GESA). Effective 10/9/10 and concurrent with the term of the Guaranteed Energy Savings Agreement.

6. Pennsylvania State Police - Agreement between the PLCB and PSP for the PLCB to reimburse PSP for the cost of criminal history
   background checks as needed for the Bureau of Licensing. These fees are charged to the PLCB via monthly PATCH (PA Access to Criminal History) billings, but are essentially a pass-through expense as the fees are billed to the licensees. Effective date 7/12/1995 with indefinite term.

7. Pennsylvania State Police - Agreement between the PLCB and PSP for the PLCB to supply and absorb the costs for alcoholic beverage
   samples for analysis testing in furtherance of PSP enforcement efforts. Effective date 7/12/1995 with indefinite term.

8. Department of General Services - Agreement between the PLCB and DGS for the PLCB to pay DGS Bureau of Publications for provided
   mail pre-sorting and processing services. Effective date 12/21/2007 with indefinite term.

9. Office of Administration - Agreement between OA and PLCB to implement a comprehensive solution to collect and integrate time and
   attendance into SAP for time evaluation and payroll processing. Effective 9/5/2008 with indefinite term.

10. Department of Revenue - Agreement between Revenue/PA Lottery and PLCB to license the PLCB to sell Lottery products in PLCB Fine
    Wine & Good Spirits stores as set forth in Act 39 of 2016. Effective 8/8/2016 with indefinite term.

11. Department of Revenue - Agreement between Revenue/PA Lottery and PLCB for data sharing. Lottery has a need to obtain certain data on
    businesses licensed to sell wine and spirits in Pennsylvania for purposes of implementing legislation allowing for Lottery to offer Keno. Effective 1/2/2018. Agreement was amended to obtain additional data related to wine and spirit sales by businesses located within officially designated Neighborhood Improvement Zones and City Revitalization Improvement Zones. Agreement was extended with indefinite term.

12. Department of Community and Economic Development - Agreement between DCED and PLCB to work collaboratively in the
    development and maintenance of an enterprise, quality, reusable system for the management of various grant programs and projects. Effective 5/30/2019 and in effect until terminated by either party.

13. Commonwealth of PA & VMware Enterprise License Agreement - Agreement between the Commonwealth of PA and the Governor's Office
    of Administration (OA). OA will make the VMware software licenses, products, services, and/or subscription support (VMware Products and Services) available to PLCB. PLCB commits to participate in the Enterprise License Agreement (ELA) for the full term of the ELA, beginning 1/1/2022 and ending on 6/30/2025.

14. Pennsylvania Treasury Department - Agreement between Treasury/PNC Bank and PLCB for account validation services providing access to
    a national database for Verification and Authentication of a Commonwealth agency's payees' bank account information and ownership for direct deposit payments (ACH). Effective 8/30/2021 and in effect until terminated by either party.

TRANSFERS TO THE GENERAL FUND Pp. E32.1-E32.4

1. SUMMARY FINANCIAL DATA (Amounts in Thousands)

Total Funds - Transfer to the General Fund

State Funds $ 0 $ 0 $ 0 Federal Funds 0 0 0 Other Funds (State Stores) 185,100 185,100 185,100 Total $185,100 $185,100 $185,100

1. Program Description
   This Executive Authorization provides the means by which funds from the operation of PLCB Fine Wine & Good Spirits stores are transferred from the State Stores Fund to the General Fund. The transfers are used for general appropriation purposes as provided by Act No. 412 ½ of July 18, 1935, P.L. 1316. (47 P.S. § 744-907b).

2. Other Information
   Historical Lapses 2020-21 2021-22 2022-23 $ 0 $ 0 $ 0

PURCHASE OF LIQUOR Pp. E32.1-E32.4

1. SUMMARY FINANCIAL DATA (Amounts in Thousands)
   Total Funds - Purchases of Liquor State Funds $ 0 $ 0 $ 0 Federal Funds 0 0 0 Other Funds (State Stores) 1,758,000 1,706,300 1,757,200 Total $1,758,000 $1,706,300 $1,757,200

2. Program Description
   This Executive Authorization is used only to purchase merchandise for resale by the PLCB.

3. Other Information
   Historical Lapses (Amounts in Thousands)

Fiscal Year Authorization Lapse 2022-23 $1,758,000 $ 8,792 2021-22 $1,710,600 $67,615 2020-21 $1,464,700 $29,561

PLCB COMPTROLLER OPERATIONS Pp. E32.1-E32.4 LIQUOR CONTROL BOARD COMPTROLLER OPERATIONS The Executive Authorization for the Comptroller of the PLCB is included in the hearing materials prepared by

the Governor's Office of the Budget. The PLCB has neither authority nor responsibility for the expenses incurred by the Office of the Comptroller.

State Stores Fund Statement of Cash Receipts & Disbursements Worksheet (Dollar Amounts in Thousands)

Actual Actual Actual Available Request Estimate Estimate Estimate Estimate FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Treas. Cash Balance, Beginning 182,118 318,347 198,354 341,643 296,844 257,201 215,135 178,119 162,841 Receipts: Fees/Fines 20,562 28,562 30,992 32,000 32,000 32,000 32,000 32,000 32,000 Expired License Auction Proceeds 2,287 89 608 1,000 1,000 1,000 1,000 1,000 1,000 Sale of Goods 2,344,659 2,418,278 2,582,855 2,660,340 2,740,000 2,822,000 2,907,000 2,994,000 3,084,000 Tax Revenues 589,360 611,584 585,097 657,104 677,000 697,000 718,000 740,000 762,000 Lottery Proceeds 1,442 1,861 2,594 2,600 2,600 2,600 2,600 2,600 2,600 Other / Misc 5,077 9,527 7,800 3,896 3,896 3,896 3,896 3,896 3,896 Gen. Fund Loan - - - - - - - - - Interest 506 352 9,060 14,700 14,248 8,744 5,593 4,631 4,233 Total Receipts 2,963,893 3,070,253 3,219,006 3,371,640 3,470,744 3,567,240 3,670,089 3,778,127 3,889,729 Total Funds Available 3,146,011 3,388,600 3,417,360 3,713,284 3,767,588 3,824,441 3,885,224 3,956,246 4,052,570

Disbursements: Treasury - - - - - - - - - Dept. Drug & Alcohol Programs 3,165 3,933 5,024 5,215 5,215 5,215 5,215 5,215 5,215 1,435,212 1,711,507 1,579,415 1,706,300 1,757,200 1,809,900 1,859,700 1,906,200 1,953,900 LCB Expenses 577,524 642,172 682,428 761,029 840,212 865,380 891,380 909,180 927,380 Comptroller 8,067 6,025 6,333 6,333 6,650 6,650 6,650 6,650 6,650 Augmenting Revenue - - - 20 20 20 20 20 20 State Police 29,236 29,925 32,320 40,683 38,990 40,041 41,040 41,040 41,040 Tax Revenues 589,360 611,584 585,097 711,760 677,000 697,000 718,000 740,000 762,000 Repay Loan - - - - - - - - - Transfer to General Fund 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100

Total Disbursements 2,827,664 3,190,246 3,075,717 3,416,440 3,510,387 3,609,306 3,707,105 3,793,405 3,881,305 Treas. Cash Balance, Ending 318,347 198,354 341,643 296,844 257,201 215,135 178,119 162,841 171,265

Notes: 39

1. FY 2023-24 Treasury paid June FY22 monthly taxes of $54M in 7-3-23. FY 2024-25 & beyond.
2. FY 2024-25 Sales and tax revenues are projected to grow approximately 3.0% and for remaining years. The State Stores Fund serves as the general operating fund for the Liquor Control Board. The Pennsylvania State Police also receive funds for the enforcement of the Liquor Code. Prior to 2012-13, This fund receives revenues from the sale of goods in State Liquor Stores, fees not credited to the Liquor License Fund, fines and penalties, losses and damages recovered, and loans from the the Department of Health received funds for alcohol abuse programs. Act 50 of 2010 created the Department of Drug and Alcohol Programs and requires that all drug and alcohol program funding 2. FY 2024-25 Budget request for Liquor purchases is for $1.76B and projected to grow approximately 3.0% for future years.General Fund to provide working capital. Expenditures cover all costs associated with the operation and administration of the Liquor Store System and enforcement of the Liquor Code. Surplus funds previously allocated to the Department of Health be transferred to the Department of Drug and Alcohol Programs. Liquor purchases3. FY 2024-25 General Fund transfer remains at $185.1M and remaining years. are available for transfer to the General Fund.