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Is The End Near For County-Controlled Alcohol Distribution?

By WTOP Staff

Bar at Caddies on Cordell (file photo)The debate over Montgomery County’s control of alcohol distribution was reignited on Friday with this Washington Post opinion piece from a member of the county’s Nighttime Economy Task Force and a prominent Silver Spring restaurant owner.

Evan Glass, who served on the Task Force and who is running for County Council in District 5, and restaurant owner Jackie Greenbaum wrote that it’s time to end the Department of Liquor Control’s monopoly on alcohol distribution.

Glass and Greenbaum argued the county’s control model — which dates back to the Great Depression — restricts the variety of wine, beer and liquor county restaurants can acquire. The two argued that this “outdated approach cries for reform,” as it has led to prospective restaurants and other businesses opening up shop elsewhere:

The county could still maintain its stores and liquor distribution for those restaurants and individuals who prefer the status quo, but others who want better inventory management and options would be free to purchase outside the county system. By taking this step, the county can lift a burden from many small businesses and encourage economic growth while increasing consumer options.

Like the rest of the country, the Washington region has experienced a surge of interest in craft beer, small-batch liquor and family-run wineries. But Montgomery County’s top-down system stymies residents and restaurateurs who want to try new products. We know a number of restaurateurs who have chosen to set up shop in other jurisdictions as a result. On the supply side, some producers and importers — especially the small, cutting-edge, boutique or craft makers — don’t sell to the Department of Liquor Control because of its cumbersome procedures and the diminished market for their products in the county.

Kathie Durbin, chief of Licensure, Regulation and Education for the Department of Liquor Control, has a different opinion. Small breweries and wineries in the county can now sell to other restaurants in the county, thanks to state legislation Durbin helped craft.

She said the Department has also worked hard to improve its distribution service and expand the selection of alcohol brands it offers.

“I understand where [Glass] is coming from and what he’s saying. I think a lot of this comes from the fact that people can’t get certain products that they can get in D.C. I don’t think we’d be able to get them even if the Department of Liquor Control didn’t exist,” Durbin said. “There is a state regulation side to this that a lot of people don’t understand. Also, there are some products — small wineries and small batch products — that just aren’t available everywhere.

“The problem is, I think a lot of times we’re comparing ourselves to D.C. I don’t think there’s any market like the Washington D.C. market,” Durbin said. “You don’t want to deregulate so much that there are safety concerns.”

The DLC is projected to make $20.7 million for the county’s budget this fiscal year. That profit has been a major reason why the control model has stuck around.

County Executive Isiah Leggett confirmed as much on Monday, when in an online chat he answered a question about the county’s strict control model of distribution:

This is a unique time in our history to go back and reevaluate the County’s position on liquor control and alcohol distribution. In past studies, the loss of revenue proved to be a difficult hurdle. If there is a model that can feasibly overcome the revenue loss, I am fully willing to consider it. We are looking at commissioning a new study that will address this issue.

Glass and Greenbaum, who owns Jackie’s and Quarry House in Silver Spring, said the millions the county makes in distribution doesn’t take into account “the economic energy that would be freed by easing control, which would attract new business and expand the county’s tax base, and a fee structure could be imposed to recoup some of the lost revenue.”

Durbin said as a Silver Spring resident and former bartender in Bethesda, she understands what restaurants face. The DLC has been behind a number of alcohol law changes for Montgomery County that because of state law, must be passed in Annapolis.

This year’s General Assembly passed measures to allow microbreweries in Montgomery County and allow those microbreweries to sell directly to other restaurants in the county. The county has licensed two such new facilities so far — Baying Hound Aleworks in Rockville and Denizens Brewing Co. in Silver Spring.

The law would also allow existing restaurants that brew their own beer — such as Rock Bottom in Bethesda — to sell their products with growlers or even six-packs.

Durbin said it’s unclear if there’s a market for such products.

She also said DLC is unveiling an improved online ordering system that will make it easier for restaurants and alcohol sellers to see what the county has available in its warehouse. DLC this year lowered the cost of special orders.

“With any type of alcohol laws that are state laws, it’s difficult to keep up with the trends that are constantly moving,” Durbin said.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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