Capitol Bureau

ALBANY — With the state's fiscal crisis looming, lobbyists and lawmakers said they'll be looking to sins for easy money.

There's new life for proposals like retail liquor sales on the Sabbath, wine aisles in grocery stores and even putting video lottery slot machines in off-track betting parlors statewide. If it's a way the state can corner more cash, it's got a better than ever chance in Albany this year, they said.

The liquor and gambling industries, and others, are counting on lawmakers pulling out the stops to pass bills that have languished for years but offer a way to charge a tax or a fee.

Take the long-pending proposal to allow retail liquor sales on Sundays, for example.

"I think there's going to be more consideration given to that bill," said state Sen. John Kuhl Jr., R-Steuben County, who sponsored that measure and another to allow the sale of wine in grocery and drug stores.

"This is one that can probably fly better this year than previous years," said Steve Glamuzina, president of the Upstate Package Stores Association.

He also called sales of wine at grocery stores "very dangerous," because that's where most underage sales violations occur, and liquor retailers who now hold exclusive rights would experience fiscal pain.

Then too there's about to be a new push to install lottery video slot machines at betting parlors, as well as at the horse-racing tracks they've been destined for since last year, said a prominent Albany lobbyist who represents OTB, speaking on background.

There, the state would get a cut of the action too.

With a state budget deficit estimated to reach as much as $10 billion next year, industries cashing in on sin are figuring they're in a pretty good position.

"Where there is a weakness, it gets exploited," said one state liquor industry lobbyist in Albany, who asked to remain anonymous. "An $8-to-$10 billion hole is quite the weakness."

The premise of politicians cashing in on sin to balance a budget is not without precedent. Late last year, for example, lawmakers breezed through the state's largest casino gambling expansion plan ever while calling it an emergency revenue raiser.

Before 9/11 and the ensuing fiscal fallout, "Most of us didn't think the casino bills would go through easily," Kuhl said.

Earlier this year, lawmakers hiked cell phone fees an additional 70 cents and bumped cigarette taxes up to $1.50 per pack, but stayed away from taxing alcohol.

Tapping the alcohol sales tax stream now would follow what other states have been doing during tough budget times. Oregon, for example, eliminated its so-called "Blue Laws" earlier this year, and Pennsylvania lawmakers are weighing a similar bill.

Liquor and wine excise taxes reaped the state $60 million between April and August, according to the state Division for Budget.

David Wojnar, a vice president with the Distilled Spirits Council of the United States, said New York coffers stand to gain between $33 million and $39 million in direct taxes by permitting Sunday liquor sales.