Alcohol Beverage Services
The nation's last county-run alcohol monopoly
FY2026 budget: $81.9M
Overview
Montgomery County's Alcohol Beverage Services (ABS) is the most unusual county government operation in the United States. Established in 1933 after Prohibition's repeal, it is the only county in America that operates both a wholesale monopoly over all beer, wine, and spirits distribution (serving ~1,100 licensees) and a retail monopoly on off-premises spirits sales through county-owned stores. No peer county runs anything comparable.
Budget and revenue
ABS's FY2027 operating appropriation is $81.9 million (up 5.1% from $78.0M in FY26). It generates hundreds of millions in annual sales and historically transferred $30–$40 million to the General Fund. That transfer collapsed: $31.3M (FY25) → ~$19.6M (FY26 projected) → at least $9.3M required in the FY27 budget resolution — while debt service and operating costs remain elevated. Councilmembers publicly questioned the FY26 drop; FY27 made the revenue story worse.
Scandals and OIG findings
NBC4 Washington's I-Team documented employees skimming cases of beer and selling them on the black market. A 2015 exposé found the warehouse tracked inventory using sticky notes. OIG audits in 2014, 2019, and 2022 found persistent inventory management deficiencies — cycle counts were not independent, beer records were retained for only one week, items were moved without updating records, and access controls were inadequate. The OIG's 2022 follow-up concluded "more work needed."
Oak Barrel & Vine: competing with private retailers
A September 2025 store opening in Westfield Wheaton mall placed a county-owned wine and beer store directly across the hall from Choice Wine & Beer, a private shop. Owner Nick Gardner reported sales down 11–13% and wine sales down 23% since the county store opened. Private retailers must purchase their wholesale products from the county, creating a structural conflict where the county is simultaneously supplier and competitor.