AUGUSTA – The state Liquor and Lottery Commission on Wednesday postponed a vote that would have authorized a cut in lottery sales commissions to ticket vendors.

The five-member commission has a $1.6 million budget gap to overcome in the next fiscal year.

Phil St. Pierre, owner of Victor News Co. in Lewiston, who attended the meeting, said he was happy the commission is taking more time before making a decision.

“They recognize this is a sensitive issue for the agents,” he said. “They are willing to take the extra time necessary to come up with the solution that may not be what the agents want, which is the status quo, but will offset the possibility of a 5 percent commission down the road.”

Maine’s 8 percent payout to vendors is the highest in the country, and the proposed rule change would give the commission authority to cut the rate to 5 percent, matching the national and New England average. But commissioners are having a difficult time justifying paying lottery vendors less for the same amount of work during uncertain economic times.

“We’re taking money away from you, and don’t think this is easy for us,” said Peter Danton, commission chairman and a former legislator from Saco. “Being a small businessman all of my adult life, I know what you go through.”

Lottery vendors, many of whom are small business owners, had the opportunity to attend a public hearing on the proposed rule change last month, but were not allowed to address commissioners at the meeting on Wednesday because of procedural rules.

Despite the vendors’ silence, commissioners were aware of their concerns and expressed resistance to making a cut deeper than 1 percent, the amount needed to balance the budget.

“I want to vote to go down to 7 percent but I don’t want to bother the lottery agents any more,” Danton said. “We’re trying to find a way to satisfy the Legislature and satisfy you people. There’s no way I would support 5 percent.”

Commissioner Michael Peters of Dixfield called the rate cut a “backdoor tax” and said many of the state’s 1,300 lottery vendors are “teetering on the edge of bankruptcy.”

“The backlash in the small store community to what we’re doing with commissions is really going to hurt our lottery in the long run,” Peters said.

Lottery vendors agree.

“They’ll hurt more if our store shuts down,” said Mike Berube, manager of Lisbon Street News in Lewiston, who also attended the meeting. His store sold more than $1 million in lottery tickets in 2007, making it the highest seller in the state.

Berube said the commission should look to cut radio and television advertising before cutting back on money paid to vendors.

Robby Hawkins of Norway, who purchased a convenience store in January, said he’s struggling already and a rate cut could cripple his fledgling business.

“The economy is so poor now,” he said after the meeting. “If they keep doing these little tiny taxes everywhere, you’re going to force businesses like me right under and my two employees are going to be out of work.”

Hawkins said it all goes back to the priorities set by the Legislature.

“I’m cutting my budget to keep my business afloat and not go on welfare,” he said. “We need to look at where the money is being spent. I am still an employed citizen paying taxes. If they want to force my business under, then they can start paying my food bill.”

But St. Pierre of Victor News said he is optimistic.

“I am confident that these folks are doing what they feel is in the best interest of the lottery in the state of Maine,” he said.

The commission is scheduled to meet again May 7.

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