ABC generated $140 million in profit to the state general fund last year and the budget demands $144.7 million in this fiscal year, including $2.8 million required by Gov. Terry McAuliffe to help reduce a projected $2.4 billion shortfall in the biennium. But the department is not assured it will keep any of the revenue that would be collected through June 30, 2016, under the new package of fees and targeted markups on distilled spirits.

“What they have left over is subject to the General Assembly taking and using to reduce the deficit,” said Senate Finance Chairman Walter A. Stosch, R-Henrico, who said the department will be “allowed to make the case for modernization if it leads to additional efficiency.”

Hill said the department plans to make that case both for the governor’s budget and the General Assembly session that convenes in January.

“We want to work with them and get them to buy into our modernization plan,” Hill said.

McAuliffe “recognizes the need to modernize the Virginia ABC so that it can operate in a fashion Virginians deserve to serve its customers better and hopefully operate more cost-efficiently,” said his spokesman, Brian Coy.