As of 5pm this evening, according to spokespeople for New York State Senator Antoine Thompson, the proposal to begin selling wine in supermarkets is not included in the new state budget—despite a hard last-minute push from Governor David Patterson today. Voting on the budget begins tomorrow.

The proposal had been championed earlier this month in a Buffalo News editorial, likening the 2,600 small businesses in New York State known as liquor stores to a “legal monopoly.” Now, thanks to a strenuous and well-reasoned campaign by opponents of the proposal—which would have snatched a quick, one-time windfall in permit fees (up to $159 million projected) from supermarkets and other big-box stores—the measure is being recognized as short-sighted for a number of reasons.

The move would likely mean the closure of over a thousand small liquor store businesses across the state, while dealing a blow to New York’s burgeoning wineries. (The Finger Lakes recently recently displaced Niagara Falls as the number two tourist destination in the state, thanks in large part to their flourishing wine trail.)

In the meantime, it would have created no new jobs. After all, the same supermarket staff that sells you beer, soda, pet food and toilet paper can just as easily ring up a box of Franzia, but it’s doubtful the same sixteen-year-old at the checkout would be able to recommend anything more sophisticated to go with your dinner that night.

In the end, the most convincing arguments may have centered on public safety. At last Tuesday’s Common Council hearing, city lawmakers unanimously voted against the idea and sent their concerns to Albany. Aside from the real damage to small retailers, wineries, and the loss of jobs, lawmakers also sided with the Erie County Association of Chiefs of Police who see the proposed move as a great way to increase underage drinking and DWI collisions statewide. Studies have shown higher alcohol-related fatalities in states where wine is available at markets and department stores.

For more on the subject, click here for an interview with Burt Notarius, president of Premier Liquor.