Talk about return on investment: A new report from the Marin Institute says that the alcohol industry parlayed $3 million in California political donations into the defeat of $2 billion in proposed alcohol taxes and mitigation fees. The industry watchdog drew a direct connection between industry donations to Gov. Arnold Schwarzenegger’s Budget Reform Now poliical-action committee and the withdrawal of the governor’s $751-million alcohol tax proposal.

“We found Big Alcohol standing over the smoldering ruins of a failed state budget,” said Bruce Lee Livingston, executive director of the Marin Institute.

The full report is available on the Marin website.