The big issue of whether to privatize Pennsylvania's liquor stores will take center stage today as Gov. Tom Corbett announces plans to sell them off.
Corbett will call for liquor store licenses to be auctioned off, according to multiple sources. Sales of beer and wine could be opened up to various retailers including drug stores and big-box department stores.
Related story: Pa.'s Prohibition Era May Finally End
The Republican governor is expected to announce his plan at 2 p.m. Wednesday in Pittsburgh. This move comes on the heels of plans to privatize the PA Lottery -- another controversial move.
Pennsylvania has about 620 state stores.
Union groups have argued that more than 4,500 jobs will be lost if the state system is privatized, but Republicans have countered by saying that the 1,600 private sector stores will create additional opportunities for jobs — including union jobs.
Liquor store unions gave $140,000 in campaign donations to state-level candidates last year, according to a Pa. Independent report.
Corbett has supported privatization since he took office in 2011.
Polls have consistently shown a majority of Pennsylvanians are in favor of privatizing the liquor system, but the state monopoly set up in the wake of Prohibition has remained stubborn despite numerous attempts to end it, including efforts by the past two Republican administrations in Harrisburg during the 1980s and 1990s, accoring to a Pa. Independent report.
Gene Barr, president of the Pennsylvania Chamber of Commerce, was one of several people invited to the governor’s office recently to weigh in on the liquor plan. He said Pennsylvania needs rethink how alcohol is sold.
The final plan should include more retail locations, including grocery stores and convenience stores, he said.
“Our view is that simply changing the person behind the counter isn’t good enough,” Barr told the Pa. Independent.
factoid!!!!!!!!
In reading all of these comments, I cannot find a single logical reason why the state should be in this business. But to continue laws that suppress competition simultaneously creates an environment akin to something out of the Soviet Union. But if people are so convinced that the state stores provide good product and service at competitive prices, then keep them But at least, let’s see how they do in a competitive environment. My guess is not so well. As to the potential loss of revenue, a closer examination shows the state stores are basically break even when the pension and health care costs are included and that trend line is not favorable to taxpayers. One must also consider the lost revenue of sales in other states. For thousands of people who are located near adjoining states, they can easily do their shopping there. And the bulk of the revenue form the state stores comes from the tax revenue and that would remain if the store were privatized. No, it’s time to put an end to this anachronism and I commend the Governor for trying.
Can you also tell me what the liquor board revenues are after fully loading all expenses including pension and health care benefits? Lastly, I think you are suggesting that the state should also be involved in the sale of pot. Do you see any limits to the businesses in which the government should be involved? For example, should prescription drugs be brought under the liquor control board? Would Pennsylvania get better prices as a result of Pennsylvania’s buying power? Would they be satisfied with the more limited access to their prescriptions? I assume you would say no but what exactly is the difference then alcohol and prescription drugs? Thank you.
The higher wholesale gas tax will go toward roads, not toward the general fund. In other states, alcohol sales at big box stores co-exist peacefully with smaller, locally owned business. Anyone who has ever stepped foot outside of Pennsylvania knows that.
Existing mom and pop shops will co-exist with supermarkets, convenience stores, and large chain liquor stores. This happens all over the country. Some of those mom-and-pop shops specialize in higher end products, and make quite a pretty penny. The savings will come through the state no longer paying benefits and pensions for liquor store workers. That will be left up to private enterprise.