Several Lehigh Valley lawmakers look favorably upon Gov. Tom Corbett's plan to privatize the state's approximately 620 wine and liquor stores.
Under Corbett's plan, announced Wednesday afternoon in Pittsburgh, state liquor stores would be eliminated. That, it is hoped, would increase availability of beer, wine and liquor sales.
In a press release, Corbett committed $1 billion in proceeds from the process to education funding.
Corbett said that the $1 billion will be used to create the Passport for Learning Block Grant, which will provide flexibility to schools.
“Our plan gives consumers what they want by increasing choice and convenience, and helps to secure our future by adding $1 billion in funding toward the education of our children, without raising any taxes," Corbett said in the press release.
State Sen. Bob Mensch, R-24th District, said the idea of privatizing state liquor sales is popular within his district.
"Divesting is not a bad idea to me," said Mensch. "To me, it's an economically-driven decision. It could be handled by the private sector."
Mensch said he supported a bill introduced by House Majority Leader Mike Turzai, R-Allegheny. That bill, however, died before making it into the state Senate.
In Turzai’s plan, beer distributors would have the first shot at buying 1,600 new liquor licenses — finally allowing Pennsylvanians to purchase beer and liquor in the same location.
Steve DeFrank, a spokesman for State Sen. Lisa Boscola, D-18th District, said the senator would have no statement on the matter at this time.
"We'll need at least a couple of days," DeFrank said. "The devil is always in the details. We'll have our Law and Justice committee as well as appropriations committee look at the details."
State Rep. Ryan McKenzie, R-134th District, said he supports efforts to remove government competition from industries that can be adequately operated by the private sector.
"Privatizing the liquor system in Pennsylvania provides the opportunity to reduce the size of government and allows the private sector to take over," he said.
McKenzie said he is reviewing the financial details of the proposal, along with the safety precautions that will be implemented alongside the private sale of wine and spirits.
State Rep. Marcia Hahn, R-138th District, said she was in favor of privatization during the last legislative session and stated 65 percent of her constituents agreed.
"I'm in favor of the concept," Hahn said. "There are just a few more things that I need to look at."
State Rep. Joe Emrick, R-137th District, said he's "generally a free market guy," but didn't have a position on the legislation yet since he hadn't thoroughly vetted it.
Meanwhile, the Greater Lehigh Valley Chamber of Commerce weighed in with the following statement:
"The Chamber doesn’t have a formal stance. We commend the Governor for putting this entrepreneurial proposal on the table. The Chamber is built on the spirit of enterprise and there are certainly a number of members who have interest in buying into an opportunity like this. As always, jobs are a concern but we look forward to learning more details as the plan is debated in Harrisburg."
Corbett said the $1 billion in revenue will come from the three- to four-year process of selling the Liquor Control Board. A total of $575 million will come from the wholesale license process, $224 million from the wine and spirits retail auction process, $107 million from the wine/beer license application process and $112.5 million in the enhanced beer distributor application process.
You say the PLCB has gross profits that are sky high but due to their incompetence and inefficiency the net profits are not. $85 million last year on $2.1B of sales. Sales will go up due to increased convenience (1200 stores instead of 600) businesses will pay business taxes which the PLCB doesn't do, higher more people and run more efficiently. The taxes collected will increase because of the higher amount of sales and education and enforcement funding will go up far more then what the PLCB spends now.....or didn't you listen to the proposal. The majority of other states handle private liquor just fine and most do a better job then the PLCB ever could. It is time to let the state regulate and educate and not be in sales.
Something else they don't inform the public about, if it is privatized the convenient liquor store you may use(for some everyday) very well may not be there, and if it is a once $5 bottle vodka may be $20 instead, it is something for everyone to think about. Once again, like the lottery PA is broke and looking for fast money. So if they do privatize and get a couple billion, in ten years when they are broke again, which we all know they will be what are they going to sell next? roads? bridges? oh my! It is a permanent solution to a temporary problem . So for all those ignorant people who do not fully understand the consequences of privatizing and how it affects everyone as a whole maybe you will once you start paying for 5000 people's unemployment and welfare goes up. I don't know call me crazy but laying off that many people and having the taxpayers pay for it doesn't sound like a positive way to fix a deficit.
This big push to get rid of govt workers, no one seems to get they pay taxes and spend money, take their part away - you pay more. Keep outsourcing and reducing wages and all taxes go up. If you live in the middle of the state and don't want to drive hours you go to a state store, they know about how much each year they would get in profits and the fine Gov just wants this for another friends- a loss for the state! From a dept that was making money and could have made more for the state each year. Good thing he is only going to be a one term, but it will be too late to undue all the gifts he was given friends!!
I hope you are not a "first responder". If you are, you may be needed, LOL! Many state store employees are working on their SECOND pension. They will not go on unemployment. They will retire ... finally. And I will STILL have to move my bottles closer to the register for them to scan them!
That's good, Albert!
And for the record ... I said "second pension", not you! And it is true.
There is no knowledgeable person waiting on me. A sales person for the State controlled store cannot tout one item over another. They must treat them equally. What wines are returned often because the bottle is bad? What box wine turns to vinegar first? No one will tell you. They can't. They are not allowed. When you own your store and stock your shelves, you can have a place where only vodka is sold! And know everything there is to know about it. THAT'S private enterprise.
Yet only one other state has the restrictions that PA does and that is Utah. So, maybe the better question is: "What are WE missing, LOL?"