Corbett's new liquor privatization plan would benefit public schools

Jan 31, 2013 | Posted by: roboblogger | Full story: Philly.com

Call it liquor privatization with a twist. Like others before him, Gov. Corbett wants to auction off Pennsylvania's wine and liquor stores - but he wants to use the projected $1 billion in proceeds to help public schools.

Comments

Showing posts 1 - 3 of3
mrbirkos

United States

|
Report Abuse
|
Judge it!
|
#1
Feb 15, 2013
 
The $500 million annual tax revenue would, more or less, remain whether liquor/wine sales are in state or private hands. There is some debate on how the state would replace the $103 million in annual net profit afforded by the LCB. Not much is said of the other $100 million given annually to private landlords, the state police, or various scholarship funds. But what is not even remotely guaranteed is the $1 billion windfall projected by the governor. Not even Sheetz is keen on paying the exorbitant license fees.
Here are the last four states that privatized elements of their liquor sales.
Iowa went private with retail operations of wine in 1985, and liquor in 1987.
West Virginia privatized liquor retail operations in 1991.
Both states earned less than $20 million each. Operational costs were greatly reduced, but the expected windfalls never materialized.
In 1986, Iowa earned $71.6 million. In 1987 -$43.6 million. Sales tax revenue did not return to pre-privatization levels until 2004. They chose to retain wholesale operations, because they would have lost $60-70 million/year.
http://www.pennlive.com/editorials/index.ssf/... :
http://voices.washingtonpost.com/virginiapoli... :
In 2004, Maine earned $125 million for a 10 year lease of their wholesale operations, but since, has lost over $100 million due to revenue sharing with the wholesale distributor.
http://www.mainebiz.biz/article/20110725/CURR... :
In 2011, we know that Washington’s liquor sales contributed $461 million to their general fund, roughly equal to our PLCB. When they privatized in 2012, Washington only earned $150 million for wholesale rights,$30.8 million for their existing stores, and a new liquor/wine/beer license is only $166.00. They exploded from 300 to over 1,400 stores, many open until 2:00 AM. Unit sales only increased by 8%, which strongly suggests the state was adequately served by the original 300 outlets.
Since 2011, the governor’s windfall estimate has been $1.6 billion. Today it is $1.0 billion. Ironically, the governor’s billion dollar number and the real market comparables are both deal killers.
danclark

Brooklyn, NY

|
Report Abuse
|
Judge it!
|
#2
Feb 16, 2013
 
What I find unacceptable is PA. law on out of state liquer sales are illegal to bring into PA. I seldom go to state stores. However the point I raise is the people of S.W. PA. arr near the border of Delaware and N.J. Should you bring a bottle or two from either state and caught you get fined. If you buy anything else out of Delaware or N.J. is not illegal. I can buy goods and cross state line and not be stopped by police. But get some alcohol-big NO-NO. So why is that? No need to worry about revenue/taxes to PA. as long as the purchase isn't alcohol. What about lost revenue from all those other goods boight out of state?
danclark

Brooklyn, NY

|
Report Abuse
|
Judge it!
|
#3
Feb 16, 2013
 
Then those ads in the local newspaper to buy alcohol in Delaware. TRI-STATE LIQUERS. Advertised in the Daily Times newspaper.

Tell me when this thread is updated: (Registration is not required)

Add to my Tracker Send me an email

Showing posts 1 - 3 of3
Type in your comments below
Name
(appears on your post)
Comments
Characters left: 4000

Please note by clicking on "Post Comment" you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Other Recent Huntingdon Valley Discussions

Search the Huntingdon Valley Forum:
Topic Updated Last By Comments
PA Who do you support for Governor in Pennsylvania... (Oct '10) 14 min Haliburton Teabaggers 51,212
John Roman's Last Concert 23 hr Anon 1
Weis Markets Huntingdon Valley is a RIPOFF Apr 7 Mrs R Schwartz 3
Debate: Marijuana - Jenkintown, PA (Aug '10) Mar 18 Puffing 18
Le-vel Thrive Experience Mar 17 Curious 1
PA Who do you support for U.S. Senate in Pennsylva... (Oct '10) Mar '14 MaZzie 3,507
Local Ukrainians organize amid fears of Russian... Mar '14 Holotta Wytrache 1
•••

Freeze Warning for Montgomery County was issued at April 16 at 3:02PM EDT

•••
•••

Huntingdon Valley News Video

•••
•••

Huntingdon Valley Jobs

•••
•••
•••

Huntingdon Valley People Search

Addresses and phone numbers for FREE

•••

Personal Finance

Mortgages [ See current mortgage rates ]
•••