—
The governor has made no secret of his objective to privatize the commonwealth’s public assets. Even thriving, efficiently operated assets that are making money aren’t safe from his ill-advised plans, including his most recent plan to privatize liquor sales.
The governor has claimed to be a champion of Pennsylvania’s small, family-owned businesses, but his plan to overhaul the current system threatens those very businesses.
Many of the state’s beer distributors fear they’d be put out of business because Gov. Tom Corbett’s plan favors big-box retailers like Wal-Mart. Under the Corbett proposal, a license to expand into wine and spirit sales would cost beer distributors $150,000, while giant retail competitors with enormous profit margins would pay only $25,000 to $35,000 – chump change for Wal-Mart or Target.
Using the funds from liquor license sales for education may seem generous and even politically savvy, but Pennsylvanians recognize that $1 billion over four years fails to offset Corbett’s billion-dollar cut to education in his past two budgets. And, if you remember, the governor was critical of the federal stimulus funds for education because it was a one-time source of funding.
But Corbett’s proposal is exactly that: A one-time injection of cash. Tying alcohol sales to short-term education funding is not only poor fiscal planning, but also irresponsible and dangerous.
There are other problems with the governor’s plan. Currently, every resident has reasonable access to a wine and spirits store; there is at least one in every county. Experience in other states has shown that private operators locate where the market is, which means the liquor selection in rural areas will decline. That’s exactly what happened when West Virginia privatized.
The commonwealth also would lose its bulk purchasing power that helps to lower prices; this would drive up consumer prices. Other states that have privatized also have had to deal with the social ills associated with increased alcohol consumption – violence, burglaries, vandalism, drunken driving, teen pregnancy and addiction – and the skyrocketing costs needed to deal with them.
We believe improving the customer experience should be the objective. There is an easier way of doing that without sacrificing millions of dollars in annual revenue, eliminating 3,500 family-sustaining jobs or killing the prosperity of the state’s family-owned beer distributors. Modernization.
The modernization plan would offer state stores the flexibility to extend Sunday hours and offer consumers deeper discounts and wider product selections. Some of these initiatives already have been introduced and received bipartisan support. These options alone, according to the Pennsylvania Liquor Control Board, would generate an estimated $35 million in the first year of implementation.
Consumers don’t want higher prices and smaller selections. Pennsylvanians want increased convenience and reasonable prices. Quick action on the modernization plan would give consumers both, without jeopardizing jobs or family businesses.
Rep. Frank Burns represents the 72nd district, covering portions of Cambria and Somerset counties, and is a member of the House Liquor Control Committee. Rep. Gary Haluska represents the 73rd district in Cambria County. Rep. Paul Costa represents the 34th district in Allegheny County and serves as Democratic chairman of the House Liquor Control Committee.
Click here to subscribe to The Tribune-Democrat print edition.
Click here to subscribe to The Tribune-Democrat e-edition.
Raw: Trucker Bumps I-5 Bridge Before Collapse
Raw: Texas Deputy Shot by Colo. Suspect Honored
Major Detours Following Wash. Bridge Collapse
American Held in Grisly Czech Murders
Raw: Jersey Shore Reopens for Summer
UK-bound Pakistan Plane Diverted, 2 Men Arrested
Officials: Tsarnaev Friend Linked to Slaying
Obama:Sexual Assault Threatens Trust in Military
Bridge Collapse Survivor: 'Rough Day'
Jersey Shore Open for Business
Raw: Memorial Day Flags Placed at Arlington
New Wheelchair Lift Promises More Access
First Person: Mom Discusses Famous Tornado Photo
Raw Video: Washington State Bridge Collapse
Boy Scouts Approve Plan to Accept Gay Boys
