Bill renews fight to privatize Pa. liquor stores
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HARRISBURG -- State Rep. Mike Turzai knows that two Republican governors tried but failed to get rid of Pennsylvania's state-run system for selling liquor and wine, which has existed since Prohibition ended in 1933.
But he thinks that with the state's growing need for revenue to avert a pension crisis and a gradual shift in public sentiment, the times may just be changing enough that Pennsylvania could join 48 others states in privatizing the wholesale and retail sale of liquor.
Speaking Monday at a luncheon organized by the Commonwealth Foundation, a conservative policy group, the Bradford Woods Republican laid out the details of House Bill 2350, which he will soon introduce to privatize Pennsylvania's state-owned liquor stores by auctioning off licenses for 750 retail store licenses and another 100 licenses for wholesale distributors.
Currently, the state Liquor Control Board handles both the wholesale purchase of wine and spirits and the retail sales of the products through 621 state-owned stores.
Mr. Turzai estimated conservatively that the one-time auctioning of the licenses could bring in $2 billion for the state, with other estimates that he said put the total at as much as $6 billion. That money would help the state, which will need $5 billion or so by mid-2012 to pay the rising cost of pensions for retired state workers and public school teachers. He said it could also help the state fill the $1.9 billion hole that will be left once Pennsylvania stops receiving federal stimulus money in early 2011.
"There's a lot of positives that I think can come from this," said Mr. Turzai. "This is the opportunity to make significant change."
Mr. Turzai urged Gov. Ed Rendell to support the bill, but he said he's more focused on the next governor, who will take office in January. He said he wants to start the debate on privatization of liquor now.
First Published June 22, 2010 12:00 am
