Top lawmaker wary of revenue loss from liquor privatization
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HARRISBURG -- Liquor licenses could become bargaining chips in the effort to approve a levy on natural gas drillers, though a top Senate Republican was blunt Monday about his concern that privatization could leave state coffers shortchanged.
Senate President Pro Tem Joe Scarnati, citing a yet-to-be-released report on the fiscal impact of auctioning off liquor licenses, said the current privatization proposal would reduce revenues for the state's operating budget.
That leaves a choice between reducing services or hiking the tax on liquor to replace revenue, he said.
"As long as people are OK with that and they understand what this means," said the Jefferson County Republican during remarks at the Pennsylvania Press Club luncheon. "Right now it could mean a tax increase based upon some of the conversations going on."
Staffers for House Majority Leader Mike Turzai, R-Bradford Woods, who introduced the privatization plan, contest that characterization. They note that several of the current taxes and fees on wine and spirits would be erased, resulting in a revenue-neutral plan.
"If [lawmakers] have issues with the gallonage tax as drafted, they can change it any way they want," said House GOP spokesman Steve Miskin. "The main point is that the state shouldn't be in the business of selling liquor."
That proposal is one of several dueling priorities that lawmakers are sorting through now that they've returned to the state Capitol for the fall session.
Mr. Scarnati said the Republicans controlling the House, Senate and governor's office have different priorities, but that could lead to some compromises, particularly with regard to Marcellus Shale issues.
The Senate GOP leader said he has a "vanilla" position regarding privatization, despite his questions about the resulting fiscal impact and potential for reduced availability to his rural constituents.
Asked whether he is opposed to the idea of privatization or trying to leverage support for his impact fee from the House and governor, Mr. Scarnati replied, "Both."
His priority is approving an impact fee and increased safety provisions regarding Marcellus Shale gas drilling, he said. While he showed some flexibility toward working on other issues in return for assistance in enacting a drilling measure, he also was firm in his view that the issue should be a top priority for all sides.
First Published September 27, 2011 12:00 am
