Wednesday, June 27, 2007
Editorial: Sell the state liquor stores
Getting Virginia out of the booze business would provide an immediate financial windfall.
From the RoundTable blog
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An idea ignored during the first round of the transportation funding debate deserves the renewed attention brought to it by Washington Post columnist Melanie Scarborough.
In a May 2005 article for the Thomas Jefferson Institute for Public Policy, senior fellow Geoffrey Segal suggested selling off the state liquor monopoly as a way for Virginia to raise a substantial amount for transportation improvements.
Getting the state out of the liquor business makes good sense anyway. That it could provide a financial windfall for transportation is just a bonus.
There is no good reason for the state to keep retail liquor sales out of private hands.
As Segal notes, giving up the role of retailer doesn't mean the state would give up control over liquor sales. States that license alcohol sales still stringently regulate them.
Segal also cited research showing no significant difference in consumption, underage drinking, alcoholism rates or driving while intoxicated between states where the government runs the stores and states where liquor stores are licensed and regulated.
The benefits would be numerous. "If you're a consumer you'll benefit from increased customer choice, convenience and lower prices. Adult Virginians who visit neighboring states, can responsibly shop for beer, wine and spirits in stores that are convenient, offer better choices, and lower prices," Segal wrote.
In addition to the consumer benefits, the financial impact could be staggering.
Pennsylvania estimated it could make $1.7 billion from sale of state liquor store assets. Segal believes Virginia could see a similar windfall.
That's a one-time influx, but there would also be ongoing revenue in the form of license fees and property and income taxes that private retailers would have to pay.
As state revenue falls short of projections, drying up a surplus the General Assembly unwisely had counted on to help fund transportation, Segal's idea should be dusted off and given a fresh look.
