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By Bob Lewis
RICHMOND
Gov. Bob McDonnell's plan to raise money for transportation by selling Virginia's state-owned liquor stores is dead, the Senate's top Democrat said Thursday.
"I would say right now that it would not pass, nor is it even close... in the Senate, and I would doubt whether he could get it out of the House," said Senate Majority Leader Richard L. Saslaw, D-Fairfax County.
McDonnell wants to apply what he says will be $300 million to $500 million from selling Virginia's 332 government-run Department of Alcoholic Beverage Control stores to the long-deferred transportation maintenance needs.
Saslaw and other Democrats question McDonnell's estimates and say the annual revenues that the stores now generate in taxes and profits could not be matched by privately run stores. He cited Ohio's privatization effort as an example.
"Here's Ohio with 2-1/2 times our population and 1,000 stores, (and) the state gets $167 million. Us, with 40 percent of (Ohio's) population, is getting $230 million," Saslaw said.
The only way to achieve the same revenues after privatization, Saslaw contends, is to triple the amount of liquor sold in Virginia.
"We're going to build roads by putting drunks out there driving these cars," Saslaw said with a laugh.
McDonnell spokesman J. Tucker Martin said Saslaw's comparison to Ohio is flawed because Ohio privatized only its retail stores, while the proposal most likely for Virginia calls for privatizing both the retail stores and the wholesale and distribution of alcohol, all now controlled by the state.
"Senator Saslaw needs to answer Virginians as to why he believes it's more important to preserve an outdated government monopoly instead of providing hundreds of millions for road building and congestion relief," Martin said.
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Privatizing ABC is a flim flam
The Republican mantra that everything should be done by corporations is a flim flam excuse to turn over the cash cow to special interests who will make more money which will not go to the Commonwealth. Saslaw says that the only way to maintain existing revenue is to triple liquor sales, but this is just one option. The other option is triple the tax on beer and liquor sales, which the right wingers will not do. The McDonnell solution is to sell the cash cow to his friends, which means no milk (tax revenue) in the future.
ole mcdonnell had a farm
ey I ey I oh and on this farm was some state senators with a brain cell and could go figure that this plan to privatize abc stores is full of poppy cock maybe he thinks this is ohio , glad this is not going to happen we got enough drunks on the road and we do not need minors scoping out spirits everytime they walk into a grocery store yeah ha ,
Sleight of hand and other tricks
It should have been very obvious when the Governor began his PR campaign to sell the ABC operation before the business analysis was ready that he knew the numbers just did not add up. I have talked to members of his own party who have quietly moved aside now that they know the State will actually lose money from this proposed deal. In response, the McDonnell team is talking more about "the state should not be in this business" than the original claim that the state would do better financially if they privatized the operation. In any case, the continuimg attempt to meet the emergency need for transportation funding with tricks and sleight of hand shows how the Speaker and his legislative majority have and will will thwart their own Governor and the citizens of Virginia from stimulating economic development and prosperity. Fact is, the Speaker and his majority are actually working against our interests. Despicable.
There goes our road funding...just kidding of course
"McDonnell wants to apply what he says will be $300 million to $500 million from selling Virginia's 332 government-run Department of Alcoholic Beverage Control stores to the long-deferred transportation maintenance needs."
Guess I'll still be sittin' at the HRBT for more than a half hour each way every day. That's more than five hours a week burnin' fossils goin' nowhere. That's 20 hours a month, 240 hours a year or a full 10 days wasted suckin' fumes just at the HRBT.
How 'bout a REAL solution for our transportation woes instead of a campaign ploy from the governor.
IT'S PAST TIME FOR ACTION.
Virginia legislators?
Mr. Wizard, Post your solution.
Mr. Wizard, Post your solution.
I have a solution to your problem
Move closer to your daily final destination.
I love how it's government's fault because the individual refuses to fix their own issue
This is just plain partisan politics.
This is just plain partisan politics. Us vs. them. Democrats vs. Republicans. The sad part is the Democrats knock down a possible solution, but offer nothing in return. By the way, after 18 months, how is that Obama thing working for ya?
Privatization of ABC Stores
This was an extremely ill advised policy to render up something beneficial to the state to the uncertainty of the private marketplace. An operation from which Virginia realized proven income needs to be protected and conserved for the good of the public.
As a former federal contracting official, I experienced the down side of contracting out services, which proved itself detrimental to the program agency and to the tax paying public at large.
The state senate has acquitted itself wisely and heroically taking the stand that it has. Disregarding the copious income realized by the state from the ABC stores, we have not addressed the employment situation were the store employees to be disinfranchised as a result of this privatization process. I am certain this would adversely affect the state unemployment situation, in a time of extreme uncertainty.
Let us not bite the hand that feeds us or act in an irresponsible manner
regarding this cherished source of income for the commonwealth and its citizens.
I would
i would be interested in seeing the results of other states in addition to Ohio. I think the Dem guy has a good point in that it will only be an initial rush of revenue then a long standing failure. Politician love to pull stunts like this governor is pulling....make profit to make them look good at the expense of the following administration....ring a bell?
I question the numbers given
Ohio has 1,000 stores and pulls in $167 million and Virginia (with 40 percent of Ohio's population is getting $230 million. Does Virginia's 23o mil account for overhead? I am not just talking state salaries of ABC employees computed at the loaded rate (retirement and other benefits included). Do these numbers also reflect building costs, lost property taxes, building electric, water, maintenance and upkeep costs? If you convert to private sector as in Ohio all these overhead costs go away for Virginia and localities benefit from revenues received on property taxes, business licenses and other fees, as well. So what is the problem? And just how many ABC stores does VA have right now? And a final point, could it be that Virginia probably sells and consumes more alcohol than Ohio? Why not compare numbers with other states, such as California, Nevada, Florida. Could it be that out of all the other states that are privatized, Ohio is the only example that will support Saslaw's Democrat point of view?