Before the state of Virginia loosened its alcohol laws, and knowing many VA residents crossed the Potomac to purchase their alcohol where it was available on nearly every street corner, the VA authorities posted undercover people at the most popular--sometimes the closest to Potomac bridges--and would tail vehicles with VA license plates.  If the vehicles crossed into Virginia the drivers were nailed and the fines were heavy for transporting the alcohol across "state" lines without paying the VA taxes.  After the laws were changed in Virginia beer and wine became available in nearly every grocery, drug, you-name-it store.  Unless the laws have been changed again I believe hard liquor still must be purchased at a state store. 

There's no reason why PA's laws are not changed!  The state, following its initial influx of possible billions, is still going to receive millions in taxes every year.  That revenue flow will be maintained.  As for the employees who will lose their jobs--many will be retiring or be close to retiring.  Those that are not will be grabbed up by the now-new alcohol outlets who will want them for their expertise and knowledge.  Seeing what happened in Virginia after the change there will be plent of employment opportunities for the state employees.  Change is often difficult, particularly when employment is affected, but these changes are long overdue in Pennsylvania.

There's no reason why PA's laws are not changed!  The state, following its initial influx of possible billions, is still going to receive millions in taxes every year.  That revenue flow will be maintained.

It's not as simple as you are making it flowergirl.

Let's break it down:

There are two pots of money currently flowing in,

Taxes: According to the Comparative Statements of Revenues, Expenses, and Changes in Net Assets For The Twelve Months Ending June 30, 2014 and June 30, 2013 Pennsylvania collected about $1 billion in taxes from boozes in fiscal year '13-'14.

Profit from operating the state stores: Per the same statement, the state stores made $123 million for the Commowealth's general fund.

In the event we were to privatize the system, you are correct that we would still collect our billion a year in taxes. But, if we assume that the state stores could bring in a one time shot of a billion dollars, then using the $123 million figure as our baseline, in 2028, we've now lost that income.

Is it a big deal? I suppose we could say that $123 million in chump change in a 30 billion dollar budget.



 

Ok, I surrender.  Privatize the damn thing and if taxes have to be raised due to lost revenue sometime down the road then raise taxes to make up for the difference if that's what happens.  Geez.

Aha!  With privatization comes price wars and many of the other states may lose their price advantage, eliminating the need for many PA residents to travel across state lines to get their booze.  

It can be used as a bargaining chip once Wolf lays out his budget requests in March.

i.e., Yes, we;ll give you a natural gas extraction tax if you privatize liquor sales