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Brulo Mike Mr. Baer AP Government 10 March 2011 During Tom Corbetts budget speech this week, he spoke about selling our state-run liquor stores to get money in these tough times. Since the 1930s, the government was in control of selling the liquor in our state. Right now there is only one other state who takes control of the sales. That is Utah. Corbett said that it is a good way to get money and finally put an end to the government monopoly. Opponents try to say it would be disastrous. However, they dont realize the government shouldnt be selling us our alcohol. Why should the state control alcohol like they are now? Good question. I dont have an answer because they shouldnt. The article has it right. Having the government control our alcohol sales is like them owning our gas stations and pharmacies. Corbett is finally bringing some common sense practice back to Pennsylvania that we sadly loss when Tom Ridge left 8 years ago. So not only would the government stop doing something wrong, but they would free up 2 billion dollars. Every little bit counts and because there is a 4 billion gap in this years budget, this is a great place to start. I had an argument with a student this morning about our governor. It was a touchy issue seeing as our school was involved. Im referring to Corbetts plan to cut some funding to schools. I tried to explain to the lib that you cannot spend more than you have without getting in

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a hole. Well guess what. We are in a hole. You cannot get out of the hole the same way you got in. He just didnt understand that.

Pennsylvania Considers Selling State Liquor Stores To Raise Cash

By Romy Varghese Published March 09, 2011 | Dow Jones Newswires
As governors of recession-hit states weigh options from outsourcing prison cooking to leasing toll roads to balance their budgets, Gov. Tom Corbett of Pennsylvania is targeting a Depression-era holdover: state-owned liquor stores. Pennsylvania is one of two states to control both the distribution and sale of wine and spirits. Utah is the other, although several more still exert some control over retail and wholesale operations. People have advocated ending the state's booze monopoly in the past--most recently last year--but the idea gained steam Tuesday when Corbett said during his budget address that "government should no more run the liquor stores than it should run the pharmacies and gas stations." His administration plans to commission a study on how to privatize the system, as well as setting up a task force on privatization to determine what else should be handled by the private sector "to eliminate unnecessary government." With Republicans in control of both houses of Pennsylvania's legislature, and in light of current antigovernment sentiment, some see privatization as likely. "It's politically a more popular move," said Todd Sisson, senior analyst at Wells Capital Management. Others are skeptical that Pennsylvania's system, established 1933, will be dismantled. "You're taking on a bureaucracy that has resisted more than one attempt to privatize," said John Donaldson, director of fixed income at Haverford Investments. He puts the odds of privatization at one in four. Advocates are energized. Pennsylvania House Majority Leader Mike Turzai, who had introduced a bill to privatize liquor stores last year, is already preparing to lead a legislative effort as soon as the study is completed, he said Wednesday, adding that he hopes legislation would be introduced in the current session. Pennsylvania residents see the system as "antiquated," Turzai said, and "they're looking for more convenience, better selection and lower prices."

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Pennsylvania's Liquor Control Board sells wine and spirits at 625 stores, and controls wholesale distribution to those stores. Turzai's proposal last year called for selling wholesale and retail liquor licenses, and estimated up to $2 billion in one-time revenue. Opponents, including labor unions, have questioned that figure, and how the state will cope with losing the $100 million in annual profits that the state stores provide to the general fund budget. "There are some things government does better and running this system is one of them," said Wendell W. Young IV, president of the United Food and Commercial Workers Local 1776, which represents 3,000 employees in state stores, at a recent House Democratic policy committee meeting in Philadelphia. Advocates for privatization point to "border bleed," in which Pennsylvania residents head to neighboring states like New Jersey and Delaware to buy wine and spirits at private shops with longer hours, better selection and discounts. "By improving service selection and reducing prices, Pennsylvania can recapture some of the revenue and economic activity lost to other states through border bleed," said Nathan Benefield, director of policy research at the Commonwealth Foundation, a conservative nonprofit in Harrisburg, the state capital. That, too, is a matter of debate, with opponents doubtful that privatization would lead to better selection and prices. Also, some fear an onslaught of more liquor retailers, and those who would have no qualms about selling to underage or intoxicated customers. "You're absolutely setting up a catastrophe and an economic social disaster in our neighborhoods," said Rep. Dom Costa, a Democrat. Arguments should continue as the state awaits the results from the study. Corbett's proposed budget, which must be adopted in July, doesn't depend on the liquor store privatization to close a $4 billion budget gap. Copyright 2011 Dow Jones Newswires