McDonnell hits Hampton Roads to pitch liquor store sale tonight

[Blue_Tires]

Gov. Bob McDonnell hits Hampton Roads Monday night to pitch his plan to sell the state's liquor distribution monopoly to the highest bidder.

McDonnell started a series of townhalls on the state's 332 liquor stores this week, hoping to build momentum for his campaign promise to get Virginia out of the alcohol business.

But so far McDonnell's plan is short on specifics — he's still waiting for his government reform commission to return with recommendations for how to get out of the industry. But the dearth of details leaves plenty of questions about how the state is going to end 76 years of control over distilled spirits.



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McDonnell wants to sell off the system to bring in a one-time infusion of money to help improve the state's aging and chronically overstressed road network. The governor estimates that selling the right to sell liquor could bring in $300 million to $500 million in upfront cash from private companies and shops.

But the state's liquor business runs at such a profit that it's going to be difficult to get out of the business without hurting Virginia's bottom line. In the last fiscal year the stores made about $120 million in pure profit, and millions more in high liquor taxes that also feed state coffers.

So the McDonnell administration is working on a plan that would bring in a chunk of upfront cash and also replace the ongoing revenue stream. McDonnell is toying with the idea of calling state lawmakers back to Richmond for a special legislative session on liquor stores and other government reforms later in the fall.
http://www.dailypress.com/news/politics/dp-nws-abc-mcdonnel-0807-20100806,0,3073173.story

[FSogol]

1. What a short-sighted dumb ass move. It doesn't even make economic sense.

Add to the fact that Virginia is mostly free from liquor adverts/billboards and that will quickly change.

Dumb ass Republicans. :puke:

[T Wolf]

2. it does when you recognize the goal of funneling the state's assets to connected

insiders at bargain prices.