A report from the General Assembly’s Joint Legislative Audit Review Commission (JLARC) finds that Governor Robert F. McDonnell’s ABC Privatization proposal will not produce a $500 million profit.
Governor McDonnell has claimed that privatizing the Commonwealth’s liquor stores could add as much as $500 million to the budget. JLARC’s report says the estimate is closer to $300 million.
In an interview with the Alexandria Nonpartisan Examiner, Delegate Charniele Herring (D-46) said she was not surprised that the JLARC report found shortcomings in the Governor’s proposal.
“The JLARC study confirmed my notion that the Governor's revenue estimates on the sale of ABC stores were overstated. Thus, it is not a solid proposal to address our transportation needs,” said Delegate Herring.
“The ABC system is an asset to the Commonwealth of Virginia helping to fund our public schools. According to the available information from JLARC, the privatization of this public asset would cause a chronic annual shortfall in revenue,” said Herring.
“While I am open to ABC privatization that will bring funding equal or greater to the monies already being generated, I am concerned about an unnecessary tax increase as well as creating a system where we hope our citizens will be encouraged to drink more alcohol,” said Herring.
Taylor Thornley, Deputy Press Secretary for Governor McDonnell, stated that the Governor is considering multiple ways to implement ABC Privatization.
“The Governor is committed to ending this outdated government monopoly, and making state government smaller; however, he is not wed to any specific proposal,” said Thornley in an interview with the Alexandria Nonpartisan Examiner.
“While this report is based on one plan, the Administration is considering multiple privatization models and proposals. We will continue to work with legislators and others to determine the best means by which to move forward in the upcoming session,” continued Thornley.
McDonnell made privatization of Virginia’s liquor stores a part of his campaign platform when running for governor in 2009.
His proposal, similar to measures found in 32 other States, has been endorsed by several organizations including the Virginia Fraternal Order of Police and the Northern Virginia Transportation Alliance.
“This rational approach of alternative funding will provide much needed funds to help solve the state's transportation problems,” said Marty Williams of the Virginia Fraternal Order of Police.
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