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14 Mar 2013

Gov. Corbett continues to mislead on liquor stores

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March 14, 2013 Category: Local Posted by:

UFCW PA Wine & Spirits Council 



Gov. Corbett continues to mislead Pennsylvanians in his push to dismantle the PLCB and outsource the PA Lottery, but facts have a funny habit of getting in the way. First, Gov. Corbett said it was perfectly legal to give the PA Lottery away to a foreign-based company without a single public hearing. State AG Kathleen Kane ruled the deal illegal.


Now, he wants to put 5,000 PLCB employees on the unemployment line; shut down 1,100 small Main Street beer distributors and force 10,000 of their employees out of work.


The Governor promises a $1 billion windfall.  The same guys who cut billions from education over the last two years while denying it, want us to believe NOW they’ll strive to put $1 billion back in?


Once again, Gov. Corbett makes it clear he cannot be trusted.   Here’s the proof:


The Public Financial Management report he ordered says that the transition cost to his new system would total $1.4 billion.  That’s a $400 million loss.  The Governor promises there will be plenty of jobs.  But the PFM report makes it clear that large chain retailers won’t need to hire new workers. 


Buyer’s Remorse  


Every state that has privatized has regretted the switch.  In Washington State, lawmakers are hearing from consumers who are sick and tired of skyrocketing prices, increases in crime, teen drinking and declining stare revenues.  Click here or scan the code to the left to learn more about Buyer’s Remorse in WA.


Just last week, Gov. Paul LePage of Maine announced that after 10 years of private sales, he wants the state to take back the sale of liquor due to the contract the state signed with a private wholesaler.  


“Maine’s 10-year private contract  for liquor sales, which expires in mid-2014, has cost the state hundreds of millions of dollars,” LePage says, according to local media. 


Do The Math


Gov. Corbett’s difficulty with words is out-done only by Budget Secretary Charles Zogby’s arithmetic challenges.  Incredibly, Zogby told lawmakers last week that “If you take away the wholesale profits, every store is a failing business.”  The PLCB explained that the stores do, in fact, earn profits.


The net income for retail operations for the past two plus years, according to the agency are (net of sales tax):


    FY 10-11 = 10 percent  

    FY 11-12 = 13.3 percent

    FY 12-13 thru 12/31/12 = 14.8 percent


Lawmakers need to insist on public hearings to get to the bottom of Tom Corbett’s scheme.


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