Push to dismantle LCB makes no ‘cents’
For many years now, many GOP stalwarts and some Democrats have pressed the case that government should be run like a private business. In business, efficiency counts. Profitability weeds out the weak and only the strong – i.e. the profitable – survive.
As the leader of a 22,000-member labor union, I have to run my organization by many of the same standard business practices that major corporations abide by, so I can understand that sentiment.
Operating efficiently; making wise investment decisions and serving customers well should make for a successful enterprise in the private, public or nonprofit sector.
What I simply cannot fathom, however, is why so many GOP lawmakers continue to push legislation that would further dismantle a very successful “business” that delivers for all taxpayers and customers – the Pennsylvania Liquor Control Board (PLCB).
I cannot make any sense of the fact that some lawmakers want to cripple and ultimately dismantle an asset that actually makes money at a time when our commonwealth is confronting a budget deficit that will soon hit $3 billion.
A good business owner does not sell off a profit center in exchange for a quick buck and lawmakers should not carve up this agency so that select interests can generate more profit.
Basic math and common sense dictate that lawmakers should focus on strengthening the PLCB rather than dismantling this valuable asset. For openers, consider that the PLCB last year transferred $626 million in taxes, profits and other transfers to taxpayers.
The agency continues to set annual records for total sales and profits. There is no privatization proposal that will generate this type of return year after the year for taxpayers.
Despite the math, lawmakers last year passed a law to outsource the sale of wine to up to more than 10,000 outlets, which will reduce revenue, profits and, ultimately led to store closures. In addition, it is indisputable that every other state that has outsourced or privatized elements of their systems has lost money and, ultimately, their entire systems collapsed.
Before the ink was barely dry, however, the privatization zealots are back to ask for more from taxpayers. They want to open thousands of private retail stores on top of the state stores that are already operating with huge annual gains. This will cannibalize state stores sales, causing tremendous revenue and job loss.
Another proposal would expand the sale of “spirits” to go to every nuisance bar and corner store who is willing to pay a fee. It makes little sense to further jeopardize this valuable asset’s ability to generate revenue for taxpayers and it makes even less sense to plant a liquor store on every street corner in the state.
The state’s new liquor law did include several modernization proposals that our members have long supported. These include increasing Sunday sales and providing greater pricing flexibility for the PLCB, among many others.
These changes will create additional revenue for the state. Lawmakers should let the PLCB implement all of these changes and measure the impact on revenues before making any additional changes to this valuable asset.
Lawmakers also need to remember that the PLCB employs 5,000 Pennsylvanians, including 3,200 men and women I represent. These are good, family-sustaining jobs that would be eviscerated by any further efforts to privatize liquor sales in this state. I make no bones about it: my priority is to fight for every single one of the 22,000 people I represent.
As lawmakers start negotiating the 2017-2018 state budget, they need to focus on long-term sustainable solutions to the state’s fiscal challenges. Selling off assets or draining reserve accounts from a profitable agency such as the PLCB won’t cut it.
Lawmakers need to get serious about addressing our state’s fiscal challenges and that effort should start with strengthening valuable state assets; preserving good jobs for our fellow citizens; and protecting our communities from an explosion of liquor stores.