Yesterday,
Gov. Corbett announced his plan to sell or auction off the state
liquor store system and expand the number of outlets permitted to
sell liquor, wine and beer. He optimistically claims this will raise
a one-time windfall of over $1 billion as follows:
- $575 million from the sale of liquor licenses.
- $224 million from auctioning off the 1200 state liquor stores.
- $107 million for new wine and beer licenses.
- $112.5 million for licenses allowing beer distributors to sell liquor.
Apparently,
the governor is not confident that this proposal will survive on its
own merit, so he has tied it to the more popular cause of education.
The $1 billion will be used to fund block grants for school
districts, to be targeted to four areas: safety, early education,
individualized learning, and STEM (science, technology, engineering
and math) programs.
Gov.
Corbett claims the new system will be “revenue neutral” in the
long term, but the numbers don't appear to add up. Currently, since
the state owns the liquor stores, they take in revenue from both
profits (the difference between wholesale and retail liquor prices)
and taxes on liquor sales. If they are going to give up the profits,
they are going to have to sell a lot more booze (at higher prices?)
to make up for those lost profits with additional tax money. Maybe
he is indirectly asking Pennsylvania residents to get drunk more often “for
the sake of the children.”
Less
than three weeks ago, the governor announced the sale of the
Pennsylvania state lottery to Camelot, a British firm that
promises to increase gambling revenue, so Pennsylvanians are already
being asked to throw more of their money away for the sake of our
senior citizens.
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Gov.
Corbett also supports expanding our reliance on charter schools,
another form of privatization. We should not necessarily assume that
all of the $1 billion will go to public schools, since local school
districts are required to pay charter school tuition for students in
their districts. And what exactly does the governor mean by
“individualized instruction?”
Blackmail
is usually defined as threatening “to make a gain or cause a loss
to another unless a demand is met.” In his first two years in
office, the governor has cut back sharply in state funding for public
schools. Apparently, to get some of that money back, Pennsylvanians must agree
to his liquor privatization plan.
Mike
Crossey, president of the Pennsylvania State Education Association,
the public school teachers' union, commented, “It's nice that the governor has acknowledged that he created a school funding crisis,
but our students shouldn't have to count on liquor being available on
every corner in order to have properly funded schools.”