Privatize Virginia's ABC Stores?
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Updated: 1:08 PM Dec 31, 2009
Privatize Virginia's ABC Stores?
Customers could find the ABC stores under new management, if Gov.-elect Bob McDonnell (R) has it his way.
Posted: 6:15 PM Dec 30, 2009
Reporter: Michael Hyland
Email Address: mhyland@whsv.com
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Several people are already making last-minute trips to the ABC store before their New Year's celebration. Those customers could find the stores under new management, if Gov.-elect Bob McDonnell (R) has it his way.

Making a run to the ABC store is something Jean Lent does periodically. She's lived in areas where liquor stores are not run by the state.

"They set their own prices, so you can get better deals. There's more competition," says Lent.

Privatizing the ABC stores is among several things McDonnell proposes to get money for transportation.

Virginia has already made more than $4 billion in cuts. McDonnell estimates the initial sale of the stores would generate about $500 million in revenue.

He says additional money would come in through taxes on wine, beer and spirits, as well as through licensing.

State Sen. Mark Obenshain (R-26th) introduced a bill last year aimed at privatizing the ABC stores, but it did not pass the General Assembly.

"It's about funding for priorities in Virginia. And, my view is we have basic governmental functions: transportation, education, law enforcement. We've got to be able to come up with funds to do those things," says Obenshain.

Del. Steve Landes (R-25th) says he's fine with looking at the proposal but has reservations.

"Governors have ideas a lot of times, but the legislature then has to then implement those and then find out what the fiscal impact will be," says Landes.

Democratic state Sen. Creigh Deeds, who ran against McDonnell, says the move would take away money made from alcohol sales that currently goes to education and other areas.

"I think it's just a much better deal because to be honest with you, the government has not been doing a great job. So, get out of it," says Lent.

When Obenshain submitted his bill last year, he proposed a limit on the number of stores that can be in a locality based on its population: no more than one license per 10,000 residents in a locality.

The General Assembly is expected to address the issue in its upcoming session that begins next month.

Latest Comments

Posted by: Jeff Location: Richmond on Jul 21, 2010 at 07:35 PM

Anybody that has ever lived in a state that has privately owned stores should be glad to live in Va. Here if you want it it's here , but it's not in your face. The stores are well keep and clean and you don't have to worry about sales to minors. The ABC has put 1.5 BILLION in the general fund in the past 5 years, Not bad! If you privatize who is going to replace those funds? Didn't think about that one. Also , I was looking at the annual report for 2009 and when it's all said and done the ABC assets are 2,616,508.00 Oh boy! that's going to be a wind fall for the state. And if you think more stores will sell more why aren't there more stores now? DUH! We have a good system the way it is, it makes plenty of money, without promoting drinking. My biggest question though we have tax on gas that is suppose to be used to maintain the roads and whats that being used for? and if it's not enough, then it needs to be raised,simple as that. When will they learn, don't rob Peter to pay Paul!!
Posted by: oh wow Location: Va on Dec 31, 2009 at 02:16 PM

Yeah boris, I mean by your standards of intelligence, and morals apparently, it's ok to use alcohol to fund things such as education, transportation, and law enforcement? Whose trying to go back to the stone ages here, sounds like you, I hardly see a lottery ticket being nearly as damaging as a bottle of liquor has been known to be. Why don't you use some common sense? Your not going to fix other problems with existing ones...sure..let's promote alcoholism real cute. You also do not need to be offending to get your point across, it is stoo-pid (as you put it) to use the promotion of selling alcohol to fund other more important things whether it is government run or not is beside the point. I value my kids health and life and education far more than any bottle of liquor that could ever be sold personally I wouldn't care if there wasn't another bottle ever made of the junk.
Posted by: George Location: Luray on Dec 31, 2009 at 12:33 PM

Government has no business in the business of running liquor stores (or banks, car companies, mortgages, credit cards, HEALTHCARE... and so on). This is a good move for VA. It will bring in more revenue for VA vs federal gov't. I've never lived in a state where there were ABC stores. Talk about STU-PID! Adults will get alcohol if they want it where ever it is available. This will not increase drinking but it will make it more convenient to buy liquor. It's called Personal Responsibility - Oh, stu-pid - This means taking responsibility for your own actions. Let's get the Government OUT of our lives! This is a step in the right direction. And "Oh Wow" yes, you are the only one... This is NOT about selling more - it's about more revenue for VA. Wake Up!
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