Letter to the Editor: Lancaster New Era Newspaper
Union President Wendell Young IV wants the public to believe that government-run state liquor stores are working. Young asserts that the government monopoly represents a cash cow for state coffers. He argues that liquor privatization will cease to generate revenues for the treasury.
Mr. Young conveniently fails to mention that every dollar state stores generate from their consumers is via higher taxes or markup fees. Privatization proposals would not only maintain current revenues, but also create hundreds of millions of dollars in additional revenue by auctioning off wholesale and retail licenses.
Far from being an asset, state stores are becoming an increased liability. PLCB financial reports reveal a negative $31 million in assets after losing more than $54 million in 2009-10 and $23 million in 2010-11.
It is no surprise that state stores are a failing governmental enterprise as administrative and store operating costs have soared 150 and 70 percent respectively in just 10 years.
Wasteful spending, such as the disastrous wine kiosk program, and an inventory system responsible for widespread shortages are just two of countless examples that demonstrate government in the booze business is a loose business for consumers and taxpayers.