Post-Gazette reporting that there will be public hearings in Pennsylvania this summer on the prospect of privatizing state stores:

Sen. Rob Wonderling, R-Montgomery, introduced the privatization bill this month, arguing that the state should not be in the liquor business. In the bill’s current form, about two-thirds of the 623 state stores would be sold to the highest bidder and the remaining stores would be offered to a private equity firm. Proceeds from the sale would go toward improving health care for the state’s residents. …

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At yesterday’s hearing, PLCB Chairman Patrick J. Stapleton said privatization raises issues of possible social costs, including increased underage drinking, and financial implications. The PLCB last year alone returned nearly a half-billion dollars to the state treasury.

While in theory I’d support the privatization of state stores - because I don’t think the state should be in the booze business, and the old canard that if anyone but the state is sells booze our teenagers will all turn into lushes is a bunch of bunk - there’s a real issue here, that of revenue. Does selling the system, generate a one-time windfall that’s quickly spent and gone; would we, in fact, be killing the goose that keeps laying golden eggs?

The appropriations portion of yesterday’s hearing was brief, as the PLCB is one of the few state agencies that gives back money to the state each year.

From a realist’s standpoint, that raises major questions about privatization; because we simply cannot afford to reduce long-term revenue to the state if that in fact is what this would do. Bottom line, though, this deserves a fair, non-hysterical hearing. But this being Pennsylvania, I suppose that’s wishful thinking.