House GOP Leader continues to put politics above Pennsylvanians, says UFCW PA

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Jun 25, 2014, 09:30 ET

HARRISBURG, Pa., June 25, 2014 /PRNewswire-USNewswire/ -- "House Majority Leader Mike Turzai continues to mangle the facts and mislead Pennsylvanians in his push to dismantle the PA Liquor Control Board (PLCB) and put 5,000 Pennsylvanians out of work," said Wendell W. Young IV, President of the UFCW PA Wine and Spirits Council.

"Mike Turzai is playing a dangerous shell game. He wants people to believe that his plan will create $380 million in revenue for the state. There's no nice way to put this but he is not telling the truth and he knows it," Young said. "The math just doesn't add up."

Young noted that:

Gov. Corbett's study by Public Financial Management found that a transition to privatization would cost $1.4 billion over five years. These costs include unemployment compensation, existing transfers to state agencies, paid leave and early retirement costs and operational costs that would exist still as revenues decline. This does not include additional costs such as workers compensation costs, less value received for liquidated assets and social costs.
According the fiscal note attached to HB 790, the privatization bill now before the Senate, no revenues would be realized in the first year and that most of the revenue won't be realized for at least 18 months after the bill would become law. Adding in the transition costs, there would actually be a significant loss of money in Year 1 of privatization.
The LCB this year generated $550 million in profit and taxes for the state and, just last month, the Corbett administration asked for and received an early transfer of $80 million from the LCB.

"Just look at the math. Mike Turzai would give this asset away for far, far less than what the LCB generates each and every single year," Young said. "If 5,000 jobs weren't at stake, it would be laughable," Young said.

Young noted that Rep. Gene DiGirolamo, R-Bucks, has introduced legislation that would improve consumer convenience and modernize the agency's operations by adding Sunday stores; creating more stores inside of or adjacent to grocery stores; and allowing for more flexibility in pricing.

"Independent polls show that voters support modernizing the LCB or maintaining the current system over privatization. It's time for the privateers to stop playing Tea Party politics and start listening to the people they've been elected to represent."

For more information www.ufcwpawineandspiritscouncil.com.

SOURCE UFCW PA Wine & Spirits Council