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March 07, 2015

Wolf budget aims to modernize state stores

Alcohol Reform
030715_paliquor User @RadnorTownship/Twitter

Some grocery stores can now sell wine in Pennsylvania.

On Friday, the Pennsylvania Liquor Control Board issued a legal advisory permitting beer distributors to begin selling 12-packs, part of a broader debate taking place about the reform of Pennsylvania's policies for alcohol sales. 

While Republicans controlling the state House of Representatives favor privatizing the Pennsylvania's wine and liquor stores, Governor Tom Wolf's proposed budget favors modernizing them to boost profits that can close a budget shortfall in the public school system. 

According to a report from Philly.com, Governor Wolf hopes to make adjustments that will generate $185 million additional annual profit from state stores by fiscal 2018. To reach that goal, the PLCB would have to oversee gross revenue growth reaching $5.7 billion in 2018, up from $2.3 billion in fiscal 2014. 

The plan, which requires General Assembly approval, would take measures to improve store locations, implement flexible pricing, and expanded hours to include Sundays. 

If successful, increased profit would be directed toward bridging a $30 million funding gap in the Pennsylvania Public School Employees' Retirement System. 

Officials from the PLCB project that expanded hours and flexible pricing could boost annual profits from $46 million to $69 million, still far short of Wolf's target. 

Last month, the state House of Representatives, controlled by Republicans, passed a privatization bill that seeks to raise an estimated $1 billion to help narrow a $2.3 billion budget deficit expected in the fiscal year starting July 1st. The bill has been sent to the Senate, which has declined to act on proposals for reform in previous sessions. 

Read the full Philly.com story here

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