Privatizing ABC stores to pay for roads
Republican gubernatorial* candidate Bob McDonnell has proposed an interesting alternative to a bill calling for a tax hike to pay for road improvements: placing 330 state-run ABC stores into the hands of private owners. He claims that this move, in addition to adding tolls along interstates 85 and 95 and pooling a portion of sales […]
Republican gubernatorial* candidate Bob McDonnell has proposed an interesting alternative to a bill calling for a tax hike to pay for road improvements: placing 330 state-run ABC stores into the hands of private owners. He claims that this move, in addition to adding tolls along interstates 85 and 95 and pooling a portion of sales tax collected in Northern Virginia, will yield about $1.5 billion over a 10-year period.
The Washington Post article brings up an interesting point:
But the plan was notable for what it lacked: a permanent new source of money big enough to pay for the state’s mounting transportation needs. McDonnell said his proposal is “outside the box” because Virginians aren’t warm to the idea of a tax increase during such troubling economic times.
Much of that money represents existing state revenue that currently pays for other services. For example, privatization of the liquor stores would generate at least $500 million in one-time payments to the state, plus income and property taxes over time, according to McDonnell. But about $100 million in annual earnings generated by the stores that goes to the state’s general fund would be lost.
Similarly, McDonnell’s proposal to divert a fraction of sales tax receipts collected in Northern Virginia to regional road projects would leave a $105 million annual hole in the state’s budget that pays for schools, public safety and other core services.
Read McDonnell’s transit plan here.
*”Gubernatorial” is the most ridiculous word ever. I can’t say it without shouting “GOOOOOOOOOOBER-natorial!” Perhaps another platform to be considered for the GOOOOOOOOOOBER-natorial election should be to adopt another word.
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Valerie Catrow
Valerie Catrow is editor of RVAFamily, mother to a mop-topped first grader, and always really excited to go to bed.
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