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Wolf still pondering liquor-privatization bill

Gov. Tom Wolf could wipe out Pennsylvania's monopoly on liquor and wine sales with a signature.

Republican lawmakers Tuesday night sent Wolf a historic bill privatizing the wholesale and retail systems.It's the closest lawmakers have gotten to getting Pennsylvania out of the booze business since the end of Prohibition, but the leader of the union representing employees at state-owned wine and spirits stores wasn't freaking out Wednesday morning.Wendell Young IV, president of the United Food and Commercial Workers Local 1776, believes Wolf is still on the union's side and expects a veto from the Democratic governor."Only he knows for sure, but it looks pretty certain," Young said.Wolf has already vetoed the entire $30.1 billion GOP budget, which included $220 million in revenue from liquor privatization. Yet he's still mulling over what to do with the separate privatization legislation and said Tuesday night he would begin examining that bill Wednesday.That review will happen as Wolf looks to restart budget talks with legislative leaders, particularly Republicans who have again made liquor privatization a priority.G. Terry Madonna, political science professor and pollster at Franklin & Marshall College, has noted the irony of Republicans finally getting a liquor bill done, but after former GOP Gov. Tom Corbett who would have signed it "in a heartbeat" was toppled by the liberal Wolf.While saying it might take a full-blown budget crisis to resolve the budget impasse, Madonna also said it's possible to see where Wolf and lawmakers might find a middle ground, such as the governor getting his prized severance tax on natural gas and more education funding in exchange for a scaled-back privatization bill and pension reform."I thought the liquor stuff was one area they could easily reach a compromise on," he said.Wolf wouldn't say Tuesday night whether he would move all the way toward liquor privatization or the GOP pension reform plan, for that matter if he received something in return."I'm not going to negotiate in public, but I think I've talked about some of the things that I'm willing to do," Wolf said.The governor favors a modernization of state stores and said he's willing to entertain increased Sunday sales, variable pricing and even the sale of wine in grocery stores."We can figure out how to do those things," Wolf said. "What I don't want to do is give away an asset that Pennsylvanians own. I mean, that seems to me to be irresponsible."It's those kinds of statements that make Young think privatization attempts could again stall. While UFCW believes Wolf will remain firm on his past opposition to privatization, 4,700 employees are still nervous about the future of their jobs, Young said.The legislation would remove the state as the wholesaler of wine and liquor and phase out the 600 or so state stores as the private sector takes over. Republicans hailed it as a win for consumers, who could finally buy wine, liquor and beer in one place.Beer distributors would be allowed to sell unlimited quantities of each. Licensed hotels and restaurants could obtain enhanced permits to sell a limited amount of wine and spirits to go. So could grocery stores.House Speaker Mike Turzai, R-Allegheny, has championed privatization for years and said it would eliminate the conflict of interest in which Pennsylvania sells and regulates booze. It also brings Pennsylvania into the 21st century and makes it more like other states where people can buy alcohol in more places."They know that they can go into a grocery store (in other states) and buy a bottle of wine," Turzai said. "They look at Pennsylvania and say, 'Why are we so antiquated here?' Why can't Pennsylvania go ahead and reform itself and move toward the private sector?"Business groups and free-market groups, such as the National Federation of Independent Business and the Commonwealth Foundation, support the change.Though state Sen. Chuck McIlhinney, R-Bucks, voted for the bill, he told CBS 21's Face The State the legislation could raise the cost of alcohol. And despite getting first crack at expanded sales, some beer distributors are wary of the increased competition privatization would bring.The Malt Beverage Distributors Association of Pennsylvania wants Wolf to veto the bill, President Tom Mehaffie said. It would drive existing distributors many of whom couldn't afford the permitting fees out of business, he said."It was just again another bill that basically caters to the large corporate chains and grocery stores, and you can't compete against those large supermarkets and grocery stores," said Mehaffie, who owns Breski Beverage in Dauphin County.Wolf met with Republican leaders Wednesday to talk about the budget, and he has until midnight July 11 to decide on the bill, said Jeffrey Sheridan, the governor's press secretary.Senate Minority Leader Jay Costa, D-Allegheny, has said Democratic lawmakers would be disappointed if Wolf signed the GOP bill, but Young thinks the governor is leaning the other way."I have confidence in this governor," he said.