McDonnell vows trims to make up for money lost by privatizing liquor monopoly

[Derechos]

By Anita Kumar
Tuesday, October 5, 2010; 12:16 AM

RICHMOND - Gov. Robert F. McDonnell vowed Monday to use dozens of government reform proposals to streamline government to replace the $47 million Virginia would lose from privatizing the state's 76-year-old liquor monopoly. But it's still unclear exactly how he will do that.

State officials have approved about four dozen proposals to trim state government, but have not said how much most of them would save.

Fred Malek, chairman of the Governor's Commission on Government Reform and Restructuring, estimates that the proposals would save more than $100 million by December, but only a handful of financial estimates are available so far.

They include having employees at 25 agencies work 10-hour days four times a week, for a $3 million savings; eliminating the Rail Advisory Board, $10,000; and changing the way transportation departments send mail, $714,000.

"There are numerous other government reforms we are advocating simultaneously with ABC privatization and those reforms will make up much more than the $47 million,'' McDonnell said at news conference. "We will make up $47 million plus some."

McDonnell (R) has proposed doing what no other state has done - privatize sales of distilled spirits from wholesale to distribution to retail - to provide a one-time windfall of at least $458 million for transportation.

He wants to auction 1,000 licenses to the highest bidders, which would allow Virginians to buy liquor for the first time at private liquor stores, grocery and convenience stores, and big-box stores such as Wal-Mart and Costco.

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/04/AR2010100406852.html