While shopping for a used pickup truck with my wife we came across a vehicle that was the very color, make and model that we were looking for. Even the price seemed right as we took the truck for a spin around the block. But that was simply how things looked on the surface. When we returned to the car lot, I took one final look at the truck before making the purchase and bent down to glance at the undercarriage of the vehicle. I was surprised to discover that rust was eating away at the truck from front to back. In an effort to hide its’ effects, a new coat of paint had been sprayed over the rusted metal but still the problem was clearly visible. Needless to say, we passed on the truck and continued our search.
This coming November our elected representatives in Richmond are being asked to support a plan to privatize all of Virginia’s state run liquor stores. Like that used truck, this plan for some looks pretty good on the surface as it would remove our state government from the business of directly selling hard liquor while raising much needed capital for new bridges, roads and jobs. However, when one takes a look underneath all of the plan’s enthusiastic promotions, one sees unavoidable consequences and costs which would most certainly accompany the Governor’s proposal. Expanding the availability for hard liquor purchases will put a greater number of Virginians at risk while placing additional demands upon on our social services and law enforcement agencies across the commonwealth. In such matters of social concern it should be incumbent for every citizen to speak out on behalf of those who are most vulnerable and to warn others of the detrimental consequences for our society and culture which are posed by the Governor’s privatization plan(s).
Let’s consider those things which must happen in order for all of the promises of prosperity associated with this plan to come to fruition. First, promoters of the plan are counting on increasing the number of locations for the sale of hard liquor across Virginia with the additional licenses available for purchase by private businesses. The liquor licenses would be distributed depending on business size: 600 would be sold to big box retailers such as grocery stores; 250 to convenience stores; and 150 to specialty beer and wine stores like Inari. If such a plan is passed, then stores like Walmart and other major retailers and grocery store chains could add liquor aisles where minors could view their slick promotions and attractive displays. That is quite a change from the current system that bans under-age persons from even entering the premises of an ABC store. I sincerely doubt that the existing proposals will maintain the ABC’s current 98 percent effective enforcement rate prohibiting underage purchase of alcohol.
Presently Virginians consume approximately 21 percent less hard liquor than the national consumption rate according to figures from the National Institute of Health. The governor’s plan will more than triple the number of licenses available for selling hard liquor with the stated goal of increasing sales by 10.7 percent. The proposal clearly has the distinct potential for helping Virginia to catch up to the national level of alcohol consumption by increasing the number of hard liquor stores from 332 to 1000 in their quest for more state revenue. Rest assured that an increase in state revenue will be necessary given the increased expenses which others believe will result in health and social problems that Virginia will be forced to pay for in the future as a result of this plan!
Secondly, by expanding the number of licenses (i.e.- stores) for selling hard liquor the commonwealth can expect to recapture sales from customers who now purchase alcohol in D.C. and Maryland. However the governor’s plan doesn’t predict any price or tax decreases in liquor stores while others believe costs will actually increase, leaving Virginia with one of the highest state taxes on liquor in the United States. Now in these difficult financial times is it realistic to presume that people in northern Virginia will suddenly abandon their familiar places for purchasing hard liquor, such as in D.C. and military bases where they can get liquor tax-free, and pay more for it elsewhere? In the words of State Senator Linda Puller, “That’s a very poor assumption!” Furthermore, the plan for privatizing Virginia’s ABC stores is being touted as a job’s program for small businesses. This seems somewhat unrealistic with the anticipated expense of the liquor licenses- going at auction and starting at $102,844. At this price, only big businesses would be able to afford them, bringing no economic help to mom-and-pop-type stores. And if that wasn’t enough, the proposed privatization plan or versions thereof, does not prohibit expanding the number of retail liquor licenses beyond the 1000 number in the future.
The third part of the governor’s plan which must happen exactly as has been promised is that every economic prediction must come true. For the numbers to work out as supporters of the plan have said, Virginia would have to increase the sale of hard liquor (i.e. – consume more hard liquor) while not experiencing any increase in related consequences for the use and abuse of alcohol. Is it unreasonable to think that the tripling of locations for selling hard liquor across our commonwealth will require the hiring of more ABC enforcement officials to oversee the expanded number of retail stores? What about more Social Service workers to investigate spousal and child abuse, additional police and sheriff officers not to mention the increased financial loss in the private sector such as delinquent rent and mortgage payments, unpaid utility bills, lost wages and employment problems associated with increased alcohol consumption. Granted the one time $500 million license fee would be a help to Virginia’s economy; however, it would only be a drop in the bucket compared to the $8 billion dollars needed to bring our existing bridges and roads up to acceptable standards according to our Department of Transportation.
The proposed plan as currently being presented in Richmond does have the potential for putting more families at risk for the sake of a few dollars more. I applaud the governor’s commitment of promoting free economic enterprise and business development in Virginia and I personally agree with his goal of limiting the states involvement in the sale of hard liquor. However, the plan(s) as have been proposed thus far which are aimed at accomplishing these things are not in Virginia’s best interest. I understand that the privatization of the ABC stores was a key campaign pledge while Governor McDonnell was running for office. Surely a plan for privatization can be devised which would fulfill the Governor’s pledge while not encouraging increased use of hard liquor, multiply the many problems associated with alcohol consumption or place many more families at greater risk. The truth of the matter is not that Virginia doesn’t have enough liquor stores but that we have too many already. This is the issue. In light of the personal pain associated with alcohol, the harm it brings to marriages and families, the accidents and deaths due to drunk driving and the many wrecked lives of young people who drink, I would argue that there is already too much beverage alcohol in beer, wine and liquor sales being sold in Virginia. Increasing the number of whiskey stores in our state will certainly not make our loved ones safer on the roads, decrease everyone’s auto insurance, lessen the strain on our state’s healthcare industry or improve family life for our citizens. Let’s urge those who represent us in Richmond not to increase the number of liquor licenses as proposed by the Governor. Virginia can do better!
– Bryan Smith is the Senior Pastor at First Baptist Church.
