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JUNE 23, 2010 | Policy Report by COMMONWEALTH FOUNDATION
A Taxpayer's Budget 2010: Responsible Spending for Pennsylvania
A Taxpayer's Budget 2010: Responsible Spending for Pennsylvania identifies opportunities to cut over $4 billion in wasteful state spending in Gov. Rendell's proposed FY 2010-11 budget. The report also offers a series of recommendations for resolving the current revenue shortfall and reducing the size and burden of government on
APRIL 12, 2010 | Testimony by NATHAN BENEFIELD
Cost-Saving Ideas for Pennsylvania State Budget
Government has no money of its own to spend; it only has that which it first takes out of the pockets of working Pennsylvanians in the form of taxes or out of our children's future paychecks in the form of debt. Every dollar you tax, borrow and spend is a dollar that cannot be spent, saved, or invested by the people who earned it. Ther
APRIL 8, 2010 | Commentary by ELIZABETH STELLE
Ten Tips to Balance the Budget
Contrary to Gov. Rendell's rhetoric, there are a plethora of reforms and cuts that can balance the budget without taking more from the pockets of Pennsylvania taxpayers. Here are ten ideas to balance the state budget, this year and the years to come, without raising taxes:
Recent Blog Posts
SEPTEMBER 9, 2010
Failing to Understand Liquor Store Revenues
Virginia Governor Bob McDonnell unveiled his state store privatization plan yesterday. This is obviously an issue to watch for in Pennsylvania, where liquor store privatization is also a hot topic.
A Washington Post blogger attempts to prove that other states did not see much revenue from privatization. Unfortunately, she muddles a number of issues in an incoherent analysis by:
- Failing to account for state size or type of liquor sold by state store (for instance, Virginia stores only hold a monopoly on hard liquor, whereas Pennsylvania state stores control both wine and spirits),
- Mixing up annual vs. one-time revenues,
- Comparing actual revenues vs. expected revenue (rather than before and after),
- and focusing primarily on license fees rather than liquor taxes or other taxes paid by liquor stores.
There are two main sources of revenue currently in Pennsylvania -- liquor taxes and state store's "profits" transferred to the General Fund. There would be two sources of one-time revenue from privatization: license fees and revenue from divesting assets. Finally, the annual revenue for the state after privatization would include liquor tax revenue, annual license fee renewals, and other taxes paid by private liquor stores (i.e., corporate income taxes, property taxes, and the like not paid by government entities).
For comparison purposes, Pennsylvania's liquor store revenues are about triple Virginia's ($1.4 billion to $500 million), but liquor tax collections are only about 60% more ($294 million vs. $180 million), according to the latest Census data on government spending.
| Pennsylvania State Liquor Store Revenue (in thousands) | |||
| Source | Annual Before Privatization | One-Time | Annual After Privatization |
| Liquor Tax Revenue (includes sales tax on liquor) | $378,000 | 0 | $450,000 |
| License Fees | 0 | $2,000,000 | ??? |
| State Stores "Profit" | $95,000 | 0 | 0 |
| Other Taxes by Private Liquor Stores | 0 | 0 | $50,000 |
| Funds from Divestiture | 0 | ??? | 0 |
| Total | $473,000 | $2,000,000 | $500,000 |
| Estimates for future revenue from office of Rep. Mike Turzai, replacing current tax structure with a "gallonage tax" | |||
posted by NATHAN BENEFIELD | 00:00 PM | 0 comment
SEPTEMBER 3, 2010
CF Study Helps Liquor Privatization Cause in Virginia
In order to drum up support for liquor store privatization in Virginia, Gov. Robert McDonnell is using the Commonwealth Foundation report Government-Run Liquor Stores to show that moving from state-run liquor stores to licensure has little impact on alcohol consumption, underage drinking, and DUI rates.
By getting out of the liquor business, the Governor expects the state to reap in $300 million to $800 million, which can be used for road repairs -- something Harrisburg lawmakers should keep in mind as they consider raising fees and taxes to fix roads.
Check out Rep. Mike Turzai's proposal to license private stores to sell wine and spirits in Pennsylvania and the support behind privatizing it.
posted by KATRINA CURRIE | 00:38 PM | 0 comment
AUGUST 25, 2010
Pennsylvania Liquor Fees to Rise
As reported at KDKA, the Pennsylvania Liquor Control Board (PLCB) will be raising fees on bottles of liquor beginning in January.
The fee increase is expected to generate "millions of dollars." We aren't sure if that money is for PLCB marketing, to offer more wine boutiques for friends of the administration, to hire additional PLCB consultants, to build wine vending machines, or just to take more money from Pennsylvania residents.
Regardless, here's a novel idea: Privatize Pennsylvania's state liquor stores!
posted by NATHAN BENEFIELD | 02:30 PM | 0 comment
