Virginia Gov. Wants to Privatize Liquor Sales for Road Money

Virginia Gov. Bob McDonnell (R) wants to take the state out of the retail liquor business by privatizing its system of state-owned stores in order to generate much-needed cash for transportation projects.

The state could reap an estimated $300 million to $500 million by selling liquor licenses to private retailers, said the governor’s senior policy adviser Eric Finkbeiner. Such a sale would provide a one-time cash infusion into the state’s capital transportation fund, he said.

The governor’s policy committee drawing up the privatization plan has yet to determine how many liquor licenses would be sold or the cost of each, Finkbeiner said.

McDonnell’s privatization plan will be released in mid-to-late August, said his press secretary, Stacey Johnson.

Privatization would require legislative approval, the two said. The Washington Post reported Sunday that leaders in the state’s legislature were divided on the issue.

McDonnell, elected last November, made privatizing liquor stores a key campaign pledge.