January 27, 2009
Mrs. Gregoire, Liquor Salesman

Mrs. Gregoire shows signs of entrepreneural spirits:

In her proposed budget, Gov. Chris Gregoire has requested approval for 10 new liquor stores and a change in law to allow the state-owned stores to sell additional products.
On the other hand, wouldn't it be an even better idea for state government to get out of the booze business altogether? Yes it would!

But good luck with that:

[Sen. Tim Sheldon's] proposed elimination of the state-owned stores, which he said he expects to file later this week, likely will face a stiff challenge.

His previous efforts to privatize a portion of the state-owned stores have failed, in part because of pressure from the state employees union representing store workers.

Posted by Stefan Sharkansky at January 27, 2009 10:06 AM | Email This
Comments
1. Gregoire thought too many slot machines was bad so she gave away $200-$300 million in revenue to the Indian casinos. However, more state-owned liquor stores is a good thing? What is the estimated revenue lost by uncompetitiveness in the retail liquor industry?

Posted by: John425 on January 27, 2009 10:10 AM
2. I sent my district senator a letter about this yesterday.

To be honest, it was the first time I've ever done that. But it felt great.

Christine is simply talking out of both sides of her mouth on this issue. We move backwards, instead of forwards.

Posted by: Jeremy on January 27, 2009 10:13 AM
3. Isn't there something in the state Constitution prohibiting the state from participating in a business that they've have oversight/control of regulation in? This is wrong on so many levels, but hey, welcome to Blue state USA- no accountability? no problem!

Posted by: Rick D. on January 27, 2009 10:14 AM
4. Just what we need now. More state employees. Let private business sell alcohol. We could save a lot of money, no store leases, utilies, salaries, pensions, etc.

Posted by: Mike336 on January 27, 2009 10:21 AM
5. Actually, could this be done as an initiative? Or is this something that can only be done legislatively?

Posted by: Mike336 on January 27, 2009 10:24 AM
6. The hypocrisy of the State regulating & selling alcohol plus advocating against driving under the influence is staggering.

Posted by: paulag1955 on January 27, 2009 10:41 AM
7. Sheldon ho just likes to see his name in print, except when he got picked up for drunk driving on the Reservation.
When I see his name I immediately dscount anything that rolls out of his blow hole.

Posted by: bozo on January 27, 2009 10:41 AM
8. We could literally have hundreds of privately-owned tax paying businesses in this state open instantly if the state would lift their monopoly. But like every other liberal nanny state rule, it's "for our own good" that the state controls it. Just like it's "for our own good" that they artificially inflate the price of liquor and wine in this state. Plenty of states do just fine with privately owned liquor stores.

Posted by: Palouse on January 27, 2009 10:45 AM
9. @6 you do realize its possible to consume alcohol and not operate a motor vehicle. Just as its possible to not drink before you go to work, take medication, etc.

@8 Evangelical conservatives have just as much to do with alcohol regulation as nannystaters.

I say sell off the stores and cover the lost revenue with the increased taxes from more sales.

Posted by: Giffy on January 27, 2009 11:31 AM
10. While California has many problems, this is not one of them. In Cali you can buy liquor at Rite Aide, the grocery store, or wherever. When I first moved down here I was kind of shocked by it but I wouldn't have it any other way. Texas is even more free on this issue. They have drive-through liquor stores. And, you can drink and drive simultaneously.

-- Olympia High Grad '87, not coming back.

Posted by: Rez on January 27, 2009 11:50 AM
11. Here in the great state of Louisiana, you can purchase liquor at WalMart. The landscape is full of drive-thru daiquiri stands. Life's simple and not in your face here.

Posted by: Clusiana on January 27, 2009 12:33 PM
12. If the State owned liquor stores are going to stay in business, then maybe they should take advantage of our new Democratic Administration and begin selling (and TAXING) medical marijuana. A huge potential revenue source for the State.

Posted by: Splinter on January 27, 2009 12:35 PM
13. ...but...but, you have to live in Louisiana, what a fricken price to pay! Got Milk?? :)

Posted by: Duffman on January 27, 2009 12:36 PM
14. I found this interesting tidbit about where your liquor dollars at the WA state liquor control board website.
Distillery price: 25%
Federal tax: 16%
State tax: 34%
Markup: 25%

This state needs get out of the liquor retailing and distribution business. Levy your tax, the liquor control board monitor the sale and distribution, and get out of the way.
I rarely buy liquor, but when I do it's out of state where it's much cheaper and a better selection.

Posted by: mvray on January 27, 2009 12:47 PM
15. Your best bet is to make friends with a flight attendant who flies internationally. They can bring in a couple of bottles duty free every time they fly. We knew one who would buy us some good Kentucky bourbon and some Crown Royal at ridiculously cheap prices, but sadly, she was laid off.

@9 Well, considering evangelical conservatives have next to zero power in this state to make law, I'll stick with nanny staters.

Posted by: Palouse on January 27, 2009 01:04 PM
16. Expanding liquor store product lines to non-liquor items is doomed to fail.

The State stores marketing strategy relies on its monopoly. Pricing is based upon popularity. When an item is a hot seller the price is raised until sales volume begins to fall; when an item does not sell, the price is reduced until it does sell or discontinue stocking it.

In a non-monopoly situation, the managers will have difficulty determining what to stock and pricing it to sell at a fair profit. This is a prescription for losses. Ah, but that will be good enough for government work, won't it?

Posted by: Paddy on January 27, 2009 01:07 PM
17. They'll just HAVE TO HAVE a very sophisticated and EXPENSIVE new computer POS & inventory system to cope - ergo into $millions yet again for nada.

Posted by: Duffman on January 27, 2009 01:18 PM
18. @15, True, but they used to. The Progressive Movement that gave us state liquor control, the initiative process, and other goodies was both populous and religious. Today you have a cadre of some liberals and evangelicals that keeps any reform form happening despite the efforts of more younger dems and libertarian republicans.

@16, Except that we are talking about small and cheap items that are bought simply out of convenience. Aside from those that buy nice ones people don't really shop around for ice or bottle openers, or even a basic shaker. They buy them when they need them an since they go with liquor selling them near such things seems like a good idea.

Its the same way a grocery store can get away with selling crappy kitchenware at marked up prices.

Posted by: Giffy on January 27, 2009 01:29 PM
19. > Let private business sell alcohol. We could save a lot of money, no store leases, utilies, salaries, pensions, etc.

That's when the Pam Roach wing of the GOP steps in and flips out. Good luck selling wider liquor availability to the social conservatives.

Posted by: Cato on January 27, 2009 01:31 PM
20. That's when the Pam Roach wing of the GOP steps in and flips out. Good luck selling wider liquor availability to the social conservatives.

Yeah, and they have soooo much power and influence here in WA state. Puhlease. The GOP doesn't have enough power to block anything here, let alone privatizing liquor, which would be very popular with pro-business Republicans.

Posted by: Palouse on January 27, 2009 02:06 PM
21. > Yeah, and they have soooo much power and influence here in WA state.

You mock them but the churches when properly organized can wield a lot of power in this state. Just look at all the whining that went on when they put the atheist plaque up in the Capitol. Now take all that whining and focus it on an issue that's actually controversial and meaningful (like hard liquor being sold at the local AM/PM up the block). They balked at and stopped little Timmy Eyman's gambling initiatives, what's to say they won't balk at revised liquor laws. Who do you think put the stupid liquor laws on the books to begin with?

Personally I'm all for privatizing liquor sales, as well as eliminating the states monopoly on liquor distribution.

Posted by: Cato on January 27, 2009 03:34 PM
22. I, for one, am entirely in favor of only the state being permitted to sell liquor. Free enterprize would be far more efficient in its distribution. The state is far less efficient. I do not use the stuff and haven't found any reason to think increasing the supply to anybody else would be a good thing. The less available, the better.

Posted by: Curtis T. Mohr on January 27, 2009 04:07 PM
23. Just look at all the whining that went on when they put the atheist plaque up in the Capitol.

And yet, the plaque stayed. Shows how much real influence they really had.

They balked at and stopped little Timmy Eyman's gambling initiatives

Uh, no. The Tribes spent the most money by far on the advertising against that initiative because it threatened their monopoly, and it worked.

eliminating the states monopoly on liquor distribution

I'd love to see it happen too, so let's see where Sheldon's bill goes, and who ends up blocking it. My guess is that it never sees the light of day, because of pro-union Democrats not evangelicals.

Posted by: Palouse on January 27, 2009 04:10 PM
24. http://www.houserepublicans.wa.gov/CapitolBuzz/CapitolBuzz.htm

Curtis, here is the link I tried to get you this a.m.. Somehow it got lost in cyperspace.

Posted by: swatter on January 27, 2009 04:34 PM
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