WA liquor privatization plan raises some concerns

A proposal to privatize Washington's wholesale liquor distribution in exchange for a substantial upfront payment to the cash-strapped state has raised concerns among some top government officials and members of the state's restaurant industry.

OLYMPIA, Wash. —
A proposal to privatize Washington's wholesale liquor distribution in exchange for a substantial upfront payment to the cash-strapped state has raised concerns among some top government officials and members of the state's restaurant industry.

House lawmakers on Monday released their two-year state budget proposal, which includes a plan to allow competitive bidding for the right to handle the distribution side of the state-run liquor business for the next 20 years.

The winning bidder would pay an estimated $300 million to the state initially, followed by smaller annual payments and profit-sharing.

Supporters call the proposal a work in progress that aims to improve service and efficiency while helping to address Washington's looming $5 billion deficit.

But others, including state Treasurer Jim McIntire, worry privatization may be a short-term fiscal solution that robs the state of future revenue opportunities.