Gov. Bob McDonnell will wait until January's regular legislative session to propose privatizing the state liquor monopoly, saying Friday it's a waste of taxpayer money to hold a special session now while he's still gathering support.
"We will privatize Virginia's ABC stores," McDonnell said in a statement. ``The only question is one of timing."
McDonnell said he would introduce legislation on the opening day of the regular General Assembly session, which begins Jan. 12.
McDonnell pledged as a candidate last year to end the state's 76-year liquor monopoly, and he said last month that he likely would call a special session on his proposal after the November elections. But McDonnell has failed to garner support from Democrats and even some in his own party.
McDonnell advocates selling 332 existing Alcoholic Beverage Control retail outlets and licensing up to 1,000 new outlets while putting the wholesale and distribution business in private hands. He originally said the plan would net up to $500 million, which would be used to fix the state's ailing transportation network.
Last month, the administration conceded that annual revenues from privatizing liquor sales would be at least $47 million short of what the state agency now collects in taxes and profit margins.
That revelation emboldened critics who have questioned whether McDonnell's plan would work. McDonnell conceded that moving ahead with a special session without a deal would waste money.
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"I will not call a special session to debate, only to act," McDonnell said.
Senate Majority Leader Richard L. Saslaw said even if McDonnell waits there is no chance of the proposal getting through the Democrat-controlled Senate.
Virginia receives $11 profit for every $13 spent on alcohol sales, he said, calling the department "one of the most efficiently run government entities in America."
"Gov. McDonnell's got a philosophical opposition to the government being in the retailing of alcoholic products. Period," Saslaw said. "It really doesn't matter what the numbers are, he's opposed to it."
Republicans said McDonnell is doing the right thing by waiting to "collaboratively build support" for the proposal.
"As demonstrated by the governor's substantial victory in the 2009 election, Virginians strongly support limited government and want legislators to focus the Commonwealth's resources on providing core services," Senate Minority Leader Thomas K. Norment of James City County said. "Gov. McDonnell has chosen the best route to accomplish these goals."
Republican House Speaker Bill Howell said McDonnell was correct to hold off because drafting a bill that everyone can agree on takes time. He said all sides could spend the next two months working toward that end.
"My sole goal is to eliminate an outdated government monopoly and to raise money for transportation," McDonnell said. "All other details are flexible, as long as the plan makes business sense and is a good deal for taxpayers."
Virginia is one of 28 states that control liquor sales.
