McDonnell proposes privatizing ABC stores to pay for transit plan
TRANSPORTATION PLAN:
• Read the complete text of McDonnell's proposal
From privatizing Alcoholic Beverage Control stores to tolling drivers crossing in from North Carolina, Republican gubernatorial nominee Bob McDonnell's transportation plan relies on money from multiple sources.
If all aspects of the 19-page plan are implemented, the former attorney general expects it to generate $1.4 billion a year.
Some parts of the proposal -- which focuses heavily on traffic-choked Northern Virginia and Hampton Roads -- would require action from state or federal lawmakers, including legislation to capture increased revenue growth in port operations and invest it in regional transportation projects.
McDonnell proposes taking a portion of the sales-tax revenue collected in Northern Virginia and banking it in a regional transportation account.
"It's raised there, it ought to be spent there for Northern Virginia projects," he said on a conference call.
McDonnell proposes tolls that would affect traffic coming into Virginia along Interstate 85 and Interstate 95. McDonnell estimates that the tolls would generate about $50 million annually in the beginning years, based on a maximum of $5 per car. McDonnell would use public-private partnerships on the project, and the amount drivers would pay would depend on the arrangement.
He also advocates expanding the 70 mph speed limit, now allowed on a stretch of I-85 in southern Virginia, to sections of other interstates in the state.
Privatizing the state's ABC stores and dedicating the revenue to the roads maintenance fund could raise an estimated $500 million, he said. In addition, McDonnell wants to require that at least the first 1 percent of revenue growth over 3 percent be dedicated to transportation.
McDonnell would like to issue $3 billion in available bonds for transportation and supports the issuance of $1 billion in future bonds for "highly congested areas."
In the conference call with reporters, McDonnell said he has the experience to build consensus in the legislature, and he took a swipe at his Democratic opponent, state Sen. R. Creigh Deeds of Bath County.
"I'm confident that I've got a real plan. I don't have a wish list with no funding like my opponent."
Deeds has promised a comprehensive transportation plan and says it will be key to the state's economy. Earlier this week he said he would bring high-speed rail, promote smarter land-use planning and ease congestion on the Chesapeake Bay Bridge-Tunnel.
Deeds' camp said yesterday that McDonnell's plan would rob money from schools by diverting state revenue to transportation. The Virginia Education Association called the plan "misguided."
Deeds spokesman Jared Leopold said the Democrat will build consensus around a transportation plan, "but one option that has to be off the table is taking away money from our schools to pay for our roads."
Contact Olympia Meola at (804) 649-6812 or
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Reader Reactions
The ABC is a huge profit center for the state of Virginia. Why would McDonnell want to privatize it??? Perhaps he has some family or supporters who are in the wings to pick up this golden egg. Privatizing ABC is a false economy. Private liquor sales would do nothing but put liquor on supermarket shelves where it would be more readily accessed by underage drinkers. The only way to make more money would be to increase alcohol consumption! This is not a good idea… and McDonnell for Govenor is even a worse idea.
Here is the second shot… Whats up with McDonnells support of TOLL ROADS??? I have been in 48 states of the union and I can tell you unequivocally that the WORST maintained highways are TOLL ROADS. Nothing like putting a sign up at the state border saying “TOURISTS NOT WELCOME HERE!“
Toll roads impede free commerce between states.
And how about McDonnells support of leasing our beautiful Virginia shorlines to OFFSHORE Oil and Natural gas exploration. Nothing like another nail in the coffin of the already damaged ecology of the Chesapeake Bay.
From everything I have seen Mr. McDonnell is all about creating barriers to growth. Mr. McDonnell is all about doing what is right for his cronies and not about what is best for Virginia. What’s next McDonnell, allowing employers to pay us in scrip so we can shop at the company store???
Thank you for your story! I am now definetly voting for DEEDS!
Some good points have been made about privatizing state ABC stores. Have you ever heard of crime at a state run ABC store? Ever heard of a state run ABC store being robbed or held at gunpoint? I sure haven’t. I like my state run liquour store. It is clean, welcoming, fairly priced, and not an eye sore. Just ride over to Maryland see what they have. Bob McDonnell has no plan. He just wants to be governor like Gilmore. By the way if we are going to privatize state and local government assets have we considered schools? Could save a bundle there! Autobahns for every Virginian!
I think toll roads would be an excellent idea only they should be placed at the Virginia line. One toll to enter and another to leave. This way the people who pay no tax in Virginia can help contribute to the roads and rest stops they use. It is only fair.
Toll roads in Richmond are a complete joke and an absolute affront to common decency.
Consider the cost of delaying 50,000 workers by 2 minutes a day, every working day for a year, plus the cost of maintaining to tollbooths, paying the workers and the cost of the tolls themselves.
Cosider how many accidents happen at toll booths. My mother was rearended at a tollbooth on the downtown expressway and has recurring migranes and backpain all so that the city could collect her 50 cents. Consider the number of workers who have been hit by cars.
The idea behind a toll road is to provide an alternative route to work that is so quick and easy that people are willing to pay a premium to use the road. In Richmond, you really have no choice if you live on southside, you have to pay tolls to get to work.
Tolls are difficult to implement on roads that are already built and paid for, but I agree that the burden of paying for maintenance should be shared by all users.
ABC has always been a questionable govt. venture. I would like to see increased taxes on liquor and a comprehensive plan on privatization. The operational costs have to be astronomical and the consumer may be better served by private industry.
Looks Like Jim “Gridlock” Gilmore is back in the Guise Of Bob McDonnell.
Everything Bob McDonnell’s proposed was done during the Gilmore years - including the selling off of State resources (like the Liquor stores). Toll Roads were sold to foriegn consortiums in deals that were supposed to bring funds into the treasury and relieve the outflow by making the consortium responsible for maintenance and expansion. Instead, tolls soared, and due to the lack of profitability to the consortiums, VDOT has to pay THEM monies if traffic falls below a certain number, or if VDOT improves the surrounding roads causing a decrease in business for the foriegn consortiums.
Let’s elect Bob McDonnell so we can return to this type of business - heck, lets just give all the state (public) assets away so we can foriegner’s pay for the privilege of using them.
Yeah, good idea! Free enterprise should benefit the consumer. We’ll be able to buy liquor at any street corner in the city. But, this commonwealth has long memories and doesn’t relinquish its hold over ideas, property and people easily. I remember the ‘blue laws’ as a kid. On Sundays, the toy aisles would be roped off in Branch’s Pharmacy. Quite disappointing to a 5 year old. Only medicine was sold there on Sunday. Churches had a FIT as these laws were being examined for revoking. Richmond city came out of the closet first, then the counties had to follow in abolishing these archaic practices. Gov’t owned liquor stores are an archaic practice which should be abolished too!
The ABC stores should have been privatized years ago.
Good idea with the abc stores never should have been run by the Gov’t to begin with. The interstates leave them alone, you want people traveling on your roads, getting gas and all the other conveniences that they bring along with tax dollars. Also trucking industry is a major industry in Va why would you mess with it. And we all see how the tolls work in Richmond once they go up they never come down, and they only increase.
Having frequented places that sold liquor outside the Commonwealth, there is a difference. Convenience of the citizens should be a primary reason to shut down the retail arm of the ABC Department alone.
The regulations guarding underage drinking of beer, and wine, works equally well for liquor. The ABC Board will have less expense on warehousing, retail outlets, transportation, and employees.
As I say every day, “Everyone has an agenda, once you figure it out, you see the reasons people do what they do.“
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