Pennsylvania's Governor Calls for Securing a Loan With State Liquor Profits

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Control-states have long sought to balance their budgets on the backs of their government-run alcohol systems. And given that state-run liquor regimes usually kick off significant profit--Virginia's has been called "the golden goose of the commonwealth"--it is perhaps unsurprising that politicians often seek to get their hands on it. Pennsylvania Gov. Tom Wolf has now gone a step further, however, by floating the idea of using the profits derived from the state's liquor system to securitize a $1.25 billion loan to help the state balance its budget. As Law360.com notes:

"[Gov. Wolf] announced Wednesday that he would borrow against profits from the state's liquor system to raise $1.25 billion, money that would pay off the state's prior year deficit and reduce the need for additional temporary borrowing to meet financial obligations.
 
Officials for the Pennsylvania Liquor Control Board said the organization's finances were on solid footing, with profits and income growing modestly over the last year..."

Read more here. Gov. Wolf's full statement on the issue can be found here.