Are Government And Booze A Match Made In Heaven?

The liquor business is booming, despite--or perhaps because of--the recession impacting every other sector of Washington's economy. Gregoire's '09-'11 budget attempts to capitalize on the boom, using Washington's convenient state-run liquor store set-up by requesting that ten more liquor stores open across the state. In theory, this would mean more cash for a state government under such a financial squeeze that social and health care programs are being slashed right and left. But, as the P-I points out, the budget specifications are dredging up the old debate about the state's involvement in liquor sales. Here we go, again. More information for you while you make up your mind:

Washington is one of nineteen alcoholic beverage control states, and one of only ten to have state-run liquor stores. The handy graphic (right) from the WSLCB shows generally where your cash goes after you trade it for vodka in Washington state. Our hard liquor sales are split between directly state-run liquor stores and retailers in some rural areas who have state contracts. Liquor prices are fixed state-wide by the Liquor Board, so that your Grey Goose costs just as much in Ellensberg as it does in Ballard. That's an unusually high level of regulation for the United States, but it does mean that a boost in booze sales equals extra dollars in the state's pocket. Could the state make the same amount of money by privatizing liquor sales while still maintaining control of distribution? What would that look like?

The budget also asks to expand the rules to allow liquor stores sell booze-related products like corkscrews and maybe even ice. That would be so, so convenient for the consumers (read: Seattlest HQ), and non-state retailers of beer and wine know that all too well. It might even mean reduced sales of those same items for private retailers, and they're not happy about that prospect.