HARRISBURG - A Schuylkill County lawmaker is picking up support within his party for his legislation to earmark potential revenue from the privatization of the state-owned liquor stores for state road and bridge work.
State Rep. Jerry Knowles, R-124, raised the profile Monday of legislation that he introduced last session to put up to $1 billion of anticipated one-time revenue from selling liquor licenses to private owners into an Infrastructure Future Fund over four years.
The House approved a liquor privatization bill that is a top priority of Gov. Tom Corbett's last month, but it faces uncertain prospects in the Senate. Knowles said there is a greater need to use liquor proceeds to help fix state roads and bridges in the name of public safety than for a new education block grant as Corbett has proposed or to pay down public pension debt as others have suggested.
"We either have to figure out a way to fix our roads and bridges or watch them fall apart," said state Sen. David Argall, R-29, who endorsed the legislation.
Knowles and other speakers at a news conference voiced concern about asking motorists to pay more for transportation funding by lifting the cap on the state Oil Company Franchise Tax as the governor has proposed without also considering a funding source like liquor sale proceeds that doesn't involve tax revenue.
His bill has several dozen co-sponsors, including House Majority Whip Stan Saylor, R-94, Red Lion, who said it would raise hundreds of millions of dollars for roads and bridges without raising gas taxes.
Knowles and Saylor expressed concern that establishing an education block grant would lead to new programs which in turn would become dependent upon annual revenue after the block grant ends.
Corbett proposes to create a new $1 billion education block grant for school districts during the next four years with any liquor privatization proceeds.
The House-approved bill would create 1,200 private wine and spirits retail licenses and allow grocery stores to sell wine. House Majority Leader Mike Turzai, R-28, Pittsburgh, said the debates over liquor privatization and how to earmark the proceeds can move on different timetables. House Republicans have yet to reach any agreement on how to use potential liquor proceeds, a caucus official said.