Alabama ABC Board Plans New Warehouse
The Alabama Alcoholic Beverage Control (ABC) Board is set to construct a new 250,000-square-foot warehouse on Rep. Dickinson Drive in Montgomery, aiming for completion next year. The estimated cost for this facility is $98 million, which will be funded through ABC’s operational expenses over the next 20 years.
Neil Graf, ABC’s Chief Operating Officer, addressed the Congressional General Fund Committee, noting that while some short-term contributions to the fund may decline, he expects to be a significant contributor to the General Fund in two decades.
Some propose a different approach to boost government revenue: eliminate the ABC altogether, sell the new building, and dismantle the ABC Control Committee. The argument here is that $98 million could be better utilized within a free-market system than under government control.
It’s a point worth pondering that Alabama operates a government monopoly over alcohol sales, which raises eyebrows among conservative Republicans. Some wonder how government-run liquor stores fit into a predominantly conservative agenda. While it might be clear why Democrat-led states prefer such monopolies, it’s less evident in Alabama, which prides itself on conservative values.
Furthermore, the notion that government profits from these liquor stores seems to misunderstand basic economics. Though these stores generate revenue, the presence of a government monopoly stifles potential economic growth that could come from private retailers unburdened by such control.
Even if the ABC Board does not opt for full privatization, savings could still amount to around $250 billion for the state. State Senator Arthur Orr (R-Decatur) has been advocating for privatization to relieve Alabama from liquor retail.
Orr highlights that while ABC contributes millions to the state budget currently, eliminating costs associated with labor, leases, insurance, utilities, and transportation could lead to substantial savings. It may be time for Alabama to follow the trend of many other states by moving away from its socialist liquor system.
