Booze Privatization Eyed

Ohio could garner up to $2.5 billion by selling its liquor distribution system to a private company, according to a study released last week by a Cleveland-based investment firm.

The study was conducted by Western Reserve Partners LLC and not solicited by new Gov. John Kasich. It projected the liquor system would bring in the most money of the several state-owned assets being considered for privatization.

The state could get up to $1.5 billion in cash for the transaction after it paid down roughly $1 billion in outstanding bonds that are backed by liquor profits, the bank said. The liquor system generates roughly $220 million annually for the state, much of which goes into the general fund.

Kasich said recently he is eying a number of privatization ideas. Selling or ­leasing the Ohio Turnpike has been on the table for years. Other assets considered for privatization include the state’s prisons, lottery, pension system, and the Bureau of Workers’ Compensation, according to an article in the Columbus Dispatch.

The Ohio Division of Liquor Control distributes all hard liquor in the state and collects the state’s liquor tax.

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