State recommends against liquor distribution bids

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OLYMPIA, Wash. (AP) -- State officials say two proposed bids that would privatize Washington's liquor distribution system are not financially beneficial.

Gov. Chris Gregoire's budget director, Marty Brown, said Wednesday that he is recommending the state not accept either of the bids. He said the proposals could have left the state with significant financial risks.

The bidding process has move parallel to a statewide initiative that voters are currently considering. Lawmakers had asked for the bids, which would privatize liquor distribution but not the process of ordering, selling or pricing the product.

The initiative on the ballot this month would privatize the whole system while increasing tax revenue by tens of millions of dollars per year for state and local governments.