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A popular Greensboro enterprise earned $3.9 million last year on revenues of $32.5 million -- a margin of nearly 12 percent, after paying $6.9 million in taxes -- then donated most of its profits to city government and law enforcement.

That needs an overhaul?

State leaders might not take apart the Alcohol Beverage Control system, but they're likely to make significant changes. When they do, however, they should make sure they preserve some of the features that work well in Greensboro and many other North Carolina cities and towns.

High revenues, low consumption

The state has run a liquor monopoly since 1937, while granting local autonomy to municipal, county or regional ABC boards where voters have given approval. The result is a patchwork quilt of jurisdictions that are dry, wet and, in some cases, damp when it comes to the sale and availability of alcoholic beverages.

From one perspective, though, the bottom line approaches perfection: the state's ratio of revenue per bottle ranks among the best in the nation. In other words, North Carolina makes more money with less consumption than most states.

Critics, on the other hand, say that's the product of high prices and lack of consumer choices.

While the overall system is lucrative -- liquor sales exceeded $700 million last year and generated a 10 percent profit margin -- some local ABC systems performed poorly. A legislative study issued in December 2008 recommended stronger state oversight and mergers of inefficient systems, among other changes aimed at modernization.

Bills filed in the state House and Senate a year ago would have implemented some of those recommendations but sat dormant in legislative committees.

Scandals get attention

Meanwhile, Gov. Bev Perdue last summer directed her Budget Reform and Accountability Task Force to review the state's ABC system and to evaluate the experience of states that have privatized their control systems.

Not much attention was paid to any of these initiatives, however, until reports surfaced about a lavish dinner for Mecklenburg County ABC board members and staff paid for by a liquor supplier, and high salaries and bonuses for ABC executives in Wilmington. Those excesses suddenly stirred interest in ABC reform.

Now the legislature has appointed a Joint Study Committee on ABC with the hurry-up assignment of making recommendations before the General Assembly short session begins in May. Sen. Don Vaughan of Greensboro is co-chairman. A range of options is on the table, including privatization.

Vaughan said Thursday he doesn't have preconceived ideas about anything, except: "We will come out with crystal-clear guidelines as to ethics."

The governor begins with the same objective, and goes further: "It has become very clear to me that ethical standards, operations, control and oversight of local ABC boards and stores must be strengthened," she wrote in a letter to Vaughan.

Even if North Carolina moves toward privatization, Perdue added, the state should retain control by selling concessions to private operators and requiring periodic renewal based on performance -- sensible ideas.

For consumers, a better scenario might see much less government control. Any supermarket, convenience store or shop licensed to sell beer and wine could also sell liquor. Competition and greater availability would force down prices and likely raise consumption. The state might gain more tax revenue.

What happens to local revenue?

That ignites concerns about the societal cost of increased liquor consumption and the loss of local government revenue. Would the state replace the $3 million-plus Greensboro receives each year from its ABC system?

In fact, if the Greensboro system operates clean, orderly, customer-friendly ABC stores that earn healthy profits for city government, is a major overhaul needed?

Customers still might say yes, that government shouldn't be in the liquor business, especially when monopoly distribution and pricing limits their choices and forces them to pay more.

Alcoholic Beverage Control is a 73-year-old tradition in North Carolina, but it shouldn't be immune to change. Local boards have had too much autonomy and not enough state oversight. Too many small and inefficient systems have sprung up. And, probably, consumers themselves are subject to excessive control.

Yet, reforms must be carefully considered and implemented. Assuming some control will always be maintained, it won't be easy to determine how much less control will be good for the state and the public.