THE SAVIOR OF THE STATE STORES Jun 05, 2003 MICHAEL SMERCONISH THE historically moribund state liquor-control system is undergoing a historic overhaul at the hands of a man some might have seen as an improbable savior. Me? I never had any doubts. Jonathan Newman is that revolutionary. Remember when you first heard his name? It was in 1998, when he challenged Jon Fox in a GOP congressional primary in the 'burbs. Back then, he was best known for his famous parents: Mom Sandra is a Pennsylvania Supreme Court justice; father Jules is the world-famous "Dr. Nose. " Newman's own career then was the law and managing horse-racing syndicates. The naysayers at the start of his political career resented his pedigree. They concentrated on the amount of money he spent, and wondered why this Ivy League-educated lawyer would want a career in public service. I remember thinking it refreshing that a man who could do anything would choose to enter the public arena. It beats the hell out of electing those who run for office just because they need a job. Good thing for us Newman didn't choose to sit on a beach when he got clobbered in the '98 election. He accepted Tom Ridge's invitation to serve on the LCB, usually a political rest stop. The task was daunting. For years, the issue of privatization had been raised, only to be defeated by an odd alliance between central Pennsylvania conservatives and urban unionists intent on protecting the status quo. Among its many annoyances: an 18 percent tax on booze created to help Johnstown Flood victims and which now lives on as a glorified sin tax. And yet, the stakes were high for imbiber and teetotaler alike. The LCB runs 638 stores that do $1.3 billion in annual business. For Newman, the post became a labor of love and a position in which to effectuate real change. He quickly distinguished himself and was elevated to chairman. Pennsylvania is the largest purchaser of wine and spirits in the nation, and the largest purchaser of California wine in the world. But until Newman arrived, nobody ever tried to use that leverage to benefit the system and the taxpayers. Jonathan Newman knew from day one that he could not privatize the system. But unlike his predecessors, he didn't throw up his hands. Instead, he went about introducing free-market concepts into a state monopoly. And he has already achieved remarkable results. Under his watch, the LCB: * Initiated wine festivals in Philadelphia and Pittsburgh that have brought the world's leading wine-makers to the commonwealth. A year ago, even reclusive-movie-director-turned-vintner-extraordinaire Francis Ford Coppola held court with a lucky group of Pennsylvanians. * Started wine samplings that feature famous winemakers at selected stores. * Initiated Sunday sales at some locations. * Opened four strategically placed outlet stores to encourage Pennsylvanians to stop buying booze across state lines. The outlets will offer larger bottles with a cost savings. * Begun an e-commerce web site at www.pawineand spirits.com, where Pennsylvanians can go to track down a hard-to-find product and have it shipped to a nearby state store. * Is actively meeting with supermarket chains to have LCB-operated outlets (with a separate register in a 2,500-square-foot setting) in their stores for customer convenience. I remember thinking that the Philadelphia mayor's job was hopeless just about the time that Ed Rendell came along and forever raised the bar. I have the same feeling about Jonathan Newman at the LCB. No wonder Republican Newman continues to serve in the Democratic Rendell administration. Lucky for us, they're cut from the same cloth. * Hear Michael Smerconish weekdays 3-6 p.m. on the Big Talker 1210-AM. Contact him on the Web at www.mastalk.com.