of year surplus triggered the payment of a 3% bonus to state employees in December 2010. Members of both parties called on McDonnell to use the surplus to reverse the Virginia Retirement System deferral. Liquor sales In August 2010, McDonnell embarked on a promotional tour advocating legislation to sell Virginia's liquor stores to private owners. McDonnell held eight town hall meetings around the state to discuss the plan. He argued that retail alcohol sales is not an appropriate state activity and proposed that any sales proceeds could be used to finance transportation needs. Opponents noted that the liquor stores generate $248 million per year for Virginia's general fund. On September 8, 2010, McDonnell presented his plan for auctioning liquor licenses to his government reform commission. He proposed tripling the number of stores selling liquor to 1,000, with the licenses to operate these new stores being auctioned. According to the Richmond Times-Dispatch, "Of the 1,000 licenses, 600 would be available to big retailers, whose lawyers and lobbyists helped craft the governor's proposal. An additional 150 licenses would be reserved for package stores, with 250 for small retailers, such as convenience-store operators." McDonnell estimated that winning bidders would pay $265 million for the licenses, and that the state could receive $33 million from selling existing state-owned liquor store properties. In addition, $160 million would be collected in wholesale license fees. To make up from the annual loss of general fund revenues from the current state-owned stores, McDonnell proposed a $17.50 per gallon excise tax (which is above the national average and above that charged in neighboring states) and to charge an annual fee of $500 to $2,000 to each store license holder, imposing a new 1% gross receipts tax on wholesalers of liquor, and a 2.5% tax on restaurants and bars that chose to purchase alcohol from wholesalers instead of retail outlets. Just before the presentation, McDonnell dropped his proposed 1.5% fee on all restaurants and retail establishments that was in earlier drafts of his plan. McDonnell proposed to call a special session of the Virginia legislature in November 2010 to consider the proposal. The plan drew immediate opposition from conservative lawmakers as a "tax increase". It was also opposed by the Virginia Retail Federation, the Virginia Beer Wholesalers Association, and the Virginia Wine Wholesalers Association. The Baptist General Association of Virginia and the Virginia Interfaith Center for Public Policy opposed the