RICHMOND - Virginia Gov. Bob McDonnell’s revised plan to get the state out of the liquor business would generate about $200 million in up-front cash and $13 million more in annual revenue than the current state-run system.

Only the retail side of Virginia's distilled spirits business would be privatized under the plan, leaving the state the sole wholesaler.

About 1,000 licenses would be auctioned off, with minimum bids ensuring an estimated up-front windfall of at least $200 million.

Funds generated by the auction would go toward paying transition costs for state employees not rehired, and would also be put into a fund for local road projects - part of a larger transportation proposal from the governor.

Under the plan, the Virginia Department of Alcoholic Beverage Control (ABC) would also have to reduce the mark-up on distilled spirits at the wholesale level from 69 percent to 50 percent, which could result in lower prices for consumers.

The state paid $77,000 to hire a consulting firm to help re-tool McDonnell’s campaign promise to get the state out of the liquor business. A previous plan unveiled last year would have shorted the state about $47 million annually and was dismissed by lawmakers as unworkable.

The plan will likely face an uphill climb in the Democratic Senate. Majority Leader Richard Saslaw, D-Fairfax, has consistently opposed privatizing the state's liquor business.