Pennsylvania Governor Tom Corbett has proposed a new liquor privatisation plan for the state that would create around $1bn by auctioning licenses to private liquor dealers.

Currently, Pennsylvania and Utah are considered to be the only two states in the country to have fully state-controlled liquor systems.

If approved, the privatisation will allow locals to purchase liquors within the state.

Corbett plans to use the amount generated for improving the education system in the state, which includes areas like school safety, enhanced early education programs, individualised learning and science, technology, engineering and mathematics courses and programmes.

The $1bn is expected to come within a period of three to four years from selling the LCB – $575m from the wholesale license process, $224m from the wine and spirits retail auction process, $107m from the wine/beer license application process and $112.5m in the enhanced beer distributor application process.

Corbett said the state will no longer be a marketer of alcohol but will act as a regulator.

"It also creates an unprecedented opportunity for economic expansion for private sector employers while remaining revenue neutral for the state," Corbett added.

Currently, there are about 600 liquor stores in the state.

However, the new plan will allow the state to have 1,200 wine and spirits stores.