 
Genesyxx
Member
Username: Genesyxx
Post Number: 659
Registered: 02-2004
| | Posted on Thursday, January 25, 2007 - 1:30 pm: |    |
LANSING -- Word that Illinois and Indiana are taking steps to sell their state lotteries as a quick fix for cash-starved state budgets has sparked interest in doing the same in Michigan.
The idea of privatizing the lottery is among options being considered as state officials struggle to balance a state budget that is more than $800 million out of whack.
"I'm encouraged by that idea. It's good that people around here are willing to offer such bold ideas," said Senate Majority Leader Mike Bishop, R-Rochester.
Liz Boyd, press secretary for Gov. Jennifer Granholm, didn't dismiss the idea.
"We are looking at ways to balance the budget. And while we are looking at everything, our focus is on the structural problem," Boyd said. "One-time revenues may work to solve one-time problems or fund one-time programs but they do not address on ongoing structural problems."
Illinois is hoping to get $10 billion from private investors for its state lottery. The new owners would receive all revenue and profits for the next 75 years. Indiana is taking bids to do the same later this month. Officials there expect to raise more than $1 billion up front and annual payments of $200 million.
Last year, Michigan's lottery raised $686 million last year for the school aid fund. Since the lottery was created in 1972 it has pumped nearly $13 billion into the school pot. Any lottery sale plan would need to include a revenue stream to replace the state game's annual contribution to schools.
Michigan runs the 10th most profitable lottery among the 40 states that operate games of chance. |
Lowell
Board Administrator
Username: Lowell
Post Number: 3603
Registered: 10-2003
| | Posted on Thursday, January 25, 2007 - 1:36 pm: | |
quote:Last year, Michigan's lottery raised $686 million last year for the school aid fund. Since the lottery was created in 1972 it has pumped nearly $13 billion into the school pot. Why sell a cash cow like that for a one time fix. Ridiculous.
What would they sell next year when the same thing happens?
Time to pull in the belt [again] and look for new revenue sources. |
Dnvn522
Member
Username: Dnvn522
Post Number: 175
Registered: 11-2004
| | Posted on Thursday, January 25, 2007 - 2:31 pm: | |
quote:Any lottery sale plan would need to include a revenue stream to replace the state game's annual contribution to schools.
That sentence says it all. Good luck finding replacement revenue. |
Supersport
Member
Username: Supersport
Post Number: 11174
Registered: 10-2003
| | Posted on Thursday, January 25, 2007 - 2:58 pm: | |
quote:What would they sell next year when the same thing happens?
My guess is that they would renegotiate the casino contracts...again! So, you get rid of a steady revenue stream that contributes to the schools, knowing damn well that a replacement is needed. Who in the hell is running this circus and when does the clown act leave town? |
Jelk
Member
Username: Jelk
Post Number: 4213
Registered: 10-2003
| | Posted on Thursday, January 25, 2007 - 3:03 pm: | |
Of course a one time sale for $10 billion would not only wipe out the less than one billion dollar deficit but could create a nice endowment for the state. Annual interest payments on a 9 billion dollar endowment would equal or surpass 686 million dollars. If this was a cash sale it could work. Clearly Illinois thinks they can make that happen. |
Pinewood73
Member
Username: Pinewood73
Post Number: 11
Registered: 07-2006
| | Posted on Thursday, January 25, 2007 - 3:24 pm: | |
Here's an interesting thought.
How about balancing the budget by bringing in MORE work, and thus MORE tax dollars, to the State of Michigan.
Instead of selling off just about the only thing that isn't broken in this state! |
Michmeister
Member
Username: Michmeister
Post Number: 61
Registered: 10-2006
| | Posted on Thursday, January 25, 2007 - 3:34 pm: | |
Until the money starts getting used for other things and before you know it, there ain`t a pot no more to pee into. And the education system is still outdated, bankrupt, and highly ineffective. |