The state lotto is the answer
The hot story out of Sacramento today: Gov. Arnold Schwarzenegger wants to borrow money against future lotto sales to eliminate the deficit.
Here are some excerpts from the AP story by Juliet Williams that ran in our paper today:
The $144.3 billion budget plan for the fiscal year that begins in July is a byproduct of a slowing state economy. Tax revenue has been falling far short of what California needs to keep pace with spending, leading to a $15.2 billion shortfall.
"Our crisis is real, and it is very serious," Schwarzenegger said during a news conference at the Capitol.
The centerpiece of Schwarzenegger's budget relies on a plan to make the state lottery more lucrative and thus more attractive to potential investors.
The Republican governor hopes to raise $15 billion over the next three years by selling bonds based on anticipated lottery revenue. He will use about $5.1 billion of that in the 2008-09 fiscal year to help erase the state's deficit.
The other $10 billion would remain in a reserve fund the governor wants to create to help the state get through rough financial times in the future.
Williams reports the proposal still requires voter approval come November.
If not....
...the governor would ask the Legislature to approve a temporary 1 cent increase in the state sales tax to pay for the reserve fund. It would last no more than three years.
Ugh, death amd taxes...you know the saying.
yeah, and death is looking better all the time. Have these guys ever heard of the concept of cutting costs? All their time seems to be spent figuring out how to get more
money?
As for the creative plan to borrow against future lottery revenue - well it makes perfect sense, at least to today's politicians.
The Governor has been a huge disappointment.