Exporting our bad ideas

Remember Rick Perry's grand idea to sell the Lottery? Perhaps you've forgotten, since the last I can recall hearing about it was in February, and as far as I can tell it's deader than Generalissimo Franco. But just to prove that no idea in politics is too stupid to be universally rejected, here comes California with the same dollar signs dancing around their heads.

Gov. Arnold Schwarzenegger is poised to call for privatizing the state lottery, a move that would bring California a cash infusion of as much as $37 billion to help solve pressing budget problems but also could sacrifice a major revenue source for decades to come.

The lottery would be leased to a private company for up to 40 years in exchange for a lump-sum payment or series of payments, according to documents from the governor's budget office that were provided to legislative staff and obtained by The Times. If lawmakers were to sign off on such a plan, California could become the first state to privatize its lottery.

Schwarzenegger will issue a revised budget proposal Monday that is expected to contain the lottery plan.

Adam Mendelsohn, Schwarzenegger's communications director, confirmed that the governor's staff had been working with investment banks on the plan. He said private companies could do a better job of running the lottery than the state, resulting in more Californians playing and the largest possible cash infusion.

"California has one of the lowest-performing lotteries in the country," he said. "Taxpayers could see two to three times more money go into state coffers."

[...]

The plan is certain to be controversial, with opposition likely from activists who are seeking to stop further expansion of gaming in the state, as well as fiscal conservatives who are uneasy with trading off future revenue for easy cash now. But it also is likely to entice both Democrats and Republicans desperate to find funding for programs they support without having to resort to a tax hike.

The easy way out is always a popular choice, isn't it? Learn from Texas, fellas (no, I can't believe I just said that, either). Handing off your problems to future generations is not a flattering quality to have. Link via Kevin Drum.

(Yes, I see that Illinois' Democratic Governor has the same idea as well. At least he has a specific immediate need for the cash infusion - fixing the state's pension fund. That doesn't make this not a bad idea, however.)

Posted by Charles Kuffner on May 11, 2007 to Jackpot!