Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Tom McClintock: Selling off lottery would be bad deal
Sac Bee ^ | 5/24/07 | Tom McClintock

Posted on 05/24/2007 10:43:17 AM PDT by NormsRevenge

The old admonition, "When something seems too good to be true, it probably is," virtually screams from accounts of Gov. Arnold Schwarzenegger's proposal to "privatize" the California Lottery.

Actually, to give credit where it's due, it's a Goldman Sachs/Lehman Brothers proposal; the governor is the pitch-man.

The details are subject to negotiation, but the deal works something like this: The state turns over the California Lottery and monopoly control over lottery gambling in California to a private consortium (led by Goldman Sachs and Lehman Brothers, could it be?) for the next 40 years. In exchange, the consortium pays the state a lump sum of about $37 billion. With that money, the government sets up a $22 billion endowment fund that will guarantee the schools what they're getting from the lottery now -- about $1.1 billion a year. That leaves an extra $15 billion to paper over the governor's deficit-spending and borrowing spree ...

The governor's spokesman calls it "a win-win for California on every front." California lottery sales are well below per capita sales in other states, and our lottery revenues are declining. By handing the operation over to a creative, innovative and dynamic corporation, the schools will be guaranteed a stable annual payment, the state gets an extra $15 billion, and the investors pocket the rest. What's not to like?

But wait a second. This is not privatization. Privatizing the lottery means contracting out services to competing firms that offer the state the best value at the lowest price. ...

--snip--

If there is so much additional money to squeeze out of the lottery -- and obviously there is or the Goldman Sachs crowd wouldn't be circling the Capitol -- shouldn't that extra money be going to the schools and not to a consortium of investment bankers?

(Excerpt) Read more at sacbee.com ...


TOPICS: Culture/Society; Editorial; Politics/Elections; US: California
KEYWORDS: california; callottery; goldmansachs; lottery; mcclintock; milken; privatization; prop1c; schwarzenegger; selling
Navigation: use the links below to view more comments.
first previous 1-2021-30 last
To: Carry_Okie
I promise you, when these kids are ready to leave for college, the universities will be falling all over themselves to get them. There will be scholarships.

You've got the right idea. Work the system. Let the parents of the lazy pay.

California's masses paid for my children's post secondary education and both are now productive members of our society.

The formula is simply. If you learn they will pay.

21 posted on 05/24/2007 7:08:53 PM PDT by Amerigomag
[ Post Reply | Private Reply | To 19 | View Replies]

To: Amerigomag
California's masses paid for my children's post secondary education and both are now productive members of our society.

I'm hoping we don't have to go that route, with private scholarships being the source. If you learn they will pay.

Learners produce wealth, for both those who employ them and those who tax them. These kids aren't fooling around with fluff subjects either. It's calculus, history, biology, and music, ALL at the college level, with physics, language, and chemistry to follow. There's also an hour of daily PE with emphasis on weight training, dance, and aerobics. I want them at least half-way through a double major by the time they're eighteen.

There's a second reason for the accelerated program: they're girls. I want them to be done with school and well established at an age at which there is still time to have a family. Too many professional women get there in their mid thirties, and end up visiting my wife at the infertility clinic.

22 posted on 05/24/2007 7:54:42 PM PDT by Carry_Okie (Duncan Hunter for President)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Carry_Okie
That is all truly great about your children, but what does any of that have to do with the fact that low income people do not pay ‘income taxes’ or that many get the earned income credit from the IRS?

I still stand by my sentiment that people who play the lottery thinking that they might win are are not too bright or are bright but never took the time to understand statistics.

I have seen it in several states where they advertise things like “you have to play to win” and “somebody has to win”. All of these are valid statements, but I also know that I truly have at least 3x more probability of getting struck by lightning then winning the lottery!

23 posted on 05/25/2007 6:50:06 AM PDT by jrestrepo
[ Post Reply | Private Reply | To 19 | View Replies]

To: NormsRevenge; Carry_Okie; ElkGroveDan; SierraWasp; tubebender; Amerigomag

Next, Marc Rich will be advising on deficit reduction options—if he hasn’t already.

http://www.sacbee.com/770/story/192627.html

The state Assembly will hire the non-profit run by former junk bond king Michael Milken to review Gov. Arnold Schwarzenegger’s proposal to sell or lease the California Lottery, Speaker Fabian Núñez said Thursday.

“It’s critical to get an independent assessment of any possible sale or lease of the lottery,” Núñez said in a statement. “Michael Milken and the Milken Institute have a sterling international reputation for their work, and the people of California will benefit greatly from their review of this project.”


24 posted on 05/25/2007 10:18:30 AM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: calcowgirl

25 posted on 05/25/2007 10:23:32 AM PDT by NormsRevenge (Semper Fi ... For want of a few good men, a once great nation was lost.)
[ Post Reply | Private Reply | To 24 | View Replies]

To: calcowgirl

26 posted on 05/25/2007 10:24:23 AM PDT by NormsRevenge (Semper Fi ... For want of a few good men, a once great nation was lost.)
[ Post Reply | Private Reply | To 25 | View Replies]

To: NormsRevenge

Ah, yes.... planning the carbon trading scam foisted on us by dear Ahnold.


27 posted on 05/25/2007 10:27:16 AM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
[ Post Reply | Private Reply | To 26 | View Replies]

To: calcowgirl

Just wait ‘til Tony Blair takes over at the World Bank. 8-o


28 posted on 05/25/2007 10:28:27 AM PDT by NormsRevenge (Semper Fi ... For want of a few good men, a once great nation was lost.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: NormsRevenge; calcowgirl; ElkGroveDan
I just heard a report today that old Queenie hasn't been too happy with the way Blair has cozied up to "W" and the good ol USA!!!

Also heard about a disturbing jury decision in England regarding terrorism that I can't remember the particulars on but it was just horribly anti American!!!

So at least some of the Brits are just throwing history over the side and spitting on their most powerful friend on Earth! But... SayLaVee... Phhhhhhhhhhhhhht!!!

29 posted on 05/27/2007 9:38:46 PM PDT by SierraWasp (CA!!! Are you ready to rumble *??? Or are ya just gonna mumble and grumble??? (*aka "Recall"))
[ Post Reply | Private Reply | To 28 | View Replies]

To: Londo Molari

Mexico’s Schools Win Too!


30 posted on 05/28/2007 1:04:00 AM PDT by BurbankKarl
[ Post Reply | Private Reply | To 2 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-30 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson