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Companies suggest privatizing lottery to fix budget issues

2 years 7 months 5 days ago Wednesday, March 18 2015 Mar 18, 2015 March 18, 2015 9:34 PM March 18, 2015 in News
Source: WBRZ
By: Trey Schmaltz

BATON ROUGE - State Treasurer John Kennedy warned lawmakers this week, the state might have to resort to selling the lottery as it looks to fill a $1.6 billion budget hole in the upcoming budget.

Sources contend the lottery could be sold for fast cash but the governor's office said the lottery is not for sale, but there have been two proposals submitted by companies that suggest privatizing the lottery could raise money.

The proposals, by Citi and Goldman, Sachs & Co. were unsolicited, the governor's office told WBRZ News 2. The proposals, each about 50 pages long, are forwarded annually to the state, experts said, and showcase various ways the state could fill its growing money hole.

"A revenue bond approach similar to those utilized in West Virginia, Florida and Oregon could bring significant upfront value to the state," Citi wrote in its proposal. Likewise, Goldman, Sachs & Co. wrote "based on Lottery revenue growth... The state could raise approximately $428 million and preserve a minimum contribution to the MFP of $160.2 million."

The governor's office said privatization is not in the budget plans.
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Follow the publisher of this post on Twitter: @treyschmaltz

 

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