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Tuesday, June 06, 2006

Illinois House Speaker Questions Lottery Sale

 

As reported by the Lincoln Courier: "House Speaker Michael Madigan is raising his own questions about the proposed sale of the state lottery, casting a potential shadow over Gov. Rod Blagojevich's plan for a quick but temporary fix for school funding. "In a letter to Blagojevich that was also sent to all Illinois lawmakers, Madigan listed eight questions he said must be answered, including what will happen to schools when an initial influx of $4 billion is exhausted after four years. ".Blagojevich wants to sell or lease the state lottery, which he said will bring $10 billion to state government. Of that, $6 billion will be invested in an annuity to provide the state about $650 million a year for the next 17 years. That will replace the profits the state gets now from lottery sales. ".Madigan also questioned how the administration determined that the lottery would fetch at least $10 billion if sold or leased to a private operator. Blagojevich officials said the numbers came from the investment banking firm of Goldman Sachs after evaluating the potential sale."

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