Gov. Arnold Schwarzenegger will propose borrowing against future state lottery revenue to help close a budget shortfall estimated as high as $20 billion, administration officials told The Associated Press.
In a revised budget to be released Wednesday, Schwarzenegger will propose raising $15 billion over three years by selling bonds based on anticipated lottery revenue, then use about $5.1 billion of that for the coming fiscal year to help erase the deficit, the officials said Tuesday.
The other $10 billion would be left in a reserve fund the Republican governor wants to create as part of a budget reform proposal. It would be intended to ease the effect of year-to-year revenue fluctuations.
And still there would be pain:
Adding the anticipated $5.1 billion in lottery bond revenue and saving the $4 billion in education spending leaves the administration with some $6 billion in cuts needed to balance the budget.
"This sounds amazing. How does all this work? It sounds risky, almost like a Rubik's cube budget, not a long-term, structurally balanced budget," newly installed Assembly Speaker Karen Bass, a Democrat, said in a statement.
Emphasis added by me.
The Governator sells everyone out:
In remarks prepared for delivery at a budget briefing Wednesday afternoon, Schwarzenegger said the lottery has been an underperforming asset. His plan would let the lottery pay out more in prizes in hopes of attracting additional revenue.
Last year, California's lottery generated $3.3 billion in total revenue.
Emphasis added by me
Hey, Arnold, given the propensities in your state, why not be bold and really innovate? Create and sell yearly Cocaine Licenses! This way, people who purchase them can legally do coke at their homes without fear of arrest. I'm sure the number of licenses sold would plug the budget for at least the next decade.
Of course, there's always the risk of the license holders dropping dead from overdoses or cardiac failure. But what the hell, this is Pottersville. Good times for all!
