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Florida Gov. suggests selling the lottery

Florida LotteryFlorida Lottery: Florida Gov. suggests selling the lottery
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Selling the state's lottery and some of its highways, such as Alligator Alley, to private companies may help solve Florida's financial dilemma, Gov. Charlie Crist said Tuesday.

Crist said he wants lottery and transportation officials to examine the potential of going private but cautioned that doesn't mean he's sold on the idea.

"I don't know if it's good or bad at this point, but I think it's important to continue to be innovative," Crist said. "It's merely an idea. It's not something I'm promoting."

State officials are looking for ways to rebalance the state's $71 billion budget due to a shortfall in tax revenues caused mainly by a slump in the housing market. The Legislature is tentatively scheduled to meet on that issue in special session Sept. 18.

Revenue collections fell nearly $400 million short of expectations in the budget year that ended June 30 and are expected to be $1.1 billion off this year.

"What I understand is that sometimes there are those in private industry who will give you significant upfront dollars, in the billions, for a lottery or for a road like Alligator Alley," Crist said.

Crist in June signed into law a bill that will let private companies build and operate toll roads. Now, though, he's looking into selling existing roads. That would result in motorists paying tolls on highways that now are free.

Crist said he has not yet talked with legislative leaders about selling either the lottery or roads.

Republicans, who control both legislative chambers, have been more willing than Democrats in the past to privatize public services including prisons and the state's personnel operation.

"I don't support his suggestion but at least he's being creative," said Florida Senate Democratic Leader Steve Geller, of Cooper City.

He said Democrats are looking into other potential revenue sources such as repealing special interest tax breaks and loopholes.

AP

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10 comments. Last comment 9 years ago by psykomo.
Page 1 of 1
Avatar
Coastal Georgia
United States
Member #2653
October 30, 2003
1866 Posts
Offline
Posted: September 5, 2007, 8:58 am - IP Logged

Uh oh.. Can RNG be right around the corner  ?

 

                               

              

 

 

    Avatar
    Northern California
    United States
    Member #19948
    August 9, 2005
    151 Posts
    Offline
    Posted: September 5, 2007, 11:23 am - IP Logged

    Florida is actually a pretty good state to run a case study on this issue.

     

    Several years back, they were allowed to raise payouts and had the expected increase in both sales and overall profit dollars as a result.

     

    This lottery has historically been run very bureaucratically - there is measurable room for efficiency improvements. UNless they have changes, I believe the bulk of lottery proceeds have historically been invested in bonds, not direct expenditures of funds. That may have an impact on the way the numbers work.

     

    These numbers will be fairly straightforward (as they would be in any M&A analysis). The wild cards are how much control would the franchise holder have? What kinds of restrictions on games, payouts, etc.?

     

    Its not a question of the industry leading vendors having access to the necessary capital (they do). The question is whether the lottery should return a lot of money up front and less over time to beneficiaries and whether the people who invest that much up front money can make a rate of return that is attractive to their shareholders. If people can put together a win-win, great.

     

    Florida has also had more than its fair share of shenanigans by "state employees". The argument that security will suffer is, I think, a fallacy.

      justxploring's avatar - villiarna
      Wandering Aimlessly
      United States
      Member #25360
      November 5, 2005
      4461 Posts
      Offline
      Posted: September 5, 2007, 11:42 am - IP Logged

      Eeek!!  Florida has already lost most of its wildlife.   If Alligator Alley is not protected there will be very little undeveloped land left in South Florida.  The toll is already $5 to go back & forth to Miami or Fort Lauderdale. That's not including the gas and the tolls on the FL Turnpike. 

      Often privatization means better money management, but at what cost to the public?  I actually believed that privatizing medicare was a good thing, because the premiums were so cheap (often zero) and went to work for a medicare advantage plan.  Then soon learned that some of the private companies were doing everything possible to increase profit, which included denying claims or providing lousy customer service. I've always supported anything that will put less government in my livingroom, but in some cases, strict regulations need to be in force and that goes for the lottery as well.

      I knew this would happen if we got another Bush in office.  (Yes, I know Charlie Crist is the Governor of Florida.  I vote!!  He was Jeb's Attorney General.  Same ol', same ol'. )  Privatization always sounds good at first.  People are convinced that these corporations will come to our rescue and bail us out of financial difficulty, but greed & corruption are just as prevalent in corporations, with greedy CEOs who only care about the bottom line. The difference is the citizens can't vote them out of office. If there was a better way to control & regulate the white collar crime that led to the Enron scandal, I might reconsider my point of view. 


        United States
        Member #16612
        June 2, 2005
        3493 Posts
        Offline
        Posted: September 5, 2007, 1:02 pm - IP Logged

        Why did they want to sell the lottery? I hope it's not computerized.

          Avatar
          Coastal Georgia
          United States
          Member #2653
          October 30, 2003
          1866 Posts
          Offline
          Posted: September 5, 2007, 2:22 pm - IP Logged

          Why did they want to sell the lottery? I hope it's not computerized.

          To avoid financial problems later in life.

           

                                         

                        

           

           

            wizeguy's avatar - animaniacs04

            United States
            Member #15143
            May 10, 2005
            414 Posts
            Offline
            Posted: September 6, 2007, 5:22 pm - IP Logged

            To avoid financial problems later in life.

            I hope they choose annuity.

              psykomo's avatar - animal shark.jpg

              United States
              Member #4877
              May 30, 2004
              5124 Posts
              Offline
              Posted: September 6, 2007, 7:32 pm - IP Logged

              Selling the state's lottery and some of its highways, such as Alligator Alley, to private companies may help solve Florida's financial dilemma, Gov. Charlie Crist said Tuesday.

              Crist said he wants lottery and transportation officials to examine the potential of going private but cautioned that doesn't mean he's sold on the idea.

              "I don't know if it's good or bad at this point, but I think it's important to continue to be innovative," Crist said. "It's merely an idea. It's not something I'm promoting."

              State officials are looking for ways to rebalance the state's $71 billion budget due to a shortfall in tax revenues caused mainly by a slump in the housing market. The Legislature is tentatively scheduled to meet on that issue in special session Sept. 18.

              Revenue collections fell nearly $400 million short of expectations in the budget year that ended June 30 and are expected to be $1.1 billion off this year.

              "What I understand is that sometimes there are those in private industry who will give you significant upfront dollars, in the billions, for a lottery or for a road like Alligator Alley," Crist said.

              Crist in June signed into law a bill that will let private companies build and operate toll roads. Now, though, he's looking into selling existing roads. That would result in motorists paying tolls on highways that now are free.

              Crist said he has not yet talked with legislative leaders about selling either the lottery or roads.

              Republicans, who control both legislative chambers, have been more willing than Democrats in the past to privatize public services including prisons and the state's personnel operation.

              "I don't support his suggestion but at least he's being creative," said Florida Senate Democratic Leader Steve Geller, of Cooper City.

              He said Democrats are looking into other potential revenue sources such as repealing special interest tax breaks and loopholes.

              THIS is ALL>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

               PartyPartyParty

               "FANTASTIC"

              and>>>>>>>>>>>>>>>AMAZING

              PUR psykomo can't even afford a G@@D boat these DAY's because all the republican's

              and democrat's are running UP the PRICE of YACHT's all

              over the WORLD...............in FLORIDA>>>>>>>>>>>>>>TOO!

              have any U people

              in the great state of

              FLORIDA.........checked out the PRICE of MEGA-YACHT's lately??

              REALLY sorry the poor state is having a finance PROBLEM>>

              LOL>>>>>>>FL>>>>>>>>>JOIN the MEGA-MILLION lottery!

              $$$$$$$$$$$$$$$$$

                psykomo's avatar - animal shark.jpg

                United States
                Member #4877
                May 30, 2004
                5124 Posts
                Offline
                Posted: September 6, 2007, 9:16 pm - IP Logged

                Eeek!!  Florida has already lost most of its wildlife.   If Alligator Alley is not protected there will be very little undeveloped land left in South Florida.  The toll is already $5 to go back & forth to Miami or Fort Lauderdale. That's not including the gas and the tolls on the FL Turnpike. 

                Often privatization means better money management, but at what cost to the public?  I actually believed that privatizing medicare was a good thing, because the premiums were so cheap (often zero) and went to work for a medicare advantage plan.  Then soon learned that some of the private companies were doing everything possible to increase profit, which included denying claims or providing lousy customer service. I've always supported anything that will put less government in my livingroom, but in some cases, strict regulations need to be in force and that goes for the lottery as well.

                I knew this would happen if we got another Bush in office.  (Yes, I know Charlie Crist is the Governor of Florida.  I vote!!  He was Jeb's Attorney General.  Same ol', same ol'. )  Privatization always sounds good at first.  People are convinced that these corporations will come to our rescue and bail us out of financial difficulty, but greed & corruption are just as prevalent in corporations, with greedy CEOs who only care about the bottom line. The difference is the citizens can't vote them out of office. If there was a better way to control & regulate the white collar crime that led to the Enron scandal, I might reconsider my point of view. 

                certainly not AAALL

                    "WILDLIFE"

                THE politician's can ALWAY's  go to  SE' ALICE ...........!!!

                PartyBedPartyPartyJack-in-the-BoxConehead>>>>>>^^^^^   CoffeeDanceCoffeeSad CheersBed

                  psykomo's avatar - animal shark.jpg

                  United States
                  Member #4877
                  May 30, 2004
                  5124 Posts
                  Offline
                  Posted: September 8, 2007, 12:10 pm - IP Logged

                  THIS is ALL>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

                   PartyPartyParty

                   "FANTASTIC"

                  and>>>>>>>>>>>>>>>AMAZING

                  PUR psykomo can't even afford a G@@D boat these DAY's because all the republican's

                  and democrat's are running UP the PRICE of YACHT's all

                  over the WORLD...............in FLORIDA>>>>>>>>>>>>>>TOO!

                  have any U people

                  in the great state of

                  FLORIDA.........checked out the PRICE of MEGA-YACHT's lately??

                  REALLY sorry the poor state is having a finance PROBLEM>>

                  LOL>>>>>>>FL>>>>>>>>>JOIN the MEGA-MILLION lottery!

                  $$$$$$$$$$$$$$$$$

                  NEW's^^"FLASH"

                  All lottery player's check-in w/yo Yacht Broker!

                  50 footer's R going for a fair price $

                  75 footer's R going for a good price $$

                  100++footer's thru the ROOF (time to FLIP)$$$$$

                  LOL on your "new" jackpot' $$$$$$$$$$

                  PSYKOMO

                    psykomo's avatar - animal shark.jpg

                    United States
                    Member #4877
                    May 30, 2004
                    5124 Posts
                    Offline
                    Posted: September 18, 2007, 4:22 pm - IP Logged

                    NEW's^^"FLASH"

                    All lottery player's check-in w/yo Yacht Broker!

                    50 footer's R going for a fair price $

                    75 footer's R going for a good price $$

                    100++footer's thru the ROOF (time to FLIP)$$$$$

                    LOL on your "new" jackpot' $$$$$$$$$$

                    PSYKOMO

                    ????????????..................has Gov. CC put the lottery

                    on the auction BLOCK ............YET????

                     I've heard he has a

                          "BIG ONE"

                    on order already.....deliver date (can't tell secret)!!!