Includes video report
INDIANAPOLIS, Ind. — Less than a week after an Indiana TV station broke the story that the Hoosier Lottery overpaid for new offices, lottery officials are making some changes. In a news conference Wednesday lottery officials admitted mistakes were made.
The Hoosier Lottery admits it did not follow state rules when it moved into a new multi-million dollar headquarters on Meridian Street.
The WTHR segment called "13 Investigates" first exposed the lottery's fancy new offices and that investigation is now prompting change. Lottery officials admit they overspent in decorating their new offices, and now they plan to get rid of some of the most costly amenities.
Last week 13 Investigates recorded video inside the lottery offices for the very first time, showing the lottery's many conference rooms filled with brand new furniture, a massive break room with $800 bar stools and flat screen TVs, and even a workout room worth brand new state-of-art equipment costing more than $25,000.
The lottery commission and the lottery director met with reporters to say they made an error in judgment by not closely watching their expenses. Lottery officials say they did not follow rules set by the Department of Administration and as a result, the entire workout room is being closed down.
"It was an error in judgment and we'll take the necessary actions to get that back into compliance. We're talking specifically about the workout room. We'll either find other places to use that equipment or we'll sell that equipment. We'll find an appropriate use for that space," said William Zielke, Hoosier Lottery Commission chairman.
Zielke says he wasn't even aware of some of the costly purchases made for the new offices until he saw them on television.
He says every purchase related to the move will now be scrutinized closely, something that commissioners admit had not been happening. Who's responsible for all the elaborate amenities that ran up the bills for the new headquarters?
"The decision to make those purchases were made by Kathryn Densborn [the lottery's director] and/or her staff," said Zielke.
Earlier this month, Densborn proudly showed 13 Investigates around the new headquarters. Wednesday, she looked much more serious as she answered questions about a workout gym that is being shut down and other costly purchases she made for the lottery's new offices.
"Would you say this was an error in judgment?" she was asked.
"Well, sure. I think I would. We're here today to say we're gonna fix," said Densborn.
LOL.
Of course it was "an error in judgement" and they're going to fix it right away. Why? Because they got caught, that's why. Otherwise they'd have been fighting over who's hogging the Elliptical Himalaya Simulator.
But now it's time to point the finger at their fellow employees and say "She did it, not me!" "The decision to make those purchases were made by Kathryn Densborn [the lottery's director] and/or her staff," said Zielke. Ha, ha, like rats from a sinking ship.
"It was an error in judgment and we'll take the necessary actions to get that back into compliance. We're talking specifically about the workout room. We'll either find other places to use that equipment or we'll sell that equipment. We'll find an appropriate use for that space," said William Zielke, Hoosier Lottery Commission chairman.
Ha ha, I love that line! "We'll find other places to use that equipment..." What the hell does that accomplish? Where ya gonna use it, at home? Some other government hack's office complex? The problem was the unmitigated gall you had in buying that equipment - not where you're going to use it!
I bet those $800 barstools would look good in your Mancave though.
But seriously, I know somebody who's trying to dump a $49,000 Mercedes Sprinter Van if you wanna make a trade.
Government IS the problem ............. almost every time !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Good luck to all in Saturday's Powermillions !
WOW, wonder what other perks they gave themselves ?
Very well said Ridge
I cant say it better than that
Those same lines you highlighted jumped out at me also when I read the article
I dont think I will eat breakfast this morning.........I dont know if I could keep it down or not........
This is a darn shame, when they make it hard for us lottery players to win, they ned to give back to the players not be greedie,, shame shame val8
I like the way Zielke threw Densborn under the bus!!! That was so priceless the look on her face when he dimed her out! Yes, government officials aren't the best economizers. If given a budget, most government agencies look for ways to blow through that money. Buying items at inflated prices and occupying a space too large for needs...classic government waste. I also recall a certain someone who said HE would scrutinize every line item on budgets presented by Congress. We know that hasn't happened either. Government, smovernment...I think people who are responsible for mistakes like this should have their pay docked. That is not an outrageous thing. For example, if a Navy ship captain's ship runs aground or collides with anything, that person loses command of that vessel and their career in the Navy is over. Thanks for coming and serving, now have a nice day. I wonder what the repercussions are for this lady? Enquiring minds want to know. If she just got embarrassed, I don't see how this would prevent this sort of thing from happening on such a grand scale again.
This particular article doesn't mention it but there is a total est of 83 employees working in that headquarters and I doubt all of them go into work at the same time. Excessiveness would be an understatement.
Hoosier Lottery should covert to an education-fund lottery so we don't have this kind of nonsense.
What's really fascinating is how I've seen articles about soaring profits with lotteries that solely use RNG.....why not use the big bucks and buy ping pong ball hoppers and give the people what they want
....I have a hard time believing a lottery agency can't afford to draw balls from their own building.
Roger that!
Salutation is let's all stop buy lottery tickets...thought so...
Fantastic comment!
Lets hope Channel 13 Investigation stays on top of this story. They need to do monthly followup stories. This is the EXACT type of story that needs to be in the news weekly to help keep ALL government employees and officials 'wary' about what they are doing.
But this raises another question - 'Why didn't someone who WORKS in the building question this?' Maybe they are the ones that tipped off the news channel?
its rather simple, lottery had to much of a new building and stuff to put in budget given to dumbass's in planning depertment
they said we have x left for this budget, lets go out and buy some !, YAAAAAAAAAAAAA
and this is result
i wish instend they would of used the left over cash, and just added it to marketing budget
then again seeing as people even have issue with say a state buying a van to market the lottery, i guest we never make anyone happy
thro i do think the workout room it self is valid use of money, promoting workers to exerise to keep future health costs down, makes good long term business sense.
thro they could of 100% of never used all mirror, or went out and got cheapest mirrors possible.
but thats govt planing department, even lottery spending department for you, give them money to spend, and boy will they spend it all if not go over budget rofl.
i really think getting rid of exerise room is mistake. news should be shamed of them selfs for promoting people being lazy and fat slobs
Yet another unnecessary "news" story. The new purchases shown in this video were reasonable for their employees and business meeting employees and guests -- over at least a 15 year business use plan. Certainly, they all appear to be fixtures and furnishings that will last 15+ years (and are probably all warrantied as such). It looked similar to the way most modern offices have been furnished and decorated during the past 10 years, in regards to my extensive office visiting experiences.
This state's lottery headquarters purchasing department office may have been over charged, up to 25%, for the chairs and the massive work-share table, with several power, phone, and Internet outlets (due to improper price deduction negotiations, but not too bad as they are sturdy and will last for 15+ years). I think that the employees exercise and strength training equipment should be kept and half of the mirrors returned (if those were expensive; don't return if not though). The lottery's purchasing department negotiator could call the equipment provider and inform them that they would like them to include a free 10 year maintenance, with free replacement and installation for breaks, contract for each piece of purchased equipment.
The way to make the building's ownership pay for itself is to indeed do what was stated at the end of this report. Rent out all of the space that isn't used by the lottery staff immediately ... and for the places that will be used by the lottery that haven't been furnished, be VERY careful with the amounts paid for furnishings and fixtures!!
Slip of the tongue?
"Well, sure. I think I would. We're here today to say we're gonna fix," said Densborn.
Ummm, they always SHOULD use other language but they never seem to understand English well after running a Lottery? Add this to the list of most curious answers by Lottery Directors in Public:
1. NYS Lottery Director Jeff Perlee (Who was fired by George Pataki and went to Illinois Lottery shortly after this comment)...when asked when Triples might play after being out almost a year: "Play more."
2. California Lottery Director when asked by the legislature why the fast keno game could break the bank: "We do certain things to make sure that can't happen."
Now Indiana joins!
Hoos-ya daddy?!?! lolol
There's an old saying that is largely true which I've added to a little bit at the end:
Those who can do the job - do it.
Those who can't do the job - teach it (or get a job with a government agency).