New Budget Brief: Gambling on the Future: Should California Privatize the State Lottery?
Friday, June 08, 2007
- Organization: California Budget Project
California Budget Project
June 8, 2007
In conjunction with his May Revision to the 2007-08 Proposed Budget, Governor Arnold Schwarzenegger proposes to lease the state lottery to a private contractor. A new California Budget Project Budget Brief, "Gambling on the Future: Should California Privatize the State Lottery?," finds that:
- Any attempt to boost lottery sales would implicitly increase the amount that low-income Californians - who already pay the largest share of their income for state and local taxes - pay for public services, since lower income households disproportionately purchase lottery tickets;
- Increased lottery sales would likely lead to a reduction in state sales tax revenues and other revenues attributable to consumer purchases; and
- Despite the Governor's promise that a long-term lottery lease would maintain support for education at present levels, it is unclear whether potential increases in lottery sales would generate additional funding for schools.
This Budget Brief is available at www.cbp.org.
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From the California Budget Project
1107 9th Street, Suite 310
Sacramento, CA 95814
Jean Ross, Executive Director
ph: (916)444-0500 fax: (916)444-0172
Email: cbp@cbp.org
Independent analysis to improve the lives of low- and middle-income Californians
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