As part of the May Revision to his 2008-09 Proposed Budget, the Governor proposes to sell $15 billion of bonds that would be repaid with future lottery revenues. The Assembly's budget also assumes the sale of $15 billion of bonds backed by lottery proceeds. Both proposals assume that lottery revenues can be substantially increased over a relatively short period. A new CBP Budget Brief examines the assumptions regarding increased lottery sales, whether the California lottery is underperforming, and policy issues raised by lottery bond proposals.

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