Lottery Renewal Needed Before Arizona Can Borrow

Summary

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The odds of winning the Arizona Lottery's big jackpot are about one in 175 million. The odds that lawmakers will sell off future lottery revenues for a quick cash infusion are exponentially better.

As lawmakers ponder how to fix a fiscal 2011 budget deficit that is expected to top $2 billion, many are viewing lottery securitization as a last resort whose time has come. The state is already mortgaging assets such as the House and Senate buildings to fix the fiscal 2010 budget, and Gov. Jan Brewer's proposed sales tax increase may not be enough to bridge the gap, if it ever happens at all.

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Lottery Renewal Needed Before Arizona Can Borrow

Under securitization, the state would take a lump-sum payment in exchange for annual future payments. Before she left for Washington D.C., Gov. Janet Napolitano penciled in $500 million from lottery securitization in her January budget proposal, and Brewer included a $450 million securitization plan in her June budget proposal, with the state repaying about $45 million ...

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