Discussion About Leasing The Iowa Lottery

As you likely have heard, there is discussion underway about the possibility of leasing the Iowa Lottery to private investors in exchange for a one-time, lump-sum cash payment plus a tax on annual lottery sales.
 
The discussion stems from state leaders’ continued analysis of possible ways to address the state’s budget shortfall amidst the national economic recession.
 
On Wednesday, Governor Chet Culver’s Office released the following statement:
 
“To begin, faced with a world-wide recession and historic economic challenges, the Culver/Judge Administration is exploring every option to close the budget gap without raising taxes on Iowans. The Governor has met with individuals interested in leasing the State's lottery as one way to meet this goal. A lease of the lottery is one of many alternatives the Governor has on the table for consideration as he balances the budget and holds the line on taxes during this national economic downturn.”
 
Click here to read some of today’s media coverage.
 
The idea of selling or leasing the lottery has been discussed in several states across the country for at least the past three years. There are proponents on both sides of the issue. The ultimate decision about what will happen here in Iowa will rest with the governor and the Iowa Legislature, which begins its 2009 session on Jan. 12.