Friday, January 16, 2009

Iowa Dems want to sell the Lottery

An Iowa casino operator wants to “lease” the Iowa Lottery for the next 49 years and it seems very evident that Speaker Murphy, Senator Gronstal, and Governor Culver are sold on the deal. The offer from Dan Kehl would pay more than $200 million up front and then allow the state to tax the adjusted gross revenues at 22%.

Last year the lottery provided the state with 57.2 million in profits, under the new deal the state would only would have received $22.4 million. If you ask me it seems like an awful lot to give up per year for a one-time payment of $200 or so million.

Don’t fool yourself; this is only about the one-time payment and nothing else. Our Democrat leaders are looking for a quick fix so they can continue to get reelected. I find it fully that on one hand Senator Gronstal claims there is no $600 million dollar deficit, yet he wants to sell the lottery for quick cash.

More later today.

16 comments:

  1. i see that comrade obama has declared monday a national day of service. i thought we had only one president at a time.

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  2. perhaps next he can declare the united states a satellite of soviet russia.

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  3. This is one of the most ridiculous ideas I've ever seen. I'm no fan of the lottery, I think it's a tax on those who can least afford it.

    But to sell this state asset to plug a hole that they dug is scandalous. It's akin to a reverse mortgage. You have equity in the house, but your credit rating sucks, and you can't get a loan. So, you "lease" back the ability to live in the house for a one time payment knowing that when the note comes due, you'll be out on the street and your biggest investment is gone.

    What are we going to sell after we sell off the Lottery? We will allow farmers to lease Loess Hills to grow corn for ethanol? Will we "lease" out the state parks for private development?

    I thought this issue died a quick death after it was initially announced. I was wrong. Rather than cut spending and reign in a growing list of entitlements, the money/crack addicts in the Democrat party just want more.

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  4. Krusty:

    How does the math work here? If we're $600 million in debt, and the Gov wants to add another $700 million in bonded debt to rebuild Roads to Nowhere, how does a paltry $200 million pop for selling the lottery help?

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  5. Yeah, but Krusty; we'll make that difference up with gambling revenues! ;)

    The only question is how soon the Dems can make up their excuse for changing their minds on Touchplay.


    Mark LeRette
    Muscatine

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  6. Hmmm.... Worst idea since the tobacco settlement buyout this is... Be mindful of the Dark Side. Consume you it can...

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  7. Time Value of MoneyJanuary 16, 2009 at 10:00 AM

    Do the math...the result is so dramatic I have only one word to use:

    IMPEACH!!

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  8. Krusty:

    Another question: Culver has said let's borrow $700 million and use the revenue from gaming to repay/secure the bonds.

    How can they do that if they don't own the lottery anymore?

    Am I missing something here, but aren't they using the lottery to plug a hole but also using the lottery (which they won't technically own or operate) to dig another hole?

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  9. I want to keep control of the lottery for only one reason; if we privatize the lottery we-the-people can't ever vote it out of existance.

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  10. penny wise and dollar foolish sounds to me - but then that is normal procedure for Libs who can not see past the first move in any scenario

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  11. I'd like to know more about Dan Kehl's relationship to the Governor and Dem leadership.

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  12. Forget voteing it out of existance, if we the people dont controll it who's to stop it from being expanded and made to include touch play again.

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  13. I want to find 40,000 friends who want to throw in $5,000.01 and out bid him. Everyone would have their money back in 9 years and after the next 40 we'd each clear $22k. All I need is everyone in Ankeny to jump on board.

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  14. Anon 11:17
    You'd better go into protective custody friend!
    You just did the math and went public!

    What's your interest rate? How are you compounding? I did the math earlier and the ROI was even better than you posted!

    1) Leasing the lottery to cover your ass
    200 Million Dollars
    2) Paying the loan with unknown revenue streams
    Millions on the backs of Iowa's taxpayers
    3) Giving Big Lug a HP business calculator and asking him to show us his work....priceless!

    Man, I'd pay to see the look on his face!

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  15. What is interesting is that Culvr wants to sell the lottery for $200 million ... Has anyone stopped to think that the Powerball jackpot alone is about $200 million right now? So if I win tomorrow, can I just go into the office and say "I dont want the jackpot, just give me the whole damn building and operation." You have to figure thats worth a whole lot more than the jackpot its self ... especially long term.

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  16. Anon 11:00 am..

    Funny you ask that question...

    According to records from www.followthemoney.org, Dan Kehl dropped to 25,000 on Culver/Judge on 12/09/07.

    Also..according to FEC records, he made a $250 donation to Becky Greenwald in May of 08..

    The fact that this guy has dropped 25 grand on Culver/Judge..makes this whole thing smell from the get go..

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