Latest Blagojevich FY 09 Budget Schemes

Could it be that Governor Blagojevich is coming back for a third attempt to sell public assets such as the Illinois Lottery to the private sector and use future dollars that should belong to our children's children? Based on information coming out of Springfield, that indeed may be the case, as the Governor is desperate to find a way to fund a capital construction project and increase funding for education without raising taxes. The lack of a capital spending bill will eventually cost Illinois several billion dollars in Federal funds due to Illinois.

The plan to sell the Lottery has been changed slightly this year by leasing 80% of the Lottery for a 50 year time period for a reported $10 billion front-end payment and then $200 million per year for the 20% the state would retain ownership of. Highlights of this plan would create a $3 billion fund to be spent over the coming 25 years to guarantee the funding of public education at a level of at least $600 million per year above current levels. This plan may find resonance with some legislators who are desperate for a capital plan.

The problems with this funding plan is that is it very short on detail, the Governor's lack of credibility in following through on funding agreements, and most of all the lack of support for the selling of assets such as the Lottery by Speaker Madigan and members of the House. Let's see what happens in the next couple of weeks!