Gov. Wolf’s budget proposal Tuesday called for a modernization of State Stores to generate $185 million in additional annual profit by fiscal 2018.
The dramatically increased profits would be used to make payments on a $3 billion bond issue designed to help close the $30 billion gap in the Pennsylvania Public School Employees’ Retirement System, according to Wolf’s plan.
Under it, the Pennsylvania Liquor Control Board, endangered by Republican talk of privatizing the system, instead would have a monumental task – assuming it gains General Assembly approval.
Based on the system’s profitability in the year ended June 30, gross revenue from the state’s 600-plus wine and spirits outlets would have to soar to $5.7 billion in fiscal 2018 from $2.3 billion in fiscal 2014 to generate an additional $185 million in profits.
English: Pennsylvania Lottery official logo, which includes tagline, “Benefits Older Pennsylvanians. Every Day.” (Photo credit: Wikipedia)
HARRISBURG, Pa. (AP) – The Britain-based company that runs the national lottery in the United Kingdom is pledging to produce more than $34 billion in profits over 20 years if it wins a contract to manage the Pennsylvania Lottery, Gov. Tom Corbett‘s administration said Tuesday as it moves toward privatizing the state’s $3.5 billion system.
The administration said it will weigh the offer by Camelot Global Services, which it said is good until Dec. 31, and is the only one it said it will receive after two other companies that it would not identify dropped out.
The revelation of the bid was the first time that Corbett has disclosed the identity of an interested party since it announced in April that it would explore privatizing the lottery in an effort to raise more revenue for the programs for the elderly that are supported by the Pennsylvania Lottery. Other states, such as Indiana and New Jersey, have shown no need to keep such secrets while exploring private lottery management contracts.