Really, I thought I had seen everything, but — at least so far — this takes the cake. WBZ reports the following on Tim Cahill’s Speech this morning
Massachusetts Treasurer Timothy Cahill not only wants the state to think about licensing slot machine parlors, but also the state lottery.
The treasurer says selling a 50-year license could generate up to $1 billion immediately, plus another $900 million annually, for the cash-strapped state.
Cahill told the Greater Boston Chamber of Commerce on Wednesday he would use the money — and several billion more from licensing and taxing the slot machines — to replenish the state’s rainy-day fund, shore up unfunded state retiree debt and provide a nearly $1 billion endowment for the University of Massachusetts.
The treasurer oversees the lottery. He says its revenues would fall 3 percent to 8 percent annually if gambling was expanded in Massachusetts.
Cahill ADMITS that predatory and highly addictive gambling will gut the lottery, and THEN proposes privatizing the lottery?
We should call this the “Cahill Swaption Option” — without knowing the details, it sounds like the same kind of crazy idea that led the Turnpike into the mess that’s in – basically swapping money up front for a long-term and much higher payout. What is truly weird is that he seems to want to do this BECAUSE the lottery will be in trouble BECAUSE of the predatory gambling that HE is proposing.
I really don’t get it. Talk about a casino capitalism gimmick.
What other names could we come up with? Let’s hear yours!
Maybe we could call it the “reverse Whimpy” – “I will take money today for a hundred hamburgers next Tuesday”
Land of Oz state financing?
And — by the way — one of the main (early) arguments for having the state run the lottery was to eliminate organized crime from gambling. How well do you think this will work if we put it back in “private” hands?
Do you think he’s running for governor? I have assumed he would not challenge Deval, but now I wonder.
I think Cahill is “keeping his options open”. I doubt he’d run against Deval if things stay the way they are, but if Deval dips significantly, Tim jumps in.
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p>I’m not sure of the details, but this could actually be a smart idea:
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p>1. Sell off license to run the lottery based on current receipts;
2. Open slot parlors, which takes out the legs from underneath the lottery;
3. Make more off license fees than you would have from running a lottery that is competing with slots.
privatizing has a history of not working. It ends up costing more and we get less.
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p>But even worse, privatizing something like the lottery is just an excuse to a) gut employee benefits and b) make the lottery more addictive and costly to addicts than it already is — without the state’s image taking a hit, because then they get to see “it’s not our fault!”
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p>Um, yeah, it is.
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p>We’ve seen this happen everywhere from military hospitals to road construction to health insurance to college cafeterias. Privatizing often makes things worse. The state lottery system already bleeds enough people dry – per capita, it’s the most successful system in the US and probably on Earth. (One that Cahill’s mismanaged.) We don’t need to privatize it.
Privatization doesn’t work. But it does work if you get the private sector to pay way more for something than its value.
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p>If Cahill can get the private sector to take over the lottery before he opens up slots, then the state can make more money off of the fees than it would off of the post-slot lottery.
you ignore the fact that this is a way to excuse making the lottery more addictive and costly for citizens.
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p>Sometimes, there’s something more than than corporate black and red when it comes to value. We don’t need a lottery/slot cold war on who can addict the most citizens of Massachusetts.
I was arguing from a fiscal standpoint. Morally, you and I are in agreement — you know where I stand on gambling.
haven’t we had enough of selling to people at a price greater than value?
The state’s current annual take from the lottery. So the premise is, the private sector will do it cheaper and return the same amount? Hard to believe.
that Cahill is basically saying someone other than he should run the Lottery.
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p>At this point, I agree about that.
Don’t you know that the Dewson Road Duesy is just starting his primary campaign to run against Deval Patrick. He will have as much luck as that other Quincy resident, Frank Bellotti. At least Bellotti made his move because the word had been passed to him that Bobby Kennedy was going to enter the race for governor in ’62. Two year terms only back then.
Then again, to quote Bobby Kennedy, “Ambition is only wrong when the other guy has it…”
http://www.ryanstake.net/2009/…
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p>All I can say is “run, Cahill, run.” I look forward to Deval Patrick crushing him in 2010, with Cahill then out of office. Probably for good.
Tim has turned into an interesting Treasurer to say the least, anyone see any hard facts about how the Lottery sales are doing this year? Is this a move to raise desperately needed cash so he does not have to cut the payouts to City and towns or layoff his staff to make ends meet in the Lottery? All this just when he is hopping to move up, seems like he needs to do more prepping for a new office not vacate the place in shambles. What about the state retirement system Tim rode high when his new managers were making big returns (suspect) the Boston Globe had a little tidbit awhile ago about Madoff making off with some of it, there was going to be a more in-depth report to see just how much and through whom it flowed any one see that yet? This sounds like way too much baggage for a real run, unless he is trying to stay one step ahead of bad news. I guess we will see but his chances against Deval seem slim and as an independent LOL Mihos 2 and a conservative Dem to boot Maybe he will chose Diane Wilkerson as a running mate? Sad very sad hope he wakes up from this dream and works hard to fix the treasury before he wants to try and convince anyone he has the track record to move up. We just don’t need a seat warmer in the corner office we need someone willing to go out on limb to get things done in tough times. Tim the Treasurer to Tim for Governor just leaves me scratching my head, just doesn’t ring true.
Survey USA showed last April that Deval was barely above 40%, a terrible position for an incumbent running for re-elction, he had only 53% of Democrats for him, 60% of independents against him. Remember MA has open primaries so independents could concievably vote against Deval in the primary even if he retains the support of most Democrats. If Cahill appeals to enough Democratic-leaning independents and the 41% of Dems that disapprove of Deval than he could actually topple him. Recent polling has shown an enormous opposition to the raised gas tax.
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p>Also fundraising numbers are telling, a Herald article showed that Lt. Gov Murray topped the list, with Devals numbers lagging. To be fair Cahill is also lagging behind Deval but his fundraising numbers are going up, not down. He could prove to be a credible challenger. Lastly Cahill could get the support of many state reps and senators out West and on the Shores who are in more conservative blue collar Democratic districts. In any case it would be a bloody battle.
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p>Even if he doesn’t beat Patrick, Cahill could bloody him enough to allow a self-financed GOP nominee like Baker, especially if nobody contends the nomination, to remain above the fray looking like the reform and change candidate while the Democratic party eats itself alive.
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p>Certainly that is not the outcome I want, but I think your faith in Devals ability to “crush Cahill” is misplaced. Hopefully Deval can start governing again when he comes back from vacation…
That 40% is now 28%… Approve/disapprove among Democrats, Independents and Republicans respectively are 42/53, 18/78 and 17/83.
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p>Not pretty numbers. This may be what’s motivating Cahill…