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End Lottery Management Privatization Plan Now

October 1, 2013- Howard Ondick
HARRISBURG- With transportation funding, Medicaid expansion and many other important issues facing the state legislature this fall, Senate Democrats say the governor’s attempt to privatize the management of the state lottery should come to an end.

Gov. Corbett is midway through his 10th extension with Camelot Global Services on its bid to take over the management of the Pennsylvania State Lottery. The company’s original bid was set to expire at the end of last year.

A two-month extension -- the tenth such extension -- was reached with the United Kingdom-based company at the end of August. It expires October 29th.

The Corbett Administration said the extension would give it more time to “refine contract language and explore and review options for maximizing lottery profits for senior citizen programs long-term.”

However, nothing has been proposed by the administration since making that statement in August.

Senator Solobay and Senator Washington both say it’s time for the governor to end his bid to privatize the lottery’s management and turn his attention to more important issues facing Pennsylvania, such as transportation funding, Medicaid expansion, education funding and improving the state’s underfunded job creation programs.

The senators say the governor’s bid to privatize the state lottery is already costing senior citizens money because the state is on the hook for a consulting fee that – at last check – is estimated at more than $3.5 million and will have to be paid out of lottery funds even if the state abandons its bid to privatize the lottery’s management.

Senator Washington and Senator Solobay both agree that those funds could be better spent on senior citizen programs such as the PACE and PACEnet prescription drug programs rather than hiring a consultant to find a new manager for a state program that’s working well and setting new revenue records each year.

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