States across the nation are scrambling to cut costs and generate revenue. One solution is to lease the actual infrastructure that is usually managed by that state. You know, bridges, roads, beaches, parks, and even the lottery are all up for grabs.
And leasing those assets to private firms pays off well. New York state is considering leasing its state lottery for a 4 billion dollar payment upfront. Illinois has already approved privatizing its state lottery to raise 10 billion dollars to improve and expand the state’s infrastructure. That will just create roads and bridges that can be leased for more money.
But where are these private firms with billions of dollars to lease bridges and roads? Hey…maybe some of the bailout money will help buy a bridge that our tax dollars helped to build and maintain. Wait…that doesn’t sound right…
Here’s more, from The Associated Press:
- Nationally, Wall Street investment houses have courted more than a dozen states to lease state lotteries to private investors. The Illinois House last month approved a plan to raise $10 billion for building roads and schools by privatizing its state-run lottery for half a century, with the Senate scheduled to vote on the measure this fall.
- While leasing toll roads is more common in Europe and Asia, a handful of states have experimented with the notion.
- In June 2006, an Australian-Spanish partnership paid $3.8 billion to lease the Indiana Toll Road and $1.83 billion to lease the eight-mile Chicago Skyway.
- That same month, an Australian company bought a 99-year lease on Virginia’s Pocahontas Parkway, and Texas officials decided to let a Spanish-American partnership build and run a toll road from Austin to Seguin for 50 years.
Read the full story here.
