Republican Attacks Schwarzenegger Privatization

24 de may de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Republican Attacks Schwarzenegger Privatization</h1><p>May 24 (LPAC)--Schwarzenegger's first move for privatization came under attack from an "old- fashioned" GOP conservative, who denounces the Guvernator as "the pitch-man" for Goldman Sachs/Lehman Brothers, according to today's Sacramento Bee. As EIR predicted (see EIR, Jan. 20, 2006,), Arnie is using the coming budget shortfall as a pretext to begin privatizing state assets. His first such move is a proposal to privatize the state lottery system. As leaked by his office, the plan calls for the state to turn over the California lottery and monopoly control over lottery gambling in the state to a private consortium, in a 40-year lease. In return, the consortium would give the state approximately $37 billion. $22 billion of that would go to an endowment fund which will guarantee the schools about $1.1. billion per year, or what they are currently getting from the lottery; the other $15 billion would be used to make payments on the bonded debt accrued by Arnie to pay down deficits.</p><p>This obviously doesn't sit well with leading Republican State Senator Tom McClintock, who considers himself to be the guardian of fiscal conservatism in the state. McClintock made two points in his op ed in today's <em>Sacramento Bee</em> . First, that at the rate the budget deficit is growing, the $15 billion surplus from the lease will be used up in 2 1/2 years. Secondly, and more important, is that he identifies this as a "Goldman Sachs/Lehman Brothers proposal," for which "the governor is the pitch-man." The proposal, he continues, represents the "feverish efforts by a small contingent of politically well-connected and financially well-heeled investment bankers to take over the state's lottery monopoly.... But while it [the lottery] exists under the terms of the voter-approved lottery act, the state government has the responsibility to maximize its returns for support of the schools -- and not Lehman Brothers."</p><p>In commenting on this, Lyndon LaRouche said this is an example of the difference between McClintock's misbegotten commitment to "fiscal conservatism" and Arnie's -- and his sponsors, Shultz' and Rohatyn's -- preference for outright thievery!</p></div></body>