Financial Times FT.com

Schwarzenegger relies on lottery for bail-out

By Matthew Garrahan in Los Angeles

Published: May 15 2008 01:41 | Last updated: May 15 2008 01:41

Arnold Schwarzenegger is looking to California’s lottery to solve the state’s budget crisis and wants to raise billions of dollars by selling bonds backed by future profits from the game.

With the slump in the property market and an economy that is nearing recession, the governor revealed on Wednesday that state revenues had fallen $6bn, leaving California facing a projected deficit of $24.3bn.

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