Christie privatizing NJ lottery not working out that well

[Snowboarder_Bo]

[

Higher costs associated with the private company that Christie hired, Northstar New Jersey, have cut the state’s income for the second straight year, creating a $136 million shortfall in the state’s 2015 budget, according to internal documents obtained by The Associated Press. The results are poor enough that the state is entitled to fire the company if its performance doesn’t improve in the current fiscal year.

](http://hosted.ap.org/dynamic/stories/U/US_GOP_2016_CHRISTIE_LOTTERY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-09-14-15-45-15)It’s not all doom & gloom, tho; some people have made out just fine:[

Christie’s push benefited some key political allies. During its ultimately successful pursuit of the state’s business, Northstar New Jersey hired the communications firm of Christie campaign strategist Mike DuHaime. The law and lobbying firm of former Port Authority chairman David Samson received $460,000 for lobbying on behalf of Northstar between 2012 and the end of last year.

The Record of Bergen County first reported New Jersey’s shortfalls on Sunday. According to the paper’s analysis of Northstar’s contracts, New Jersey will likely pay the company around $100 million for its services in the year that ended in June.

](http://hosted.ap.org/dynamic/stories/U/US_GOP_2016_CHRISTIE_LOTTERY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-09-14-15-45-15)
The spin is revving up to like 7800 RPM, it seems:[

“The lottery is better off today with Northstar implementing sales, marketing and advertising services than when it was being managed exclusively by state employees,” lottery spokeswoman Judith Drucker wrote in an email to the AP.

](http://hosted.ap.org/dynamic/stories/U/US_GOP_2016_CHRISTIE_LOTTERY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-09-14-15-45-15)But is it?[

Before hiring Northstar, New Jersey’s lottery enjoyed unmatched efficiency compared to other states, keeping 34 cents in profit from every $1 in ticket sales. Under Northstar, expenses rose, sending profit margins down to 30 cents on the dollar for the 2015 fiscal year’s $3 billion in revenue.

](http://hosted.ap.org/dynamic/stories/U/US_GOP_2016_CHRISTIE_LOTTERY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-09-14-15-45-15)
The full article, btw, details that the state will pick up the tab for at least $122 million of the $136 million in losses and that although Northstar could be fired, it would be “troublesome” to do so.

I’m glad I don’t live in New Jersey and very glad that Chris Christie will not ever be POTUS.

[Claverhouse]

“The lottery is better off today with Northstar implementing sales, marketing and advertising services than when it was being managed exclusively by state employees,” lottery spokeswoman Judith Drucker wrote in an email to the AP.

To be fair, she’s not lying: she didn’t say the state is better off, but that the lottery is.
Since the lottery is the company, and Northstar doesn’t seem to be suffering…

It’s not all doom & gloom, tho; some people have made out just fine:

Privatizers usually make out like bandits.