Gov. Mike Easley’s proposed budget for FY 2002-03 includes $250 million in revenue from a state-run lottery that has yet to be enacted. Among many legitimate objections to the administration’s idea are that expected net revenue is inflated by between 37 percent and 62 percent – creating a hole in the budget of as much as $96 million — and that the administrative costs of the lottery tax exceed both the cost of alternative taxes and any revenue “loss” to out-of-state lotteries.
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