Privatize the California Lottery?

California state spending rises faster than revenue, and nobody wants new taxes.  Programs for the most needy people get cut first.  Governor Schwarzenegger says privatizing the state lottery could raise up to 37 billion dollars.  That could be enough to pay down 8 billion dollars in debt, start new public works projects and pay for universal health care.  The LA Times says Democrats are skeptical, but that the promise of all that money puts them in a bind.