Confirmation of lottery board may be stymied by large payroll

Dec 10, 2003, 7:11 am (Post a comment)

Tennessee Lottery

Confirmation of the states lottery board could become a divisive political issue when the legislature returns next month.

Both houses of the state legislature must approve the seven Tennessee Education Lottery Corporation board members, appointed by Democratic Gov. Phil Bredesen in June. The state House and Senate will have 30 days to do so after convening here Jan. 13.

Some lawmakers have been critical of salaries set by the lottery board, particularly of CEO Rebecca Paul. Paul could receive up to $750,000 if she meets all incentive goals set for her. Additionally, Bredesen at one point expressed distaste to reporters regarding Pauls hiring of three employees at $180,000 a year she recruited from her former employer the Georgia lottery.

I think it will be an issue, said state Sen. Ron Ramsey (R-Blountville), Senate Republican chairman, of the confirmation. The concern to me are these salaries, which are the top salaries in all state government. & Speaking with constituents, one of the big issues & are these exorbitant salaries.

Ramsey says when the legislature convenes the board should be questioned prior to the necessary confirmation.

That will be a time when our legislators will have a time to voice their opinions, he said. It wont be a rubber stamp.

State Rep. Bill Dunn (R-Knoxville) sent a letter to board members last week asking that a meeting between the lottery board and lawmakers be arranged to explain salary levels prior to the confirmation process.

Whether I vote for [the appointees] will all depend on how our meeting goes, he said. Before we confirm I want to be informed.

Dunn says hes particularly concerned about salary increases going forward.

More importantly I want to find out next year what are their plans and if they continue to pay [Paul] that much, he said.

Lottery spokesperson Kym Gerlock says Dunns office has been contacted and a meeting could be scheduled.

I know that thats come up using the confirmation as perhaps a way to discuss other issues with the lottery, said Gerlock. I would hope any legislators would contact us with questions.

State Sen. Steve Cohen (D-Memphis), who worked for roughly two decades to establish the states lottery, says most issues raised during the confirmation process would be by those who opposed its passage.

I think there will be some political posturing by some people who were never for the lottery in the first place, he said.

Pauls selection was the best the lottery board could have done and first ticket sales would likely occur prior to the Feb. 10 deadline, said Cohen.

State House Minority Leader Rep. Tre Hargett (R-Bartlett) doesnt think the confirmation would be opposed along party lines.

I think the issues not going to be on a partisan basis, he said. I do think there are some people who want to start it off on the right foot and it will be a good time for everybody to have conversations with the board members.

Rep. Beth Harwell (R-Nashville), who has been critical of lottery salaries, doesnt anticipate an effort to stop the confirmation.

I dont suspect confirmation will be an issue, she said. But I bow to the will of the legislature. & Right now its water under the bridge. I think we sent a clear message that enough was enough.

Net lottery proceeds, established under legislation passed last May, will fund college scholarships with any excess going toward K-12 capital outlay projects and early learning and after school programs.

Nashville City Paper

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