NEW YORK – New York is considering cashing in on the future of its lottery to create a permanent education fund, the Associated Press reports. Such a 30- to 40-year lease for part of the state lottery, including part of the lottery’s profits, to a private investor could bring in billions of dollars.

Gov. Eliot Spitzer outlined the plan in his State of the State speech, saying he wants an upfront payment of $4 billion that would fund a private endowment for higher education. Such an endowment would produce $200 million annually from investments, which would benefit the State University of New York and its 64 state-run campuses. In addition, the endowment would assure the current $2.1 billion in lottery revenues that are funneled to public schools.

Currently, New York’s lottery brings in $6.7 billion in annual revenue, but lotteries across the country are facing stiff competition from casinos and Internet gambling.

State lawmakers have to agree to privatize the lottery before such a plan would proceed. Other states considering cashing in on their state lottery include California, Florida, Illinois, Indiana and Texas.a