Gambling on a losing horse

Gov. Arnold Schwarzenegger’s proposal to lease the state lottery to a private company to earn money for health care reform is quickly getting left in the dust.

At a Senate hearing today, analysts from Wall Street firms said a 30 year lease would fetch about $15 billion up front — less than half the $37 billion the governor thought California could get.

Here’s a report on the hearing on KQED’s Capitol Notes blog.