California Treasurer Bill Lockyer has said he will oppose Gov. Arnold Schwarzenegger’s proposal to issue bonds backed by the state lottery.

The lottery bond proposal is expected to raise $5 billion in fiscal 2010 that would be applied to the state’s budget deficit.

Lawmakers approved the governor’s lottery plan as one of the compromises needed to pass this year’s budget, but the proposal would have to be approved by the state’s voters sometime in 2009.

Lockyer said he would oppose the lottery plan last week at the Milken Institute’s State of the State Conference, according to published reports.

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