Search for Lottery Director Is Slowed by Mislaid Letter

Gov. George Deukmejian’s press secretary confirmed Thursday that a written “expression of interest” in the job of California lottery director by the current director of another state’s lottery was lost by the governor’s office last November and not rediscovered until press inquiries about it this week.

Press Secretary Larry Thomas said that discovery of the letter led representatives of the governor to contact the unnamed lottery director and that he is “currently under consideration” for the job of heading California’s lottery.

Thomas declined to identify the author of the letter, but a source familiar with the letter said the mystery candidate is Michael Carr, director of the Michigan State Lottery, which has one of highest gross ticket sales in the United States. Carr could not be reached for comment Thursday.

Discovery of the mislaid letter is the second foul-up regarding implementation of the lottery to surface within a week and could bring renewed criticism of the governor for failing to set up the lottery on the schedule called for in last November’s state initiative.

Last Friday, Deukmejian told reporters that his choice for lottery director--Thomas O’Heir, assistant director of the Massachusetts State Lottery--had backed out at the last minute because he felt that the $73,780 annual salary is too small. Deukmejian appointed state Lottery Commission Chairman Howard Varner as interim director and announced that the search for a permanent director would begin anew.

Apparently unaware of the mislaid letter, Deukmejian told reporters at the news conference: “We at no time received an application from any existing director of any lottery that’s presently operating in the country.”

“I wouldn’t characterize it as an application,” Thomas said Thursday. “He indicated an interest in exploring the possibility of becoming California’s lottery director. But he also indicated that he was satisfied where he was, that he wanted to explore the issue in greater detail and asked . . . for confidentiality.

“The letter was misdirected when it arrived at the office,” Thomas continued. “It was not forwarded to the Lottery Commission and he was not given consideration in the initial deliberations when they (commissioners) . . . actually considered the field of candidates who had expressed an interest.”

Five Names Submitted

The Lottery Commission members presented Deukmejian with the names of five candidates for the job of director in mid-February and, after interviews and an extensive background check, the governor was about to make the appointment when O’Heir changed his mind, citing the high cost of living in California.

The state initiative establishing the lottery set March 21 as the deadline for the sale of tickets, but interim director Varner estimates that the first tickets probably will not go on sale until September.

The misplacement of the letter from an apparently well-qualified candidate could fuel growing criticism of the governor for failing to appoint either the Lottery Commission or its director within the timetable set by the initiative. So far, Deukmejian has responded to the criticism by maintaining that appointments to run the multimillion-dollar gambling enterprise should be made with great care.