Head of State Lottery to Quit for Job in Private Sector

William J. Popejoy, the businessman who helped extract Orange County from the worst local government bankruptcy in the nation’s history, said Friday he will resign as director of the California Lottery next month.

Popejoy, 60, appointed by Gov. Pete Wilson in April 1997 to run the $2-billion enterprise, said he intends to return to private enterprise, but has no specific job in mind.

Popejoy is among scores of top-level Wilson appointees who are making plans for other employment in advance of a new administration in January.

Ron Low, a spokesman for the governor, said Eugene Balonon, a veteran lottery executive, will be appointed acting director for the remainder of Wilson’s term. The post pays $108,000 a year.

Popejoy came to Wilson’s attention in 1995 as a strong-willed, blunt-spoken businessman who had been appointed by the Orange County Board of Supervisors to lead the county out of bankruptcy.

As the county’s chief executive, he imposed several reforms but quit five months later, charging that the supervisors had become so meddlesome that he could not do his job. His departure also followed voter rejection of a sales tax increase that he argued was essential for fiscal recovery.

Popejoy arrived at the lottery amid demands it be made more efficient, attract more players and produce higher revenues for public schools.

Unlike the tenures of most of his predecessors, Popejoy’s term was relatively free of controversy. He drew criticism, however, when he eliminated the jobs of 25% of the work force, or 218 employees, in a cost-cutting action. He said Friday that only four have not found other jobs in state government or retired.

Popejoy said during the last fiscal year, the lottery produced almost $750 million for schools, an increase of 11% over the previous year.

He forecast that annual revenues to schools will increase by $250 million as a result of a belt-tightening program aimed at reducing the lottery’s administrative costs from a maximum 16% of revenues to less than 13.5% by 2000.

Popejoy said it is unlikely he will return to government. “I feel like a very useful 60-year-old, and I’d like to return to the private sector, if that works out,” he said.