The Governor has decided to drop the sale of 11 office properties that the previous administration had pursued in order to raise $1.2 billion in immediate cash for the state budget. “Selling state buildings is the ultimate in kicking the can down the road,” he said. The deal would have had the state sell several office buildings to private investors and then lease them back over a 20 year period. The Legislative Analyst’s Office criticized the plan estimating that it would prove “costly” for the state in the long run and was the equivalent to borrowing at 10.2% interest over the next 35 years. Aside from the LAO criticism, a group of former building authority members had filed suit to block the deal. Click here for more information.
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