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Governor Jerry Brown has given up his plans to put 11 governmental state offices up for sale to assist in funding California’s budget deficit. The buildings had been put on the sales block by the Schwarzenegger Administration in 2010 to try to come up with nearly a billion dollars. Brown’s office has instead suggested a different way to come up with the cash.
One of the offices that had been offered in the proposed sale was the California Supreme Court Building, as well as the Ronald Reagan State building in Los Angeles and the Attorney General’s Office in Sacramento.
They had planned to sell the buildings and then use the money to shore up the deficit and then rent it out and increase the rent over the next few years. A state legislative analyst compared the deal to someone taking out a loan with 10 percent interest rate.
And Governor Brown has said he is capable of doing much better.
Brown said that the buildings they had considered selling were some that California could use still and that a few were also quite new, and that getting rid of them when the state could still use them did not make sense at all.
Instead of selling them, Brown says he wants to borrow $800 million out of a special fund that the state has, which is part of a “hidden pot of cash” to purchase the state’s health, transportation and construction programs.
Brown also said that what he wants to do won’t hurt those programs or make them late. Brown says the money can be paid back over a few years for less than one percent of interest rate.
