Schwarzenegger: No fire sale of Calif. buildings - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Schwarzenegger: No fire sale of Calif. buildings

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SACRAMENTO, Calif. (AP) — Gov. Arnold Schwarzenegger says there will be no fire sale of California state office buildings.

The governor on Wednesday addressed concerns for the first time that selling 24 state buildings and then renting them back from the new owners might be a long-term money-loser for state taxpayers. Schwarzenegger had pushed the Legislature into agreeing to the sale last year as a way to raise immediate cash to help close the budget deficit.

He says he will study the sale carefully, consult with the Legislature and will not follow through if it doesn't pencil out for taxpayers.

Last week, an Associated Press analysis of the proposed sale showed that California would pay $5.2 billion over the next 20 years to lease back the office buildings, plus pay for parking spaces the state currently operates. The state projected net proceeds at $660 million.

 

Copyright 2010 The Associated Press.

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