Budget revives sale of state buildings

June 15, 2011 6:46:01 PM PDT
The California budget plan revives a controversial plan to sell 24 state-owned buildings.

That plan called for the sale of iconic offices, like the Ronald Reagan building in Los Angeles and the State Supreme Court building in San Francisco. The state would then lease them back for 20 years.

Former Governor Arnold Schwarzenegger brokered the deal last year to bring in more than $1 billion instantly to the state, but a prominent San Francisco-area attorney challenged it and won.

That attorney, Joe Cotchett, says he'll be back in court to stop it again if needed.

"They're going to sell off these buildings to pay off debts that have no been incurred," said Cotchett. "There's got to be a better, different way to do it than just throwing this into a budget plan."

Critics also say it's a bad business deal for the state. An independent study concluded the "Sell To Lease" plan would actually cost taxpayers $6 billion in the long run.


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