California News

Apr 15, 2010 2:22 AM

California sell-off plan appears to have a high cost

SACRAMENTO, Calif. (AP) - Gov. Arnold Schwarzenegger's plan to sell two dozen state office buildings would cost California taxpayers $5.2 billion in rent over the next 20 years.

According to financial documents analyzed by The Associated Press, the long-term price of leasing is far more than the state stands to make from the sale.

Administration officials projected the state would net about $660 million after paying off construction bonds on the buildings.

Under the terms of the proposed lease, the state also would have to pay a monthly fee on its parking spaces and even cover increases in property tax assessments.

Republican state Assemblyman Jim Silva said the sale "would not be in the best interest of our taxpayers." Bids from potential buyers were due Wednesday.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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