SACRAMENTO (AP) — A state public works board has approved retiring bonds on several state-owned office buildings, paving the way for California to sell the properties as a way to raise cash quickly.
The board’s 3-2 vote Monday allows a deal brokered by Gov. Arnold Schwarzenegger’s administration to move forward. It will give the state $1.2 billion to plug a budget deficit in the current fiscal year.
The approval came despite a report last week by the state’s nonpartisan legislative analyst, which said the sale will end up costing California taxpayers $1.4 billion over 35 years. The state plans to rent the office space back from the private owner.
Representatives for state Treasurer Bill Lockyer and Controller John Chiang voted against retiring the debt, while three administration appointees voted in favor.
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