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Jerry Brown Drops Schwarzenegger’s Plan To Sell State Buildings

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(credit: Getty Images)

(credit: Getty Images)

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SACRAMENTO (AP) — California Gov. Jerry Brown says he’s dropping a plan to sell 24 state government buildings to private investors.

The state had been in negotiations to sell the properties for $2.3 billion under a proposal by former Gov. Arnold Schwarzenegger to help close the state’s budget deficit. The state would have continued using the space by entering into a 20-year lease with the new owners.

The Associated Press reported last year that the deal would end up costing the state $5.2 billion in rent over 20 years, perhaps saddling taxpayers with costs beyond whatever the state would net from the sale. That assessment was confirmed by the nonpartisan Legislative Analyst’s Office.

Brown said Wednesday that he canceled the sale because it “amounted to a gigantic loan.”

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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