Plan to sell state properties to raise money for cash-strapped California clears final hurdle

The L.A. Times reports:

Over the objection of the state's top two fiscal officials, the Schwarzenegger administration on Monday pushed through a controversial plan to sell state properties to raise money for cash-strapped California.

The sale of 24 buildings at 11 locations, including the Ronald Reagan State Building in downtown Los Angeles, is expected to generate $1.2 billion to help shrink the budget deficit. The state is obligated to lease back the properties for at least 20 years. A recent report from the nonpartisan Legislative Analyst's Office said the costs involved in the transaction over the long run will be roughly equivalent to borrowing at 10% interest for 35 years — far more than the state pays on its bonds.