The State of California is in huge debt, mostly from extremely poor fiscal management. During the last many years California has the opportunity to sock away money from incredible growth, retail sales, and very high employment. Of course, just like the Federal Government they squandered it all, setting up more social programs and growing the size of government. When it came time to cut costs, California refused to, and borrowed more money to keep up the impossible task to support the larger government, and indeed politics ensued.
The citizens of California have had enough now, and are voting for NO Tax increase and told the government officials that unless they balanced the budget there would be no salary increases for them either. Californians have spoken. Unfortunately, in the infinite wisdom of the state government they now intend to sell expensive real estate assets to make up some of the different, right now it is over 15 billion in debt and climbing.
California was once and not too long ago the seventh largest economy in the World if it stood alone. An economic powerhouse by any measure, but now it wants to sell at the bottom of the commercial real estate market, some of its state owned prize pieces of real estate. The State of California is planning on selling the Ronald Reagan Building in Downtown Los Angeles.
Worth a pretty penny during an up economy, and it may have no choice due to improper planning and failure to trim the state’s government waste. You can imagine how this is upsetting the taxpayers, but someone is going to make a killing in commercial real estate over such a sale.
Source by Lance Winslow