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Calif. proceeds with building sale despite warning

SACRAMENTO — California lawmakers and Gov. Arnold Schwarzenegger are betting the state can generate $1.2 billion from the sale of state office buildings to help fill the $19 billion budget deficit.

That's despite earlier warnings that the deal doesn't pencil out for California taxpayers over the long run.

Lawmakers and the Republican governor were moving ahead Thursday with the plan to sell and lease back 24 state office buildings even though the administration has not revealed the winning bid or the sale price.

At least two reports have said taxpayers will pay more over the long run than the state will net.

While the Legislature will have 30 days to review the sale, lawmakers will not get the final say because proposed oversight legislation was killed in committee earlier this year.