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alstry (36.08)

America Liquidating to Avoid Shutting Down

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September 04, 2009 – Comments (3)

Gov. Jan Brewer on Thursday signed a portion of the state budget that includes a controversial provision that calls for the state to sell selected public properties as it tries to generate some fast cash.

The state drew national attention in recent months with word that it was looking to unload dozens of properties amid a historic budget crunch. Thursday's budget measure, House Bill 2010, stipulates that the state attempt to raise as much as $735 million by selling and then leasing back facilities the state now owns.

Candidates for the financing mechanism include the House and Senate buildings at the Capitol, the State Hospital and state fairgrounds. Government functions on-site would be unaffected.

The state has conducted sale/leaseback deals on occasion in the past. It is believed, however, that this would be the first time the state has devoted revenue from the sales to fund general government operations. That revenue is desperately needed at a time when the state faces a budget shortfall in excess of $3 billion.

“I think it's something we have to do,” said Verschoor, a Gilbert Republican.

Under the provision, the state will attempt to sell the government properties and lease them back for periods of up to 20 years. Deals that would generate the targeted $735 million in revenue would mean state lease payments totaling $60 million to $70 million a year, according to budget analysts.

http://www.azcentral.com/news/articles/2009/09/03/20090903az-budget03-ON.html

Insanity is reaching new levels in America.   Selling state building to partially support a general fund deficit.  With a $3 Billion dollar deficit, $735 Million will be consumed quickly and AZ will be left with a much higher operating budget in just a few months.

Guess who is going to pay for this???

As Alstry forecasted, by 9.09 you would see distress at levels NEVER seen before in American history.  NEVER in The Great Depression was government selling buildings to meet budget.

After selling the buildings then what? How much can you tax citizens whose incomes are evaporatings and jobs slashed?

This is a level of distress that should shock you....if not, my suggestion is contact your doctor as your medication may be a dosed a bit too high.

3 Comments – Post Your Own

#1) On September 04, 2009 at 8:02 AM, VintageCat (< 20) wrote:

We are eating our seed corn unfortunately.

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#2) On September 04, 2009 at 8:19 AM, wrparks (68.05) wrote:

Actually, this is brilliant.

Here is how it will work.  

States need cash. 

States have assets.

States sell assets.

States (and cities) have extraordinarily powerful eminent domain laws due to (relatively) recent supreme court decisions.  

When states have cash again, states condemn property and buy them back.  

States have assets.

Brilliant, if criminal.

 

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#3) On September 04, 2009 at 8:42 AM, alstry (36.08) wrote:

The nutty part is that tax receipts are crashing as expenses are rising....practically every state government will be in a much worse position in just a few months.

It is clear that we are being set up for something.....the question is what is 9.09?

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