I am not a fiancial genius (nor do I play one on TV) but all I see this doing is borrowing money from the future and paying it back over time. Sort of like a payday loan.
The people and functions that go on within those building is not going away. The state will still need them. Right now they are (I presume) paid for.
While it is true that the states loses any property tax on the property, and that they must pay the maintenance on the building I think it would also be true anyone that buys them will include those cost into the rent.
This is just another way to kick the can down the road without solving the basic problem, the state of California is spending more than it can afford.
Can you imagine the lock-out clauses that must be in the lease?
“If CA is one day late paying the rent...”
Actually yes it’s a way to kick the can down the road but!
“The Associated Press reported earlier this 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.
Three of the properties already are paid off, while four others were expected to be paid off in the next five years.”