To browse all LAO publications, visit our Publications page.
April 27, 2010 -
Recent legislation authorized the Department of General Services (DGS) to sell and then lease back 11 state-owned office properties. The sale-leaseback is designed to free up the state’s equity in the buildings to provide one-time revenue for addressing the state’s current budgetary shortfall. We estimate that the sale of buildings would result in one-time revenue to the state of between $600 million and $1.4 billion, but that annual leasing costs would eventually exceed ownership costs by approximately $200 million.
Over the lives of these buildings, we estimate the transaction would cost the state between $600 million and $1.5 billion. The Legislature will need to weigh how these costs compare to other alternatives for addressing the state’s budget shortfall. In our view, taking on long-term obligations—like the lease payments on these buildings—in exchange for one-time revenue to pay for current services is bad budgeting practice as it simply shifts costs to future years. Therefore, we encourage the Legislature to strongly consider other budget alternatives.
(Short video introducing this report)
February 19, 2010 - A presentation on California's budget, economic outlook, and education funding. Presented at the California County Superintendents Educational Services Association Chief Business Officials Conference in Sacramento on February 19, 2010.
February 9, 2010 - Presented to: Senate Governmental Organization Committee Hon. Roderick Wright, Chair
December 14, 2009 - Presented to the Assembly Budget Committee on December 14, 2009
September 23, 2009 - Presented to Assembly Committee on Accountability and Administrative Review
August 18, 2009 - Presented to joint hearing of Senate Elections, Reapportionment and Constitutional Reform and Senate Select Committee on Constitutional Reform
June 12, 2009 - Presented to Budget Conference Committee
June 11, 2009 - Presented to Budget Conference Committee
June 3, 2009 - Presented to Budget Conference Committee
May 22, 2009 - Presented to Budget Conference Committee
May 12, 2009 - Author Greg Jolivette summarizes the findings of our recent report, Department of Real Estate: Opportunities to Improve Consumer Protection, in a three and one-half minute video.
May 12, 2009 - In this report, we identify a number of deficiencies in the Department of Real Estate’s Licensing and Education Program and their Enforcement and Recovery Program. Our recommendations would tighten existing educational requirements, increase licensee accountability for violations of the real estate law, improve department accountability for program outcomes, and expand consumer access to—as well as oversight of—the Recovery Account. (Short video summary.)
January 30, 2009 - In this report, we identify issues and present recommendations related to the General Government portion of the budget. These include our belief that employee compensation reductions proposed by the Governor are necessary due to the magnitude of the budget problem. Nevertheless, we observe that the administration’s plans—especially savings from the furlough-will be difficult to achieve. We also note that due to the sagging economy and falling energy prices in recent months, our forecast for inflation is much lower than that used in the Governor's budget plan. Therefore we recommend the Legislature reject the price increase and direct departments to absorb any increases in operating expenses.
January 14, 2009 - Deputy Legislative Analyst Michael Cohen and Principal Fiscal and Policy Analyst Jason Dickerson the LAO report, California’s Cash Flow Crisis—the second in the LAO’s 2009-10 Budget Analysis Series.
June 24, 2008 - Informational for various items of the 2008 Budget Conference Committee (various agenda pages).