Arnold Schwarzenegger has been pressing pretty hard for the sale (and subsequent lease-back) of state buildings.  He thinks it nets us $1.2 Bn in short term dollars, and that’s true.  But long term? Well, the other side is a business, so they understand that it is a long-term win for the corporate interests financing this little ploy.  So, needless to say, Schwarzenegger was miffed when the California Court of Appeal, Sixth Appellate District blocked the sale from going forward.

Well, the administration has now filed an appeal, and clearly they are worried that Governor Elect Brown will not be nearly as interested in this gimmick:

Schwarzenegger’s attorneys, in a legal brief filed Monday, asked the high court to step in “because time is of the essence and the transaction must close by year end or probably be lost forever.”

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The state Legislature approved the sale in 2009, and Schwarzenegger has vigorously pursued it since.

“For those who say that California is ungovernable, this litigation should serve as Exhibit A,” Schwarzenegger’s lawyers wrote. “This court must act now to prevent this abuse of the legal process by those who put their own petty grievances above the will of the people and the needs of this state.” (LA Times)

If the Supreme Court does not remove the stay from the appellate court, the sale will have to be ultimately concluded by the Brown administration. Brown has previously declined to defend the actions in court, so he’s obviously not a big fan of the plan.  As to whether he wants to dig out another $1.3 billion of debt, well that’s a good question.  However, Brown now seems inclined to stare headlong into the abyss of the budget, and completing this sale seems pretty much the opposite of that.

Expect a ruling from the CA Supreme Court very soon.