Desperate Times: Arizona Leases State House

...And Arizona faces its own catastrophe. Its budget shortfall, while at $3.4 billion not as large as California’s, represents 30 percent of its $10.7 billion budget. After months of wrangling over how to meet the shortfall — program cuts versus tax cuts — a possible solution was reached this week, four weeks into the state’s new fiscal year: the lease of 32 government-owned properties including the State House, a prison, and a state hospital. The plan involves selling the properties for a quick infusion of cash, and their leaseback over a period of years. Lamentations over the leasebacks are misplaced. Unlike other states — California is “borrowing” money from its cities, New Jersey secured a line of credit from J.P. Morgan to pay its debts — Arizona is taking a step in the right direction. In fact, looking at the proposed list, it’s not clear why several of the properties aren’t just sold outright. Does the state need to own a Coliseum and Exposition Center?...Eileen Norcross