Schwarzenegger threatens to sell California’s iconic properties

California governor Arnold Schwarzenegger has threatened to sell some of the state's landmark buildings as California yet again faces a $15.4 billion budget shortfall.

Schwarzenegger, a former world body building champion and movie star, known widely as the 'Terminator' for his role in the eponymous Hollywood production, has warned that California still ll faces the prospects of a $15-4-billion deficit, just months after the resolution of a $42-billion deficit. 

''With the continued global recession we face a certain $15.4 billion shortfall and, if $6 billion in February budget solutions are rejected on 19 May, that number will increase to $21.3 billion.

''To solve our immediate cash crisis, we simply cannot avoid deep and painful cuts in spending. Some of these solutions are things I would never have considered in the past but, unfortunately, our state could be in a worst case scenario if the propositions fail,'' he added.

In order to help balance the budget and improve government efficiency, Gov Schwarzenegger has threatened to auction off some of California's iconic landmark buildings such as the San Quentin state prison, the Los Angeles Memorial Coliseum, the landmark concert hall called the Cow Palace in Daly City, and fairgrounds in Sacramento and near San Diego.

The State and Consumer Services Agency of California has listed seven state properties for sale, with details usually found in a Manhattan top real estate listing, to raise $600 million to $1 billion over the next two to five years.

The quoted price for a fairground called The Cal Expo is between $80 million to $150 million and was described as having a with ''excellent commercial development potential,'' a few minutes away from downtown Sacramento.

The San Quentin state prison was described as a property with ''commanding view of the San Francisco Bay,'' although it fails to mentions as to whether the property comes along with the inmates.

''Californians have a right to know the truth about the size of the problem our state is facing and the steps we will take to solve our deficit,........ to ensure the people of this state are informed and are not surprised by what is coming,'' said Governor Schwarzenegger.

The recession in the US has affected the personal income-tax collection in the state as it has fallen for the first time since 1938.

Yesterday, the governor unveiled two May Revision Budget proposals to address the state's pending deficit that has grown as the global economy has continued to deteriorate.

The budget proposes that the state obtain up to $6 billion through a 'revenue anticipation warrant' that will help the state avoid deeper cuts to vital state programs and services, another $5.6 billion in additional spending cuts that would include $3 billion in education, $750 million in health-care for low-income individuals and $234 million from developmental services. The education cuts could force California schools to cut the school year by five days, the governor said.

If these measures fail, then the governor would be forced to make even deeper cuts to state programs and services with education funding would be cut by an additional $2.3 billion -- for a total of $5.3 billion in reductions.

That would force schools to shorten the school year by 7.5 days, increase class sizes and lay off even more teachers. The governor also said the state would need to borrow $2 billion from local governments, a proposition that some political observers think could prove tough given that many cities and counties are also struggling.

Since thousands of undocumented immigrant inmates eat up $5.8 billion of the states revenue, the governor said that he would be forced to release these undocumented immigrant inmates directly into federal custody.

The budget cuts will also affect the police and fire departments since they account for as much as 80 per cent of city budget.