CA drunken spending congress syndrome spreads to AZ

State of Arizona to do a sale leaseback on capitol buildings

Call it a sign of desperate times: Legislators are considering selling the House and Senate buildings where they've conducted state business for more than 50 years.

Dozens of other state properties also may be sold as the state government faces its worst financial crisis in a generation, if not ever. The plan isn't to liquidate state assets, though.

Instead, officials hope to sell the properties and then lease them back over several years before assuming ownership again. The complex financial transaction would allow government services to continue without interruption while giving the state a fast infusion of as much as $735 million, according to Capitol projections.

For investors, the arrangement means long-term lease payments from a stable source.

States are basically micro versions of the federal government, except without unlimited source of capital. It is astounding that these politicians (REPUBLICANS NO LESS) are willing to do a sale/leaseback on government offices instead of cutting costs out of their bloated budgets.

So what's next when the next budget crunch hits? Auction off the Grand Canyon?

What other states are doing to fill their budget gaps:

- In Wisconsin, Democratic Gov. Jim Doyle's fiscal year 2010 budget triples the price of an elk hunting license, even though his state has no elk hunting season. Doyle also proposed a fee on for each animal slaughtered, ranging from a penny per chicken to 14 cents per pig, but that provision was shot down.

- In his 2009 budget, New York Gov. David Paterson proposed a "fat tax" that would have tacked an 18-percent tax on sugary beverages. That tax -- along with proposed taxes on manicures, health clubs and bowling -- was nixed. Next door in New Jersey, however, residents are subject to a sales tax on health club memberships.

- Some school districts in Utah have opted to shorten their school years by a few days or increase class sizes, with hopes of saving millions.

- In Virginia, the state House and Senate voted to increase inmates' daily rent by 500 percent, from $1 to $5. Democratic Gov. Tim Kaine vetoed the bill in May, requesting that the fee be capped at $3.
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- In Kentucky, new legislation puts a tax on cell phone ring tones.