The sale of eleven state properties was part of last year's budget deal. It was expected to raise more than a billion dollars-but it's been tied up in court for months. Governor Jerry Brown is calling off the sale. The move brings the deficit to nearly 27-billion dollars. But Brown says he'll borrow internally to patch up the difference. Brown says that will cost less in the long run.
"If we go and sell these buildings then we have that billion dollars available to spend now. But then it will be paid back in enormous cost over time. So that's why we say this is fiscally prudent, it's honest …"
Brown's plan includes borrowing money from Medi-Cal which provides health care to the poor and borrowing from prison construction funds. His plan requires lawmakers' approval.