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Richard H. Smith

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Could a California Budget Fix Threaten National Security?

Posted: 11/20/10 06:05 PM ET

"Hey, wait a minute", you say. "Is this a put on? What does the latest patchwork California budget, slapped together a hundred days late, have to do with national security?"

Rising seventeen floors above the heart of downtown Sacramento is the building that houses the California Department of Justice. If and when Attorney General and Governor-elect Jerry Brown ventures outside Oakland, he has a suite atop that building.

His office, like the rest of the building, is literally For Sale.

Actually, it's virtually been sold, together with 10 other prime pieces of State-owned real estate. A private investment consortium, based, according to press reports, in Houston and Los Angeles - and, Mumbai, India - has agreed to buy the 11 properties and then lease them back to the State for 20 years. This brainstorm, pushed by outgoing Governor Arnold Schwarzenegger, is yet another imaginative accounting gimmick designed to plug a one billion-dollar hole within the much larger shortfall of the annually deficient State budget.

Critics of the deal, including California State Treasurer Bill Lockyer and State Controller John Chiang, have pointed out that selling such valuable property at the bottom of the real estate market may not be in the best financial interests of the people of California who paid the taxes and the interest on the bonds that got these buildings built in the first place.

Such financial issues are beyond me. But I was struck by seeing the Justice Department headquarters on the block because it reminded me of a funny thing that happened, forty years ago, during the Cold War, when I was working in Washington as a very junior CIA paper-pusher. One morning, I had a package dumped on my desk. It had been sent, through the diplomatic pouch, from a US Embassy abroad. When I opened the package, out fell a heap of - garbage. Not, you understand, Coke bottles and cigarette butts and used condoms. The contents were entirely paper, crumpled, ripped up, shreds of paper. They had been lifted from a garbage can used by bureaucrats in some Soviet Russian Consulate, pilfered by what old British spy novelists used to call a "charwoman", in Yankee parlance, a janitor. An adept thief on the Intelligence payroll.

I learned more about Garbage in the CIA. As the youngest officer at the Agency's crisis center, my nightly duties included tiptoeing into the suite of the Director of Central Intelligence, hoping the Big Boss had gone home for the day, to empty his special "Classified" trash can. I diligently poured the contents into a custom shredder that obliterated every thread of paper in a way that would defy even the best modern reconstructive skills of CSI Miami.

This was an elementary first lesson in espionage: Garbage Talks.

Which leads me now to wonder about all the crumpled paper and discarded computer disks at that State high-rise in Sacramento soon to be under new ownership. Mostly dull legal stuff, no doubt, but maybe with a few good reads on narcotics and even terrorist investigations, peppered with helpful Secret documents sent over from the FBI and DEA.

After most of the civil servants have gone home, this refuse of bureaucracy becomes the domain of night-shift guards and maintenance people who have undergone careful background checks. Once ownership of the building has changed hands, the new owners may choose to employ these same workers, or they may hire others, perhaps for lower wages, who will have to be "cleared" anew.

But who will "vet" the owners themselves?

I don't intend to cast the slightest aspersion on foreign investors in India or China or Dubai or any other nation who find attractive real estate opportunities in America. India, in particular, seems to be edging toward a "special relationship" with the United States on national security matters, akin to our past alliances with the British and Israelis. But even the closest alliance with a foreign power doesn't suggest an absolute congruence of national interests. If an American company which makes missile components or cryptographic software were up for sale to a multi-national consortium, somebody in Washington would surely come to attention and put the deal under a microscope. Even if a federal building that housed some law enforcement agency were to be "privatized", Washington would take note.

But we're talking here about State buildings and I'm guessing that no one in Sacramento has given even one second of thought to whether there is any security issue at stake in hocking the Attorney General's digs.

All the parties to the current State building fire sale are undoubtedly fine upstanding global citizens. But once a government property has been sold to private interests, it can be sold again - and again - for the sake of profit. And who will bother to assure that all new future landlords of the State Justice Department are entirely above reproach?

With Washington's minions now fanatically searching for terrorist devices hidden in the bras of women air travelers, maybe it wouldn't be too much to ask that somebody in Sacramento should re-think a deal that someday, conceivably, might present a threat to the security of the people of this State.

Especially if that threat results from a lousy business deal triggered by political desperation.

 
 
 
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HUFFPOST COMMUNITY MODERATOR
propitiousmoment
the journey is the destination....
10:25 PM on 11/21/2010
This type of deal is also what bailed out Orange County back in the days of its bankruptcy: they sold county-owned buildings and leased them back again. It was the brainchild of some NY lawyers.

I'm not sure that the mega-rich new owners of these buildings are the slightest bit interested in who picks up the trash or what's in it, as long as it does not stand in the way of their almighty profits.
09:29 PM on 11/21/2010
California needs to amend Prop 13. Keep the tax freeze on homes under $500,000 and lift it for business property income property and homes over $500000. Also we need to get rid of the large social programs in this state such as Medi Cal that draw illegal immigrants here. We have way too many poor people in this state who contribute nothing to the community. Los Angeles needs to get rid of rent control and drive these people out of state. We could create thousands of jobs by tearing down these old rent control buildings and building brand new multi family housing for middle class taxpaying citizens
HUFFPOST PUNDIT
realitytrumpsbull
Two 'alves of coconut!
09:23 PM on 11/20/2010
I say that CA needs to stop playing games, and get their financial house in order. As for international real estate consortiums, let's have some trust-busting on that whole action, there. Real estate is a racket, there's no reason that CA taxpayers should end up having to pay any kind of annual monies to any entity outside the United States. As for the dim-witted decision to sell the public properties in the first place? Well, if they can find the govt. gnome responsible for that brilliant act, take him/her to court. 

CA is just one of the 46 states that has grossly overspent to the point of economic failure. If they're going to do anything to balance their books, then they can start by furloughing teachers and instructors, or cutting salaries, and the unions can stand there, and LIKE it. HOW many supercomputers(silicon valley) and HOW many degree holders do they have in that state, stealing precious oxygen? World's 5th largest sunshine story...looks nice on the outside, lots of fancy cars, but when you get right down to it, apparently they have some systemic problems. CA has lots of millionaires that, if need be, they can start shaking down for money. All that hype about international commerce, where's the money going? Where's California going? To hell, if they don't change their ways...
photo
guveqzero
Inventor and Innovator
12:09 AM on 11/21/2010
Well, California supports the United States. All we need to do is cut our military and pork for our farmers in the small states so California can recover. Without our income, the US economy shrinks by 30%. I agree, let get tough and stop sending money to Washington.
HUFFPOST PUNDIT
Cacey
Ignore rudeness, honor discussion
09:42 AM on 11/21/2010
Seeing has how we get back only half the money we send to Washington, eliminating that would be a good start.  Frankly, we're tired of paying for pork in the Red Welfare states most of which seem on the rim of succession anyway.  Perhaps we should ingnore the Commerce Clause as at least 20 states seem willing to do with their Health Care nonsence and simply start charging more for our products, goods, services and intelectual property sold in states that we don't have some type of economic trade agreement with.  What really gets to be awfully boorish, however, is having outsiders pick up some obscure point and dragging us through the mud.  It does not work.  It is just boorish. 
DUSAA-1775
never moon a werewolf
06:15 PM on 11/21/2010
...' Perhaps we should ingnore the Commerce Clause ...' that probably sounds like a well thought out idea ...to those who are stoned every day.... good for you !!