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SACRAMENTTO-Gov. Arnold Schwarzenegger signed the Legislature’s plan to balance the state’s $23-billion budget deficit today after making nearly $500 million in additional cuts. The Legislature’s plan, adopted Friday, included $15 billion in cuts and $11 billion in accounting maneuvers, according to the San Francisco Chronicle, leaving the state with an $84.5-billion budget for the fiscal year that began July 1.

The Governor’s last-minute cuts totaled $489 million and included less money for health services. Schwarzenegger also added in $167 million in savings created by accounting maneuvers. To read the entire article, click here.

At the start of the month , with a new fiscal year under way and no budget approved, the state began issuing registered warrants (aka IOUs) to a range of vendors and told GlobeSt.com that would include building owners from which the state leases space. The state has approximately 2,000 commercial leases, according to the state Dept. of General Services.

In related news, DGS says last week it has saved the state $27 million on commercial leasing rates–$10- to $12 million of it in the current fiscal year–by renegotiating the terms of 36 commercial leases. The state typically inks eight-year deals, with the first four years guaranteed and the final four not guaranteed. The leases that were renegotiated were mainly the ones that were in the second four-year period, and in most cases the state exchanged additional guaranteed years of rent in exchange for lower lease rates, according to industry sources. DGS hopes to renegotiate 300 leases in all for a total savings of $80- to $100 million over the term of the lease commitments.

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