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Hope for the Future: Can Higher Ed actually find some longterm Money from the State?

by Mona Field, Social Sciences Division

With legislative leadership from our very own Assemblymember Dario Frommer, and strong support from state Treasurer Phil Angelides,  Assembly Bill 593 is moving through the legislature to provide longterm financial support for California higher education.

The bill's premise is that there are billions of dollars worth of state-owned properties that are not adequately utilized. The Department of General Services, in its admittedly incomplete inventory, estimates that the state owns about 6.6 million acres of land, and about 23,000 structures totaling around 204 million square feet.  These holdings need to be fully inventoried, and their current usage and benefits evaluated.   According to the Little Hoover Commission, the state has an "antiquated" system of property management; thus these public assets are not  currently managed to provide maximum benefits to the public.

AB 593  proposes  a Public Trust to transfer these state-owned properties  into a CalHope Trust, a public corporation to manage the property efficiently and in a business-like way, in order to yield more than $2 billion over the next ten years.  These funds would be earmarked for higher education,  including college preparation, counseling, financial aid and other enhancements to college access.

The endowment could provide longterm financial resources for the people, and would be organized like a charitable foundation governed by a public board. Transferring the state's real estate into this CalHope portfolio would create one of the largest higher education endowments in the nation.

Other examples of this kind of public trust include the British Columbia Buildings Corporation, created 30 years ago, and reports an income of $46 million (Canadian dollars) in 2003 based on properties worth only 10 percent of California's public property.

Assemblymember Frommer welcomes your comments.

        For further information, contact Assemblymember Dario Frommer's office.  Local:  818 240-6330. or go to http://democrats.assembly.ca.gov/members/a43/ &

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