California's Mother of All Garage Sales
Recession Induced, Budget Shortfall Forces Golden State Innovation
Aug 26, 2009
Massive California is broke! The Governator (Governor Arnold Schwarzenegger) and his staff have come up with a way of getting much needed cash – sell just about anything it can in a two-day state garage sale. In an attempt to clear a $40 billion shortfall, California has had to close state parks, layoff state employees and reduce school and university aid.
The State of California’s, Legislative Analyst's Office, December 2002 biennial Cal Facts Report stated that, “California is the world’s fifth largest economy.” The LAO, a non partisan fiscal and policy advisor to the state legislature, presented the fact that California’s $1.3 trillion (GSP) is 13% of the total output of the USA. The gross state product “…trails only Japan, Germany and the United Kingdom.”
However, California, disproportionately hit by losses in housing value, import/exports and jobs, has now incurred a massive budget deficit. By December, 2008, the state’s GSP increased to $1.83 trillion annually, while her world ranking dropped to eight; below Japan, China, Germany, France, UK and Italy. Even though her GSP remains above Russia, Brazil, Spain, Canada and India (according to the IMF, the World Bank and the CIA World Fact book,) this drop shows the disproportionality the recession has had on the star and bear.
California for Sale
Taking a page from Suze Orman’s financial discussion on Oprah, the California government is getting its financial house in order and finding extra cash. Everything from luggage to leak detectors, PDAs to pencil sharpeners are being sold at “prices to sell,” according to Eric Lamereau of California General Services. The state has ranked each item and priced it accordingly. State park pianos and government zip drives will be sold over the two day period. While most items are used, unlike the neighborhood garage sale, some of the Golden State's stuff for sale is brand new.
Hundreds of autos are for sale (a few autographed by the governor) as a result of Schwarzenegger's July Executive Order to reduce the state's fleet of cars by 15%. Many of the motor vehicles being sold were meticulously maintained yet still, some have over 150,000 miles on them.
Other, more exotic vehicles that are normally sold in conventional auctions will be incorporated into the garage sale. State Consumer Services Agency Deputy Communications Director Erin Shaw said in Tuesday’s San Francisco Chronicle, "The Department of General Services holds a vehicle auction every few months. Some of those vehicles…were incorporated [into the garage sale] because of the large influx of vehicles."
Not Just Cars
Want a fortune teller machine or how about a nice police radar detector? Not just the usual office supplies, the Great California Garage Sale includes some pretty exotic items. Niesha Lofing, of the Sacramento Bee quoted Shaw, "We have a number of odds and ends for sale that you wouldn't think the state would own, but we…uncovered a lot of really interesting items….” Office desks for $25, computers from $50 will be sold along side giant bolt cutters for $5 and baby cribs for $10. The state has supplied a list of items available, but agrees it is incomplete.
Where and When
The sale will last all day Friday August 28th & half of the 29th at the Department of General Services Warehouse, 1700 National Drive, Natomas area of Sacramento, California. All items will be sold “As Is” and only cash, cashier’s checks or credit card will be accepted (except cash will not be accepted for autos.)
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