Gov. Orders Review of State-Owned Real Estate, Management

SACRAMENTO-Gov. Arnold Schwarzenegger has issued an executive order calling for a thorough accounting of state-owned real estate assets and the underlying management process, saying the existing system is “disjointed” and “deficient.” The order calls for the state’s performance review agency, in coordination with the State and Consumer Services Agency and the Department of General Services to assess all existing statutory and regulatory authorities and current laws and processes that govern the acquisition, use, management, and disposal of state real property assets. “They shall make recommendations to the Governor regarding necessary reforms to improve the management of the state’s portfolio of real assets,” states the order.As part of this review, all state entities are required to tender a complete reporting of their property inventory and assess the need for the state-owned and leased property that they occupy or have under their stewardship, including “potentially high value urban properties owned by the state that “may be underutilized or which may not reflect a highest and best use, and which may warrant realignment or disposal.” California’s real property asset management structure is spread across more than 40 boards, conservancies, commissions, and departments that acquire, trade, develop, and dispose of real property assets for various state programs. “There is no one set of laws, policies, or processes that comprehensively governs and coordinates the activities affecting California’s asset inventory,” and the decision-making process “lacks statewide coordination,” states the order. “This disjointed system of real property asset management …. “contributes to an inefficient use of resources to manage, maintain, and govern California’s real property assets (and) has prevented the creation of a single system for accurately listing and tracking all of California’s assets.”The order calls for the state performance review agency to prepare a report and recommendation to the Governor by June 30.