There are lots of states in financial trouble this year, but I hadn't heard anything about Arizona until today. They are facing a budget deficit of 40% of their total budget (thought I heard that on NPR but I can't find support for it online - the linked article has a deficit of $1.4B out of a budget of $8.4B) They're looking at selling the state capital building and leasing it back.
http://www.myfoxphoenix.com/dpp/news/politics/budget_trouble_2010_123109
Isn't selling the asset to finance ongoing operations short term thinking? I think privatization can be OK (privatizing services that can be done better in the private sector than public) but when the main goal is cash, not efficiency, I think it's a bad idea.