GovernmentAuctions.org reports a substantial increase in online state and local government surplus auction listings over the past year, and the State of California's announcement this week that it would list items on eBay and Craigslist gives the report credence.

GovernmentAuctions.org's state and local online surplus sales data shows an increase of about 50% in the average number of auction listings in July 2009 as compared to July 2008, and approximately a 28% increase in the average number of listings during the first two quarters of 2009 as compared to the last two quarters of 2008.

GovernmentAuctions.org CEO Ian Aronovich attributes the increase in auctions to the fact that many state and local governments are cash-strapped, and, he said, "auctioning off surplus is a quick way to fill in some holes in any budget deficit." Some agencies conduct their own auctions, while others employ third-party auctioneers, according to the company. Some sell online, including on eBay, while others hold live warehouse auctions.

California Governor Arnold Schwarzenegger announced this week that the state is listing items for sale on eBay and Craigslist as part of its "Great California Garage Sale" initiative, more information is found in today's AuctionBytes Newsflash newsletter.