CA: Across state, we know what must be done

San Diegans have the dubious distinction of living in a state whose own serious financial problems will likely make the city's even worse. Last year, we cited most of the same problems California is facing again in this new year. In the spirit of a New Year's holiday, maybe it's time we resolve to finally do something about them.

On the state level, our problems are enormous, but not insurmountable. They range from the budget deficit, now estimated to be about $8.1 billion, to the need to invest in the state's future – in schools, roads and mass transit, in our water systems, our energy future and other things that will help our economic growth and quality of life.

Dealing with the state's fiscal crisis – and that includes a state pension crisis not unlike the city's – is a matter of choices. We spend less, or we pay more. Last year, we voted a third option: to borrow $15 billion to avoid making hard decisions. That can happen again this year, but it would only delay, not eliminate, the hard choices. Last year, the governor and the Legislature decided to borrow to shore up the state pension fund. A court likely will block that, forcing us to make a choice there as well.

Investing in the future also is a matter of choice. We spend from the state treasury for now, or we spend for later. There obviously are needs that must be met today, and most of them will matter tomorrow as well. Putting off certain health care needs, for instance, only increases the cost to all of us tomorrow. Not educating our children to their fullest potential reduces their future contributions and creates labor shortages. Infrastructure – buildings, aqueducts and highways – must be upgraded. It's another pay-now-or-pay-later proposition.

Most Californians know what the choices are. And most Californians are willing to make them if their leaders show they are willing to make choices beyond the next election. Could this be the year that happens?

California is a living socialist experiment in that we are paying benefits for all who contribute very little. We have been acutely feeling the effects in the last five years as the balance is shifting from having enough contributors to offset the negative cash flows to subsidized health care, education, and the increase in prisoners in the California penal system; and it will grow worse each budget year.

The children of illegals are having children at a young age, and are not able to financially sustain them. Medi-Cal is picking up part of the tab, forcing hospitals to write-off massive financial losses, only offset by the number of patients with employer provided insurance. Employer paid insurance continues to grow in cost by 10-20% annually. Most employers have begun cost shifting their health insurance expense to their employees, and or restricting the types of coverage, effectively making their employees pay out of pocket.

Ironically, those who immigrated hear to work cheaply are being displaced those who arrived more recently, and are willing to work more cheaply. These cheap workers, particularly in the construction field, are displacing legal, tax paying residents, because they are paid under the table;no social security tax, no state income tax, and no workers comp insurance. These illegal workers get injured and show up in a hospital emergency room, where by law, they must be treated regardless of ability to pay, and again the healthcare expense shifts to the taxpayer.

Now think about this. With the dramatic increase in residents in California, particularly in So Cal, there is really no increase in infrastructure spending (Water, sewage, transportation, education) with much money being diverted away from the general fund to pay these other social expenses.

It comes down to this. California will quickly become a third world state with a shrinking number of haves paying increasingly more for the have-nots, with the socialist legislature forcing more of the haves out of the state by punitive taxes and fees. California has one last chance, and it requires:
1. Educating residents of the peril they face if things remain status quo.
2. Voting out our the Socialists in the Legislature
3. Creating a very noisy, public, and nasty battle against Washington DC to force their responsibility in protecting the border and changing immigration law to keep the country's resources for the legal citizens of the country.
4. Forcing the GOP to reduce the number of kangaroo judges on the 9th circuit court of appeals (something under consideration now)
5. Stirring up the populist sentiment that is deep seated in California and passing another proposition 187 like ballot initiative, like Arizona recently passed, restricting benefits to legal citizens.

This reminds me of a group that attends our County Behavioral Health Services meetings. They demand that the County BHS provide them with services. We provide emergency services to anyone, but require Medi-Cal eligibility for long term clinical services. (The exception is substance abuse treatment which is under a separately funded program.)

The group states that the only psychiatrist in the County is the one employed by the County. Therefore, we should open services to all. They say that the County is responsible for making sure services are available. This is the entitlement mindset. I told them that I would be more than happy to work on a committee to attract a private psychiatrist, but the government is not responsible for providing everyone with health services. We have no desire to compete with the private sector.

(By the way, our BHS continues to run in the red serving those it currently serves and drains our General Fund.) I'm sure the lefists would jump right on board in agreement with the argument that government must be responsible for ensuring that services are provided.

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