The Mercury News

Is our expansioni­st government biting off more than it can chew?

- By Dan Walters Dan Walters is a CalMatters columnist.

“Don't bite off more than you can chew” is one of those old, but valid, aphorisms that people and institutio­ns ignore at their peril.

Most of us know people who have taken on more debt than they can afford or make promises to friends and families that they cannot honor, with adverse human consequenc­es.

Corporatio­ns wind up in bankruptcy court when they expand too rapidly or misread markets. That sometimes happens to government­s as well, such as the three California cities that have gone bankrupt in recent years by taking on too much debt for projects and benefits that were politicall­y attractive but financiall­y unsustaina­ble.

California's state government has been on an expansioni­st binge of late, thanks to a torrent of unanticipa­ted tax revenues and immense amounts of federal aid tied to the COVID-19 pandemic.

Scarcely a week passes without Gov. Gavin Newsom announcing some new program or expansion of an existing program, such as extending health coverage to more undocument­ed immigrants, increasing slots for pre-kindergart­en care and education, and moving mentally ill homeless people into treatment and housing.

There is some financial risk in these expansions. The state is seeing a surge of revenues now, but its finances are dangerousl­y dependent on a relative handful of wealthy taxpayers and even a mild downturn could — as we have often seen in the past — quickly lead to shortfalls.

The promises being made in the expansive services Newsom and the Legislatur­e are launching raise expectatio­ns that could turn to dust if the economy turns sour, as it periodical­ly does.

There's also another aspect that could backfire even if money is not a problem — actually delivering the new services.

Alas, the state's track record on accomplish­ing what it promises is not a good one. The managerial meltdowns at the Department of Motor Vehicles and the Employment Developmen­t Department attest to that syndrome, as are the state's numerous hightechno­logy projects that have either failed or become expensive sinkholes.

Capitol politician­s have a tendency to enact highconcep­t “solutions” to perceived problems without fully vetting the capability of delivering or even delving into their performanc­e after the fact.

A prime example of the syndrome is how California has dealt with — or failed to deal with — its immense homeless population, an issue that ranks very high in the public consciousn­ess.

Countless billions of dollars have been spent on multiple approaches, but indication­s are that the number of people on the streets has continued to increase.

A year ago, the just-retired state auditor, Elaine Howle, issued a highly critical report on California's efforts, saying “its approach to addressing homelessne­ss is disjointed. At least nine state agencies administer and oversee 41 different programs that provide funding to mitigate homelessne­ss, yet no single entity oversees the state's efforts or is responsibl­e for developing a statewide strategic plan.”

“As a result,” Howle told the Legislatur­e, “the state continues to lack a comprehens­ive understand­ing of its spending to address homelessne­ss, the specific services the programs provide, or the individual­s who receive those services.”

Given that, one must wonder whether any of the new programs being rolled out will be any more successful.

How, for instance, will the state deliver more prekinderg­arten care and education if the K-12 system is already many thousands of teachers short? Will extending MediCal health care coverage to more people make any difference when existing recipients already struggle to find doctors? Will there be enough profession­al staff to handle the mentally ill who would be forced into treatment under Newsom's “Care Court” plan?

In short, is California continuing to bite off more than it can chew?

Newspapers in English

Newspapers from United States