The Ca. debt, and government waste

By Jeff Rainforth

Elimination of billions of dollars in government waste in order to pay down the debt. Also, requesting more federal tax dollars be returned to Ca. Some states receive up to $6 back from the federal government for every dollar they contribute in taxes. California receives .74 cents. Other states are taking California's money for their own needs because of special interest control of the U.S. Congress. We want more of our money to be spent in Ca.

Our state is facing an unprecedented budget crisis. The "quick" fix to some of our elected leaders is to further raise taxes for problems which they themselves have created.

How can our elected officials stand and tell us that individual citizens and business owners in California must endure another round of tax increases, all the while allowing wasteful spending of our money to continue? Well, in my opinion, they can't.

There is a veritable laundry list of government waste in California.

The no-bid contract between the California Department of Information Technology and Oracle which will cost the state an extra $41 million.

The Department of Corrections (CDC) has private contracts for RNs that total $1.3 BILLION over a 4-year period. CDC pays contract RNs an average of $114,000 a year compared with $65,000 year for state nurses. At that rate CDC is on track to waste $141.5 million.

Also, the CDC`s excessive overtime expenses for state prison correctional officers cost the state... $160 million in the year 2000.

The Department of Health Services (DHS) pays private Information Technology contractors $130 an hour. That is four times what it pays state employees to... do the exact same work! Over a six-year period DHS spent $8.9 million at that rate. The amount wasted? $6.2 million.

The state pays an outside contractor 14 cents a pound to shred old state documents; the internal cost is 7 cents a pound. Plus it spends $10 an hour to have state workers (who do nothing but watch) supervise the job.

The Los Angeles Times' Virginia Ellis reported in December 1999 that the FBI estimated fraudulent spending of Medi-Cal funds cost taxpayers $1 billion. The system was "rife with fraud," reaching 70 percent of billings for crutches, adult diapers, wheelchairs and other medical equipment.

And the whopper. Three years later, in December of 2002, The Times, in an article by Ms. Ellis and Tim Reiterman, reported that Medi-Cal fraud costs taxpayers approximately $2.5 billion a year (This amount would pay for almost 60,000 students to attend 4 years of college, including room, board, tuition, and books, or, 454,545 students could have their tuition paid for every year). What has the state recovered? A measly $100 million.

There are many, many more examples of waste and fraud. As Governor, I will seek to put an end to all monetary losses to the state.

As Governor I will: Seek mandatory independent Audits to find all fraud and wasteful spending. Auditors will report findings to the Attorney General and the Assembly for prosecution Perpetrators found guilty of submitting fraudulent billing to government agencies, state employees who receive illegal benefits from contractors or service providers will be criminally prosecuted and responsible to refund the illegally obtained funds. Do the crime, you will pay the fine. Fines will be commensurate, not a small percentage. Aggressively promote the anonymous tip program wherein individuals are encouraged to report fraud and waste, and rewarded if the investigation supports the claim. Whistleblowers (complainants) will be protected from being fired or demoted.

MORE GOVERNMENT WASTE

OVER $8 BILLION LOST IN ONE YEAR

HOLLYWOOD WORKPLACE PROGRAM

Job training & placement for those Hollywood types who are down on their luck. Why is the taxpayer providing this $$ instead of the multimillionaires & billionaires of Hollywood ? WASTED: $2.5 million this fiscal yr.

PAYING FOR OBSOLETE INFRASTRUCTURE

The Governor proposed to shift $8.2 billion worth of direct program costs from the state to counties, but leave state operations for the programs intact. Why pay for an infrastructure that no longer has reason to exist? WASTED: $8+ BILLION? (not included in final total as total costs are unknown)

BENEFITS FOR THOSE INELIGIBLE OR NOT IN NEED

The state often adopts requirements above the federal minimum, which opens the state to expensive litigation & huge mandate claims. For example, the state will be spending $187.9 million (total funds) to provide Medi-Cal benefits to persons who are no longer eligible for SSI/SSP. A court case determined the state has to provide these transitional benefits to those terminated from SSI/SSP as well as those leaving welfare. SAVINGS: $187.9 mil. + unknown on all other programs

SPENDING TO PRESERVE PREVIOUS YEAR'S ALLOCATION

In order to preserve the previous year's level of funding, bureaucracies spend wildly at the end of the fiscal yr. to show a need for that money during the upcoming budget allocations. Savings: unknown

COMPUTER SYS. THAT DON'T WORK & DON'T INTEGRATE

The state rarely creates an effective data collection system. Neither are they ever on budget. Savings: multi-millions

DATA CENTER FUNDING

Current funding for Health & Human Services data center based on past growth, not actual demand. Savings: $7.2 million

DUPLICATIVE COMPUTER SYSTEM FOR IN-HOME SUPPORTIVE SERVICES

In-home supportive services claims they need a new system. The present one does the job. Eliminate the waste. Savings: $795,000 in fiscal 03-04.

NEW LABOR AGENCY

A duplicative agency whereby other depts already doing this job. Eliminate. Savings: $2.3 million/yr

DUPLICATIVE DATA CENTERS.

Presently the state funds Teale Data Center & Health & Human Services Agency Data Center & Legislative Data Center. Combine them. Savings: At least $4 million/ yr

THE URBAN FISHING PROGRAM

This program funds outreach activities including production & distribution of pamphlets & brochures emphasizing leisure fishing in the city. Wasted: $100,000

DUPLICATIVE WETLANDS MAPPING

Fish & Game maps wetlands, also done by other agencies. Savings: $145,000

TEDDY BEAR HANDOUT

Teddy bears handed out to citizens encouraging thenm to fill out their 2000 census forms. Savings: $125,000

OBSOLETE REPORTS

State agencies are required to submit numerous interim & annual reports to the Governor & Legislature. Some are obsolete & no longer critical to present-day decision making, but the agencies are still mandated to produce these reports. Savings: potentially $100,000s

NEW DISTRICT CENTER

In a time of fiscal crisis, the conservation corps proposes to replace district center near Porterville. Neither fire dangers nor life-threatening issues are the cause. Eliminate. Savings: $14,400,000

CONSERVATION CORPS

In a time of fiscal crisis, the conservation corps proposes to acquire & construct a new location for the Tahoe area office. Put it off. Savings: $18,400,000

BOATING & WATERWAYS

Tax-subsidized loans to maintain & develop privately-owned marinas... eliminate! Savings: $3.500,000

BOATING & WATERWAYS

Grants to build & maintain wartercraft launching areas... eliminate! Savings: $19,581,000

WILDLIFE CONSERVATION BOARD

Oak woodlands restoration. In areas that may or may not have had oak treesw, property designated by the board is bought to plant trees. Without prejudice to merits of ecological protection, we question need to spend $5 million in time of fiscal crisis to plant trees. Savings: $5,000,000

NEW HQ FOR CORRECTIONS

The Dept. of Corrections wants a new hdqtrs. bldg instead of the current one. Eliminate. Savings $160,000,000

PARKS & RECREATION

The state pays over $1 million/yr to change bulletins primarily at roadside visitor cntrs. Savings: $1,134,000

PARKS & RECREATION

Interpretative exhibits program. Do we need it with $38 bil. deficit? Savings: $1,000,000/yr

GIVING AWAY BILLIONS IN TOBACCO SETTLEMENT:

IN ORDER TO GET ALL THE MONEY AT ONE TIME, THE STATE BARTERED AWAY BILLIONS OF TOBACCO SETTLEMENT MONEY BY TAKING LESS MONEY TO RECEIVE A LUMP SUM PAYMENT (IDIOTIC). WASTED: $6.5 BILLION (One time savings, cannot be recouped)

TRADE & COMMERCE FILM CA FIRST

Movie industry film permit subsidy that takes money from blue collar taxpayers whose median income is in the $20,000s & gives money to the multimillionaires of Hollywood. Savings: $8.2 million

BUREAU OF ELECTRONIC APPLIANCE REPAIR eliminate

Savings: $1.65 million

ACUPUNCTURE BOARD eliminate

Savings: $2 million

ARTS COUNCIL eliminate

In a state that produces more art than most countries, why is a government subsidy for art needed? (That coming from an artist himself) Savings: $13.5 million

OFFICE OF POLICY RESEARCH

This appendage of the Governor's office operates a Cesar Chavez Community Service Grant program. The services are duplicative of a plethora of other state programs. eliminate Savings: $5 million

CASEWORKER OVERSPENDING ON CHILD WELFARE CASES

Aver. spending per case for child welfare cases varies county to county. Statewide average is $135,000/case, but some counties like Sta Clara spend as much as $177,000/case. Eleven counties should cut waste & come into line with statewide averages. Savings: $20.8 million/yr

EXCESS FOSTER CARE VISITS

The state budgets for monthly visits to foster homes in addition to problem complaints. Fed'l stds are every 3 months. Change to fed'l std. Savings: $26.4 million/yr.

UNACCOUNTED EXPENSES BY CHILD SUPPORT

BUREAUCRATS Bureaucrats in child support system are unable/unwilling to explain $26.4 million for fiscal yr. `03-'04. Savings: $26.4 mil. /yr.

PAYING FOR NON-EXISTENT CHILD SUPPORT CASELOAD

Presently when a dept. loses caseload, the state does not decrease fund'g accordingly. eliminate Savings: $11 million for fiscal `03-04

FOOD STAMP WASTE

A 17.4 % error rate in the program & hundreds of millions to ineligibles & fed'l fines due to ineptitude of the program. Clean it up! Savings: at least $125 million/yr

IMMIGRANT FOOD STAMPS

Recently the state has started picking up $$ for immigrant food stamps. The state should insist that people & organizations who sponsored people's entry into the country pick up the tab. Savings: $11.2 million for `03-'04

IMMIGRANT WELFARE

The fed'l gov't does not provide welfare to immigrants; CA does. The state should make sponsors pick up the tab. Savings: $95 million/yr

QUESTIONABLE COMMUNITY COLLEGE CONSTRUCTION COSTS

rather than renovate unused or underutilized facilities, comm. colleges are entering into new construction projects Savings: up to $562 million for `03-'04.

MEDI-CAL FOR INELIGIBLE RECIPIENTS

CA rejected reinstatement of the Quarterly Status Report for the Medi-Cal Pgm. which would have saved $85 million General Fund/ yr by removing ineligible recipients from the caseload Savings: $85 million/yr

INEFFICIENT & POLITICALLY CORRECT RESEARCH FUNDS

CA spreads $6.5 million over 19 research facilities while allowing 25% of the funds to be used on non-research items. The roughly $25,000 left over at each facility wouldn't seem to mean much when compared to billions provided by the fed'l gov't & private foundations for research. Savings: $12.5 million total ($6.5 mil./yr in matching fed'l funds)

BAILING OUT L.A. COUNTY HEALTHCARE SYSTEM

Ca continues to participate with the fed'l gov't in an unjustified bail-out of the L.A. County healthcare system--throwing good money after bad. Savings: $2 BILLION over 5 yrs. of operation

MOST EXPENSIVE SCHOOL NEVER USED

Beginning in 1995, LAUSD ignored multiple warnings of significant earthquake risk at the site of their Belmont Learning Center. After spending $166million on Belmont, the district faces either expensive retrofit on incomplete project or total abandonment. Savings: $166 million +

DISREGARDING AUDIT RECOMMENDATIONS

Oakland USD is faced with the largest budget deficit ($100 million) for a sch. district in the history of CA, and possibly the nation, having failed to act on audit findings that revealed a need to improve the district's financial management system. (no one knew where money went, or to whom! ) Money wasted: $100,000,000

PAYING SCHOOLS TO FAIL

Current state law would allow schools participating in the High Priority Schools/ Immediate Intervention Underperforming Schools Program to participate in the programs & continue to get either $20 or $400 /per pupil for up to 7 yrs without meeting growth targets before sanctions are imposed on them. Savings: 100,000,000s +

Low estimate of total dollars lost in one year: $8,519,820,000

Almost 9 billion dollars (Counted $40 million for the last two items, and, $400 mill for bailing out L.A. $8 billion from obsolete infrastructure not counted as costs are unknown.)

YOUR CHOICE

It is clear that something must be done to remedy the state's reckless spending habits. It hasn't mattered which political party has held the governor's seat in California, the waste continues year in, and year out. Individuals and businesses are taxed more to make up for the shortfall. Quality of life declines, state workers are laid off, programs that truly deserve funding are slashed, bond ratings fall, and the debt continues to rise. This is all caused by those who mismanage our money. If you want me to be your next governor, and to clean up the mess, I will accept your vote. If you want someone else for the job, that's fine. There are 135 other candidates. It's up to you. The Reform Party's research teams have been reporting on government mismanagement for over ten years now. It all started with the citizen watchdog group, "United We Stand America." These teams will be the ones helping to clean up California government, and, hopefully help return honesty, and ethical behaviour to the statehouse.