The state of California, led by Governor Gavin Newsom, often touts itself as a “nation state” and a model for the rest of the nation. However, when it comes to implementing large-scale projects and programs, California is a prime example of bumbling incompetence.
The list of failures to deliver on time and on budget is endless, but a few examples include the bullet train that was supposed to be operational by now, but is still under construction with cost estimates nearly tripling. The reconstruction of one-third of the San Francisco-Oakland Bay Bridge took 25 years and cost 25 times the original estimate. The Oroville Dam nearly collapsed in 2017 due to poor engineering and state officials ignoring warning signs.
When the COVID-19 pandemic hit and resulted in the loss of jobs for millions of Californians, the Employment Development Department struggled to handle legitimate claims for unemployment insurance, and gave billions of dollars to fraudulent claimants.
Even in the field of information technology, California has a track record of botched projects with long delays and immense cost overruns.
One particularly egregious failure that has flown under the radar is the program to provide long-term care insurance to California’s public employees and retirees. In 1995, the California Public Employees Retirement System (CalPERS) received legislative approval to provide such insurance and thousands of public workers signed up on promises that premiums would remain affordable. However, when the program proved to be unsound, CalPERS began sharply increasing premiums, leading to a class action lawsuit alleging broken promises. A tentative settlement of $2.7 billion was reached, but was later withdrawn as too many individual plaintiffs rejected the deal and a new trial is scheduled for later this year.
It’s clear that CalPERS didn’t know what it was doing and were it a private insurer, the Department of Insurance would have probably intervened. However, CalPERS is exempt from such oversight. The affected workers and retirees are now pressing the Legislature to order an investigation by the state auditor to get to the bottom of this multi-billion dollar mess.
It’s time for Californians to demand accountability from their leaders and for the state to take responsibility for their failures and mismanagement of taxpayer funds. We deserve better than the constant stream of botched projects and broken promises.
