Saturday, September 21, 2019

Good Riddance to Bad Rubbish: Homeless in California

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This is a link to a PDF file, hosted by HUD, of a letter to CA Gov. Newsom, et al, by HUD Secretary Ben Carson, in response to a request for additional Federal funds to "help the homeless" in California.

Secretary Carson told California in no uncertain terms that the problem is largely one of their own making through:

- Over regulation of housing (Federal housing subsidies to California are already over 38% higher than the rest of the nation);

- California's decrease in the number of mental health facilities by over 30% since 1995;

- Providing sanctuary to illegal aliens;

- Turning a blind eye to rampant drug abuse; and,

- Undercutting law enforcement in their efforts to get homeless people off the street.

Furthermore, California is already neglecting to use the aid that is being provided, leaving money on the table.

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An excellent synopsis by Sec. Carson, and one that should be widely read and embraced for its message. But most importantly is the message that this sends to the administrative state writ large, which is this: "Free stuff" is going away as the central Federal government is driving programs down to the state level, where they have to be responsible for their action (and inaction) and to balance their budgets.

Expect much the same for Oregon and Washington. "Free stuff" is going away. Illinois is already cutting back on critical law enforcement and first responders, in order to fund their pension obligations. Gee, what could go wrong there? Once people are unable to get an ambulance, and the alternative is to cut back on pensions, what choice do you think they will make?

CalPERS and Oregon PERS annuitants be warned. It is unclear to me what role the Pension Benefit Guaranty Corporation would play in the event of a default, except here's an excerpt from a letter PBGC wrote in the 90's:

    "Section 4021(b)(2) of ERISA excludes from Title IV coverage any plan "established and maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof..."

In other words, CalPERS goes bust, too bad, not our problem.

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Another encouraging note is that the letter states that preliminary 2018 data indicates that the number of deaths due to drug overdose, nationwide, is actually beginning to decrease, the first time in decades, after increasing 10% in 2017 and 21% in 2017.

Preliminary data for California for 2018, however, shows just the opposite, with drug overdose deaths increasing by over 6%

--Terry

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