State Assembly members recently approved new debt in order to pay water, health, education, public safety and street projects
Baja California lawmakers recently approved a new debt of 3.5 billion pesos or around $184.2 million USD.
The funds will be used for water, health, education, police and street infrastructure.
The State Assembly said in a prepared statement the debt will mainly help improve water distribution to coastal cities.
“Approving debt always undertakes a political cost, which we assume,” Assembly Speaker Maria del Rocio Adame said in the statement. “Above that political cost are the needs of water public works to supply water to coastal municipalities.”
The lawmaker said the debt includes oversight provisions. Legislators will address debt management every six months.
The bill was approved 19-6.
Details
The Assembly said in the statement water infrastructure — including supply and maintenance — was ignored in past administrations, impacting residents.
Besides population increase, the debt will help address drought and mismanagement in water agencies from past administrations.
Baja California is home to 3.7 million residents, with an annual growth of 1.8 percent, and it is expected to reach 4.1 million residents by 2030.
The Assembly said while coastal municipalities report water deficit Mexicali and San Felipe have water assured until 2035.
The Legislature said water infrastructure conditions are under risk after surpassing its useful life — jeopardizing people’s health.
At the same time, wastewater treatment plants have insufficient capacity and its equipment works are low-efficient while the state lacks funds to rehabilitate, expand or build new infrastructure to correctly operate the system.
The debt also includes funds to address gender gaps in health, public safety, education, transportation and public administration infrastructure, the legislature said.
Days ago, lawmakers approved 20-5 the state’s 2023 budget that includes a spending of 73.1 billion pesos or about $3.8 billion USD.
The amount represents 4.1 billion pesos or 5.6 percent more than 2022
This new debt contrasts with the state’s recent path to reduce its liabilities.
The Mexican Competitiveness Institute said a year ago state debt was 21 billion pesos. The congressional Center of Studies of Public Finances said Baja California’s debt went up to 23.5 billion pesos in the third quarter of 2022.
Debt went down to 22.1 billion pesos this month, the Center of Studies said.
Criticism
In a press conference, the National Action Party said debt approval is in fact a robbery as future administrations will pay for it.
Party Secretary General Rosario Rodriguez said the debt was approved while residents are busy with Christmas shopping.
Rodriguez, a former state legislator, said party lawmakers stood against debt approval but were unable to stop it.
The secretary general considered that those 3.5 billion pesos will become 9 billion with interest charges.
Debt will be paid over the next three decades, which Rodriguez called an irresponsibility from an insensible governor that has compromised Baja Californians funds.
The secretary general considered the state should have strengthened its austerity policies, but instead prefered to increase expenditures and taxes — impacting residents and compromising future generations.
Mexicali Council member Rudencindo García said the Center of Women Justice — which is included as a debt project — will be built in a property donated by the City of Mexicali.
The state missed the opportunity to access federal funds to build the center and has now been forced to incur in additional debt, Garcia said.
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