Plan Threatens Fiscal Health of the County

On March 26 Ventura County voters will have the opportunity to vote on Measure X and decide whether $51 million should be spent to construct an expansion at the Ventura County Hospital Complex. The plan proposed by the Board of Supervisors risks putting Ventura’s fiscal health in jeopardy.

Since this project has been proposed, numerous experts from the financial and health-care fields have concluded that the financing for this project is shaky and uncertain.

This expansion would be financed with expensive financial instruments called Certificates of Participation (COPs). Although similar to bonds, COPs cost taxpayers a higher interest rate than general obligation bonds. COPs are often used by local government to circumvent the vote of the people required by Proposition 13. Paying off this debt--whether like a bond or through a tricky lease-back COP--still rests on the shoulders of the taxpayers.

According to the county auditor-controller, the county is banking on a $27-million reimbursement from the federal and state governments. Yet, funding from these sources is clearly at risk, a point that one of the county’s own experts made at a hearing held by the Board of Supervisors.

Even if the projects are approved for these government funds, there is no guarantee the money would ever be appropriated. The Board of Supervisors has heard testimony surrounding the debate in Washington to convert Medicaid to a block grant program. In fact, many national health-care experts believe that Medicaid program continuance is neither assured nor probable.

Another major area of concern is the county’s reliance on “disproportionate share funds.” More than half of the money needed for this expansion project is dependent on disproportionate share funding, funds given by the state to hospitals that provide inpatient care for mostly indigent or Medi-Cal patients. Yet, public hospitals are expected to experience at least a 50% reduction in funding for indigent patients.

What is equally disturbing as the shaky financing plan is that our politicians want to build this expensive expansion without knowing exactly what Ventura County needs. In fact, the Board of Supervisors received an offer from the board of trustees of Community Memorial Hospital to split the cost of an independent, countywide health care needs study to determine what would be best for all residents of the county. The Board of Supervisors refused.

Its plan for this expansion would add a five-story building and a parking structure to the county hospital complex. Yet, the Ventura County Medical Center has a 40% vacancy rate. If an independent needs study had been performed, perhaps we could have addressed the issue of providing care using existing space without building another facility.

If Ventura County truly wants to provide the most efficient and quality care for the indigent, facilities would be established in the communities with the greatest concentration of medically needy, rather than centralized in one city of the county.

Until an objective health care needs assessment for the county is conducted, there is no way to be sure whether this additional space is necessary. In light of the tremendous risk this project poses to taxpayers, it is folly to proceed without a complete study and analysis.

Recently, a proponent of Measure X boldly proclaimed that this project would be the envy of many counties in California. Are taxpayers of Ventura County to assume the tremendous liability for an expensive, five-story expansion that relies on shaky financing, for the sake of prestige and appearance? Where is health care and fiscal responsibility in this equation?

If the funding for this does fall through as many expect, how are taxpayers going to pay for it? The county of Ventura is facing a nearly $18-million deficit for the coming fiscal year. Where will the money come from?

It is important to remember that Measure X was placed on the ballot by a referendum petition signed by more than 39,000 registered voters. The local politicians, however, waged a costly legal battle using taxpayer dollars to keep it off the ballot.

Twice the courts have refused to listen to the Board of Supervisors and have upheld the will of the people.

Now, the local politicians are not telling voters the hard truths surrounding Measure X.

The truth is that Measure X is a plan that the politicians never wanted you to know about.

The truth is that Measure X is a plan with an undemonstrated need.

The truth is that Measure X is a plan to expand the county hospital using shaky and uncertain financing that will ultimately leave the taxpayers of Ventura County holding the $51-million bag.

On March 26 we urge you to vote NO on Measure X. We can’t afford it. We don’t need it.

Dahlgren is a registered nurse at Community Memorial Hospital and chief spokeswoman for Taxpayers for Quality Health Care, a group sponsored by the hospital.