Issstecali Debt Crisis Unfolds

Ensenada and Tecate face dire financial woes, owing Issstecali over $6 billion. Struggling with payment lapses, these municipalities strive to navigate economic challenges and improve fiscal responsibility.

## Major Debt to Issstecali: Over $6 Billion Owed by 48 Defaulters

**November 19, 2024**

In a significant financial issue currently unfolding in Baja California, various municipalities and organizations owe the Institute of Security and Social Services for Government and Municipal Workers (Issstecali) more than $6 billion pesos. This figure, a considerable burden on the governmental financial health, reveals deep-rooted payment lapses spanning over 14 years in some cases, notably in Ensenada and Tecate.

According to information obtained from the National Transparency Platform, the state of backlog on payments was assessed on October 23 of the current year. The largest debts originate from the municipalities, with Ensenada owing $3,578 million pesos and Tecate a hefty $1,406 million pesos. The debt includes pending contributions from both authorities and workers, resulting in substantial accrued interest. Beyond municipality debts, several water service agencies, including the State Water Commission and four operators, are among the top defaulters.

During the recent congressional session focusing on water management, questions arose regarding these financial obligations to Issstecali. Legislator Diego Echeverría Ibarra emphasized discovering these debts through transparency reports, highlighting significant liabilities from the Ensenada Public Services Commission (CESPE) at $677 million pesos, and $81 million pesos owed by the Tijuana Public Services Commission (CESPT).

Victor Amador Barragán, head of the Water Management at Seproa, acknowledged that many of these institutions face critical financial and infrastructure issues. There’s a concerted effort toward reforming the Issstecali system, an initiative repeatedly pushed by the Baja California government. However, the need remains for accountability and repayment by the defaulters.

On a promising note, some progress is reported with CESPT planning a regularization agreement with the Treasury to address these debts by 2025. However, the group’s retirees stress the importance of settling existing debts before any reform attempts take shape.

In addition to internal efforts, various state departments and cultural centers are also grappling with unpaid dues. For instance, the Ensenada Civic and Cultural Center has a 12-year-old debt of over $47 million pesos, while the State Penitentiary Commission owes $666,500 pesos for 2021-2023 fiscal terms. Meanwhile, Tecate’s Urban Development Promotion Institute confronts a six-year-long debt of over $5 million pesos.

The ongoing struggle to balance Issstecali financial obligations reflects broader economic challenges and a significant need for improved fiscal responsibility across Baja California’s public sectors.

## Additional Insights: Ensenada and Tecate’s Financial Struggles with Issstecali

The debt crisis facing Issstecali highlights broader economic strains within Baja California, particularly in Ensenada and Tecate. These regions have not only amassed large debts but also have faced difficulties in maintaining public service standards due to financial mismanagement.

The local governments of Ensenada and Tecate have attracted criticism for failing to address these issues over the past decade, leading to degraded public infrastructure and services. Public discontent adds pressure on these administrations to rectify the ongoing financial negligence that has strained community services, including healthcare and education.

Moreover, ongoing discussions in local government have pointed towards potential restructuring of local fiscal policies to prevent future occurrences of such sizable debts. Potential reforms could involve stricter financial accountability and increased transparency to foster public trust and ensure sustainable financial management.

As the state of Baja California continues addressing these financial discrepancies, there remains an urgent need for municipalities to fulfill their financial commitments to institutions like Issstecali, upon which public employees and retirees heavily depend.