Mexicali Debt Crisis Deepens

The Mexicali City Council faces a daunting 800 million peso debt to ISSSTECALI, necessitating strategic financial planning and potential reforms to mitigate the impact on public services and employees.

### Mexicali City Council’s Debt to ISSSTECALI Exceeds 800 Million Pesos

The city council of Mexicali is currently grappling with a substantial financial obligation to the ISSSTECALI, exceeding 800 million pesos. This amount includes existing debt with the health institution and an additional 557 million pesos required to comply with Article 125 of the ISSSTECALI law.

Mayor Norma Bustamante Martínez acknowledged the financial challenges facing Mexicali but noted that other municipalities such as Tecate and Ensenada also have outstanding debts to the institution and may need to enter into long-term payment agreements to settle them.

“The city’s finances are severely strained; we require these funds for numerous essential services,” Bustamante explained. “Even though decisions are not solely up to the city council, Mexicali strives to meet its obligations better than others. Tecate and Ensenada might enter agreements spanning up to 20 years, but Mexicali is committed to fulfilling its responsibilities.”

Regarding potential reforms to ISSSTECALI, Bustamante plans to convene a meeting with the mayors of Baja California’s municipalities and the Secretary of Finance, Marco Moreno Mexía, to discuss potential changes. However, she emphasized that any reforms should not negatively impact municipal workers. “Municipal employees should not suffer for the historical mismanagement of ISSSTECALI,” she stressed.

The city council’s debt to ISSSTECALI is compounded by other financial burdens. Mexicali owes the Federal Tax Administration Service (SAT) 220 million pesos and the company PASA, responsible for the transfer center, an additional 200 million pesos.

### Additional Background and Recent Developments

In an effort to handle various financial difficulties, Baja California has been in discussions about reforming the funding and management of ISSSTECALI to address current deficits and prevent future ones. The talks come at a time when many municipalities in the region are struggling to keep up with payments to the healthcare institution. These payments are critical as they directly affect the medical coverage and benefits of public sector employees.

The broader economic strain in Baja California has led to increased scrutiny on fiscal management across local governments. As multiple municipalities face similar challenges with ISSSTECALI and other financial obligations, regional leaders are pushing for systemic reforms that might offer more sustainable solutions to these ongoing economic issues.

In response to these challenges, the State Congress has been urged to consider reforms that would potentially restructure debts and allow for better financial planning. These legislative efforts are aimed at both ensuring financial stability for municipal governments and securing the welfare benefits of public employees.

As the situation continues to develop, the collaboration between municipal leaders and state officials will be crucial in crafting policies that address immediate financial hurdles while also establishing long-term fiscal health for the region.