EDITORIAL : MORE BOND BLUNDERING; CAL-VET LOAN PROGRAM IS IN WASTEFUL DISARRAY.ELIZABETH G. Hill, the state's highly respected legislative analyst, has a valid beef with one of California's most sacred political cows - the Cal-Vet loan program. California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). voters have approved 25 Cal-Vet bond issues since 1921 to help veterans buy homes and farms. The last bond issue, approved by the voters in 1996, authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: an additional $400 million in borrowing for this purpose. Cal-Vet supporters routinely brag that the program has helped more than 400,000 veterans without costing the taxpayers a dime, since it is self-supporting through loan payments and the loans themselves are fully secured. Well, that might have been the case in the past but it isn't now. Hill, in a Jan. 16 report to the Legislature, warns that the program has lost money for the past five years. ``Underlying all these problems was a history of weak program operations and management,'' Hill said. In fact, it's got to the point where the market for Cal-Vet loans is plummeting due to the declining population of veterans and - and here's the shocker shock·er n. One that startles, shocks, or horrifies, as a sensational story or novel. Noun 1. shocker - a shockingly bad person bad person - a person who does harm to others 2. - the availability of more attractive loans in the private sector and through other government programs. Moreover, repossessions have increased due to defaults. Cal-Vet life and disability insurance programs have lost millions of dollars, with claim payments generally exceeding premiums since 1983, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the state controller. It also would appear that the program is grossly overstaffed o·ver·staff tr.v. o·ver·staffed, o·ver·staff·ing, o·ver·staffs To supply with too many employees: Management was careful not to overstaff the agency. . Hill found that Cal-Vet staff members assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to those duties handled an average of slightly more than 3-1/2 loans a month, while loan processors in the private sector are likely to generate at least 20 funded loans per month. Hill has recommended that the Legislature phase out new Cal-Vet loans by 2007 and put Cal-Vet loan-servicing operations up for bid by 2006. Those ideas and others for restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). the program deserve a full airing before the Legislature. The Daily News has supported Cal-Vet bond issues as an appropriate way to help veterans become productive members of the country that they helped defend. Nevertheless, good intentions don't justify wasteful and ineffective programs. We therefore urge Sacramento to fix this one, or run the risk of further alienating al·ien·ate tr.v. al·ien·at·ed, al·ien·at·ing, al·ien·ates 1. To cause to become unfriendly or hostile; estrange: alienate a friend; alienate potential supporters by taking extreme positions. voters who are becoming increasingly skeptical of the often empty promises made by politicians when they come asking for more bond money. |
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