The Baja California Business Coordinating Council (CCE) publicly called out two state politicians on May 29 for failing to reform ISSSTECALI, the state employees’ social security and health institute now facing an 8.5 billion peso (approximately $425 million USD) deficit.
CCE president Octavio Sandoval López named state legislator Juan Manuel Molina García and Senator Armando Ayala Robles as responsible for blocking reform efforts. Sandoval presented a package of rescue proposals during a press conference in Mexicali, including a measure that would make non-payment of ISSSTECALI contributions a serious criminal offense.
A System Running on Less Than Half Its Needs
ISSSTECALI, the Instituto de Seguridad y Servicios Sociales de los Trabajadores del Gobierno y Municipios del Estado de Baja California, provides health care, pensions, and social services to all state and municipal employees. That includes teachers, police, and bureaucrats across Tijuana, Mexicali, Ensenada, and every other municipality in the state.
The institute’s 2026 budget stands at 20 billion pesos (roughly $1 billion USD). Worker and employer contributions cover less than half of those expenses. The pension deficit alone grows by 1.2 billion pesos ($60 million USD) each year.
On May 20, ISSSTECALI director Luis Gilberto Gallego Cortez confirmed the crisis during Governor Marina del Pilar’s morning press conference. He stated plainly that the institution “is bankrupt” and that “the finances of ISSSTECALI are not healthy.” The institute currently manages benefits for workers across 57 public agencies and municipal governments.
Teachers Mobilize as Pension Backlog Grows
The fallout is already spreading. On May 29, the same day as the CCE press conference, the Frente Estatal Magisterial (State Teachers’ Front) announced it would join the national teachers’ union CNTE to push for solutions. Coordinator Rigoberto Castillo García said pensions are still being paid for now, but roughly 800 people are currently waiting for their retirement benefits to begin.
Sandoval López has been sounding the alarm for months. In February, he noted that a special surcharge imposed on the municipality of Mexicali to cover the ISSSTECALI shortfall has already cost the city about 1.5 billion pesos ($75 million USD), draining money that could go toward infrastructure and basic services.
The CCE’s proposals call for full legislative reform of the institute’s funding structure. The business council wants criminal penalties for municipalities that skip their required contributions. Analysts and officials agree there is no single fix for the crisis, and financial working groups are expected to begin reviewing structural changes to the pension system in the coming weeks.
This story was first reported by Punto Norte on May 29, with additional reporting from El Imparcial and Pulso Ciudadano.