Newark’s Healthcare District Scheme: Another Government Entity to Drain Your Wallet
Chamber of Commerce CEO Stephen Cassidy just used Newark’s public comment period to lobby for Measure B — a healthcare district that would create another layer of government bureaucracy with taxing authority over residents who already fund county health services, state programs, and federal Medicare.
Cassidy’s October 9, 2025 pitch for this new government entity reveals the cozy relationship between Newark’s business establishment and politicians who love creating new ways to extract money from taxpayers while expanding their own power and influence.
The Healthcare District Money Grab
Healthcare districts sound compassionate until you realize what they actually do: create another government bureaucracy with independent taxing authority, separate from existing health services that taxpayers already fund through multiple government levels.
Measure B would establish a healthcare district that can:
- Levy property taxes on Newark residents and businesses
- Issue bonds backed by taxpayer guarantees
- Hire administrators with generous government compensation packages
- Duplicate services already provided by Alameda County and state health programs
While Cassidy promotes this as community health improvement, taxpayers should recognize it as government expansion disguised as public service.
The Chamber’s Political Agenda
Stephen Cassidy’s advocacy for Measure B during public comment time raises serious questions about the Chamber of Commerce’s priorities:
Who benefits from healthcare districts? Certainly not taxpayers who will fund another government entity. But healthcare administrators, government contractors, and businesses that profit from government health spending definitely benefit.
Why is the Chamber lobbying for more taxes? Typically, business organizations oppose new government entities and additional tax burdens. Cassidy’s support suggests the Chamber expects to profit from healthcare district spending.
What’s the real agenda? Healthcare districts often become vehicles for political patronage, government job creation, and contractor relationships that benefit business insiders at taxpayer expense.
When the Chamber of Commerce CEO uses city council meetings to promote new government entities, residents should ask whose interests he’s really representing.
The Duplication Problem
Newark residents already fund healthcare services through:
Alameda County Health System: Provides emergency services, public health programs, and safety net care funded by county taxes and state allocations.
California Medicaid (Medi-Cal): State-administered program providing healthcare coverage for low-income residents, funded by state and federal taxes.
Federal Medicare: National program serving seniors and disabled residents, funded by federal payroll taxes.
Private Insurance Markets: Regulated healthcare coverage options for employed residents and families.
Measure B’s healthcare district would create a fifth layer of government health bureaucracy, each with its own administrative costs, overhead expenses, and political leadership.
The Hidden Costs Taxpayers Will Face
Healthcare districts impose multiple financial burdens on residents:
Property Tax Increases: Districts can levy ongoing property taxes that increase homeowner costs and rental expenses for tenants.
Bond Debt Obligations: Districts can issue bonds that create long-term debt obligations for taxpayers, often extending 20-30 years.
Administrative Overhead: New government entities require executives, staff, offices, and operational expenses that divert money from actual healthcare services.
Duplicate Services: Districts often replicate existing programs rather than improving care, creating inefficiency that costs taxpayers more while delivering less.
The Government Empire Building
Healthcare districts represent a classic government expansion strategy: create new bureaucracies that sound beneficial while establishing independent taxing authority and political patronage opportunities.
Consider the typical healthcare district structure:
- Elected board members who gain political power and influence
- Executive directors with generous government compensation packages
- Administrative staff expanding government employment
- Consultant contracts providing opportunities for business relationships
- Bond financing creating long-term revenue streams for financial services companies
While taxpayers fund this expansion, the primary beneficiaries are government insiders and businesses that profit from public sector spending.
The Alameda County Alternative
Instead of creating another government entity, Newark residents should demand better performance from existing healthcare providers:
Alameda County Improvements: Push county supervisors to improve existing health services rather than creating duplicate bureaucracies.
State Program Enhancements: Advocate for better Medi-Cal services and expanded coverage through existing state programs.
Private Sector Solutions: Support market-based healthcare improvements that don’t require new taxes or government expansion.
Efficiency Measures: Demand better coordination between existing health programs rather than adding another layer of bureaucracy.
The Measure B Deception
Supporters of healthcare districts typically promise:
- “Improved local control” (translation: new government jobs for political allies)
- “Enhanced healthcare access” (translation: duplicate existing services at higher cost)
- “Community-focused care” (translation: politically-controlled health spending)
- “Modest tax increases” (translation: permanent new taxes that will grow over time)
What they don’t mention:
- Administrative costs that consume significant portions of district budgets
- Duplication of existing services rather than genuine improvements
- Long-term tax obligations that burden residents for decades
- Political patronage opportunities that benefit insiders
What Newark Residents Should Demand
Before supporting any healthcare district, taxpayers deserve:
Complete Financial Analysis: Total cost projections for district operations, including administrative overhead and long-term debt obligations.
Service Comparison: Detailed explanation of what services the district would provide that aren’t already available through existing programs.
Efficiency Justification: Evidence that a new government entity would provide better healthcare outcomes than improving existing services.
Accountability Measures: Clear performance metrics and oversight mechanisms to prevent the district from becoming another government boondoggle.
The Chamber’s Real Motivation
Stephen Cassidy’s advocacy for Measure B suggests the Chamber of Commerce expects its members to profit from healthcare district spending. This could include:
- Construction contracts for district facilities
- Professional services for district operations
- Healthcare provider contracts with the new entity
- Financial services for bond issuance and management
When business organizations support new government entities, it’s usually because they expect to profit from public spending, not because they believe in government efficiency.
The Bottom Line
Measure B’s healthcare district represents classic government expansion: create new bureaucracy, establish independent taxing authority, duplicate existing services, and provide opportunities for political patronage and business profits.
While Stephen Cassidy and healthcare district supporters promise improved community health, taxpayers should recognize this as another scheme to extract money from residents while expanding government control over healthcare decisions.
Newark residents already fund healthcare through county, state, and federal programs. They don’t need a fourth layer of government bureaucracy with its own taxing authority and administrative overhead.
Vote no on Measure B. Support healthcare improvements through existing programs rather than creating another government entity that serves political and business interests at taxpayer expense.
Sources: Newark City FINAL October 9 2025 minutes.pdf
