Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.
What I'm trying to clarify is that your biological make up is not what "he" and "her" refer to. Those terms refer not your sex, but to your gender.
Sex and gender are not synonyms of each other. They are very different things.
Out of respect I haven't linked the dictionary definitions of those terms, but if you would like I would be happy to post them if you think it would help the discussion.
Essentially, when people call a tranny "her", they are not referring to "her" born biological sex. They are referring to "her" roll in relation to everyone else.
One conversation with one person who's made it out the other side and you'd change your tune.
My friend Kimberly is changing the world and she is the bravest human being I know who isn't a soldier.
If you'd watch her movie, Prodigals Sons, you'd recognize how human transgendered people are.
Now, the state shouldn't pay for their breast augmentations, as the one in the OP suggests - but it's not necessary to denigrate people you don't understand just because it amuses or disgusts you.
Sex reassignment surgery is the recommended treatment for Gender Identity Disorder and all patients must undergo one year of psychological treatment to make sure that there are no additional mental disorders before they are allowed to have the surgery.