At a press conference on Dec. 17, U.S. Sen. Barbara Boxer (D-CA) released a report describing the impact of the nation’s recession on California’s counties and cities. The report—based on interviews Boxer and her staff conducted with officials in 20 cities and all 58 counties—documents the economic strains felt across the state.
The detailed analysis includes unemployment figures, home foreclosure rates, budget deficits, and first-hand accounts of the impact of the recession on social services and nonprofit agencies.
“This report is a reality check on the economy—things are not good, but change is coming. I am going to focus like a laser beam on saving and creating jobs, which is the backbone of any economy,” Boxer said at the conference.
According to a press release accompanying the report from Boxer’s office, budget deficits and revenue reductions have forced California’s counties and cities to make cuts in many important programs, including public safety programs, MediCal services, mental heath services, “meals on wheels” programs, and youth and senior centers. To compensate for the cuts, nonprofit organizations have been stretched to the brink.
The report shows that critical infrastructure projects are also stalling because of financing problems, which limits job growth at a time when unemployment rates are at their highest level in decades.
According to the report, Santa Barbara County has an unemployment rate of 5.9 percent. Foreclosure filings between January and November 2008 were estimated at 4,874 (roughly one for every 31 households).
The report states that Santa Barbara County is expecting a “significant” reduction in funding for several key departments, including law enforcement and heath care, due to the weakening economy and a loss of state funding.
County officials have also been forced to delay general construction and infrastructure improvement projects, as well as road and building maintenance, and decrease truancy prevention programs for local schools. The county’s Emergency Operations Center will also be delayed because funds previously set aside for its construction had to be redistributed.
County officials said in the report that they’ve managed to maintain a constant level of employment and haven’t issued any layoff notices to county employees—due mostly to the 64-hour furlough agreement the county reached with local labor unions earlier this year. The furlough amounts to a 4 percent reduction in pay for all county employees, and a cost of living allowance and salary increases have also been delayed.
The report also states that local food banks have reported a significantly higher than normal visitor rate, and the Santa Barbara County Department of Social Services is said to be experiencing record high caseload growth, as well as an increase in applications for Non-Assistance Food Stamps and CalWORKs programs.
To help the state’s cash-strapped counties, Congressional leaders and President-elect Barack Obama are working on federal economic recovery legislation.
At the Dec. 17 press conference, Boxer said the legislation would most likely include:
• Funds to repair and improve existing infrastructure, including roads, bridges, rail, and public transit.
• Increased support for federal programs that support energy efficiency in new buildings and upgrades to existing buildings.
• Investment in water infrastructure projects, including reclamation, reuse, and groundwater cleanup programs, which could provide new water supplies and create jobs.
• Increased investment in the Community Oriented Policing Services program, which awards grants to law enforcement agencies so they can hire and train officers, buy new crime-fighting equipment, and develop innovative policing strategies.
• The development of more Community Development Block Grants, which help states and local governments address local housing needs and stabilize neighborhoods rocked by the foreclosure crisis.
• Increased percentages in federal government funding for the Medicaid program, which provides health care services for low-income households.
The full report is available on Sen. Boxer’s website: boxer.senate.gov/features/Boxer_California_Recession_Report.pdf.
—Amy Asman
This article appears in Dec 25, 2008 – Jan 1, 2009.