Introduce myself: Director of Research and Communications FRAME: Today we are releasing our most recent Indicator Report on the Economy. I am going to go over a summary of the report, a few of the indicators in the report, and the report’s recommendations.
We release one indicator report annually, focusing on one in five topics annually, including the environment, community well-being, public health and access to care, and education and youth preparedness. They are snapshots of the region and the idea is that with the five year rotation we see changes over time and the trends throughout the region. The purpose of the reports is to help communities to monitor conditions and to provide a foundation for dialogue. Indicators help to answer important questions such as how well the economy is functioning, how the schools are doing, or whether air and water quality are improving or worsening. How the data is collected and analyzed. State and federal sources Consolidate the data into
Introduce report and layout Definitions of regions * In this report we divided the 19 counties of the Central Valley into 4 subregions. FRAME NEXT SLIDES:
The population in the Central Valley continues to grow rapidly. The greater the population, the greater the demands will be on all kinds of infrastructure and public services, such as communications, corrections, government, health, housing, transportation, and water supply.
Per capita income is a major factor in a community’s standard of living. Regions with a higher per captia income tend to have more educational, recreational, and entertainment opportunities. However, this can be misleading because lower income areas often have a lower cost of living. Yet, all the subregions in the Central Valley are below the state and national averages. To put this in perspective, if the Central Valley was to be taken as an individual state, it would rank 48 th in the nation in per capita income.
Since 1996, residential construction was a primary force in the Central Valley’s economy. From 2005 to 2008, however, there was a 75% decrease in residential building permits granted in the Central Valley.
The labor force in the Central Valley is growing faster than job growth. This graph shows job growth from the year 2000, which measures the change in the number of jobs over a period of time. In a healthy economy, job growth would keep pace with the growth of the labor force to provide adequate employment opportunities. With the recession, we are seeing more residents being unemployed, underemployed, commuting farther to jobs, or relocating.
All of the Central Valley’s subregions consistently exceed the state and national rates. As of 2008, the last complete year of data available, the Central Valley annual unemployment rate was almost 42 percent higher than the California average. High unemployment can result in greater competition for existing jobs and lead to lower overall wages. Unemployed workers often face serious financial difficulty, such as losing their homes to foreclosure.
In 2007 the Central Valley foreclosure rate as 57% higher than the California state average. In 2008 the gap contracted with the Central Valley rate only 10 percent higher. The North Sacramento Valley had a foreclosure rate 52 percent lower than the state average. This is good news for those of you who are local!
If the Central Valley were considered a state of itself, it would be ranked first in the nation in agricultural production. The North Sacramento Valley subregion also had the highest hourly farm wage in the Central Valley that is almost $4 more than all the others.
Prime farmland is the highest quality agricultural and available and is considered a limited resource. Between 2000 and 2006, 35,488 acres of the Central Valley’s prime agricultural land was converted to urban uses. Although the North Sacramento Valley had the lowest actual number of acres being converted, it had the highest growth in development.
The number of truck miles travled on the state highway system is an indicator of the volume of goods moving through the Central Valley. In 3 Central Valley coutnies, trucks accounted for 20 percent or more of all travel within that county in 2007. However, this is a decrease from 2001, when 5 counties – including Colusa – measured truck traffic as above 20 percent. This could definitely be an outcome of the current recession as retail sales are down, or more cars are on the road commuting.
Since the Central Valley economy is characterized by high unemployment, low wages, and per capita incomes that are among the lowest in the coutnry, these weak economic conditions require a safety net to provide for the basic human needs of a growing number of residents. The historic sources of this safety net have been government and nonprofit organizations. Both spend significantly less in the Central Valley than elsewhere, despite the immense economic challenges. The Central Valley receives only 64% of the average Federal per cpaita spending. As this graph shows, nonprofit revenues in the Central Valley are only 56% of the national average. (refer to Sacramento METRO being shown twice – with and without Sacramento County)
Improve the quality of the Central Valley’s workforce - regional strategies that tie together economic development efforts, job training, the educational system, and the business community will have the potential to deliver greater economic benefits 2. Continue to support agriculture as a regional economic base - Historically home building and retail sales positively impacted the regional economy, but were seasonal and dramatically reduced during the current recession. Agriculture is our base. 3. Diversify the economy to meet the needs of a growing workforce - new, innovative industries like clean technology, as well as established, steadily growing industries like health care and professional services, need to be nurtured. 4. Capitalize on the momentum surrounding the Federal Recovery Act - The Central Valley should demand greater parity of funding to address the disparity that exists between the region and the rest of the state and nation 5. Know the needs of rural communities - Rural communities are often overlooked in many ways, but may be very diverse in their economic environments and needs. Let’s continue to help rural communities understand themselves and how they can make changes.
Read The Report Talk to somebody about it Finally, forward it to somebody who is writing a grant
We are trying to be green, … so please download the report for free from our website. If you would like to make a special request for a printed copy of the report, please give us your contact information at our GVC booth and we will send Time for questions?
The State of the Great Central Valley: The Economy 2009
<ul><li>Amy Moffat Great Valley Center [email_address] </li></ul>The State of the Great Central Valley Assessing the Region via Indicators The Economy
The Economy (third edition) North Sacramento Valley: Butte, Colusa, Glenn, Shasta Tehama Sacramento Metro Region: El Dorado, Placer, Sacramento, Sutter, Yolo, Yuba North San Joaquin Valley: Merced, San Joaquin, Stanislaus Population, Income, & Housing Business Vitality Agriculture Transportation, Commerce, & Mobility Federal & Nonprofit Spending South San Joaquin Valley: Fresno, Kern, Kings, Madera, Tulare
Recommendations <ul><li>Improve the quality of the Central Valley’s workforce </li></ul><ul><li>Continue to support agriculture as a regional economic base </li></ul><ul><li>Diversify the economy to meet the needs of a growing workforce </li></ul><ul><li>Capitalize on the momentum surrounding the Federal Recovery Act </li></ul><ul><li>Know the needs of rural communities </li></ul>