Monday, May 4, 2009

Recent Issues

Caltrain Plans Fiscal Emergency, Service Reduction, Fare Hikes

Similar to many other measures that many different sectors are facing in the state of California during this economic downturn, Caltrain has to reevaluate its plans for the future in order to stay within their reduced budgets. Caltrain's current economic situation is actually fairly severe because if they do not declare a fiscal emergency in the month of June, next year at this time they will have run out of money. Currently, they are projected to spend about $102.1 million, however, they only have $91.9 million available. Due to this necesity to declare a fiscal emergency, Caltrain is planning on holding a meeting on June 4th in order to address this situation by either proposing service reductions, fare hikes, or both of these measures. They plan to implement their decision by October in order to begin addressing their economic problems. However, many critics are raising the point that if the fare is hiked up to high they may lose ridership especially in such our current economic state. Many people are relying on public transit instead of their cars in order to tighten their budgets, however, possible rises in fare poses a huge cost to these individuals. Therefore, ridership could be heavily affected. This declaration of a fiscal emergency will allow Caltrain to be exempt from review, which will allow them to implement certain measures to curb their spending that they would otherwise would not be allowed to do. This possible threat to ridership must be avoided because currently the majority of funding Caltrain receives is from ridership. Therefore, they would be hurt even further if they were to implement any policies that threatened their ridership. It is interesting to see how more and more industries and sectors within California are feeling the tolls of the economic downturn, despite many people's claims that the economy is beginning to level off. The only silver lining is that hopefully there is the possibility of an increase in ridership due to California's stricter laws in regards to the types of gasolines permitted, which could potentially increase gas prices. It is surprising how even public transportation seems to be struggling and in need of aid, as its competitors, the car industries, are fighting to stay alive as well by receiving government funding and other aid. However, it is a little ironic how the government provides aid to the car industries while it cuts public transportation and provides no help in regards to their economic situation.

Recession Leaves Health Agencies, Hurt by Costs, Brace for Flu


Another area that is being affected by the current economy and the government's efforts to reduce spending is the health care industry. The recession has drained hundreds of millions of dollars and thousands of workers from state and local health care departments. This is posing a great risk for US citizens as the threat of a pandemic looms over our heads. Many health care departments have reported that they have had a difficult time accomodating the many tests and treatments for the H1N1 virus, however thus far they have been able to manage. Despite their current efforts, many are concerned about their ability to respond and treat this virus in the future because currently they barely have enough workers to deal with the daily activity they receive. California's health care department has been cut 10 percent by Governor Schwarzenegger in order to minimize the budget gap, however this poses huge threats to a state so close the Mexican border, where the virus originated. Because of this budget cut, Governor Schwarzenegger has tried to reassure his citizens by declaring a state of emergency within the state due to this virus. He is requiring all agencies to help the health departments in their response to the virus because he realizes the current health deparments are lacking. If this pandemic proves to be more threatening than its current mildness, the health departments could be in serious trouble, not only in California, but throughout the country due to the government's gradual decrease in health care's funding. It seems as if the US and particularly California has not been able to catch a break. Just as soon as they believe they have fixed or addressed a problem, another menacing problem arises and threatens their progress. This is particularly threatening to California because of the fact that it borders Mexico and there have already been several confirmed cases. California is very susceptible to this disease especially with its large population of illegal immigrants from Mexico.

Los Angeles to Use $20 Million in Stimulus Money to Hire Summer Workers


Despite the many failures that are occuring within the different areas and sectors in California, the government has proposed a positive way of spending their stimulus money. Governor Arnold Schwarzenegger and Los Angeles Mayor Antonion Villaraigosa have decided to spend $20 million of the stimulus money on the city's summer youth jobs program. This program will aim to find jobs for individuals of 14 to 24 years of age and they are hoping to find jobs for 16,500 individuals from this age range. They are hoping this program will encourage the city's children to attend schools after realizing the difficulties of their first job and how an education could make a difference in the variety of jobs offered to them in their future. I think this package is very important because as a college student, I know that finding a summer job is extremely difficult especially during the current economic situation. The government's desire to invest in our generation spreads hope and faith throughout our generation that we are not being ignored and we are being looked after as well. We are the future generation that is to run the country therefore providing with work experience and encouraging the youth, especially those in larger cities more likely to disregard education, will be very beneficial in the long run to our country. The government is also using this money to hopefully stimulate the economy by providing new jobs. They are not looking to take away jobs from other citizens, but rather just provide the less qualified students and youth with new jobs. This policy will hopefully motivate the youth to be more involved after their job such as in pursuing an education and giving back to their country. I respect the government's decision to do this because I think often the youth are forgotten about during difficult economic times because their employment is not necessary for survival considering their parents work and the government often believes there are more important matters to tend to.

Wednesday, April 29, 2009

Deepening Problems...

Bay Area Charities Unite, Share Aid To Survive

California's economy has threatened many non profit organizations especially in the Bay Area where one of the highest concentrations of non profit organizations exists. Currently the combined budgets of all of these Bay Area non profit organizations is 14% which is twice the national average. An area that places such value on these organizations is facing the problem of downsizing as many other businesses are in today's economy. The San Francisco Foundation and other foundations and the government have made efforts to help out these non profit organizations, however, their budgets are also tightened and they do not have the freedom to help this sector greatly. Everyone has to figure out how to do more with the little that they have currently. Therefore, many Bay Area non profit organizations are trying to bond together in order to curb their financial woes. These non profit organizations are facing reductions in their money from many different sources such as from donations, state funding cuts, and smaller foundation grants, as more and more individuals who have recently become unemployed are seeking aid from these organizations. The non profit sector has been one of the sectors most affected by the economic troubles within California, because they are all struggling to make ends meet and provide an increasing demand of people in need of aid. These organizations have been downsizing and trying to combine their companies in order to more adequately provide aid. With all of these organizations split up with little money and power, little aid is able to be provided. Many owners of these non profit organizations have been forced to confront the problem of either shutting down or shifting their duties to other, stronger organizations. Therefore, these non profit organizations are realizing the nescessity of combining their efforts. For example in San Francisco, Glide Memorial, St. Anthony's and the San Francisco Food Bank have all banded together by buying in bulk together and sharing kitchen space in order to reduce their costs. The problems the non profit sector truly shows how the economy is taking a toll especially on California. The organizations that are supposed to be providing aid to those who are more affected by the economic recession are themselves struggling to stay afloat. However, these organizations unique and creative efforts should be applauded because despite their budget crunches, they are still finding ways to produce a successful business that is not profit geared, in comparison to the profit geared automobile industries which continue to struggle and are even receiving lots of government aid.

Deepening Woes for The Imperial Valley


The Imperial Valley in California is experiencing the extreme of the economic woes the rest of the country and particularly the state of California is experiencing. Historically, The Imperial Valley has always been a place where financial troubles, pain and desperation have existed. Even since the earliest days during colonization, many visitors reported this valley as deadly and advised travelers to keep moving on. The Imperial Valley is plagued by isolation, an austere landscape and blistering heat. However, the current economic recession has greatly affected this area, leaving it in complete desperation and in danger of failure. Currently the area is full of unemployed workers. These workers used to be unemployed farmers, however, the number has increased to include, truck drivers, construction workers, retail salespeople and other individuals who have been plagued by the economic downturn. Unemployment rate has always remained high within this area however it has continued to skyrocket. In March the unemployment rate was 25.1%, which was the highest in all of the United States for an area with a population over 50,000. Signs of foreclosure are posted throughout the major cities, and the more major businesses such as Walmart are driving the smaller, older businesses out of business. These foreclosures are due to the fact that The Imperial Valley has the highest percentage rate in 100% loans in any county of the state. The housing market is this area's bigest concerns because the housing prices continue to plummet as more and more homes are foreclosed. The individuals living hear are severely considered with their living standards which have recently suffered immensly. These people are no longer looking to save to buy a house, but rather now they are faced with worries over making car payments on time. This area has few areas of possible growth and turn around. They are looking towards Indian casinos as an aid to reboost the economy, however, their cries for help seem far from answered. Although this is only an example of one of the areas within California that is being hit the hardest and is an extreme example, it proves that these economic troubles are making significant impacts within our country, more specifically California.

California's low-carbon fuel standard has oil companies anxious


The debate over global warming is becoming more and more complicated within California. The California air board recently passed a new fuel standard in order to curb global warming. Environmentalists claim that this measure will actually save California many costs in the long run because it will decrease oil dependency and encourage individuals to develop new forms of energy. However, critics are raising concerns that this new measure will pose many new prices and possibly increase the costs of fuel in California. This new fuel standard will require the gasoline providers to be much more limited in who they can buy gasoline from. The type of gasoline that California is requiring is not produced by many gasoline companies, therefore these companies that will provide California with oil will be able to hike up prices because they know they control the market and the gasoline providers must purchase from them to follow the law. This possible increase in gasoline prices can threaten California's economy even more because last summer portrayed that tourism shrunk and subfuel charges increased due to high gas prices. Also the California air board has condemned the use of corn ethanol based gas, leaving many in search of a gas that will comply with the standards described in the law. The only answer seems to be gasoline that is imported from Brazil which would also hurt California's economy as they were faced with high import taxes. The impact on the economy is unsure, however this new standard is obviously inefficient. Although the California air board is trying to decrease carbon gases and global warming and trying to encourage the creation of new forms of energy, they are making this very difficult and costly especially during the current economic situation. This measure is a very risky measure, which provides an option of success and an economic boom if new sources of energy are created, or further devastation for the economy if gas prices continue to rise during the current economic recession.

Tuesday, April 14, 2009

Downward Decline

Southern California Water Agency to Cut Water Supplies by 10%
The issue over the water supply in California has been a rising concern for Californians and their economy. In previous blogs I touched upon how the state is in dire need of rainfall in order to avoid droughts. They have established several possible solutions, however, this action the government is implementing in Southern California is not one that was previously mentioned. The Southern Californian government has decided to cut back the flow of water from Northern California to Southern California by 10% for environmentally friendly reasons. This seems like an odd action considering that Southern California faces the threat of drought and needs every possible ounce of water it can get, however, the state must also recognize the current economic crisis. The state has decided to cut its water shipments from Northern California, which will cause the Metropolitan Water District to impose penalty rates in order to make up for their loss in profits. Los Angeles will also force its citizens into reducing their water consumption by 15% and local utilities will be penalized for surpassing their allocation levels. Although statewide water conditions are slightly better this year, overall the water supply of California is much less than a few years ago. The Colorado River basin's storage of water is less which affects Lake Powell and Lake Mead's water supply which are large contributors to California's water. The Metropolitan Water District has continued to have lessened business and is continually facing increased costs due to the water crisis, and California's strict policies in regards to the environment. This crisis could be a serious detriment to California's economy. Although the state is making efforts in reducing their negative effects on the environment, I think it is important that they protect their people first by ensuring that these possible droughts do not hit the California population too hard. I am impressed by Southern California's diligence and attention to the issue, however, I would like to see California act more on some of the other possible solutions they had posed earlier such as the creation of another reservoir to catch water. Although the creation of another reservoir may seem threatening towards the environment, this is not true because the reservoir they proposed to create was almost already in place naturally and could be easily finished with a little man power and little damage to the environment. If anything this extra water could end up helping the economy more because of its ability to allow the land to flourish. This problem seems like it will continue to be an issue especially as summer is right around the corner and the warm weather continues to pose a threat to the water supply and causes concern over possible droughts.

State Revenue Falls Short of Projections
As tax day looms closer, the economy and state budget has been more focused on. The California government reported a few days before the income tax filing deadline that the state's revenue has fallen drastically in the past two months and is much below the projected number for this year. This shortfall is a serious indication of how severe this problem is. The state's revenue for March is billions of dollars below the projected value of the two month old budget. This indication is very scary for California citizens because it really shows how dire of a situation we are facing. However, state officials are trying to downplay the severity saying that the reports of these numbers are very different throughout the year however at the end of the year they will all balance out. Despite state officials nonchalant attitude, other state officials are claiming there will be severe repercussions due to this budget and economic crisis. The state may face large state cuts such as in the closing of schools and parks. The article also discussed how the state have several measures on the May ballot that address the financial situation of California that could greatly aid or harm the economy. The outcome of these measures may determine the fate of California's future. The budget issue within California is a serious problem that needs to be addressed and contained immediately in this unstable financial environment throughout the country. As the United States faces an economic recession as a whole, a state wide economic crisis will spin things out of control for that state's citizens. This article shows how severe this situation in California is despite many people's desire to downplay the severity. I think this article does a good job in informing its readers about how important it is to address this issue. It really puts it into perspective when it gives examples such as closing schools and parks to the citizens because it allows the citizens to feel the effects rather than just reading about an economic crisis that seems distant to them. Last week I blogged about how Governor Schwarzenegger appointed Laura Chick to oversee the California budget. I hope that this recent appointment will help slow the budget crisis and the decline in state revenue. I do not think anyone should judge Laura Chick's abilities until a month or two because she has barely just begun her job in this newly created position. This serious crisis is not something that can be fixed within a short period of time but rather is an issue that requires a long term recovery.

Donors elude state's limits

Despite Proposition 34, which was passed in November 2000, that created strict limits on campaign contributions, political interests have found ways to get around these limits and surpass these contribution limits. These contributions pose a threat towards representative democracy as more individual interests are able to push their own ideas. It is allowing for the power of the wealthy and more elite to push their issues and wants by contributing more money than the dis empowered people. The limits have only been placed on campaign and re-election committees, leaving other candidate controlled committees available to receive mass amounts of contributions from special interest groups. Despite many peoples concerns about these contributions, nothing can be done about them because they are not technically illegal. These contributions still follow the laws because these groups have been able to find loopholes to get around the laws in order to contribute millions of dollars to campaigns. The FPPC has continued to overlook these massive contributions and has not placed a high value on restricting them or changing the rules. Instead, they say that regulation is too difficult because loopholes will always be found and that these contributions do not directly influence the election or re-election of political leaders. Some examples of these contributions are how Arnold Schwarzenegger is tied so closely to the particular ballot measures he supports, which are supported by big companies such as Chevron. Another problem within proposition 34 is that it restricts individuals or individual companies rather than political parties from contributing past limits. These contributions raise a serious problem within politics because it supports the elite and wealthy. Not only can the wealthy special interests push their interests by influencing candidates by their large contributions, but also these rules encourage candidates to bankroll their own campaigns. This issue of campaign contribution is not only within California, but is spread all over the country. However, this issue may have particular interest in regards to California's certain economic situation because if it allows the wealthy to push their interests, the gap between the rich and the poor will continue to widen drastically especially in a time of economic recession when the gap is steadily increasing due to rising unemployment and other factors. California is facing many issues similar to other states, however, the effects are felt much harder in California due to its especially sensitive economic climate.

Tuesday, April 7, 2009

Changing of Times

California Appoints a Watchdog for Stimulus

After the previous budget crisis, Governor Schwarzenegger has appointed a government official to act as a watchdog over the federal money awarded to California through the stimulus bill. This is the first time this position has ever existed. He appointed Laura Chick, a democrat who has continually exposed the waste and corruption within government and their duties. She has even been threatened by a lawsuit from the Los Angeles Police Department for criticizing their inefficient and questionable investigation procedures. Schwarzenegger views Laura Chick as the perfect candidate for this position because with this stimulus bill comes many opportunities for corruption and fraud. Other states have also been concerned with this and many have set up public web sites in order to track stimulus spending. Governor Schwarzenegger supports Laura Chick's diligent and often vicious efforts to erradicate corruption and make sure the stimulus money is being spent efficiently and correctly. I think that Schwarzenegger's appointment of Laura Chick and the creation of this position was very appropriate and even mature. I think this effort will gain a lot of respect from the public, because he is ensuring that the government is not wasting away this stimulus money, and is making the effort to prevent corruption and fraud. Especially after California faced such an extreme budget crisis from frivolous spending, this appointment shows that he is taking responsibility for the past failures and taking the initiative in order to prevent such disaster in the future. I also think that the individual, Laura Chick, who he appointed is very important. Governor Schwarzenegger could have appointed a less vicious individual to fulfill this job or one that may have been willing to overlook government failures, however, Laura Chick's reputation proves that she will not let any mistakes slide. She will maintain a vigilant watch over this stimulus money to ensure that it is being put to the correct use. This is very interesting and very honorable of Schwarzenegger and it will be interesting to see how well it is enforced and to see its consequences.

Santa Barbara County Supervisors Rethink Stance on Offshore Drilling

California, one of the most environmentally friendly states had in the past supported offshore drilling in Santa Barbara County. This proposal is one that does not fall in line with their usual stances regarding the environment. California holds some of the stricest emissions laws, and are constantly one of the up and coming forces driving the nation to become more environmentally friendly. Therefore, this proposal of offshore driling which not only would destroy and pollute the ocean and area near the drilling, but also would contribute to more carbon emissions was completely against their usual stance. However, recently the board's majority has switched from Repubican to Democratic. President Obama's election and the fact that the price of crude oil has significantly dropped has led this county's leaders to reconsider their stance on the offshore drilling within their county. They have changed their minds because they believe that with an environmentally concious president who's desire is to reduce pollution and our dependency on crude oil, they must follow suit with the changing times. However, residents still remain in favor of offshore drilling due to increased technology that reduces the likelyhood of oil spills, which affected their county greatly 1969 and caused them to be very hestitant in regards to oil in their waters. However, other residents are in opposition to the offshore drilling and support this change of heart. The conflict over offshore drilling is caused by a split between the northern, conservative and agricultural half in opposition to the southern, more liberal half. These supervisors of the Santa Barbara County believe that their opposition to offshore drilling could lead to an effect on other counties. I was fascinated how the difference of one president could completely change the minds of its citizens. A county pushed by Bush's close relationship and dependence on oil causing them to support offshore drilling has completely switched in opposition to such measures. I had never realized how certain president's policies greatly impact state and other local government's opinions on certain issues.

Voter's Choice: Bad Policy or Deeper Debt


Within the next month, California will face a very difficult decision in regards to expanding gambling within the state. Their options are to vote for a horrible policy, or to send them selves into a deeper debt. Neither of these options are beneficial, and it will be very difficult to decide what is a better choice. The decision is in regards to Proposition 1C on the May 19 special ballot. Proposition 1C, the Lottery Modernization Act, has the largest and most immediate monetary impact in regards to our state. Proposition 1C would allow for the tweaking of the lottery system in order to ensure a larger number of winners. This also allows for the immediate borrowing of $5 million against future lottery revenue. This propsition causes a dilemma because there are two seperate issues within one proposition. Many critics have raised their voice against the borrowing of money, however, due to the economic strains our the nation and state, ordinary circumstances do not apply. The governor recently closed the $41 billion dollar gap in the state's budget a few months ago, however, the gap has reappeared and is currently at $8 billion. If Proposition is not passed, the budget gap will increase to $13 billion. The state is also facing many other tough decisions in regards to their budget and future steps in creating an economic upturn. Sacramento's hesitancy and waiting on these decisions has caused negative repercussions for the state, that is why they are currently facing the urgency to make even tougher decisions. Proposition 1C seems like a necessary solution for their budget problems because unlike the federal government, states cannot just print money and run huge deficits. This propostion would also help the state to raise money without raising taxes, which is normally very disliked by citizens. This article proves that California is still struggling to keep itself a float during this economic downturn, and they are turning to farfetched and inventive ways to increase their budget. It also shows that often when an economic crisis occurs people are often stuck between a rock and a hard place. In order to solve their problems, they have to make very difficult decisions, many of which do not provide a good solution. It will be interesting to see how California will continue to cope during this economic recession.

Wednesday, April 1, 2009

Effects of The Economy on California

Crime Down in Los Angeles, Other parts of Southern California

Despite many peoples expectations that crime would quickly rise our nation and state's economy plummeted, crime in Los Angeles has actually decreased. This trend is also seen in other major cities such as New York, Chicago, and Houston. However, the rest of the country has not fared as well as these major cities. In Los Angeles, property crimes are down 6.4% and violent crimes were down 4.9%, however, there has been a slight 1.9% increase in robberies in Los Angeles. The most impressive thing about the decrease in crime in Los Angeles in comparison to other large cities is the fact that Los Angeles' economy has been hit the hardest and the unemployment rate has decreased by 12%. They have attributed this decrease in crime rate to the LAPD's diligent efforts. LAPD has been increasingly been improving their police force. In 1991 and 1992, the last time the economy was struggling, Los Angeles experienced a severe increase in crime rates throughout the city. The cocaine epidemic soared, and violence erupted throughout Los Angeles. However, it seems that Los Angeles has learned from the past and reformed their department in order to better deal with the crime that occurs in a large city. A criminologist at the University of Michigan, however, questioned the LAPD's ability to continue to succeed in keeping crime rate low if the economic situation continues. She also stated that because of California's budget problems, police department and law enforcement may face budget cuts which could deter their ability to fight crime. However, currently residents support the LAPD's efforts and have cited that they feel that their lives are significantly less touched by crime today. Although LAPD has made significant advances and had a lot of success in controlling and reducing the crime in Los Angeles, the continual worsening of the economy could hinder their progress. This possibility depends on the future of our nation's economy, and more importantly how it affects the state of California. This article was very interesting because it contradicted my experiences while I was at home. Over spring break, there was the murder of four police officers in Oakland, CA, which is also a large city in California. The killing of these police officers was a tragedy and really portrayed the violence that has been occurring in Oakland. I was very surprised by this article because it doesn't seem like the crime rate has changed significantly in the larger cities near my home such as San Francisco, Oakland and San Jose. I would be curious if Northern California has had as much success as Southern California in minimizing crime. Also this article is very interesting because earlier when California was in the heart of its budget crisis in search of a remedy, Governor Schwarzenegger proposed releasing one third of California's felons in order to reduce prison costs and give California's budget more leeway. This proposal was never put into affect however I wonder whether it would have reversed their efforts and caused the crime rate to spike. California's economy is still struggling, despite its resolution in regards to its budget. If the national economy as well as the California economy does not improve, I would not be surprised to see a gradual increase in crime rates.

Perspective Needed on UC Salaries

During this nationwide crisis, states funds have been cut and these states have not been able to allocate as much money to certain programs as before. An area that is paying a heavy price is the educational systems. Currently the UC system being underfunded by $450 million, which significantly impacts their own budgets and ability to provide quality services to their students for the same price. The UCs are being accused of raising top salaries and giving perks rather than using this money to bolster the areas that their decreased funds cannot support. However, this article is written in response to these accusations to give other pieces of evidence in support of the UC's efforts in light of their underfunding and the current economic situation. It states the the UCs have froze all their salaries on senior managers, cut bonuses and incentive pay and curtailed their faculty recruitment. They are placing the costs on the faculty rather than the students. They are employing less faculty that are not educators and are limiting the teachers' budgets in regards to their travel and other benefits. Some employees of the UCs have been required to take on the work of two jobs but only receive the salary for one. Others are being paid well under what most other individuals performing their jobs are receiving. The UCs have also stated that they will continue to provide financial aid and scholarships because they pride themselves in their abilities to provide students with an affordable education. They have gone to great lengths in order to shift the costs away from the students and onto the employees instead. They need to do this in order to remain competitive with private universities within the state, and other universities in other states. I think this article describes how often the public is quick to criticize government operated systems, especially in times of economic recession. However, this image of our government as exploiting and corrupt is not always true as this response has portrayed. The actions of the UCs to maintain their credibility and affordability is honorable. The administrators, educators, and other employees of the UCs should be held in high respect for the sacrifices they are making in order to allow the students to have better educations and not face the burden of the budget cuts. Elon University also tried to follow this path by not increasing tuition greatly. These actions make these universities more respectable and desirable for future and current students and their families. It displays a high level of trust between the students and these schools.

California Bond Sale Could Revive Public Works


In light of the current economic crisis especially in the state of California, California has began to find a solution to aid in their budget short falls. Recently California has sold $6.5 billion in bonds, after an uphill battle in attempt to sell them. This $6.5 billion exceeds their expected goal of $4 billion. This lucrative yield will allow California to invest in public works projects that before seemed unrealistic due to the national budget cuts, and California's recovery from its budget crisis during the winter. California's success may influence other states to follow suit in order to raise their own bond yields to improve infrastructure. Government officials have realized the dire situation of this economic problem our country is facing and they have realized the necessity of turning to new ways to earn money in order to continue improving their own states. Government officials are hoping that this excess in bond sales continues to be a trend because it would provide the state with much needed assistance in order to continue to improve its infrastructure and overall economy. With this new money, California will repay loans, earmark $1 billion for transportation, water, school construction, and flood control projects, repay for prior projects, and restart recently halted infrastructure projects. All of these efforts seem to be putting California back on the road towards success as they slowly climb out of the whole they dug themselves into. Because of this initial success in bond sales, another sale is expected to occur later in spring in order to raise more money. Although this action may seem to be beneficial, I believe that it has possible negative effects in the future. In the future, the state government may face difficulties in repaying individuals for these bonds which would cause them to end up where they started. However, the benefits reaped in the short run are not in question. Hopefully it will help boost California's economy, and allow them to continue on a positive road to escape their economic woes.

Monday, March 30, 2009

California Crises

Berkeley Schools Enrollment Policy, Court Says By Bob Egelko
A constant debate that we constantly face is whether discrimination in assigning school districts is just and appropriate. If so, to what extent is this discrimination appropriate. Recently a state appeals court ruled that Berkeley's inquiry of neighborhoods and students' backgrounds to assign certain kids to certain schools is not in violation of California's ban on racial preferences when it considers the makeup of students' neighborhoods in deciding where they will go to school. This is due to the fact that Berkeley Unified School District takes race, parents' incomes, and parents' education levels into account when creating school districts in order to achieve an integrated and heterogeneous school rather than a school dominated by one race. Their goal is to expose students to all cultures rather than allowing each neighborhood to continue to live in their own homogeneous bubble. The Berkeley School District argued that they are not discriminating against or giving preference to students but rather are trying to capture a larger group to increase diversity. Berkeley's policy uses racial classifications and neighborhood demographics rather than individuals' races, which would be in violation of this law. In relation to this debate, there is an issue posed by many whites that due to our nation's intense breakdown of segregation and a desire for cultural diversity, many whites are facing discrimination, especially in the education system. Many whites argue that they face increased obstacles when applying to schools because schools' desire for a diverse population discriminates against whites. Because of this desire for a diverse student body, many schools favor less accomplished minorities over high achieving or average whites to achieve the desired diversity factor. White applicants argue this is unfair because they deserve to be accepted more based on achievements, but the minority card is trumping standard evaluations for acceptance. This fact is evident in California's UC system where many more Asians and minority students are accepted. Many often joke, you must put your most remote ethnicity in order to get into these schools. However, this is just another question raised about schools abilities to access background information of their applicants and the possibility of discrimination based on this information in the education system.

Focus Shifts to Flow of Cash, Arms into Mexico By Carolyn Lochhead
A hot topic currently is the eruption of violence in Mexico due to the fight between the drug cartels and government. This had been especially prevalent during Spring Break season as many adults and parents have become concerned with college students' safety as they travel to Mexico for Spring Break. The main issue in relation to this eruption of violence is due to the drug cartels' abilities to smuggle weapons into Mexico from the United States. The Obama administration has taken an active role by switching US border policy from a focus of northbound illegal immigration to a focus on the flow of cash and weapons southbound that is allowing the violent eruption occurring in Mexico. Many are realizing that the people shipping machine guns to drug cartels are much more threatening than an illegal immigrant working on a farm or busing a table. This southbound flow of weapons and cash contributes to the violent uproar because 90% of arms have come from the US. The current economic recession that is leaving many Latin Americans unemployed paired with the Mexican government's active role in abolishing the drug market has contributed to violent reaction from the drug cartels. Many Mexican cities close to the border such as Tijuana are facing extreme violence and intimidation from the cartels. The drug cartels are controlling the market of the smuggling of humans across the border for a high price, which is giving many cartels increased power. In order to curb this violence, the US and Mexican governments need to increase their control of the border to prevent not only human smuggling, but the smuggling of weapons, drugs, and cash. Without the cooperation of both countries the drug cartels will be impossible to stop. I think Obama's focus on the southbound flow of goods is more important that Bush's focus on the northbound flow of illegal immigrants because in order to help stop illegal immigration we must first stop the cartels who are aiding the Mexicans in their attempts to cross the border into the US. Also, the violent environment the cartels have created pose a much greater threat than illegal immigrants. The US needs to first stop the cartels, then focus its efforts on illegal immigrants in the US to further its stability, especially in economic terms. However, I wonder how this drug cartel issue will end as Obama raises propositions about legalizing drugs, which would certainly increase the cartels' power. Although the legalization of drugs is a mere idea and no where near a legalized law, the possibility poses many new challenges in regards to the problems and violence due to the drug cartels. There are many positive signs that the US and Mexican governments' efforts have begun to curb the cartels power. However, their cooperation and strict regulation at the border is necessary.

Population Up in Every Bay Area County in 2008 By Tyche Hendricks
Population in every Bay Area county grew as California's population as a whole also grew at a modest pace. California's economy has been worsening steadily, however, many argue that the Bay Area is still performing better than other places. Even during 2006 to 2008. when the country was experiencing effects post dot com bust, the Bay Area was the state's job growth leader. Even though unemployment has been increasing steadily, the Bay Area still has the lowest unemployment rate in California. One main issue that the Bay Area has faced are housing prices. Housing prices have fallen, however, they still remain higher than elsewhere. In contrast to people's inability to buy houses in the Bay Area in the past, lower housing prices are allowing and forcing people to stay in the Bay Area. This is the only silver lining for current Bay Area residents in light of the current economic crisis. The population increase is due primarily to birthrate from many contributing factors. First, California's population is younger than the rest of the nation so more babies are being born. Also California's high population of immigrants contributes to a higher birthrate because immigrants are younger and often value large families. However, one issue has been raised in regards to the rising population. This portrayed in a debate in San Francisco. San Francisco argued that their population was higher than the Census Bureau's numbers so they ended up receiving more federal aid. This is necessary because as the California Budget crisis portrayed, the number of illegal immigrants has negatively affected the economy because as the population in California has grown and this number is recorded incorrectly due to illegal immigrants, the state often is underfunded. Overall California's population increase explains why California was facing such a state economic crisis during a nationwide recession. It was interesting that the Santa Clara Valley County had the largest increase because that is the county where my home is. While I was home over spring break, I could see the effects of the economic downturn especially in high end stores and districts, however, it didn't seem to be as dead as other locations throughout the US. For example, I had to go to the mall two times during my visit, once during a week day and once on the weekend. The weekday was not overwhelmingly crowded, however it was not dead. However, on the weekend the mall was bustling with people. This surprised me because I had seen and heard many family friends' concerns regarding their economic situations. However, the article's claim that the Bay Area was doing better off than elsewhere seemed to be true.

Wednesday, March 4, 2009

California's Economy

On Coping With the Drought: Don't Let the Rain Get Away

California's problems are continuing to increase, as Governor Arnold Schwarzenegger just recently declared a statewide emergency in regards to the drought they are now facing. This drought is caused by the rapidly increasing population, and the continually warming climate. Although the amount of rainfall has not changed significantly, the population in California is posing great constraints on its water supply. "California's population grows by one person a minute" (The Huffington Post), and in the past forty years, the population has nearly doubled. As the population has increased, California has adapted in response to this growth by constructing new road, establishing more schools, expanding the agricultural sector and many other aids to accommodate the rapidly growing population. However, in regards to California's water storage and conservation, the last initiative they established was in 1967 when they established Lake Oroville. Today's recession and struggling economy poses a controversial issue for California lawmakers. Do they make efforts to expand water conservation and storage to protect against drought and an even greater economic crisis, or do they put this item off of the agenda while their economy is struggling and their budget is limited? Their possible solution for increasing the water supply is to create a reservoir in Colusa County, which they believe to be cost effective and environmentally beneficial. They would use the water from canals that are already close to this bowl that are currently dumping into the Sacramento River, which is dumped into the Pacific Ocean. California's current conservation of their rainfall is not effective because most of the rainwater is flowing into the rivers and back into the ocean, rather than being contained by dams or reservoirs to preserve water for the future and ever expanding population. This solution was posed over fifteen years ago, however, today it remains as one of the few answers to California's water crisis. The current drought and water crisis that California faces currently is mind boggling considering their current state of economy. Not only are they fighting to make ends meet and have seen a drastic decrease in unemployment, but now the citizens well being is threatened even more. It is mind boggling how the state of California has exceeded their budget and just recently coped with trying to fix their budget crisis, and to have not spent any of that money on an obvious problem since 1967. This seems irresponsible of the government to have not addressed this issue as they did the other issues that were caused and affected by the ever increasing population such as roads, schools, and agriculture. I also find it interesting that California, a state that prides itself in being green and environmentally friendly, has not conserved this natural resource as it has other resources. For example, California has some of the strictest laws in regards to emissions, and also especially in the Bay Area, they are fighting against the use of plastic bags and are revolutionizing the idea of reusable canvas grocery bags. This crisis that California faces does not seem to have good timing since it has come during a time of not only a statewide economic crisis, but also a national recession. This makes it more difficult for lawmakers to decide on what to do in regards to the water crisis and whether to use their budget money to create this reservoir, especially at a time when they are cutting many other spending projects such as new roads, and other structures.

How Obama's Budget Proposal Affects Californians

Obama's budget proposal for the most part supports California's interests with few negative effects. One of the proposals Obama is making is in regards to high speed rail as he is promising $5 billion dollars in addition to the $8 billion in the stimulus package, which poses great gains for California. California voters approved $10 billion worth in state bonds to establish a high speed railway from San Francisco to Los Angeles, and from the Central Valley to the East Bay. This possible gain could really enhance the economy and change the life of California because as a California native I understand the desire to reach LA by train from the Bay Area due to the long car rides congested and slowed by hours of traffic. I know that in the Bay Area Cal Train and the light rail are very popular for many business men and women to use in order to commute to work. It was especially beneficial when gas prices were high, considering most of California's cars are SUV's and gas guzzlers. This would make commuting much easier, and expand the possibilities for businesses within California. Also Obama's proposals concerning education tie the Pell Grant program to inflation which would provide students with about $200 more in financial aid per year along with possible tax credits for college expenses. These proposals provide a great benefit for college students, and would provide a state with many low income students, and immigrants with increased opportunities. Another area that coincides with California's interests is Obama's desire to implement the cap-and-trade plan to decrease emissions. This would benefit California because currently they are one of the states with the strictest emissions laws, and they would not have to rework their system a lot to accommodate this new plan. Also, it would coincide with their strong beliefs and desires to cut back in greenhouse emissions and be environmentally friendly citizens. Obama's proposals also include an increase in research and tax credit which would benefit the Silicon Valley's technology business. This initiative presents California with an opportunity to revamp their economy. In the past, California's economy boom was due to the innovations in technology throughout the Silicon Valley. This initiative gives the Silicon Valley to repeat history with newer innovations. However, despite all of these positive effects, there are two major areas that are threatened by Obama's proposal. In the agricultural sector, big farms would suffer because their current large government subsidies would decrease their profits. Although these cuts in subsidies pose greater effects in the Midwest, California's nut industry is the most affected. In addition the the cut in subsidies, Obama would cut a program that shares in the costs of promoting exports, which would strongly affect the California nut industry. Obama proposals also poses negative implications for wealthy citizens, as he raises their taxes and cuts their tax deductions due to charitable donations. This proposal applies to California specifically because California is one of the more wealthy states with a higher quality of living. For example, I live in the Bay Area in a medium sized house. However, the money spent for that house could buy a mansion in North Carolina, where I attend college now. I have seen the differences in wealth between these two states, and I can understand how this proposal would affect California more heavily than other states. Overall, Obama's proposals seem positive in response to California's interests, however its effects are unpredictable. California should be happy with the many positive effects outweighing the possible negative effects, especially in areas such as technology which gives California the opportunity to revamp their economy and escape from their current financial crisis. However, the effects of these proposals we will have to wait and see along with whether or not Obama follows through with these proposed initiatives.

Many Immigrants Still Till the Land of Opportunity


As the US economy has been taking a downturn recently, many immigrants are returning to their homelands in search of new opportunities. Many of these immigrants are Hispanic immigrants who work in construction, hotels, and other blue-collar jobs, however, there is one career that is remaining resilient throughout the downturn in economy. Gardening is proving to be one of the few careers for immigrants to maintain a lifestyle, and climb up the social latter. Gardeners have explained that because their employers are not factories, but rather many different, individual families, the loyalty remains and their services are more valued. Instead of being just another set of hands in a factory, these gardeners have established relationships with their employers and have provided them with quality work. Their employers are more unwilling to lay them off because they value their services more and don't seem them as just another number or means for increasing their profit. Also, the fact that many individuals continue to want to maintain their gardens even during an economic recession has been essential in gardeners ability to thrive. Although some gardeners that cater to families with lower economic statuses have experienced a slight downturn in profits, most gardeners have found their employers loyalty unwavering. Over many years, gardening has continually proven to be a desirable career for climbing up the social ladder. Although many of these gardeners are portrayed as exploited workers forced to do a lot of physical and manual labor, the hard work has paid off. Many of these gardeners have been able to provide their children with a good life and good education allowing them to mobilize to the middle class, and no longer be trapped in the life as an immigrant, but rather in the life as an average American. I found this very interesting because it is interesting what jobs are able to survive and thrive during economic recessions or downturns. Sometimes the most undesirable jobs prove to withstand these periods such as teaching, nursing, and gardening. These sectors provide services that Americans continue to need to survive and use throughout their daily life. Last week I interviewed the Leisure and Sports Management Chair for an Exploring Majors class at Elon, and I discovered that surprisingly leisure is another area that does not experience a great downturn also because despite individuals budget constraints, they still find it necessary and important to make time for fun and leisure. Although the leisure sector does experience a slight downfall due to the fact that people can no longer afford season tickets and other expensive items, it will not suffer completely because individuals desires to experience happiness and pleasure will always remain. This article brought up the fact that many immigrants are returning home due to the downturn in economy, which poses as a possible aid or hindrance to the economy as the population decreases and less illegal immigrants are free riding in our economy. This has the possibility of aiding California in regards to their current financial crisis greatly because they are a state full of illegal immigrants that are free riding and causing many problems that has contributed to this financial crisis.