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.