California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Earlier this month, Chico State University hosted the annual Tri-Valley Economic
Forecast Conference for Butte, Glenn and Tehama counties.

Sonoma State University economist Robert Eyler offered insight to the region.  And
similar to other economists across the state, he too illustrated that the recovery
will be very slow and that it will continue to feel like a recession in Butte,
Glenn and Tehama counties into 2011.

But diverging from others, he pointed out some silver linings such as increased
personal savings and a slight increase in consumer confidence.

Eyler also suggested that the ever-so-slow recovery actually presents a great
opportunity to pursue regional strengths and cooperation. For example, Glenn
County's empty spaces could be perfect for trucking and warehousing for businesses
unable to find space in more expensive or occupied areas of the region.  Eyler
expressed that the Tri-Valley area could be just what company executives are
looking for, with its low-cost of living, inexpensive space and available labor.

Additionally, area partnerships should be waged between businesses and educational
institutions like Butte College and Chico State, which are more than pools of talent.
“The recovery can offer time to explore and create partnerships, do research, and
look at economic development in a regional perspective,” said Eyler’s.

Eyler also suggested changes to the tax code to provide higher revenues but
unfortunately they aren't being pursued; he also said that banks should be
loaning money to stimulate the economy rather than holding on to it. And he
identified that housing will continue to struggle, although prices are gaining
in stability.

Unfortunately, Eyler's long-term forecast points to higher taxes, higher cost for
benefits, and fewer benefits.

I am Tim Johnson and this has been the California Business Minute.