California Business Minute™

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

The recession is straining budgets in cities and counties. That is the conclusion of
the report "Realities of Recession in California," a report released by California
Senator Barbara Boxer.

The report which was based on interviews by Senator Boxer and her staff had with
officials in 20 cities and all 58 counties paints a stark picture of the economic strains
being felt across the state.  The report includes unemployment figures, home- foreclosure
rates, budget deficits and firsthand accounts of the impact of the recession on social
services and nongovernmental, charitable organizations.

“Budget deficits and revenue reductions have forced counties and cities to make cuts in
many important programs, including public-safety programs, Medi-Cal services, mental-heath
services, Meals on Wheels, and youth and senior centers. As a result, nongovernmental
charitable organizations, such as food banks, have been stretched to the brink”, said Boxer
in a press release

The report found that infrastructure projects, which could be creating jobs, are stalled due to
financing problems at a time when unemployment rates are at their highest level in decades.

Boxer additionally said, “With this information, I can show congressional leaders and President
-elect Barack Obama what we need to get us back on track, create jobs and turn this economy
around as we work together to craft economic-recovery legislation”.

Boxer identified that she will work to include the following provisions in the economic recovery
package:

• Investment to repair and improve infrastructure, including roads, bridges, transit, rail
• Increased support for federal programs that support energy efficiency in new buildings
 and upgrades to existing buildings, which would create jobs
• Investment in water infrastructure projects, including reclamation, reuse and groundwater
 cleanup programs that could not only provide new water supplies, but create jobs
• Increased investment in the Community Oriented Policing Services program, which awards
 grants to state, local and tribal law enforcement agencies so they can hire and train law
 enforcement officers, purchase new crime-fighting technologies, and develop innovative
 policing strategies
• Providing additional Community Development Block Grants, which help states and local
 governments implement plans to address local housing needs and neighborhood stabilization
 as a result of the foreclosure crisis
• Increasing the percentage of funding the federal government provides to states for the Medicaid
 program, which provides healthcare services for low-income individuals

“Making sure we address these critical needs will help put California's economy back on track and
get more Californians back to work. As a former county supervisor, I know local officials are on the
front lines of this recession, and the information they have provided gives me the information I need
to fight for California as I work with my colleagues on a recovery plan”, said the senator.

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

To read the full report click on to the following link:

http://boxer.senate.gov/features/Boxer_California_Recession_Report.pdf