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A SSESSING THE REGION VIA INDICATORS The Economy 1999-2004

The State of the Great central valley of

Supporting the economic, social, and environmental well-being of California’s Great Central Valley

Great Valley Center 201 Needham Street, Modesto, CA 95354 Tel: 209 /522-5103 Fax: 209 /522-5116 www.greatvalley.org info@ greatvalley.org Produced by the Staff of the Great Valley Center

With Research Assistance from Alison McNally Anthony Zepeda Gene Barrera Citigroup Foundation Intern Sustainable Communities Leadership Sustainable Communities Leadership Program Fellow Program Fellow

With Special Assistance from the California Department of Employment Development Department

Liz Baker Bunny Bentley Nannette Potter Labor Market Consultant Labor Market Consultant Labor Market Consultant

Carla Barnes Joel Hessing Central Valley Regional Manager Area Services Group Manager Labor Market Information Division

Technical Assistance provided by the Information Center for the Environment at the , Davis

Mike McCoy Co-director

Joshua Viers Karen Beardsley Nathaniel Roth Research Ecologist GIS Manager GIS Programmer

Report Advisors

Andrea Baker Michael Carroll Gary Freeman Merced Department of Workforce Fannie Mae Central Valley Partnership California Association of Resource Investment Conservation & Development Councils

Michael Locke Bob Nash Mark Nechoderm San Joaquin Partnership, Inc. Superior California Economic USDA Forest Service – PSW Research Development Corporation Station

Marc Nemanic Larry Orman LeeAnn Parry Tri-County Economic Development GreenInfo Network Kaiser Permanente, Fresno Corporation

Tim Ransdell Bob Rivinius Paul Saldana California Institute for Federal Policy California Building Industry Association Central California Economic Research Development Corporation

Brian Smith Rollie Smith California Department of Transportation Federal Interagency Task Force for the Economic Development of the

Special Advisor Shawn Kantor Chair, Department of Economics University of California, Merced

For individuals with sensory disabilities, this document is available in alternate formats. Please call or write to Garth Hopkins at [email protected] or 916/654-8175, or use the CA Relay Service TTY number: 1-800-735-2929. Supporting the economic, social, and environmental well-being of California’s Central Valley

201 Needham Street Modesto, CA 95354 Phone: (209) 522-5103 Fax: (209) 522-5116 www.greatvalley.org

January 2005

Dear Friends:

We are pleased to present The State of the Great Central Valley: The Economy. Since 1999, the Great Valley Center has published a series of indicators reports that have defined the region, framed important issues, set baselines for assessing future trends, and raised awareness of critical challenges facing the rapidly growing and often underserved Valley. In annual installments, a cycle of five reports assesses different aspects of the region’s progress and quality of life: the Economy, the Environment, Community Well-Being, Public Health and Access to Care, and Education and Youth Preparedness.

In this report we revisit a number of economic indicators first reported five years ago. The data are divided into five general categories: population, income, and housing; business vitality; agriculture; transportation; and Federal and nonprofit spending.

We can now begin to address the question, “What progress are we making?” While there are some signs of improvement, the Central Valley continues to face major economic challenges. Per capita income is low, unemployment is high, housing is becoming less affordable, and the population continues to grow rapidly. Addressing these challenges will require sustained, concentrated effort throughout the Valley.

The Economy was developed in partnership with the California Department of Transportation and the California Employment Development Department’s Labor Market Information Division. The UC Davis Information Center for the Environment provided valuable assistance with all the maps and particularly with the centerpiece. The report also benefited from the insight of the 16-member Advisory Committee representing a diversity of economic perspectives.

The State of the Great Central Valley series has received major funding from The James Irvine Foundation and the William and Flora Hewlett Foundation. Additional support for this report was received from the California State University Chancellor’s Office, the Workforce Investment Boards of the San Joaquin Valley, Kaiser Permanente, and Citibank. We extend to all our partners and funders and to the staff who worked to make the report possible our appreciation for their support of and investment in the Central Valley.

Sincerely,

Carol Whiteside President T HE STATE OF THE GREAT CENTRAL VALLEY—THE ECONOMY Assessing the Region Via Indicators 1999–2004

What are Indicators? How to Use this Report: Indicators help to answer important questions such The data presented are a snapshot of information. as how well the economy is functioning, how the The indicator set can be used as a benchmark for schools are doing, or how air quality is improving measuring the economic health of the Valley. The or worsening. Indicators are powerful tools for region’s performance can be compared to other measuring and tracking the overall quality of regions and to the state as a whole. life and comparing performance against goals or benchmarks. The measurements help communities Using the information, analysis, and structure monitor changes by providing a baseline against provided in this report, individual communities may which future changes can be tracked. develop specific indicators tailored to their own concerns. It can serve as a guide and a model What are Good Indicators? for developing an indicator-based assessment of A good indicator has several characteristics: smaller communities and cities, providing valuable comparative data at the county, subregional, regional, • It addresses the fundamental part of long-term and state levels. The indicators do not present regional or community well-being. the entire picture, but they are often surrogates • It is clear and understandable. for clusters of issues and behaviors. In numerous • It can be tracked, is statistically measured at cases, additional information is available on the Great regular intervals, and comes from a reliable Valley Center website or those of the sources cited source. in the report. • It is easy to communicate in concept as well as in terms of its value and importance to the region. The computer icon indicates that • It measures an outcome rather than an input. more information can be found online at www.greatvalley.org/indicators.

About this Report: Each year, the Great Valley Center produces a report in the five-part State of the Great Central Valley series. The data is updated in five-year increments. This is a follow-up of the economic report that was first released in 1999. The 2000 report featured indicators depicting the state of the Valley’s environment; the 2001 report focused on community well-being by taking a look at social capital; and in 2002, the emphasis was on public health and access to care in the region. The 2003 report assessed youth preparedness and education. All reports in the series and an online searchable database of indicators from each report are available at www.greatvalley.org/indicators.

2 R ECOMMENDATIONS

The Great Central Valley has substantial economic resources, particularly in its strong agricultural industry. However, it also faces major economic challenges including low per capita incomes, high unemployment, rapid growth, and global competition. Some strategies to address these challenges include:

1 Maintain Agriculture as a Core Industry The agricultural industry provides twenty percent of Central Valley jobs and generates billions of dollars in revenue. With Valley-wide unemployment consistently well above the state average, the region cannot absorb the loss of jobs and further pressure on already low wages that would occur should agriculture disappear. Other reasons to maintain agriculture in the Central Valley include its key role in providing food for the , its importance to the state and national economies and the balance of trade, and its environmental, historical, and cultural values. 2 Continue to Diversify the Economy The Valley is becoming more diverse economically. While government is the largest employer, most of the remaining jobs are in low-wage industries. The Central Valley’s natural resources provide competitive advantages in promising new industries such as renewable energy. The large agricultural base provides the potential for creating new, higher-paying jobs in emerging industries such as pharmaceuticals and specialized crops. 3 Improve Educational Attainment High-wage jobs usually require a more highly-educated workforce. The Central Valley will benefit from raising educational performance of students at all levels, from elementary schools through high schools, community colleges, vocational programs, and four-year universities including the region’s five California State University and two University of California campuses. 4 Provide A Range of Housing Types While the Central Valley is producing substantial numbers of new homes, the lack of affordable rental housing creates stress for many residents and is likely to become worse as rapid population growth continues. Increasing the supply of rental housing may relieve this stress and help workers live closer to jobs. 5 Address the Emerging Transportation Challenges With rapid population growth and with commute patterns mirroring those elsewhere in the state, the Valley’s metropolitan communities are beginning to face substantial congestion. Traffic congestion in the Valley will exacerbate already-severe air pollution problems and thus limit economic growth. The Valley should consider transportation needs and air pollution impacts in its economic decisions. 6 Seek Parity From Public and Private Funders The physical and human needs of the region require resources. 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.

3 THE GREAT CENTRAL VALLEY OF CALIFORNIA

California's Great Central Valley is a vast region—some 450 To give context to Valley data, statewide and miles long, averaging 50 miles wide. Stretching from Mt. regional data are presented for: Shasta in the north to the Tehachapis in the south, the Valley • California encompasses 19 counties. For brevity, "the Valley" will be used to (58 counties, including the 19 Valley refer to the 19-county region. counties); • Bay Area Because different parts of (9 counties—Alameda, the Valley have different Contra Costa, Marin, Napa, characteristics, the region San Francisco, San Mateo, has been divided into the Santa Clara, Solano, and following subregions: Sonoma); • North Valley • Region (5 counties—Butte, (5 counties—Los Angeles, Colusa, Glenn, Shasta, Orange, Riverside, San and Tehama); Bernardino, and Ventura). • Sacramento Metropolitan Region (6 counties—El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba);

• North San Joaquin Valley (3 counties—Merced, San Joaquin, and Stanislaus); • South San Joaquin Valley (5 counties—Fresno, Kern, Kings, Madera, Tulare).

Occasionally, the North and South San Joaquin Valleys have been combined into one subregion.

Source: GreenInfo Network

4 T ABLE OF CONTENTS

P OPULATION, INCOME, & HOUSING 7

P OPULATION GROWTH 8

P ER CAPITA INCOME 10

R ESIDENTIAL BUILDING PERMITS 12

H OUSING AFFORDABILITY 13

RENTAL AFFORDABILITY 14

B USINESS VITALITY 15

J OB GROWTH AND LABOR FORCE GROWTH 16

A NNUAL UNEMPLOYMENT RATE 17

U NEMPLOYMENT RATE BY MONTH 18

WAGES BY INDUSTRY 19

EMPLOYMENT BY INDUSTRY 20

EMPLOYMENT CHANGES BY INDUSTRY 22

RETAIL SALES 23

INTERNET PRESENCE 24

TOURISM 25

A GRICULTURE 26

F ARM EMPLOYMENT AND WAGES 27

V ALUE OF AGRICULTURAL PRODUCTION 28

A GRICULTURAL OUTPUT RANKING 30

A GRICULTURAL LAND CONVERSION 32

T RANSPORTATION, COMMERCE, & MOBILITY 34

V EHICLE MILES TRAVELED AND PRIMARY MODE OF TRANSPORTATION TO WORK 35

V EHICLE HOURS OF DELAY 36

AIRPORT TRAFFIC 37

F REIGHT TRAFFIC 38

F EDERAL & NONPROFIT SPENDING 40

P ER CAPITA FEDERAL SPENDING 41

PER CAPITA REVENUE BY NONPROFIT ORGANIZATIONS 42

D EFINITIONS 43

D ATA SOURCES 45

5

P OPULATION, INCOME, & HOUSING

The Valley's rapidly-growing population is a primary factor driving the regional economy. Most of the growth is from migration, largely from

California's coastal regions. Photo by Jason Bailey Jason by Photo

• The population of the Central Valley is expected to grow 24% between 2000 and 2010, making it the fastest growing region in California. Growth is projected to be particularly rapid in the North San Joaquin Valley (29%) and in the Sacramento Metropolitan Region (27%).

• Per capita income in the Central Valley is 26% lower than the state average and falling further behind. If the Central Valley were a state, it would rank 48th in per capita income.

• Residential construction has been a major force in the Central Valley economy, with the number of housing permits increasing faster than the population.

• While housing remains affordable to some Central Valley residents, affordability is decreasing in 15 of the 19 Central Valley counties.

• Rental housing is becoming considerably more expensive, and nearly 50% of Central Valley residents cannot afford a median-priced two-bedroom rental unit in their own communities.

Central Valley Subregions North Valley (Five counties–Butte, Colusa, Glenn, Shasta, and Tehama) Sacramento Metropolitan Region (Six counties–El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba) North San Joaquin Valley (Three counties–Merced, San Joaquin, and Stanislaus) South San Joaquin Valley (Five counties–Fresno, Kern, Kings, Madera, and Tulare)

7 POPULATION, INCOME

               & HOUSING                             POPULATION GROWTH Why isitimportant? Definition: rapidly. The populationoftheCentralValley isgrowing  .ORTH6ALLEY    business opportunity to expand production capacity. toexpandproduction business opportunity laborpoolandmaybea theaggregate increases inthenumberofavailableworkers Growth andmedicalcare. protection, policeandfire including educationalservices, ofpublicgoodsandservices, economy anddelivery impactsmanyaspectsofthe Population growth time. of peopleaddedtoapopulationoverperiod isthenumberorpercentage Population growth !CTUAL0ERCENTAGE#HANGEFROMTO0REDICTED0ERCENTA    #ALIFORNIA  

  0OPULATION'ROWTHINTHE#ENTRAL6ALLEY3UBREGIONS  

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 8 How arewedoing?  current residents. current to births ismostlyfrom populationgrowth where and leastsignificantintheSouthSanJoaquinValley, ValleyMigration ismostsignificantintheNorth inCalifornia. coastalregions of themigrationisfrom migration.Sixtypercent isfrom population growth thanhalf(58%) of theCentralValley’sMore SanJoaquinValley. fast29%in the North extremely Valley 14%intheNorth from by subregion, toan ratesintheCentralValley growth Projected vary schools,andotherpublicservices. traffic, on substantialpressure rateof24%creates growth at11%.A each andtheSanFranciscoBayArea faster thanthestateandLosAngelesRegionat15% by another24%between2000-2010,substantially The CentralValley togrow populationispredicted 12%. than17%,whilethestate’spopulationgrew more Thepopulationofthe19countiesgrew region. Valley fasterthaninanyotherCalifornia increased 1990-1999,thepopulationinCentral From workers competeforjobs. inlowerwagesasmore injobs,mayresult increase Conversely,services. withoutan alarger workforce, toexpandsalesand businessesopportunities offering alsoboosttheconsumerbase, Population increases   0ROJECTED0ERCENTAGE#HANGEFROMTO    3OURCE#ALIFORNIA$EPARTMENTOF&INANCE        

forcounty. each closely reflect actual values are grouped in ranges to most Data presented on this map Glenn Tehama Colusa Shasta Yolo POPULATION CHANGE,1990–2010 Sutter Butte San Joaquin Sacramento Yuba Stanislaus Merced El Dorado Placer Madera Source: CA Department of Finance 050100 Kings Fresno 5Miles 25 9 Tulare Kern Population Ch Projected change,2000-2010 Actual change,1990-1999 from 1990to2010 byCounty Percent Change CA change was 14% is 32% CA change ange from1990-1999 in Total Population 18% - 31% 70% 45% - 58% 32% - 44% 100% Greater than 25% 25% 15% - 21% Less14% Than ±

POPULATION, INCOME & HOUSING           POPULATION, INCOME & HOUSING   #ALIFORNIA Definition: lowest inthecountry. Per capitaincomeintheCentralValley isamongthe Why isitimportant? PER CAPITAINCOME incomes are higher and half are lower. higherandhalfare incomes are as medianincome,whichisthelevelathalf people livinginthatcommunity. Itisnotthesame community anddividingitbythetotalnumberof calculated bytakingthetotaldollarsofincomeina individual inacommunityorjurisdiction.Itis Per capitaincomeistheaverageannualper income areas oftenhavealowercostofliving. income areas economic indicatorcanbemisleadingaslower However, usingpercapitaincomealoneasan economic health. indicatorofaregion’s is oftenusedasanapproximate Percapitaincome opportunities. and entertainment educational,recreational, income tendtohavemore ofliving.Regionswithahigherpercapita standard Per capitaincomeisamajorfactorincommunity’s 0ER#APITA)NCOMEIN#ALIFORNIAANDITS2EGIONS  3OURCE53$EPARTMENTOF#OMMERCE "UREAUOF%CONOMIC!NALYSIS 6ALLEY #ENTRAL     "AY!REA 3AN&RANCISCO  2EGION ,OS!NGELES            10  How arewedoing?  Valley. locatedintheCentral lowest percapitaincomewere withthe In 2002,7ofthe10countiesinCalifornia South SanJoaquinValley. Regionandlowestinthe Sacramento Metropolitan Itishighestinthe varies considerablybyregion. percapitaincomeintheCentralValleyAverage tootherareas. relative income decreased by19%.Thus, CentralValleyincreased percapita by25%,whiletheCentralValley’sincome increased percapita as awhole.Duringthattime,California’s Central Valley consistentlylaggedbehindCalifornia 1997to2002,thepercapitaincomein From above West Arkansas,andMississippi. Virginia, aseparatestate, nation inpercapitaincomeifitwere rank 48thoutofwhatwouldbe51statesinthe To putthisinperspective,theCentralValley would $24,550, 26%belowthestateaverageof$32,989. Per capitaincomefor2002intheCentralValley was 6ALLEY .ORTH 0ER#APITA)NCOMEINTHE#ENTRAL6ALLEY3UBREGIONS  3OURCE3OURCE53$EPARTMENTOF#OMMERCE "UREAUOF%CONOMIC! -ETROPOLITAN2EGION 3ACRAMENTO     *OAQUIN6ALLEY .ORTH3AN  *OAQUIN6ALLEY 3OUTH3AN  NALYSIS forcounty. each closely reflect actual values are grouped in ranges to most Data presentedonthis map Glenn Tehama PER CAPITAINCOMEBYCOUNTY,2002 Colusa Shasta Yolo Sutter Butte San Joaquin Sacramento Yuba Stanislaus El Dorado Merced Placer 050100 Source: U.S. Department ofCommerce Source: U.S.Department Kings Madera Fresno 5Miles 25 11 Tulare Kern Per CapitaIncomebyCounty $32,989 was Income CA PerCapita $36,000 - $37,500 $29,500 - $30,000 $25,500 - $27,500 $22,500 - $24,500 $20,500 - $21,500 $18,500 - $20,000 ±

POPULATION, INCOME & HOUSING POPULATION, INCOME & HOUSING         RESIDENTIAL BUILDINGPERMITS Why isitimportant? Definition: single-familyhomes. housing, particularly The CentralValley israpidlyincreasing itssupplyof  structures. whodesignthe deliver materials,andarchitects companiesthat trucking purchased, supplies are building where includingstores for construction, go tobusinessesthatsupplythematerialsneeded benefits including laborandmaterialscosts.Indirect ofanewhome, associated withtheconstruction thosedirectly benefitsare Direct the construction. associatedwith andindirectly for thosebothdirectly generateseconomicbenefits Housing construction employment.) related topage20fordetailsonconstruction- (Please refer issteadygrowth. to economichealthwhenthere isasignificantcontributor Construction term. typicallyseasonalandshort- jobsare construction jobs,although alsocreates Housing construction toanarea. and mayattractadditionalresidents population forarapidlygrowing housing isnecessary ofnewhousingunits.New accurate predictor an housingare forresidential Building permits condominiums, andapartments. includinghouses, construction, new residential for buildingpermits This indicatormeasures  #ALIFORNIA 2ESIDENTIAL"UILDING0ERMITS)SSUEDIN#ALIFORNIAANDITS2EGIO   6ALLEY #ENTRAL 3OURCE53$EPARTMENTOF(OUSINGAND5RBAN$EVELOPMENT    "AY!REA 3AN&RANCISCO   NS 2EGION ,OS!NGELES  12 How arewedoing? economic valueintheCentralValley. andindirect $15billion indirect approximately generated In 2003,housingconstruction despiteapopulation thatwas13%smaller.Bay Area unitsthantheSanFrancisco 113%more produced Region. Forexample,in2003theCentralValley and fewerthantheLosAngeles Francisco BayArea housingunitsthan thenine-countySan more In absolutenumbers,theCentralValley isbuilding intheCentralValley.other subregions Regionthan intheSacramentoMetropolitan permits ofmulti-family isaslightlyhigher percentage There forcondominiumsandapartments. the remainder forhouses,with are 85%ofpermits Approximately growing. atafasterratethanthepopulation is increasing are a slump.Onyear-to-year basis,housingpermits wasin number in1996,whenthehousingindustry Valley. In2003,theyexceeded58,000—doublethe yearintheCentral every haveincreased permits 1989to1996,newbuilding substantial declinefrom inthe CentralValley force primary economy. Aftera hasbeena construction Since 1996,residential Why isitimportant? Definition: than elsewhere inCalifornia. Houses intheCentralValley remain more affordable HOUSING AFFORDABILITY !FFORDABILITY)NDEX "upward mobility.""upward canpromote ofproperty In addition,appreciation intheircommunity. vestedinterest have along-term thatresidents make. Homeownershiphelpsensure usually thelargest financialdecision ahouseholdwill Home ownershipisagoalofmanypeople.It costsofcommuting. financial andenvironmental insurance, utilities,suchasairconditioning,andthe home prices.Otherfactorsincludethecostsoftaxes, The fullcostofhousingchoicesisnotlimitedto priced home. amedian- topurchase 95% oftheincomenecessary 95, itmeansthatthemedian-incomehouseholdhas index of For example,ifacountyhasanaffordability ahomeatthemedianprice. topurchase sufficient less than100meansthatthemedianincomeisnot amedian-pricedhome,andmeasure to purchase thanrequired means thatthemedianincomeismore higherthan100 Ameasure home inthatarea. amedian-priced topurchase income issufficient median of100meansthatthearea's A measure and assumesa20%downpayment. taxesandinsurance, rates,property income, interest of ahouseinthatcounty. Itaccountsforprice, household incomeinacountywiththemedianprice themedian compares Housing affordability      

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9OLO    the orLosAngelesRegions. the SanFranciscoBayArea in theCentralValley butworkforhigher wagesin babyboomers),andcommuterswholive wealth from families(especiallythetransferof assistance from pay lessthan20%foradownpayment,financial forfirst-time homebuyerswhocanoften programs rising homeprices.Theseincludeincentive contributing tohighhomeownershipratesdespite rates severalfactorsbesidelowinterest are There 57%. home ownershipratesabovethestateaverageof slightly. In2003,fifteenValley countieshad of homeownersintheValley isincreasing inaffordability,Despite thedrop thepercentage andMadera). Fresno, below 100since2002(ElDorado,Yolo, Merced, Five CentralValley countieshaveseentheir indexfall Glenn, Tehama, in15. andKings)decreased infourcounties(Colusa, hasincreased affordability in 11ofthe19Valley counties.Since2002, tomedianincomefamilies Housing isaffordable  oftheirincomeonhousing. proportion greater theirjobsorspenda from they maymovefurther pricedoutoftheirlocalhousingmarket, people are income andthepriceavailabilityofhouses.As bythebuyer’s The abilitytoownahomeisaffected 

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POPULATION, INCOME & HOUSING POPULATION, INCOME & HOUSING        RENTAL AFFORDABILITY Why isitimportant? Definition: a medianpricedtwo-bedroomunit. Nearly 50%ofCentralValley residents cannotafford "UTTE  further from employmentcenters. from further seeklessexpensivehousing commutes ifresidents inlonger mayresult Theserents higher rents. Employmentcentersoftenhave goods andservices. education,andother childcare, transportation, leavinglessmoney forfood,healthcare, on rent, oftheirincome or topayahigherproportion rents todouble-upandshare theseresidents requires housing tobuyahome.Alackofaffordable afford housingor who cannot who choosetoliveinrental housingisessentialforresidents rental Affordable income. gross than30%ofarenter’s nomore requires ifit affordable unit.Aunitisconsidered rental amedianpriced torent population thatcanafford ofthe thepercentage measures Rental affordability 

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 B USINESS VITALITY

While agriculture remains a significant part of the Central Valley's economy, service industries are becoming increasingly important. This is a difficult transition because some service

industries, such as rapidly-growing retail Photo by Logan Perkes Logan by Photo sales, historically pay low wages and may be seasonal. Unemployment in the Valley remains considerably higher than the state average.

• The labor force is growing faster than jobs are being created.

• From 1998–2003, the Central Valley’s unemployment rate averaged 4.2% higher than the state rate. This is a slight improvement from the prior five years, when the Central Valley rate was 4.8% higher.

• Wages in the Central Valley are lower than elsewhere in California.

• As of 2003, 77% of Central Valley jobs were in service-providing industries, especially government and trade, transportation, and utilities. The state average for service industries was 82%. Goods-producing industries, including construction and manufacturing, provided 14% of Central Valley jobs, while farming provided the remaining 9%.

• From 1994 through 2003, the Central Valley lost nearly 10,000 agriculture-related jobs, or 5% of the 1994 total.

• Construction has been the fastest growing industry since 1994.

• Tourism has grown substantially since the early 1990s, particularly in the Sacramento Metropolitan Region, and has generated jobs.

Central Valley Subregions North Valley (Five counties–Butte, Colusa, Glenn, Shasta, and Tehama) Sacramento Metropolitan Region (Six counties–El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba) North San Joaquin Valley (Three counties–Merced, San Joaquin, and Stanislaus) South San Joaquin Valley (Five counties–Fresno, Kern, Kings, Madera, and Tulare)

15 BUSINESS VITALITY        #ALIFORNIA JOB GROWTHANDLABORFORCE Why isitimportant? Definition: of jobs. The laborforce is growingfasterthanthenumber *OB'ROWTHIN#ALIFORNIAANDITS2EGIONS"ENCHMARK jobs outside of their home regions, or relocate. orrelocate. jobs outsideoftheirhomeregions, maycommuteto be unemployed,underemployed, Ifthisdoesnotoccur, will opportunities. residents adequateemployment toprovide of thelaborforce economy, willkeeppacewiththegrowth job growth wagesandbenefits.Inahealthy income through of source theprimary For mostpeople,jobsare unemployed. time. Itincludesbothpeoplewithjobsandthe overaperiodof inanarea civilian laborforce thechangein measures growth - Laborforce jobs inacountyoverperiodoftime. thechangeinnumberof measures - Jobgrowth indicators: related, twodistinct,but are growth Job andlaborforce 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT ,ABOR-ARKET)NFORMA 

6ALLEY #ENTRAL     "AY!REA 3AN&RANCISCO  TION$IVISION 2EGION ,OS!NGELES        16 How arewedoing?  Francisco Bay Area andLosAngelesRegions. Francisco BayArea Valley commutingtojobsintheSan are residents 6.5%.ThisislikelybecausemanynewCentral grew Valley, 7.9%whilejobs grew thelaborforce where wasintheSouthSanJoaquin significant difference faster(11.1%)thanjobs(10.5%).Themost grew 1998to2003,theCentralValley’sFrom laborforce 6ALLEY .ORTH *OB'ROWTHINTHE#ENTRAL6ALLEY3UBREGIONS"ENCHMARK 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT ,ABOR-ARKET)NFORMA  -ETROPOLITAN2EGION 3ACRAMENTO     *OAQUIN6ALLEY .ORTH3AN  TION$IVISION *OAQUIN6ALLEY 3OUTH3AN       ANNUALUNEMPLOYMENTRATE How arewedoing? Why isitimportant? Definition: higher thanthestateaverage. Central Valley unemploymentremains substantially Valley. intheCentral the highestunemploymentratesare intheU.S.with areas Six ofthetenmetropolitan overall wages. competition forexistingjobsandleadtolower ingreater High unemploymentalsocanresult ofliving. to maintainaminimalstandard unemployment insuranceforalimitedtime receive difficulty. unemployedfrequently Peoplewhoare Unemployed workersoftenfaceseriousfinancial jobsavailable. are seeking workthanthere workers more are unemployment meansthatthere High theeconomic healthofaregion. measure The unemploymentrateisoneofthebestwaysto wages. seeking employment,orthosewithunreported self-employed,nolonger rate excludesthosewhoare actively seekingemployment.Theunemployment workinglessthanfulltimeandwho are or are notworking the workers16andolderwhoare of thepercentage The unemploymentratemeasures  #ALIFORNIA ORE MLYET$VLPET$PRMN ,BR-RE NOMTO $I )NFORMATION -ARKET ,ABOR $EPARTMENT $EVELOPMENT %MPLOYMENT 3OURCE 5NEMPLOYMENT2ATEIN#ALIFORNIAANDITS2EGIONS  6ALLEY #ENTRAL     "AY!REA 3AN&RANCISCO  2EGION ,OS!NGELE  VISION 17 S

     (6.7–8.1%). Region and lowestintheSacramentoMetropolitan highest intheSouthSanJoaquinValley (13–14%), average. IntheCentralValley, consistently theyare Central Valley consistentlyhigherthanthestate are ofthe Unemployment ratesinallthesubregions higher thanthestaterate. points averaged 10%,whichwas4.2percentage 1999–2003, theCentralValley unemploymentrate pointshigherthanthestaterate.From percentage unemployment rateaveraged11.9%,whichwas4.8 1994to1998,theCentralValley’sFrom slightlysince1998. hasdecreased difference the ofCalifornia, substantially higherthantherest While unemploymentintheCentralValley remains . BonvleHrignSnBnt,T 11.0 Rate 23.5 13.6 Source: USDepartmentof Labor, Bureau of LaborStatistics 10. Brownsville-Harlingen-SanTX Benito, 9. 8. 7. McAllen-Edinburg-Mission,TX 6. 5. Yakima, 4. 3. 2. WA Yuma,AZ 1. MSA 10.6 Statistical Areas intheUnited States Highest AnnualUnemployment Ratesfor Metropolitan  Modesto, 15.5 Bakersfield, CA Yuba Fresno, CA Merced, 11.5 City,Visalia-Tulare-Porterville, CA CA 12.3 CA 14.0 CA 14.8 13.8 6ALLEY .ORTH 3OURCE%MPLOYMWNT$EVELOPMENT$EPARTMENT ,ABOR-ARKET)NFORMA 5NEMPLOYMENT2ATEINTHE#ENTRAL6ALLEY3UBREGIONS  -ETROPOLITAN2EGION 3ACRAMENTO     2003 *OAQUIN6ALLEY .ORTH3AN  TION$IVISION *OAQUIN6ALLEY 3OUTH3AN 

BUSINESS VITALITY BUSINESS VITALITY        *ANUARY 5NEMPLOYMENT2ATEBY-ONTHINTHE#ENTRAL6ALLEYANDITS3UBREG Why isitimportant? Definition: Unemployment intheCentralValley variesbyseason. UNEMPLOYMENT RATEBYMONTH #ALIFORNIA agriculture affects unemployment. affects agriculture anindicationofhow seasonsprovides harvesting Comparing themonthlyratewithprimary unemployment variesoverthecourseofayear. Tracking unemploymentbymonthshowshow by value. the CentralValley’s tenlargest agriculturalproducts, seasonsfor unemployment ratewiththeharvesting the rate withinoneyear(2003).Italsocompares themonthlyunemployment This indicatormeasures &EBRUARY -ARCH 6ALLEY .ORTH !PRIL -ETROPOLITAN2EGION 3ACRAMENTO -AY 3OURCE3UMMARYOF#OUNTY!GRICULTURAL#OMMISSIONERgS2EPORTS  *OAQUIN6ALLEY .ORTH3AN IONS#OMPAREDWITH(ARVEST3EASONSFORTHE4OP4EN#OMMODITIES *UNE  *ULY 18 *OAQUIN6ALLEY 3OUTH3AN #ALIFORNIA%MPLOYMENT$EVELOPMENT$EPARTMENT ,ABOR-ARKET)NFO How arewedoing? unemployment. months, suggestingthatotherfactorsinfluence ofthestate,evenduringsummer the rest Valley's significantlyhigher(4.2%)than ratesare seasonally,However, whiletheratesvary the andconstruction. including agriculture seasonal factorsformajorCentralValley industries, to related in unemploymentduringtheyearare suggestthatvariations typically slows.Thesetrends isoverandwhenconstruction for somemajorcrops season rapidly inthefallandwinter, whenharvesting activity. farm to increased Unemploymentincreases inthesummer,It alsodecreases whichappearsdue hiringforconstruction. This maybeduetoincreased inthespring. by season.Unemploymentdecreases The unemploymentrateintheCentralValley varies !UGUST 3EPTEMBER   .ATIONAL!GRICULTURE3TATISTICS3ERVICE /CTOBER INTHE#ENTRAL6ALLEY .OVEMBER RMATION$IVISION $ECEMBER #HICKENS 7ALNUTS /RANGES 2ICE 4OMATOES #OTTON !LMONDS #ATTLE#ALVES 'RAPES -ILK

WAGES BYINDUSTRY                 Why isitimportant? Definition: average. Wages intheCentralValley are lowerthanthestate those with higher wages living in high-cost areas. those withhigherwageslivinginhigh-costareas. incomethan discretionary actually endupwithmore paid lowerwageswholiveinlower-cost may areas thespendingpower ofhigherwages.Those reduce Valley, can andahighercostoflivinginsomeareas However, thecostoflivingvarieswithinCentral clothing. other thanbasicexpensessuchasfood,shelter, and moneytospendongoodsandservices discretionary of life.Peoplepaidhigherwagesusuallyhavemore influencesquality greatly The levelofwagesearned industries. in different and areas annuallybyemployeesindifferent earned theaveragedollaramount This indicatormeasures .ATURAL2ESOURCES 

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0ROFESSIONALAND www.calmis.cahwnet.gov/file/es202/cew-select.htm pleasevisit information, For further manufacturing. and highest infinancialactivities,government, By industry, wagesintheCentralValley are ValleyNorth andtheSouthSanJoaquinValley. Regionandlowestinthe Sacramento Metropolitan In theCentralValley, highestinthe wagesare andoffices. headquarters positions, and thelackofhigh-levelprofessional Valley intheValley, ofagriculture therole residents, lowerlevelsofeducationamongCentral reflect Thismay lower thantheaverageinCalifornia. category, wagesintheCentralValleyIn every are "USINESS3ERVICES

 

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BUSINESS VITALITY BUSINESS VITALITY EMPLOYMENT BYINDUSTRY How arewedoing? Why isitimportant? Definition: industries. Jobs intheCentralValley are increasingly inservice /THER3ERVICES industries. inservice drivers.Statewide,82%of jobswere truck clerksand positions,suchasgrocery service-related In 2003,77%ofCentralValley in workers were a diverseeconomy. vulnerabletoeconomiccyclesthan industries ismore economy. Aneconomyfocusedononeortwo showsthediversityofregional within aregion economy. onthemixofindustries Information toaregion’s industriesare different important showshow Comparing employmentbyindustry tothedefinitionssectiononpage43.) please refer information, industries.(Formore distributed across howemploymentis This indicatormeasures  ,EISURE(OSPITALITY 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT (EALTH3ERVICES %DUCATIONAL ,ABOR-ARKET)NFORMATION$IVISION )NDUSTRY%MPLOYMENTIN#ALIFORNIA

  'OVERNMENT "USINESS3ERVICES  0ROFESSIONAL   &ARMING  4RADE 4RANSPORTATION -ANUFACTURING 5TILITIES #ONSTRUCTION    )NFORMATION  &INANCIAL!CTIVITIES  20 ,EISURE(OSPITALITY to 17%intheSouthSanJoaquinValley. Region 1.4% ofjobsintheSacramentoMetropolitan ranging from theregion, varied widelythroughout jobs offarm in otherindustries.Thepercentage 9%directly,provided withanadditional11%counted 14%ofCentral Valleyprovided jobs.Farming andmining) andnaturalresources construction, goods(manufacturing, Industries thatproduced statewide. to10.4% 17.4%ofjobscompared providing intheCentralValley,largest employmentindustry Trade, andUtilitiesisthesecond Transportation, ingovernment. Regionare Sacramento Metropolitan Sacramento andtheValley; over26%ofjobsinthe duetothestatecapitol’slocationin is partly to16.4%forthestateasawhole.This compared in theCentralValley, 22.9%ofjobs, providing isthelargest employmentindustry Government  "USINESS3ERVICES 0ROFESSIONAL  )NDUSTRY%MPLOYMENTINTHE#ENTRAL6ALLEY /THER3ERVICES ,ABOR-ARKET)NFORMATION$IVISION 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT (EALTH3ERVICES  %DUCATIONAL 'OVERNMENT    &ARMING  4RADE 4RANSPORTATION #ONSTRUCTION .ATURAL2ESOURCES-INING 5TILITIES -ANUFACTURING     )NFORMATION  &INANCIAL!CTIVITIES 

0ROFESSIONAL"USINESS3ERVICES 0ROFESSIONAL"USINESS3ERVICES   &INANCIAL!CTIVITIES )NDUSTRY%MPLOYMENTINTHE.ORTH3AN*OAQUIN6ALLEY  ,EISURE(OSPITALITY /THER3ERVICES )NDUSTRY%MPLOYMENTINTHE.ORTH6ALLEY ,EISURE(OSPITALITY 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT (EALTH3ERVICES /THER3ERVICES %DUCATIONAL ,ABOR-ARKET)NFORMATION$IVISION ,ABOR-ARKET)NFORMATION$IVISION   'OVERNMENT   'OVERNMENT   (EALTH3ERVICES %DUCATIONAL     &ARMING  4RADE 4RANSPORTATION &ARMING #ONSTRUCTION  4RADE 4RANSPORTATION  #ONSTRUCTION )NFORMATION 5TILITIES 5TILITIES  -ANUFACTURING    .ATURAL2ESOURCES-INING   -ANUFACTURING )NFORMATION &INANCIAL!CTIVITIES    21 %DUCATIONAL(EALTH3ERVICES %DUCATIONAL(EALTH3ERVICES 0ROFESSIONAL"USINESS3ERVICES /THER3ERVICES    )NDUSTRY%MPLOYMENTINTHE3ACRAMENTO-ETROPOLITAN2EGION )NDUSTRY%MPLOYMENTINTHE3OUTH3AN*OAQUIN6ALLEY  ,EISURE(OSPITALITY /THER3ERVICES 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT 3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT ,EISURE(OSPITALITY ,ABOR-ARKET)NFORMATION$IVISION ,ABOR-ARKET)NFORMATION$IVISION  'OVERNMENT 'OVERNMENT     &INANCIAL!CTIVITIES "USINESS3ERVICES   &ARMING 0ROFESSIONAL   #ONSTRUCTION 4RADE 4RANSPORTATION  4RADE 4RANSPORTATION  -ANUFACTURING &ARMING 5TILITIES   5TILITIES -ANUFACTURING  #ONSTRUCTION     )NFORMATION  &INANCIAL!CTIVITIES .ATURAL2ESOURCES-INING )NFORMATION   

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.UMBEROF*OBS              Why isitimportant? Definition: except agriculture andnaturalresources. The CentralValley isgainingjobsinallindustries,

4OTAL&ARMING EMPLOYMENT CHANGESBYINDUSTRY infrastructure planning. infrastructure plans foreconomicdevelopmentandtraining todevelop others canusethisinformation educators,and agencies,researchers, Government on employmentchangestoidentifyjobopportunities. Job seekersandjobcounselorscanuseinformation toacommunity. provided services government thetypesandcostsof Changes injobscanalsoaffect forhousingandotherexpenses. they canafford peopleliveandhowmuch can influencewhere wages,which different training. Theyalsoprovide levelsofeducationand different industries require many aspectsoftheeconomy. Forexample,different Changes inthenumbersandtypesofjobsaffect much. fewerjobsandbyhow providing and whichare addingjobs industries. Itshowswhichindustriesare This indicatordescribesjobschangesamong     .ATURAL2ESOURCES  

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  22 How arewedoing?   are factors in the loss of farm-related jobs. factorsinthelossof farm-related are andthechange tolesslaborintensivecrops processes jobs(4.1%).Mechanizationoffarming farming SanJoaquinValleywhile theNorth gained1,600 intheSouthSanJoaquinValley, jobswere farming ofthelost Eighty-fivepercent among regions. widevariations were 10,000 jobsor4.9%).There (nearly mining (2,650jobsor20.6%),andfarming and lost jobsintwoindustries:naturalresources 1994to2003,theCentralValleyFrom asawhole jobs, almostdoubletheearliernumber. 6.4%ofCentralValley1990s. In2003itprovided was in aslumpthemid- industry construction becausethe waslarge inpart in construction change Thelarge percentage industry). growing (whichhasbeenthefastest and construction industries,manufacturing, gained jobsinallservice 2003,theCentralValley 1994through From 

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        Why isitimportant? Definition: population. Retail saleshavegrownsignificantlyfasterthanthe RETAIL SALES local governments. for source revenue which havebecomeanimportant new businesses.Retailsalesgeneratetaxes a community, spendingand attractingmore thereby selectionofgoodsin sales mayleadtoagreater retail inlocalemployment.Increased an increase salesmayleadto inretail example, anincrease For salesimpacthiringtrends. Also,retail growth. tochangesinpopulation whencompared particularly agoodindicatorofeconomicvitality,Retail salesare automobiles, andhouseholditems. supplies,clothing,food, office such asfurniture, Central Valley. goods Retailsalesincludefrom salesinthe annualretail This indicatormeasures  #ENTRAL6ALLEY2ETAIL3ALES 2ETAIL3ALESAND0OPULATION'ROWTHINTHE#ENTRAL6ALLEY #ALTRANS/FFICEOF4RANSPORTATION%CONOMICS $IVISIONOF4RANS 3OURCE#ALIFORNIA #OUNTY,EVEL%CONOMIC&ORECAST $E  ASA0ERCENTAGEOF,EVELS     #ENTRAL6ALLEY0OPULATION'ROWTH  PORTATION0LANNING CEMBER  23 How arewedoing?       retail trade were $13.09and$14.58,respectively. tradewere retail the averagehourlywagesinthe Francisco BayArea, $11.77. FortheLosAngelesRegionandSan was $11.38,slightlylessthanthestateaverageof wagefortheCentralValleyThe averagehourlyretail population. average of$3.4billionperyear, thesmaller reflecting Valley withan salesintheregion hadthelowestretail billion peryear. Duringthesametime,North Central Valley sales,averagingnearly$24 inretail 1998–2002,the SanJoaquinValleyFrom ledthe purchases. formajor instead ofgoingoutsidetheregion toshopintheValleymaking iteasierforresidents intheCentralValley, stores and varietyofretail number Another factormayhavebeentheincreasing 1998to2003. which averaged2.3%peryearfrom waslikelyduetoinflation, oftheincrease 10%. Part byapproximately while thepopulationincreased $36.7billionto$50.8 billion, 38%,from increased salesintheCentralValley 1998to2002,retail From substantially fasterthanthepopulationhasgrown. Retail salesintheCentralValley haveincreased  .ORTH6ALLEY !NNUAL2ETAIL3ALESINTHE#ENTRAL6ALLEY3UBREGIONSINBILLIO #ALTRANS/FFICEOF4RANSPORTATION%CONOMICS $IVISIONOF4RANS 3OURCE#ALIFORNIA #OUNTY,EVEL%CONOMIC&ORECAST $E    -ETROPOLITAN2EGION 3ACRAMENTO   3AN*OAQUIN6ALLEY PORTATION0LANNING NS CEMBER 

BUSINESS VITALITY        

  BUSINESS VITALITY  6ALLEY .ORTH   INTERNET PRESENCE 3OURCEHTTPDIRYAHOOCOM2EGIONAL5?3??3TATES#ALIFORNIA#O Why isitimportant? Definition: a presence ontheInternet. A smallpercentage ofCentralValley businesseshave expanding marketopportunities. andbeyond,thereby new waysintheirlocalarea in andservices businesses tobuyandsellproducts for opportunities and otherbusinesses.Itcreates andcommunicatewithcustomers conduct commerce haschangedthewaymanyfirms The Internet services). (i.e.,website,e-commerce Internet in theCentralValley onthe thathaveapresence thenumberofbusinesses This indicatormeasures .UMBEROF"USINESSWITHA0RESENCEONTHE)NTERNET -ETROPOLITAN2EGION 3ACRAMENTO  

HTT P 3AN*OAQUIN    6ALLEY DIRECTOR   Y  G OO G LECOM 3AN&RANCISCO "AY!REA     4O P "USINESS UNTIES?AND?2EGIONS  ,OS!NGELES *UL 2EGION   Y  



        

"UTTE 24 #OLUSA  How arewedoing?  0ERCENTAGEOF#ENTRAL6ALLEY"USINESSESWITHA0RESENCEONTHE 'LENN Valley. Valleyfollowed bytheNorth andtheSanJoaquin ofbusinesseswithawebpresence, percentage Regionleadswiththehighest Metropolitan theCentralValley,Within theSacramento in theLosAngelesRegion. and4%ofthebusinesses the SanFranciscoBayArea to8%ofthebusinessesin compared a webpresence, IntheCentralValley,Internet. 3%ofbusinesseshave onthe ofbusinessesthathaveapresence percentage inthenumberand and theSanFranciscoBayArea The CentralValley isbehindtheLosAngelesRegion 3OURCEHTTPDIRYAHOOCOM2EGIONAL5?3??3TATES#ALIFORNIA#O 3HASTA 

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                  Why isitimportant? Definition: Central Valley. Travel andtourismare growingrapidlyinthe TOURISM farm income. farm incometosupplement production-related provides businesses forpurposesotherthanworkingand Central Valley, encouragespeopletovisitagricultural forthe industry Agritourism, apotentialgrowth forlocalgovernment. ofrevenue significant source Central Valley. Thetransientoccupancytaxisa forthe communities andgeneratessignificantrevenue Tourism ofjobsforlocal source isanimportant tourism intheCentralValley: to related measures This indicatorincludesthree  activity. – Transient occupancytaxes,anindicatoroftravel ofCalifornia. totherest compared – AgritourismsitesintheCentralValley as accommodations, andfood. the CentralValley, includingtransportation, – Travel spending #ALIFORNIA 4RAVEL3PENDINGIN#ALIFORNIAANDITS2EGIONSINMILLIONS  by visitors to and through byvisitorstoandthrough 6ALLEY #ENTRAL     "AY!REA 3AN&RANCISCO 3OURCE$EAN2UNYAN!SSOCIATES  2EGION ,OS!NGELES  25 How arewedoing?              industry indicatoronpages20and21.) industry pleaseseetheemploymentby information, more bylocaljurisdiction.(For whichvary governments, due tochangesintaxratesadoptedbylocal Central Valley. isalsolikely Someoftheincrease tointhe important tourism isbecomingmore in transientoccupancytaxescollectedsuggeststhat sharpincrease infacilitiesand theparticularly increase The million to$60.7inincorporatedareas. $36.2 68%,from same time,thesetaxesincreased Duringthe $22.3 millionin2002,a92%increase. $11.6millionin1993to from boundaries) increased the CentralValley (thosenotincludedwithincity Transient of occupancytaxesinunincorporatedareas Central Valley. locatedinthe are 594 agritourismsitesinCalifornia than34%(217)ofthe More field, isalsogrowing. newtravel-related Agritourism, whichisarelatively Region. the SacramentoMetropolitan in occurred 2002. Alarge majorityoftheincrease $7.2billionin billion in1992toapproximately $4.9 47%between1992and2002,from increased Travel-related spendingintheCentralValley   6ALLEY .ORTH 4RAVEL3PENDINGINTHE#ENTRAL6ALLEY3UBREGIONSINMILLIONS  -ETROPOLITAN2EGION 3ACRAMENTO     *OAQUIN6ALLEY .ORTH3AN 3OURCE$EAN2UNYAN!SSOCIATES  *OAQUIN6ALLEY 3OUTH3AN 

BUSINESS VITALITY A GRICULTURE

Agriculture remains the economic base of the Central Valley, the most productive agricultural region in the country and a critical part of the state’s economy and the nation’s food supply.

• If the Central Valley were a state, it would be ranked first in agricultural production.

• Agriculture provides 20% of the jobs in the Central Valley.

• The San Joaquin Valley generated 88% of the Central Valley’s agricultural production in 2002.

• Six of the top seven agriculture-producing counties in California are in the Central Valley.

• The value of agricultural production in the San Joaquin Valley is increasing, while it is decreasing in the North Valley and Sacramento Metropolitan Region.

• Between 1990 and 2002, 3.7% (or 283,277 acres) of the Central Valley’s irrigated farmland was converted to other uses, primarily for housing and other urban uses.

Central Valley Subregions North Valley (Five counties–Butte, Colusa, Glenn, Shasta, and Tehama) Sacramento Metropolitan Region (Six counties–El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba) North San Joaquin Valley (Three counties–Merced, San Joaquin, and Stanislaus) South San Joaquin Valley (Five counties–Fresno, Kern, Kings, Madera, and Tulare)

26 Why isitimportant? Definition: Valley. Agriculture generates20%ofthejobsinCentral FARM EMPLOYMENTANDWAGES ot a oqi aly 81 $16,855 $17,456 $8.10 $21,469 $8.39 Source: California Employment Development Department,LaborMarket Information Division California Central $10.32 South SanJoaquin Valley $9.02 North SanJoaquin Valley ValleySacramento Metropolitan Region $18,761 $9.96 North Region $20,727 2004 Valley Mean Farm Wage Hourly $13.66 Annual $28,418 processes. processes. integratedproduction sales, andothervertically equipment transportation, such asfoodprocessing, industries operations. Italsogeneratesjobsinrelated farming through jobsdirectly provides Agriculture workers. employment intheCentralValley, andwagesforfarm on theimpactofagriculture This measures       27 #ENTRAL6ALLEY !GRICULTURAL*OBSINTHE#ENTRAL6ALLEYAND#ALIFORNIAASA0ER How arewedoing? !LL!GRICULTURAL*OBS  the California averageat$9.02/hour). the California (Central Valley to averageat$9.96/hourcompared wages exceedthestateaveragebyalmost10% in theSouthSanJoaquinValley. farm Average Valley highestintheNorth They are andlowest Valley considerablybysubregion. wagesvary farm lowest ofallindustries.However, withintheCentral wagesintheCentralValleyOn average,farm the are and3.3%indirectly.directly 5.8%ofjobs,2.5% provides Statewide, agriculture management. orfarm such asfoodprocessing businessesbasedonagriculture, from are percent Eleven laborers. suchasfarm toagriculture, related Central Valley. directly are Eightandahalfpercent nearly20%ofjobsinthe provides Agriculture  #ALIFORNIA  $IRECT!G*OBS  3OURCE%MPLOYMENT$EVELOPMENT$EPARTMENT  ,ABOR-ARKET)NFORMATION$IVISION 5NIVERSITYOF#ALIFORNIA $AVIS CENTAGEOF!LL*OBS !G"USINESS*OBS  

AGRICULTURE AGRICULTURE         'ROSS6ALUEOF!GRICULTURAL0RODUCTIONIN#ALIFORNIAANDITS2E  #ALIFORNIA How arewedoing? Why isitimportant? Definition: Valley isincreasing slightly. The valueofagriculturalproductionintheCentral VALUE OFAGRICULTURALPRODUCTION 59% to57%. slightlyfrom valuedecreased the state’sproduction as awhole.Thus,theCentralValley of proportion 6%forthestate During thesametime,itincreased intheCentral Valleyproduction by4%. increased 1997to2002,the valueofagricultural From of tradepayments. contributespositivelytotheU.S.balance Agriculture than$30billionin2002. with avalueofmore economy, inCalifornia’s playsavitalrole Agriculture the market. whetherornotitissoldon the valueofcrop, estimateof ofAgriculture United StatesDepartment Central Valley. Theannualmarketvalueisthe andthe inCalifornia grown agricultural products theannualmarketvalueof This indicatormeasures  3OURCE53$!3UMMARYOF#OUNTY!GRIGCULTURAL#OMMISSIONERS2EPO ;4OTALSVARYSLIGHTLYFROM#$&!REPORTSPUBLISHEDBYCOUNTIES 6ALLEY #ENTRAL    #ALIFORNIA$EPARTMENTOF&OODAND!GRICULTURE DUETOCLASSIFICATIONSDIFFERENCESSEENOTE =  "AY!REA 3AN&RANCISCO  GIONSINBILLIONS 2EGION ,OS!NGELES  RTS      28 'ROSS6ALUEOF!GRICULTURAL0RODUCTIONINTHE#ENTRAL6ALLEY3U indexcav.htm. Service. Formoreinformationonthistopic,pleasevisitwww.nass.usda.gov/ca/bul/agcom/ Agricultural StatisticsServicedifferfromthoseprovidedbytheCalifornia than otherreportingagencies.Forthesereasons,theestimatesprovidedbyUSDANational on thefarmwhereitisproduced.Italsoprovidesstatisticsabroaderrangeofcategories production includesallfarmproduction,whetheritissoldtousualmarketingchannelsorused Note: TheUSDANationalAgriculturalStatisticsServiceestimatesforthegrossvalueof  declined by12%and3%,respectively. ValleyNorth Region andSacramentoMetropolitan Valley 1997to2002,whilethe by6%from increased valueintheSanJoaquin of agriculturalproduction Growth the state’svalueofagriculturalproduction. Joaquin Valley contributedanaverageof51% 1997to2002, theSan Region.From Metropolitan Valleythe North and6%fortheSacramento Valley’s with 6% for agriculturaloutput,compared Joaquin Valley accountedfor88%oftheCentral In2002theSan leads inagriculturalproduction. theCentralValley,Within theSanJoaquinValley 6ALLEY .ORTH  3OURCE53$!3UMMARYOF#OUNTY!GRIGCULTURAL#OMMISSIONERS2EPO ;4OTALSVARYSLIGHTLYFROM#$&!REPORTSPUBLISHEDBYCOUNTIES  -ETROPOLITAN2EGION 3ACRAMENTO   #ALIFORNIA$EPARTMENTOF&OODAND!GRICULTURE DUETOCLASSIFICATIONSDIFFERENCESSEENOTE =   BREGIONSINBILLIONS 3AN*OAQUIN6ALLEY  RTS forcounty. each closely reflect actual values are grouped in ranges to most Data presentedonthis map VALUE OFAGRICULTURALPRODUCTIONBYCOUNTY Glenn Tehama Colusa Shasta Yolo Sutter Butte San Joaquin Sacramento Yuba Stanislaus El Dorado Merced Placer and CA of Department Sources: U.S. Department 050100 Kings Madera Fresno 5Miles 25 29 Tulare Kern Food and Agriculture FY1997 -FY2002 Agricultural Value ByCounty in Change Percent FY2002 (in Thousands) FY2002 (in Agricultural Values byCounty of Agriculture was 6% Change CA 8% to15% -1% to1% -15% to -10% - 48% to -24% $2,586,000 -$3,416,000 $1,343,000 -$1,731,000 $778,000 - $1,023,000 $275,000 - $303,000 $26,000 -$134,000 3% to6% 3% ±

AGRICULTURE AGRICULTURE        2EVENUESFROMTHE4OP&IVE!GRICULTURAL3TATESINTHE5NITED3T #ALIFORNIA  AGRICULTURALOUTPUTRANKING How arewedoing? Why isitimportant? Definition: nation's leadingagriculturalareas. andespeciallytheCentralValley,California, are the nation in production of more than70specialtycrops. ofmore nation inproduction andcommodities.Thestateleadsthe crops different than350 more nuts, andvegetables,producing thanhalfthenation’sfruits, more grows California asTexas,revenue state. thenextmostproductive generatednearlytwiceasmuch In 2001,California receipts. generates13%ofU.S.farming California state inthecountry. 4%ofthenation’sfarms, With agricultural isbyfarthemostproductive California thecountywithfoodsecurity. foodprovides grown of theCentralValley Domestically- andCalifornia. isamajorcomponentoftheeconomy Agriculture ofCalifornia. rest andtheoutputofCentralValleycountry withthe ofthe withtherest agricultural outputofCalifornia thedollarvalueof This indicatorcompares 4EXAS  3OURCE#ALIFORNIA$EPARTMENTOF&OODAND!GRICULTURE   )OWA .EBRASKA  ATESINBILLIONS +ANSAS        30 &RESNO 2EVENUESFROMTHE4OP3EVEN!GRICULTURAL#OUNTIESIN#ALIFORNIA  ORE NTD3AE EATETO GIUTR .TOA !GRICULTURAL .ATIONAL !GRICULTURE OF $EPARTMENT 3TATES 5NITED 3OURCE produce more crops thaninotherstates. crops more produce longer. to allowsfarmers This condition inturn is mildmostoftheyear, seasonsare thegrowing agricultural productivity. BecausetheValley’s climate in theCentralValley isamajorfactorinits The uniquecombinationofclimate,soils,andwater inthenation. agricultural production Valley aseparatestate,itwouldrankfi were SanJoaquin,Stanislaus).IftheCentral Merced, located intheCentralValley Tulare, (Fresno, Kern, topsevenagriculturalcountiesare of California’s of thestate'sagriculturaloutputin2002.Six theCentralValleyIn California, generated57% Union andJapan. followedbytheEuropean exports, for California’s world. Canadaisthenumberonedestination the around than$6.5billioninproducts more shipping alsoleadsinagriculturalexports, California 4ULARE  -ONTEREY   +ERN  -ERCED  3AN*OAQUIN  INBILLIONS TTSIS3ERVICE 3TATISTICS rst in rst 3TANISLAUS  0 Pahs l $.247 $.260 $.316 $.342 $.252 $.438 Peaches,All $.514 Source: California Agricultural Statistical Review, 2002 Melons,Cantaloupe 20 Celery $.532 19 Avocados $.658 18 Walnuts $.732 17 Carrots,All 16 $.766 Broccoli $1.021 $.998 $.841 15 Oranges 14 Chickens,All 13 All Cotton, 12 Almonds,All $1.370 $2.087 11 $1.352 Tomatoes,All 10 Strawberries $2.651 9 Flowers 8 Hay $4.630 Value (Millions of Dollars)7 Calves and Cattle 6 Lettuce,All 5 Nursery 4 Grapes,All 3 Creamand Milk 2 Commodity 1 Rank 2001 California's Top 20Agricultural Commodities $68.0 $86.3 $74.7 $89.2 $108.9 Carrots $142.6 $136.1 Source: California Agricultural StatisticalReview, 2002 Lemons $144.1 20 Hay $149.5 $118.7 19 Broccoli $166.4 18 Pistachios 17 PeachesNectarinesand $179.1 16 Strawberries $154.8 15 Lettuce $297.5 14 $322.1 Raisins 13 Prunes $470.9 12 $211.7 Productsand Beef 11 $394.5 Rice $604.5 10 Walnuts $656.6 9 Tomatoes,Processed 8 Oranges California ExportValue (Millionsof7 Dollars) Dairy 6 Grapes,Table 5 Wine 4 Cotton 3 Almonds 2 Commodity 1 Rank 2001 California's Top 20Agricultural Exports $.434 31 Source: California Resource Directory, 2003 (99% ormore of USProduction) Specialty Crops Produced inCalifornia Walnuts Raisins Plums, Dried (Prunes) Pistachios Persimmons Olives Nectarines Kiwi Fruit Figs Dates Clingstone Peaches Artichokes Almonds

AGRICULTURE AGRICULTURE .ON)RRIGATED .ON)RRIGATED 5RBAN,AND 5RBAN,AND /THER,AND /THER,AND )RRIGATED )RRIGATED AGRICULTURALLANDCONVERSION Why isitimportant? Definition: 2002. Urbanizationincreased by23%. tootherusesby in1990wasconverted was irrigated In theCentralValley, that nearly4%offarmland economic baseintheCentralValley. has notbeenanyindicationofachangeinthe There jobsdecreased. asfarm technology increase defense,and saw newindustrieslikeentertainment, likeLosAngelesandSanJose urbanizing regions the Valley’s historicaleconomicbase.Other hasthepotentialtochange Conversion offarmland andurbanization. farmland changes inirrigated the CentralValley 1990to2002,emphasizing from thechangesinlanduse This indicatormeasures                                               !CRESOF!GRICULTURAL,AND#ONVERSIONINTHE#ENTRAL6ALLEY !CRESOF!GRICULTURAL,AND#ONVERSIONINTHE.ORTH6ALLEY          AND AND 3OURCE#ALIFORNIA$EPARTMENTOF#ONSERVATION 3OURCE#ALIFORNIA$EPARTMENTOF#ONSERVATION                                   32 How arewedoing?  experiencing the greatest amount of farmland loss. amountoffarmland experiencing thegreatest is the topsevenagriculturalcountiesinCalifornia, The SanJoaquinValley, whichcontainssixof increase. urbanized,a23% with167,182acres has increased During thesameperiod,rateofurbanization and otheruses. development,grazingland,habitatrestoration rural tolow-density wasconverted acreage The remaining tourbanuses. is nowused,mostofitwasconverted howthisland it isnotpossibletoidentifyprecisely tootheruses.While converted were acres farmland 1990to2002,283,277(3.7%)irrigated From

.ON)RRIGATED .ON)RRIGATED .ON)RRIGATED 5RBAN,AND 5RBAN,AND 5RBAN,AND /THER,AND /THER,AND /THER,AND )RRIGATED )RRIGATED )RRIGATED                                                        !CRESOF!GRICULTURAL,AND#ONVERSIONINTHE3ACRAMENTO-ETROPO             !CRESOF!GRICULTURAL,AND#ONVERSIONINTHE3OUTH3AN*OAQUIN !CRESOF!GRICULTURAL,AND#ONVERSIONINTHE.ORTH3AN*OAQUIN                                    AND AND AND  3OURCE#ALIFORNIA$EPARTMENTOF#ONSERVATION 3OURCE#ALIFORNIA$EPARTMENTOF#ONSERVATION 3OURCE#ALIFORNIA$EPARTMENTOF#ONSERVATION             LITAN2EGION 33     6ALLEY 6ALLEY      Source: California Departmentof Conservation www.consrv.ca.gov/dlrp/FMMP. For moreinformation, pleasesee riparian areas not suitablefor livestockgrazing. rural developments, brush,timber, wetland, and category. Common examples include lowdensity Land not included inany other mapping Other Land purposes. commercial, construction, and other developed This land isusedfor residential, industrial, Urban andBuilt-upLand suitable for the grazing of livestock. Land onwhich the soiland vegetation are most Non-Irrigated Farmland/Grazing term agricultural production. agricultural economy and isabletosustainlong crops. Thisland isimportant tothe local Land suitedfor the production of agricultural Irrigated Farmland Land Use Classifications

AGRICULTURE T RANSPORTATION, COMMERCE, & MOBILITY

More than 80% of commuters in the Central Valley drive alone to work. Congestion is increasing rapidly in the Central Valley’s metropolitan areas, particularly in Fresno and Kern Counties.

• Commute patterns in the Central Valley are similar to those in California's major metropolitan regions.

• The movement of freight by truck is increasing.

• Air travel to and from Central Valley airports, primarily

Sacramento, is increasing, while it is declining in the San Photo by Richard Thornton Richard by Photo Francisco Bay Area and Los Angeles Region.

Central Valley Subregions North Valley (Five counties–Butte, Colusa, Glenn, Shasta, and Tehama) Sacramento Metropolitan Region (Six counties–El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba) North San Joaquin Valley (Three counties–Merced, San Joaquin, and Stanislaus) South San Joaquin Valley (Five counties–Fresno, Kern, Kings, Madera, and Tulare)

34            Why isitimportant? Definition: closely related topopulationgrowth. The numberofmilesdrivenintheCentralValley is TRANSPORTATION TOWORK VEHICLE MILESTRAVELEDANDPRIMARY MODEOF to jobs. commutinglongerdistances are suggest thatresidents may that exceedstherateofpopulationgrowth invehiclemilestraveled viable.Anincrease more todrivingaloneworkbecome alternatives areas, concentratedinurban When employmentcentersare thequantityofairpollutioncreated. work andaffects influencedbyhowpeoplegettoandfrom greatly and thequalityoflife.Theamountdrivingis economicactivity The numberofmilesdrivenreflects commute totheirjobs. oftheCentralValley howresidents and measures traveled intheCentralValley bycarsandtrucks invehiclemiles thegrowth This indicatormeasures 'ROWTHIN6EHICLE-ILES4RAVELEDINTHE#ENTRAL6ALLEY3UBREGIO 6ALLEY .ORTH  -ETROPOLITAN2EGION 3ACRAMENTO   3OURCE#!$EPARTMENTOF4RANSPORTATION *OAQUIN6ALLEY .ORTH3AN PROJECTED     NSINMILLIONS *OAQUIN6ALLEY 3OUTH3AN 35 How arewedoing? available. 1990 until2000,thelatestperiodforwhichdataare consistentfrom were or walking.Thesepatterns who usepublictransitorothermeanssuchasbiking followed bycarpoolingat16%,andasmallnumber than80%ofcommutersdrivealonetowork, More ofCalifornia. similartothoseintherest very are The modesoftraveltoworkintheCentralValley nearly3%ayear.but drivingisincreasing Valley, about2%ayear, populationisgrowing where a year. SanJoaquin AnexceptionistheSouthern about2.4% similar totherateofpopulationgrowth, inmilesdriventheCentral ValleyThe increase is -EANSOF4RANSPORTATIONTO7ORKINTHE#ENTRAL6ALLEY #ARPOOLED 0UBLIC4RANSPORTATION/THER  3OURCE53#ENSUS"UREAU $ROVE!LONE   

TRANSPORTATION, COMMERCE & MOBILITY TRANSPORTATION, COMMERCE & MOBILITY        VEHICLE HOURSOFDELAY Definition: Central Valley metropolitanareas. congestionisbecomingsignificantlyworsein Traffic 0ERCENTAGE#HANGEIN6EHICLE(OURSOF$ELAYIN#ALIFORNIA Source: California Departmentof Transportation California District 10 District 6 District 3 Region 1998–2002 Daily Vehicle Hours of Delay 1998 1999 2000 2001 2002 Percent Change regions: three for (Caltrans)tracksthisinformation Transportation In theCentralValley, of Department California congestion. ageneralindicationoftraffic provides distance at35milesperhour. Thismeasurement tothetimeittakestravelsame compared duringpeaktimes time ittakestotravelafreeway Vehicle theamountof hoursofdelaymeasures  Counties – – SacramentoCounties – $ISTRICT District 10 District 6 District 3

 : Fresno and Kern Counties andKern : Fresno : ElDorado,Placer, and : SanJoaquinandStanislaus 1,0 2,6 2,5 2,1 1,1 22% 512,112 52% 522,416 4,127 525,450 3,340 428,360 3,930 3,292 418,100 2,711 75 257 7,809 334 8,907 522 508 10,896 577% 16,200 14,872 90% $ISTRICT    3OURCE#ALIFORNIA$EPARTMENTOF4RANSPORTATION $ISTRICT  "ENCHMARK  #ALIFORNIA 36 Why isitimportant? How arewedoing? stops creates airpollution. stops creates and idlingcars,andmultiplestarts Slower traffic, accidents. Italsoleadstomore leads tofrustration. waysandfrequently productive or inothermore spending timewithfamily peoplefrom as itprevents thequalityoflife andaffects Congestion isinefficient public transitalternative. isnotaviable whenthere Congestion mayincrease systemsanddemand. the capacityoftransportation animbalancebetween place atthesametime,reflects oftoomanypeoplewantingtobeinthesame result airpollution.Congestion,a commutes, andmore delays,longer becomescongested,creating areas populated inmore traffic As populationgrows, Statewide, delays increased 22%. Statewide, delaysincreased 2002,delays increased: 1998 through the majorCentralValley From areas. metropolitan congestionisbecomingsubstantiallyworsein Traffic - inDistrict10by52% - inDistrict6by577% - inDistrict3by90%

AIRPORTTRAFFIC How arewedoing? Why isitimportant? Definition: airports. and decreasing atmostofthesmallCentralValley Air travelisincreasing attheSacramentoAirport !NNUAL3CHEDULED0ASSENGER3ERVICE!CTIVITYIN#ENTRAL6ALLEY! &RESNO 9OSEMITE)NTERNATIONAL passenger service activity from 1999to2003,with activityfrom passenger service accounted for83%oftheCentralValley’s scheduled passenger airtravelintheCentralValley. It dominates Airport The SacramentoInternational andLosAngeles Regionforairtravel. Bay Area intheSan Francisco drivetolarge airports residents connections riskeconomicisolation.SomeValley withoutsuchair regions vitality ofaregion; isessentialtotheeconomic airservice commercial to acommunity. andaffordable Reliable,frequent, service thechoiceofairlinestoprovide and reflects is generallyagoodindicatorofeconomicactivity airports atcommercial The levelofpassengertraffic intheregion. airports commercial by provided activityreports passenger service theannualscheduled compiledfrom datawere traffic Central Valley’s Passenger airports. commercial atthe passengertraffic This indicatormeasures $IVISIONOF!ERONAUTICS /FFICEOF!VIATION0LANNING #ALIFORNIA$EPARTMENTOF4RANSPORTATION 3OURCE2EPORTED3CHEDULEPASSENGER3ERVICE!CTIVITYBY2ESPECT  3ACRAMENTO)NTERNATIONAL /THER6ALLEY!IRPORTS    IVE!IRPORTS IRPORTS 37 tctnMtooia 27,114 AviationPlanning ofAeronautics,of Office Division Source: California Departmentof Transportation Stockton Metropolitan Visalia Merced 179,622 4,573 Inyokern Chico 8,776,096 1,038,163 Modesto Municipal 32,439 22,167 Redding 15,862 Bakersfield Meadows Field City-CountyFresno-Yosemite International Municipal Sacramento International Airport 34,113 107,752 2003 Scheduled Passenger ServiceActivity inCentral Valley Airports Passenger Activity Region. 8%intheLosAngeles activitydecreased service 2003. Duringthesametime,scheduledpassenger 1999to 14%from decreased Francisco BayArea activityintheSan Scheduled passengerservice traffi overallpassenger SacramentoInternational, through However, intraffi primarilybecauseofincreases intheCentralValley. airports commercial remaining in scheduledpassengertraffi wasasignifi 1999to2003,there From passengers peryear. thanonehalfmillionscheduled average more eightCentralValleyremaining airports commercial andhascapacitytogrow.terminal Combined,the million peopleperyear. hasanew Theairport thanone activityaveragingmore passenger service intheCentralValleybusiest airport withscheduled isthesecond Fresno-Yosemite Airport International isexpandingitscapacity.Airport passengers peryear. TheSacramentoInternational thaneightmillionscheduled an averageofmore c intheCentralValley 12%. hasincreased c atfi ve ofthenine cant decrease decrease cant c

TRANSPORTATION, COMMERCE & MOBILITY TRANSPORTATION, COMMERCE & MOBILITY       FREIGHT TRAFFIC Why isitimportant? Definition: intheCentralValleyFreight traffic isincreasing. 4RUCK4RAVELASA0ERCENTAGEOF(IGHWAY4RAVELIN#ALIFORNIAAN #ENTRAL6ALLEY   provide transportation capacity for freight shipped capacityforfreight transportation provide of CentralValley and passengertraveland freight thebackbone and nationaleconomies.Theyare criticaltothestate Highway 99andInterstate5—are Central Valley’s arteries— twomajornorth-south the corridors, As majorinter-regional transportation theregion. from toandexported imported thatgoodscanbe system isneededtoensure transportation arobust of agriculturalproduction, Also, becausetheCentralValley isthecenter economy oftheCentralValley. tothe oftrucking demonstrates theimportance theCentralValleyof goodsmovingthrough and highway systemisanindicatorofthevolume milestraveledonthestate The numberoftruck on thestatehighwaysystem. goods inandoutoftheCentralValley via trucking themovementoffreight This indicatormeasures  3AN&RANCISCO"AY!REA

   AND ,OS!NGELES2EGION  3OURCE#!$EPARTMENTOF4RANSPORTATION  DITS2EGIONS 2ESTOF#ALIFORNIA   38             How arewedoing?  estimated fortheSanFranciscoBayArea. 9% estimatedfortheLosAngelesRegionand5% the CentralValley thanthe travel, more wastruck In2001,16%ofalltravelin county wasbytruck. Countyin2001,almost26%ofalltravelthe Kern up2%between1997and2001.In is increasing, theCentral Valley’sAs aregion, travel oftruck share Siskiyouisthesixthcounty.Kern). Central Valley (Tehama, and Glenn,Colusa,Merced, locatedinthe 2001. Fiveofthesixcountiesare than20%ofalltravelwithinthatcountyin more travelaccountedfor counties,truck In sixCalifornia state and regional economies. state andregional inthe willberippleeffects highway system,there exceedsthecapacityof for movementoffreight Iftheneed Oregon. Los AngelesandPortland, of manylocationsbetweenthe Port to andfrom 4OTAL4RUCK-ILES4RAVELEDONTHE3TATE(IGHWAY3YSTEMINTHE#  6ALLEY .ORTH  -ETROPOLITAN2EGION 3ACRAMENTO INMILLIONS    3OURCE#!$EPARTMENTOF4RANSPORTATION *OAQUIN6ALLEY .ORTH3AN  ENTRAL6ALLEY  *OAQUIN6ALLEY 3OUTH3AN forcounty. each closely reflect actual values are grouped in ranges to most Data presentedonthis map (in Millions) 2001byCounty in Truck MilesTraveled (in Thousands) Activity2003 in Airport Passenger m Æ m Æ m Æ m Æ 1,001-2,000 2,001-3,000 0-250 501-1,000 251-500 201 - 2,000201 - 2,001 - 8,000 0 - 0 - 35 36 -200 36 Movement ofGoodsintheValley MOVEMENT OF GOODSINTHEVALLEY m Æ Redding m Æ m Æ Chico m Æ Stockton Sacramento m Æ Modesto m Æ Merced Source: CA of Department Transportation 050100 m Æ 5Miles 25 Delta River and Sacramento Fresno m Æ Channel Water Ship River Deep Sacramento San Joaquin 39 Visalia m Æ River and Bakersfield Delta Jc San Joaquin Sacramento Jc Total 375 554 Outbound Total 354 183 Inbound Year 2003 2000 thousands) in tons, (metric Commodities ofSacramento Port Total521 382 Outbound Total 1335 1729 Inbound Year 2003 2000 thousands) in (metric tons, Commodities Port ofStockton ±

TRANSPORTATION, COMMERCE & MOBILITY F EDERAL & NONPROFIT SPENDING

The Central Valley economy is characterized by high unemployment, low wages, and per capita incomes that are among

the lowest in the country. Such AP Photo/Marcio Jose Sanchez Jose Photo/Marcio AP weak economic conditions require a “safety net” to provide for the basic human needs of many Valley 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 significant economic challenges.

• California receives only 90% of the average Federal per capita spending.

• The Central Valley receives only 70% of the average Federal per capita spending.

• Nonprofit revenues in the Central Valley are only 55% of the national average.

Central Valley Subregions North Valley (Five counties–Butte, Colusa, Glenn, Shasta, and Tehama) Sacramento Metropolitan Region (Six counties–El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba) North San Joaquin Valley (Three counties–Merced, San Joaquin, and Stanislaus) South San Joaquin Valley (Five counties–Fresno, Kern, Kings, Madera, and Tulare)

40             PER CAPITAFEDERALSPENDING Definition: averages. significantly lowerthanthestateandnational Federal spendingintheCentralValley is #ENTRAL6ALLEY and others. employees members ofthemilitary, PostalService – Wages andsalariesforFederalemployeesincluding and ofgoodsandservices; purchases (contactpayments)forFederal – Procurement education; payments,andlocal as Medicaid,highways,welfare agenciesforitemssuch – Grantstogovernment food stamps,andUnemploymentCompensation; payments – Direct of fourmajorcategories: ofnationalandstatelevels.Itconsists a percentage as region Federal spendingperpersoninaparticular theannualamountof This indicatormeasures $IRECT0AYMENTS   0ER#APITA&EDERAL%XPENDITURESIN#ALIFORNIAANDTHE#ENTRAL6   #ALIFORNIA   suchasSocialSecurity, Medicare, 'RANTS   53#ENSUS"UREAU 7ASHINGTON$##ALIFORNIA)NSTITUTEFOR  0OPULATION%STIMATES0ROGRAM 3OURCE#ONSOLIDATED&EDERAL&UNDS2EPORT &ISCAL9EAR   0ROCUREMENT EEA OIY2SAC 7SIGO $# 7ASHINGTON 2ESEARCH 0OLICY &EDERAL  7AGES3ALARIES  ALLEY  41 How arewedoing? Why isitimportant? be misleading. agencies basedinSacramento.AnybreakdownbycountywhichincludesSacramentowould located inSacramento,muchoftheFederalspendingCaliforniaisdistributedthroughState Note: ThespendingfigurespresentedexcludeSacramentoCounty.BecausetheStateCapitolis      of thenationalaverage. percapitaFederalspendingof90% below California’s Valley isonly69%ofthenationalaverage.This states. FederalspendingpercapitaintheCentral thaninother spentpercapitainCalifornia dollars are Central Valley Fewer ofCalifornia. thanintherest spentpercapitainthe Fewer Federaldollarsare andtoregions. to recipients economy. substantialeconomicbenefits Itprovides oftheUS Federal spendingisasignificantpart  0ER#APITA&EDERAL%XPENDITURESINTHE#ENTRAL6ALLEYBY3UBREG "UTTE

#OLUSA   

   'LENN

3HASTA   

4EHAMA   

   #ALIFORNIA  %L$ORADO

0LACER   

3UTTER       9OLO &ISCAL9EAR    9UBA 3OURCE#ALIFORNIA)NSTITUTEFOR&EDERAL0OLICY2ESEARCH   

-ERCED 3AN*AOQUIN    3TANISLAUS   

  

&RESNO

   IONASA0ERCENTOFTHE53 +ERN    +INGS -ADERA   

4ULARE   

#ENTRAL6ALLEY    WITHOUT3ACRAMENTO

  

FEDERAL & NONPROFIT SPENDING FEDERAL & NONPROFIT SPENDING              PER CAPITAREVENUEBYNONPROFITORGANIZATIONS Definition: rest ofCalifornia. funding persistsbetweentheCentralValley andthe and nationalaverages,asubstantialgapin Nonprofit revenue issubstantiallylowerthanstate largest grant-makingfoundations. spendingbythenation’s This indicatoralsomeasures clusters ofpopulation. whichrepresents area, bymetropolitan presented are availableforeachcounty, notreadily are sothey revenues estimate.The dataonnonprofit reasonable a theyprovide level ofspendingbynonprofits, ofthe notanexactmeasure are While revenues living there. bythenumberofpeople organizations inaregion fornonprofit by dividingthetotalrevenues Itiscalculated communityorregion. particular organizations ina by501(c)3nonprofit received theamountofmoney This indicatormeasures .ORTH6ALLEY   -ETROPOLITAN2EGION 3ACRAMENTO   .ONPROFIT0ER#APITA2EVENUEINTHE#ENTRAL6ALLEY ITS3UBREGI 0OPULATIONESTIMATESAREFROM*ULYAND.0/ .ORTH3AN*OAQUIN6ALLEY   3OURCE&OR.0/ 3OUTH3AN*OAQUIN6ALLEY REVENUE 'UIDESTARANDFORPOPULATIONESTIMATES THE#ALIFORNIA   42 How arewedoing? Why isitimportant? REVENUEDATAAREFROMTHELATESTAVAILABLEFROM'UIDESTAR SPAN Valley ofCalifornia. andtherest in foundationspendingpersistsbetweentheCentral per personto$17.43.However, asubstantialgap anaverageof$5.42 1996to2002, from 221% from Foundation grantsintheCentralValley increased number ofstatewidenonprofi oftheCentralValley.parts Thismayrefl Regionthanother in theSacramentoMetropolitan of thestateaverage.Revenueissignifi is 55%oftheaverageinUnitedStatesand56% Nonprofi change. social oftenusedtosupport all privategivingandare Nationally, about10%of foundationgrantsrepresent purposesincommunities. of worthwhile anumber forlowincomepeopleandserving support ofthetraditional“safety-net”providing a keypart organizations are nonprofit Along withgovernment, #ENTRAL6ALLEY2EGION ONS THE3TATE ANDTHE53 perpersonintheCentralValleyt revenue   #ALIFORNIA   ts inSacramento. )NSTITUTEFOR&EDERAL0OLICY2ESEARCH NINGTHEYEARSOF  cantly higher cantly ect ahigh   53 California's Great Central Valley: Selected Economic Indicators

County I U G Shasta $26,532 7.80% 33% Tehama $20,536 7.20% 25% Glenn $20,605 12.70% 18% Butte $23,944 7.80% 24% Colusa $23,972 18.90% 39% Placer Sutter $25,698 13.60% 48% Yuba Yuba $20,873 14.20% 22% El Dorado Yolo $27,114 5.20% 57% Sutter Placer $37,083 4.70% 100% Shasta Madera Tulare El Dorado $36,561 5.40% 48% Tehama Butte Sacramento $29,631 5.60% 49% Sacramento San Joaquin $24,119 10.10% 55% Stanislaus Stanislaus $23,642 11.50% 50% Yolo Merced $20,623 14.80% 55% Kern Madera $19,617 12.60% 70% Merced Fresno Kings Fresno $23,492 14.20% 42% Glenn Colusa San Joaquin Kings $18,581 14.60% 53% Tulare $21,193 15.50% 43% Kern $22,635 12.30% 48% SF Bay Area $45,573 5.70% 25% LA Region $30,387 5.60% 30% California $32,989 6.70% 32%

2002 Per Capita Income ( I ) 2003 Unemployment ( U ) 1990 - 2010 Projected Population Growth ( G ) Data sources:

$18,000 - $20,000 4.5% - 7.0% Per capita income: Height Indicates Percent Growth U.S. Department of Commerce $20,001 - $22,000 7.1% - 10.0% Absolute values are listed in the table. $22,001 - $26,000 Unemployment: California Employment Development Department 10.1% - 14.0% Vertical exaggeration is relative to Placer county (100%). $26,001 - $30,000 Projected population growth: $30,001 - $38,000 14.1% - 19.0% California Department of Finance

Produced by Great Valley Center with assistance from the Information Center for the Environment as part of the Economic Indicators Report 1999 - 2004 www.greatvalley.org DEFINITIONS

NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) Construction The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector. Education & Health Services The education and health services supersector is made up of two parts: the educational services sector, and the health care and social assistance sector. Only privately-owned establishments are included; publicly-owned establishments that provide education or health services are included in government. Farming The farming sector is made up of businesses that are primarily engaged in crop and animal production, and agriculture and forestry support. Financial Activities The financial activities supersector is made up of two parts: the finance and insurance sector, and the real estate and rental and leasing sector. Government The government sector is made up of publicly-owned establishments. This sector includes establishments of Federal, state, and local government agencies that administer, oversee, and manage public programs and have executive, legislative, or judicial authority over other institutions within a given area. Establishments such as public schools and public hospitals are also included. Information The information sector comprises establishments engaged in the following processes: (a) producing and distributing information and cultural products, (b) providing the means to transmit or distribute these products as well as data or communications, and (c) processing data. Leisure & Hospitality The leisure and hospitality supersector is made up of two parts: the arts, entertainment, and recreation sector, and the accommodation and food services sector. Manufacturing The manufacturing sector consists of establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. Natural Resources & Mining The natural resources and mining supersector is made up of two parts: the agriculture, forestry, fishing, and hunting sector, and the mining sector.

43 Other Services The other services sector comprises establishments engaged in providing services not specifically provided for elsewhere in the NAICS. Establishments in this sector are primarily engaged in activities such as equipment and machinery repairing, promoting or administering religious activities, grantmaking, advocacy, etc. Professional & Business Services The professional and business services supersector is made up of three parts: the professional, scientific, and technical services sector, the management of companies and enterprises sector, and the administrative and support and waste management and remediation services sector. Trade, Transportation, & Utilities The trade, transportation, and utilities supersector is made up of four parts: transportation and warehousing, utilities, wholesale trade, and retail trade. This is often further broken down into two supersectors: transportation and warehousing, and utilities, and wholesale and retail trade.

Source: Virginia Employment Commission, NAICS Desk Aid, www.calmis.ca.gov/file/naics/naics-guide.pdf

For more information regarding the North American Industry Classification System and the sectors defined here, please visit the California Employment Development Department website: www.calmis.ca.gov/htmlfile/programs/naics.htm#Why or the US Department of Labor Bureau of Labor Statistics website: http://www.bls.gov/ces/cessuper.htm.

44 DATA SOURCES

Population, Income & Housing Unemployment Rate by Month Internet Presence Unemployment Rate Data Yahoo Online Business Directory California Employment Development Department www.yahoo.com Population Growth Labor Market Information Division http://dir.yahoo.com/regional/u_s__states/ Population Data www.labormarketinfo.edd.ca.gov california/counties_and_regions/ (July 20, California Department of Finance 2004) www.dof.ca.gov/html/Demograp/DRU_datafiles/ Harvest Season Data DRU_datafiles.htm US Department of Agriculture Google Online Business Directory Summary of County Agricultural Commissioner’s www.google.com Migration Data Reports, 2002-2003 http://directory.google.com/Top/Business Public Policy Institute of California National Agriculture Statistics Service (July 20, 2004) The Central Valley at a Crossroads: Migration and www.nass.usda.gov/ca/bul/agcom/indexcav.htm Its Implications California Employment Development www.ppic.org Department Wages by Industry Labor Market Information Division Wage Data Per Capita Income www.labormarketinfo.edd.ca.gov California Employment Development Department US Department of Commerce www.calmis.ca.gov/file/indsize/2sfcoru.pdf Labor Market Information Division Bureau of Economic Analysis Quarterly Census of Employment and Wages (QCEW) Regional Economic Accounts Tourism www.labormarketinfo.edd.ca.gov www.commerce.gov Travel Spending and Transient Occupancy Tax www.calmis.ca.gov/file/es202/cew-select.htm www.bea.gov/bea/regional/reis/default.cfm#a Data Dean Runyan Associates Employment by Industry Residential Building Permits www.deanrunyan.com Industry Employment Data US Department of Housing and Urban Development California Employment Development Department Agritourism Data State of the Cities Data Systems Labor Market Information Division University of California, Small Farm Center http://socds.huduser.org/permits www.labormarketinfo.edd.ca.gov www.calagtour.org www.labormarketinfo.edd.ca.gov/cgi/dataanalysis/ Housing Affordability AreaSelection.asp?tableName=Ces Housing Affordability Data Agriculture Claritas, Inc. Employment Changes by Industry , CA California Employment Development Department www.claritas.com Farm Employment and Wages Labor Market Information Division California Employment Development Home Ownership Data www.labormarketinfo.edd.ca.gov Department US Census Bureau Labor Market Information Division American Fact Finder Retail Sales www.labormarketinfo.edd.ca.gov http://factfinder.census.gov Retail Sales Data University of California, Davis California Department of Transportation Agricultural Issues Center Rental Affordability Office of Transportation Economics www.aic.ucdavis.edu National Low Income Housing Coalition California 2004-2020 County Level Economic Forecast www.nlihc.org/oor2003/area.php?state%5B%5D=CA www.dot.ca.gov www.dot.ca.gov/hq/tpp/offices/ote/socio- Value of Agricultural Production Business Vitality economic.htm California Department of Food and Agriculture Wage Data www.cdfa.ca.gov/card/card_new02.htm US Department of Labor Job Growth and Labor Force Growth California Agricultural Statistics Service Bureau of Labor Statistics Data Job Growth, Labor Force Growth, and Unemployment Data www.nass.usda.gov/pub/nass/ca/AgComm/ www.bls.gov California Employment Development Department 200208cavtb00.pdf Labor Market Information Division Inflation Data www.labormarketinfo.edd.ca.gov California Employment Development Department Agricultural Output Ranking Labor Market Information Division California Department of Food and Agriculture Annual Unemployment Rate www.labormarketinfo.edd.ca.gov www.cdfa.ca.gov/card/card_new02.htm California Employment Development Department Population Data US Department of Agriculture Labor Market Information Division California Department of Finance National Agriculture Statistics Service www.labormarketinfo.edd.ca.gov www.dof.ca.gov www.nass.usda.gov/ca/bul/agcom/indexcav.htm

45 Agricultural Land Conversion Vehicles Hours of Delay Federal & Nonprofit Spending California Department of Conversion California Department of Transportation Division of Land Resource Protection State Highway Congestion Monitoring www.consrv.ca.gov/DLRP Program Per Capita Federal Spending www.dot.ca.gov/hq/traffops/sysmgtpl/ California Institute for Federal Policy Research Transportation, Commerce & HICOMP/pdfs/2002_HICOMP_Report.pdf http://calinst.org Mobility Airport Traffic Per Capita Revenue by Nonprofit Organizations California Department of Transportation NPO Revenue Data Division of Aeronautics Vehicle Miles Traveled and Primary Mode of Guidestar www.dot.ca.gov/hq/planning/aeronaut/ www.guidestar.org Transportation to Work htmlfile/ Vehicle Miles Traveled Data Population Estimates California Department of Transportation Freight Traffic California Institution for Federal Policy Division of Transportation California Department of Transportation Research www.dot.ca.gov/hq/tsip/MVSTAFF.htm Division of Transportation http://calinst.org Primary Mode of Transportation to Work Data Office of Truck Services Foundation Data United States Census Bureau www.dot.ca.gov/hq/traffops/trucks/ The Center of Philanthropy & Public Policy http://factfinder.census.gov University of "Philanthropic Activity in California's Central Valley: 1996-2002"

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