Great Valley Center : News: Press Releases

STUDY: GROWTH ALONE NOT SOLVING VALLEY'S ECONOMIC WOES

Review of past five years shows Central Valley falling further behind

MODESTO, California, January 19, 2005 – Despite skyrocketing home prices and increasing
development, the past five years of growth have not put a dent into the Central Valley's well-documented
economic woes, according to a new study from the Modesto-based Great Valley
Center.

Six of the top ten areas in the United States with the highest unemployment rates are in the
Valley, half of the Valley's residents cannot afford rent for a two-bedroom apartment, and if
the Central Valley were a state, the average income of a Valley resident would rank 48th in
the nation — besting only West Virginia, Arkansas and Mississippi. These findings are
among two dozen documented in a comprehensive revisit of data first tracked by the Great
Valley Center in 1999. The report is part of the Center's five-year series examining the
region's economy, environment, community well-being, health and educational performance.
Its findings cover the 19 county region stretching from Redding to Bakersfield.

"The Valley needs to think differently," said Carol Whiteside, president of the nonprofit
Great Valley Center, "What we are doing now isn't working. Without a strategy, we won't
grow our way out of these problems." At stake, she said, is the future ability of today's
young people to earn a decent living close to a home they can afford. The study finds that
even though Valley incomes have risen 19% since 1997, the region actually lost ground
because incomes in the rest of the state grew much faster — by 25%.

While agriculture accounts for much of the Valley's economic base, government remains the
region's largest employer — and both sectors are unlikely to produce substantial numbers of
new jobs. "Since the Valley is growing so quickly," said the Great Valley Center's Don
Schwartz, who oversaw the Center's research, "The ability of the region to compete will be
tied to its ability to diversify its economy while investing in good schools and modern
transportation." By 2010, the Valley is projected to add another 1.3 million people, faster
than any other part of the state. The report also includes data on air and ground
transportation, federal spending, agricultural output, housing affordability and business
sectors such as tourism and retail sales.

The study was made possible by support from the California State University System, Caltrans, the
Information Center for the Environment at UC Davis, Citibank, Kaiser Permanente and the eight
Workforce Investment Boards of the San Joaquin Valley. "The State of the Great Central Valley: The
Economy (1999-2004)," is available online at www.greatvalley.org. The Great Valley Center is a
private, nonprofit organization that supports organizations and activities working to improve the
economic, social and environmental well-being of California’s Central Valley. Major support for the
Center is provided by the William and Flora Hewlett Foundation and The James Irvine Foundation.

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Media Contact:
Richard Cummings
Director of Research & Communications
(209) 522-5103
Email