Tough times ahead: California unemployment rate third highest nationally, Governor orders furloughs

Festering state fiscal problems will add to Elk Grove woes; time to act is now

Even before it was officially declared that the United States was in a recession, Elk Grove was feeling the pain of the current mess the world finds itself in.

First there was the housing bubble and subsequent bust that has led to hundreds of foreclosures in Elk Grove. Running parallel to this was the boom and bust of the commercial real estate.

To even the most casual observer, a drive around Elk Grove reveals many empty commercial and retail properties, some of which have never been occupied. Of course we can't forget Elk Grove's biggest symbol of this fiasco - the half-constructed Elk Grove Promenade Mall.

Elk Grove was dealt another blow yesterday when Gov. Schwarzenegger ordered two-days-a-month furloughs and layoffs for state workers. Add this to the fact that California has the nations third highest reported unemployment rate at 8.4%, only trailing the beleaguered state of Michigan and Rhode Island, and you can start to conjure a picture.

With a high percentage of rank and file state workers residing in Elk Grove, the furlough, which is estimated to be a 5 to 10% pay cut, will undoubtedly affect Elk Grove. At a minimum, less disposable income from state workers means fewer purchases and lower sales tax revenues.

Regardless of what your thoughts are about the furloughs and layoffs, you cannot deny the impact it will have on Elk Grove. Now is the time for the Elk Grove City Council and city staff to act swiftly to avert a budget crisis of our own.

We suggest the city take actions to ensure our financial viability. This would mean a top to bottom staffing and budget review - no rock should be unturned, nothing taken off the table - there should be no sacred cows.

Now, not later when the coming wave smashes in, is time to do it.