How Orange County in California residents feel about the economy?
Orange County is a region in California, inside the United States. According to July 2008 estimation, the population is 3,010,759, making it the 2nd most densely inhabited county in California (Orange County, California). The county is prominent for its tourism, such as, Disneyland and Knott’s Berry Farm, and several beaches. It is also known for its riches and political conservatism (Study Ranks America’s Most Liberal and Conservative Cities). Here are some of the County’s financial activities during Financial Year 2008-09. Total net assets reduced by $30 million as evaluated to last year.
Long-term debt lessened by $259 million during the existing fiscal year. As of the end of the fiscal year, the County’s legislative funds accounted combined ending fund amounts of $1. 7 billion, a drop off of $319 million in comparison with the preceding year. At June 30, 2009, absolute fund balance in the General Fund was $26. 8 million of total FY 2008-09 expenses and transfers of $2. 7 billion (Citizen’s Report, 1). During this year we sustained experiencing the economic slump in both County Government and the County all together.
Nonetheless, the local economy persisted to carry out well with regard to the State, the country and surrounding counties. Orange County’s unemployment rate was at 9. 5 percent, up from 5. 7 percent a year ago and 4. 1 percent in 2007. Median home prices were behind 7. 2 percent over the past thirteen months from July 2008 to August 2009. In contrast, San Diego County’s present unemployment rate is 10. 4 percent, with median home prices down 10. 7 percent. Los Angeles County’s unemployment rate is 12. 6 percent with median homes prices declined to 17.
5 percent. In late 2007 and early 2008, most economists were not forecasting a recession; however instead, an economic deceleration. It was not until the third quarter of calendar year 2008 that several economists admitted that we were in a depression. Even then, predictions did not plan the profundity of economic impact that has been experienced over the last 12 months. Only of late, are there beginning to be indications of economic recuperation; however, there are still economic pointers that remain flat or persist on a downward trend.
It is expected that economic recuperation will be apprehended at lower growth rates and more than a more prolonged period of time than viewed in past slumps. The County expects impacts from an economic setting that continues to be less than expected. The County began an untimely trending down of non-mandated expenditure and programs in late 2007, followed by intended slashes in Fiscal Years 2008-09 and 2009-10. Additionally, a 2 percent and 3 percent reduction in discretionary expenditure was executed County-wide in Fiscal Years 2008-09 and 2009-10 respectively.
Even after early decreases, departments are still confronted with diminishing revenues and escalating costs in the present fiscal year. With the aim of addressing recognized budget issues and arrange for the sustained uncertainty of the general and local economy, the following symbolize a number of the actions taken or recognized as alternatives for early planning. Early action is decisive to make sure baseline services are fulfilled and that the County persists to experience financial steadiness.
Action was taken to relate 2008-09 year-end obtainable fund balance toward 2009-10 probable revenue shortfalls to offer a bumper against further downturn in the economy. A mid-year budget lessening in discretionary expenditure of 5 percent for 2009-10 was endorsed by the Board of Supervisors on December 15, 2009. Actions to remove vacant positions and a firm hiring freeze maintain to be executed. Departments continue to keep an eye on the State budget for extra impact and take action when experimental.
Capital plans and information technology schemes were recognized for removal or delay. Equipment and capital asset procurements are being postponed where suitable (Citizen’s Report, 2). At June 30, 2009, the County’s exceptional long-term debt amounted to $653 million, exclusive of capital lease compulsions, salaried absences and other liabilities. During the fiscal year, $262 million of the bonds were paid off, incorporating $61 million of insolvency associated debt, which resulted in a net reduction of 28 percent on the County’s exceptional long-term debt (Citizen’s Report, 5).
Southern California house and condominium prices increased 13 percent in June from a year previous as purchasers took advantage of state tax credits and low interest rates. The median price augmented to $300,000. Rates for 30-year fixed mortgages declined to the lowest on record for the 3rd straight week on July 8, lessening borrowing expenses for home purchasers, in accordance with mortgage-finance company Freddie Mac (Taub). In California, purchasers can meet the criteria for a tax credit of as much as $10,000 under a program that has been scheduled to start from May 1, 2010.
A total of 23,871 new and current homes sold last month in the 6 Southern California counties followed by MDA Data Quick, up 7. 2 percent from May and 2. 6 percent from a year previously. The sales calculation was the highest since July 2009, when 24,104 homes sold, the research corporation said. Sales of excluded homes totaled for almost 33 percent of the resale market, down from 45 percent a year before. The proportion attained a record of approximately 57 percent in February 2009 (Taub). The number of homes sold increased in Orange, San Diego, Los Angeles and Ventura counties, and fell in San Bernardino and Riverside counties.
The biggest increase was in Orange County, where sales attained 16 percent to 3,423 (Taub). Here, are the list of people who are interviewed regarding the economic recession and the present situation of Orange County-Amanda Carter, Drake Blaylock, Gary Beard, Peter Bennett, Jimmy Isacksen, Joey Bonyadi, James P. Bell and Farzad Bishop. The questions which are asked to them are as follows: – What is their opinion about the cause for the economic crisis? How would they describe their feelings about the economic mess? Have they been affected by the crisis?
If so, how? Do they know of others who have been negatively affected? Do they know others affected? Explain, please. What’s their opinion of the measures President Obama and Congress have taken to address the economic situation? Is there something more they would like to see done? Are they optimistic about the country’s economic future? How about their own? According to Amanda Carter (a 22nd year old college student), Gary Beard (a banker), Drake Blaylock (real estate owner) and Jimmy Isacksen (a business analyst), economic recession has affected them a lot.
Amanda told that effect of economic recession has major impact on the lifestyle of the people. Amanda told us that she knew one of her friends who were running a share market business and that person was terribly affected by the economic recession. Gary informed us that he being in public sector is not much major affected by the fear of losing his job but he understands that this recession has long term impact on the lives of the people. Mr. Isacksen said that during that recession period, he had undergone nightmares of getting fired from his job.
He was not able to cope up with his professional and personal life. Drake was severely affected by the economic recession. His business seems to have hit very hardly by global turmoil. Now, as the economy has shown a positive change, his business is also growing in an optimistic direction. Peter Bennett (a working staff in a factory), Joey Bonyadi (an economist), James P. Bell (stock broker) and Farzad Bishop (an engineer) informed that economic downturn have brought about serious alterations in the economic development of the County.
Bennett said that due to this turmoil, he had not been able to afford his family completely. He is the sole bread earner of their family and his salary cut have led him to face several problems in personal life. Bell as well as Farzad was also hit by this recession. All of them are aware of the adverse consequences that have led to major impact on the global economy. All of them have reported that the measures that were taken by President Obama and Congress were of taking the economy out of the global downturn.
They are impressed by the economic stimulus package introduced by the Obama government. They all supported what Obama had promised to the citizens of US. Whilst the markets are improving, and we appear to have avoided global fall down, we know that too many individuals are still struggling. Although, it has been agreed that complete recovery is still a way off, it would be early to start winding down the stimulus plans. The citizens must maintain their support for those plans to lay the base for a strong and lifelong recovery.
All of these individuals want their County to have improved in the field of education. Job opportunities need to be increased so as to provide employment to most of the individuals. They all are optimistic about their County’s economic future and hope to get full support from the US government. References: 1. “Orange County, California”. US Census Bureau, n. d. Available at: http://quickfacts. census. gov/qfd/states/06/06059. html (Accessed on July 20, 2010). 2. “Study Ranks America’s Most Liberal and Conservative Cities”.
GovPro, Aug 16, 2005. Available at: http://govpro. com/content/gov_imp_31439/ (Accessed on July 20, 2010). 3. “Citizen’s Report”. OC, Dec. 16, 2009. Available at: http://egov. ocgov. com/vgnfiles/ocgov/Auditor-Controller/Docs/Financial_Statements/pafr2009. pdf (Accessed on July 20, 2010). 4. Taub, Daniel. “Southern California Home Prices Rise on Tax Credits”. Bloomberg, July 13, 2010. Available at: http://www. bloomberg. com/news/2010-07-13/southern-california-home-prices-rise-on-tax-credits. html (Accessed on July 20, 2010).Sample Essay of StudyFaq.com