Addendum with evidence (8.2 MB) - Accreditation - Bakersfield ...

forecast to continue through 2011 and 2012. Sales of consumer technology were very strong,
particularly for computers, e-readers, electronic notepads, MP3 players, and smart phones.
California’s high tech manufacturers of semi-conductors have benefited as a result. In the
defense sector, a number of government-sponsored projects are underway within the state.
However key defense cutbacks beginning in 2012 could impact this sector of the economy.
• Tourism: Hotels in California posted increases in revenues of 7.4% in 2010, taking back
some of their losses from 2009. Through 2011 and 2012, hotel revenues are projected to
record moderate gains.
• Exports/Imports: The State’s ports were busy in 2010. Growth through 2012 is expected to
be solid. Exports through the first 11 months of 2011, via the state’s custom districts,
increased by 23.5% while imports grew by 21.9%.
• Entertainment: This sector posted a solid gain in 2010 via a strong consumer demand.
• Private Education: Driven by the need for training, re-training, and changing technology,
there has been a strong (renewed) consumer interest in education. Private education has been
the beneficiary of this demand. While postsecondary public institutions have recognized the
demand, they have not been able to capitalize on it due to State mandated budget cuts.
• Healthcare: Driven by the baby boomer generation, healthcare and the health-related
industry are projected to remain strong for 2012 and into the future.
• Population Growth: The state’s population as of July 2010 was 38.7 million. It is projected
to reach 39.5 million by mid-2012. The sheer volume of people within the state creates an
economic engine and GDP that is second only to eight other countries in the world.
Minuses
• Housing/Housing Related Activities: Even though new housing starts increased from 2009
to 2010, the increase was marginal. The increase was primarily due to federal tax credit
incentives. These have gone away. As a result, the construction of new homes continues to
be in a near depression state. The recovery of the housing market is very uncertain. The next
round of foreclosures is fueling the uncertainty. In 2009, only 36,421 housing permits were
issued. For 2010, there were 44,601 new housing starts. For 2011, the number of singlefamily
residential units is projected to grow by 9.0%. However, these numbers are a fraction
of the 2004 peak, when new housing starts registered 212,960. These numbers underscore the
condition of the current housing market. With regard to public works projects, 2010 and
2011 will show increases. These increases, however, will be short-lived, as the federal
stimulus program winds down in 2012. New public works projects at the state and local
governments will be limited in 2012 and 2013 due to lack of funds.
• Environmental Regulations: AB 32 (greenhouse gas legislation) will present
business/industry and the consumer with many new regulations. It is projected to have a
dampening impact on the business climate. California residents and businesses will likely
face higher energy costs in the future.
14