2011 Index of Silicon Valley - Silicon Valley Community Foundation

Special Analysis The Crisis in Local Government and Choices Facing Our Communities
Understanding the Challenge
An increasing number of residents are seeking social service assistance from county
governments that are literally running out of money. In our cities, expenses – fueled
in part by rising pension obligations – are escalating at a time when there is less
money available than at the depth of the last economic downturn.
These trends have far reaching implications. Continuing public sector layoffs are likely to offset the hiring that has begun in Silicon Valley’s
private sector. Without a strong economy, public revenue will not recover. More programs and services will be cut and the cycle will
continue, eventually threatening the overall economic health of our region.
For Silicon Valley to thrive, businesses need strong, vibrant communities to attract and retain employees – communities with good schools,
parks, infrastructure and services. Today, the building blocks that sustain those strong communities are crumbling.
This fiscal analysis examines historical trends and factors that are contributing to the crisis local governments are facing. Without
confronting the hard choices that need to be made around the yawning government budget gaps that stretch before us in the years
ahead, our quality of life is at risk.
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VITAL
COMMUNITY
ENCOURAGES
CREATES
GROWING
ECONOMY
GROWING
PUBLIC
REVENUES
ENABLES
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