2011 Index of Silicon Valley - Silicon Valley Community Foundation

Special Analysis
The Crisis in Local Government and Choices Facing Our Communities
Understanding the Challenge
Government spending for all individuals (combined city, county, state, and federal spending) increased 75 percent between 1990 and
2008 in Silicon Valley, reaching $11.3 billion in 2008 (Figure 2-13). The escalation in spending was driven primarily by the category
of Medical Benefits which represented 43 percent of total transfers in 2008. Consisting mostly of social security insurance, medical
benefits spending increased 169 percent from 1990 to 2008. Retirement and disability insurance benefits, which represents the
second largest share (40 percent) of total transfer spending, increased 43 percent over the same period. Much smaller in scope,
spending on education and training assistance, which largely consists of CalWORKS, increased 140 percent. During the same period,
total personal transfer receipts decreased for Veterans Benefits by 5 percent, to $105.8 million.
Figure 2-13
Billions of Dollars (Inflation Adjusted)
$12
10
8
6
4
2
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Note: Income maintenance benefits consist largely of supplemental security income payments, family assistance,
food stamp payments, and other assistance payments, including general assistance
Data Source: U.S. Bureau of Economic Analysis
Analysis: Collaborative Economics
As a percentage of total expenditures, pension costs increased from
2 percent to 7 percent from 2000/01 to 2009/10 in San Mateo
and Santa Clara Counties.
In Silicon Valley, demand for public assistance has continued to
grow (Figure 2-15). Between 2007 and 2010, the percentage
of the population receiving some form of public assistance rose
from 11 percent to almost 14 percent. These services include
CalWORKS, Food Stamps, Medi-Cal and General Assistance.
Figure 2-15
Government Spending for Individuals
From Federal, State and Local Sources
San Mateo & Santa Clara Counties
*Pension cost is annual required contribution by San Mateo and Santa Clara County
Data Source: San Mateo and Satna Clara Counties
Analysis: Collaborative Economics
Other Transfer Receipts
of Individuals from Governments
Veterans Benefits
Unemployment Insurance
Compensation
Education & Training Assistance
Income Maintenance Benefits
Retirement & Disability
Insurance Benefits
Medical Benefits
Figure 2-14
Growth in Pension Cost in Silicon Valley
(Inflation Adjusted)
Percent of
Fiscal Year Pension Cost* Total Expenditures Expenditures
2000/01 $48,496,425 $2,695,299,184 2%
2001/02 $44,098,997 $3,154,021,706 1%
2002/03 $47,276,329 $3,271,076,160 1%
2003/04 $80,325,224 $3,149,819,279 3%
2004/05 $170,526,399 $2,962,433,511 6%
2005/06 $192,218,903 $3,167,303,126 6%
2006/07 $223,163,281 $3,269,225,538 7%
2007/08 $268,551,450 $3,164,106,050 8%
2008/09 $230,820,486 $3,202,578,951 7%
2009/10 $232,528,172 $3,194,919,000 7%
Silicon Valley’s Population Receiving Public Assistance
Number of People Receiving Public Assistance
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
11.1%
279,907
11.9%
303,899
2007 2008
San Mateo & Santa Clara Counties
Note: San Mateo County’s data is provided for the fiscal year, and Santa Clara County’s data is a point in time (July).
Both sets of data are an unduplicated count. Public assistance services include CalWORKS, Food Stamps, Medi-Cal, and General Assistance
Data Source: San Mateo and Santa Clara Counties
Analysis: Collaborative Economics
12.5%
323,672
13.7%
359,467
2009 2010
Number of People Receiving Public Assistance
Percentage of Population on Public Assistance
16%
14%
12%
10%
8%
6%
4%
2%
0
Percentage of Population on Public Assistance
66