Recent Conversations

I recently met two friends/clients on different days to see how they were doing and how life was treating them.  Although, the two people have different jobs, different circles of influence, live in different parts of Sacramento, I was amazed at how their lives paralleled one another.

I met Randy for breakfast Wednesday morning. Although I have spoken to Randy on numerous occasions, I hadn't seen him in a while.  We chatted about his golf game, his video collection, and his job.  Randy is employed by the State of California and was now facing the reality of a third furlough Friday.  Randy has done quite well for himself working his way up from an assistant to a supervisory position.  Randy told me that the net effect of the furloughs was making things a bit tight for him.  He told me that extra golf clubs, fringe movies, spur of the moment trips to Lake Tahoe and Las Vegas, eating out 4 times a week, EBay shopping, and occasional nights out to the bar with friends had to be monitored.  Essentially the furlough had taken a "bite" out of Randy's lifestyle.  He told me countless stories of co-workers who relied on every single dollar they earned to make ends meet.  

Last Friday, I met with Grace at her restaurant to say hello.  Grace has a restaurant downtown that caters primarily to civil service workers.  She was telling me that the first furlough day had a minor impact on her business, but the second furlough Friday was devastating.  Her business dropped by almost 27%.  Now faced with a third furlough Friday, Grace did not even want to think about another decline in business.  Grace is advertising a "furlough" discount for state of California employees to assist her customers.  Grace told me that the decline in revenue has forced her to postpone some equipment renovations, cut some of her staff, be more price conscious, advertise specials, and cut back on her own personal budget.  She fears that further business declines will force her to sell her home.  A situation I hope does not materialize.

Although my two friends have different lives, have different friends, and have different jobs, their lives are parallel.  The State of CA budget woes effect so many.  Businesses, service providers, golf courses, EBay, etc. are all effected.  The CA legislature needs to get this budget problem fixed and implement a fiscal responsibility program, so that this current situation can be avoided in the future.

Randy and Grace, hang in there. I sense CA is going to rebound soon.  Maybe some of the law makers should have conversations with their constituents and they can gain a better idea of what's going on.   I certainly do.

July 22, 2009

David Ohara

I am "bullish" on Sacramento, CA

@dwo34