Hard Times in Oly

author : Janet Blanding topic : Thurston County Food Bank | TANF | Welfare | lay-offs

by Janet Blanding

Hard times are upon us. Gas and food prices are skyrocketing. The consumer price index in June 2008 was 5.6% higher than in June 2007. Retail sales are down, foreclosures are up, rents are on the rise, and some of Olympia’s largest employers have laid off employees or cut back on hours. More layoffs are mostly like in the works. People are finding it difficult to make ends meet, to find affordable housing, to keep the gas tank filled and the refrigerator stocked. The middle class is being impacted, and the poor, as usual, are being hit even harder.

Robert Coit, Executive Director, Thurston County Food Bank reports that there has been a 20% increase in the number of people the food bank is serving versus last year. In June 2008, the food bank fed 6000 individuals, in addition to providing 1000 backpack meals to school children. Coit reports that although they are currently meeting demand, states “my fear is we won’t be able to meet demands in the winter months,” when there is more demand for food as family budgets are strained by increased heating costs. He explained that a lot of the food bank’s funding support comes from foundations. When a foundation’s stock portfolio is impacted by an economic downturn and dividends decrease, so does the amount of funds received by the food bank – just at the time more families need food assistance. Coit explains that the Food Bank is subject to a Catch-22: “When we ask for help in good times, they ask ‘where are your numbers?’ When we have the numbers, they don’t have as much money to give us.”

Selena Kilmoyer, of Out of the Woods Family Shelter, reports that the rising costs of gas and food are having a significant impact on the population her organization serves. “Among have-nots, it’s having a very detrimental impact.” Rising gas prices are creating difficulties for working families. “A family will call and say, we could come up to Olympia to the food bank, but we don’t have money for gas. These kinds of things are being heard more and more.” People on tight budgets are forced to sacrifice basic necessities: “If gas is increased, then something else has to be cut out from a very tight budget. The choices have always been there, and now the choices are even more drastic.”

Monica Peabody, of Parents Organizing For Welfare and Economic Rights (POWER) reports that although Temporary Assistance for Needy Families (TANF) was recently increased, the cost of living is rising even more. “Welfare recipients got their first increase this year in 15 years, and it was a 3% increase, which translates into 12 or 15 dollars more per month. We’re happy for the 3% increase, but it’s not nearly enough.” Another problem is that food stamps have not kept up with inflation, which creates difficulty for the families she works with. “With the price of food going up, they have less and less to eat.”

Affordable housing is another challenge. TANF for a mother and one child now is $453 a month. “It’s incredibly difficult to find housing on that,” says Peabody. The Thurston County Housing Authority, which provides rental assistance for low income individuals and families, has a five year waiting list, which is now closed. “You can’t even get on the five-year waiting list right now,” says Peabody. When asked what happens to these women and their children, Peabody replies “They’re homeless a lot, or they live in substandard housing, and they’re the ones talking to the Tenants Union.”

Pat Tassoni of the Tenants Union reports that he is seeing more tenants in distress. “They’re freaked out,” he says. “People come into my office in desperate circumstances, and they ask what the legislature is doing to fix this.” Unfortunately, says Tassoni, the legislature is working to delay foreclosures, not evictions. “Renters are not a priority,” he says. He tells the story of one woman he tried to help recently: “She lived 25 miles from work in a rural area. She had to pay over $200 a month for gas, and couldn’t make the rent.” When landlords evict tenants for nonpayment of rent, there is really nothing the Tenants Union can do to help them. “She looked at me and said ‘So, I guess this is where I become homeless…”

The Tenants Union’s contract with the city of Olympia runs out at the end of August. As Tassoni describes it, “This money has provided the backbone for the work the Tenants Union does.” Other, smaller funding sources will allow the Tenants Union to remain open throughout 2008, but, “Unless the county or city comes through with some funding, the Tenants Union will close its doors by the end of the year, and tenants will have nowhere to go.”

As services to the poor, already overstrained, are cut back, the population in need of assistance is certain to grow. Several large employers in Olympia have laid off employees or cut back hours as the economy worsens. Batdorf & Bronson Coffee Roasters recently announced a restructuring; although their retail outlets will continue on the same schedule, the roastery is now only open four days a week. Roastery employees, instead of working five eight-hour days will work four nine-hour days instead, resulting approximately 20 fewer paid hours a month, and a significant loss of income, just at a time when it’s getting harder to make ends meet.

Another large employer, The Olympian, has also laid off 17 employees, including business reporter Jim Syzmanski, features reporter Lisa Pemberton and online reporter April Chan. The O’s parent company, McClatchy, recently posted a 44% reduction in second-quarter earnings. At the Tacoma News Tribune, some reporters have been replaced with interns who work for free. An insider remarked that McClatchy’s financial woes have had a chilling effect on news reportage; reporters are more willing to toe the line and write exactly what their editors want to hear, for fear of losing their jobs. The most recently hired staffers, such as reporter Matt Batcheldor who covers the Olympia City Council, will be the first to be fired if future layoffs occur.

A number of local businesses have closed recently, resulting in further job loss: Cielo Bleu, Otto’s, Black Front Gallery, the Ribeye, Whirligig, the Fabric and Clothing Gallery, and others. Although a lot of people attribute these business closures to the absence of luxury condos on Olympia’s isthmus (if only the millionaires had arrived in time to save the Ribeye!), others think it may have something to do with the economy.

Rumors have been circulating that lay-offs are imminent at the city of Olympia. On July 23, Communications Manager Cathie Butler said the city had no plans to cut jobs before the end of 2008, although she admitted that, “like anyone else, businesses and governments and individuals, the economy is affecting us.” Reduced revenue in sales tax and construction permits have placed a strain on the city’s budget. Butler reported that in July, sales tax receipts were down 12% from what had been budgeted based on prior years. “Our total general fund budget is 59 million dollars,” reported Butler. “Sales tax revenue is 30% of that.” To manage this shortfall, the city has put a freeze on new hiring, except for “police, fire and maintenance staff, and that is only with City Manager Steve Hall’s approval.” Butler reported that the city is enacting a number of other cost-cutting measures that don’t involve job loss. The city is evaluating the budget on a month-to-month basis, so layoffs cannot be absolutely ruled out, however Butler emphasized that, “for 2008, layoffs would be a last resort.”

An increasingly familiar sight in Olympia these days is a crowd of people waiting at a bus stop. Buses to and from Tacoma are frequently at full capacity, especially during afternoon commutes, which are often standing-room-only. As gas prices have increased to new heights, more people are taking the bus. According to Meg Kester, Marketing and Communications Manager of Intercity Transit, ridership for June 2008 was up 22% over June 2007. “That’s on top of having extremely healthy ridership in 2007 over 2006, and 2006 over 2005. To see a 22% increase on top of a very healthy growth period for transit is very indicative of the community and the climate today.” Kester reports that there are currently no plans to expand bus routes or increase service. “There certainly is a need,” she said. “But we’ve put as much service as we can on the street over the last three to four years, and can’t do anything further without additional revenue.” Kester reports that the transit authority is exploring funding options that may be available, “But we’re in a recessionary period and funding is limited.” Kester remarked that some transit districts around the country have been forced to cut back service because of high fuel costs; Intercity Transit, however, will be able to sustain the present level of service for the foreseeable future.

The Farmer’s Market seems to be thriving, but produce prices are noticeably higher. Farmer Jim McGinn of Rising River Farm, explains that although he has to commute 40 miles to get to the market, it’s not just the rising cost of fuel that is forcing him to charge more for produce. “It’s the cost of living for my workers,” he says, adding that, “People doing this kind of work are not living high on the hog.” Demand for fresh, local produce is high, yet because federal farm policy favors agribusiness at the expense of small farmers, it is difficult for the latter to stay afloat. Even when a bunch of organic radishes is three dollars and cherries are five dollars a pound, small farmers are struggling financially. McGinn says that in talking to other farmers and produce distributors, he has come to believe that scarcity of the type of food sold at the market is part of what’s driving prices up, and may be even more of a problem in the future. Low supply and high demand drive up prices. At the time we spoke, early afternoon on a Sunday in July, the Farmer’s Market was teeming with shoppers, and although people complained a little about prices, they continued to buy.

McGinn is sympathetic to the plight of people without a lot of money, and tries to make his produce available to them through offering Community Sustained Agriculture (CSA), as well as accepting WIC (Special Supplemental Nutrition Program for Women, Infants, and Children). McGinn wants to provide produce that is affordable for everyone. “The answer,” he says, “is to stop development on farm land.” He points to the example of Kent Valley, which was once farmland and is now all industrial. Kent Valley, he says, “has the best topsoil in the world,” but very few farms remain.

Jane*, is 82 years old and retired. She has some savings, but reports that coping with the rising cost of living, “is a struggle, because I don’t get much Social Security. And my medical costs are extraordinary, even with Medicare.” Jane’s medical costs, including medications and long term care insurance, consume half of her income. In addition, she reports, “Rent is high, and getting higher.” Jane is driving less and consolidating errands. “I don’t drive the car unless I have a lot of things I have to do.” Jane says she is worried about the future; “I don’t know how long the money is going to last if I live a long time.”

Donna*, a married homeowner with two children, says “The rising cost of living hasn’t hit us really hard, but I can see it looming.” Like Jane, she is trying to drive less, planning errands accordingly. “My husband already takes the bus to work each day, and we’re encouraging our daughters to take the bus more often.” She also reports postponing buying big ticket items for the foreseeable future. “It’s affected us,” she says, “but we aren’t eating less or anything like that.” Donna’s family’s financial circumstances are still allow her to shop at the Farmer’s Market, although she remarks, “ I used to feel like I was spending a comparable amount at the Farmer’s Market plus getting a better product, but now I’m paying more to shop there.”

Sharon*, who is a single mother, says that the most difficult financial problem she is experiencing at this time is finding housing. She works cleaning houses, and is worried that people will cut out luxuries such as housecleaning as times get harder. “It’s so hard to cope with the rising cost of living,” she says. “I’m trying to take on more clients, but I’m having difficulty finding childcare.” Although she is employed part time, she is eligible for food stamps, which she says make a huge difference. “If I didn’t have food stamps,” said Sharon, “we wouldn’t be making it. Period.”

Gary*, 35, smiles wryly when asked how he is coping. “I’m living on credit, and looking for a better job,” he says. Richard*, 55, a designer for a cabinet company, has the option of working extra hours, so he is choosing to do that rather than cutting back on expenses.

Cindy*, 45, a single mother who has what she describes as “a pretty good job,” in a service industry, has begun riding her bicycle as often as possible, rather than driving. Unlike previous summers, she and her son have no vacation plans this year. Her stimulus check went to pay for ordinary living expenses. “I’m getting by right now,” she says, “but I’m really worried about how I’ll cope this fall when I have to pay for heating costs. And I’m not looking forward to riding my bike in the rain.”

Lauren*, 39, works in the grocery business. “I’m trying to be conscientious about driving. I’m looking for ways to trim unnecessary expenses. I’m trying to think of ways to cook, like soups and stuff, that I can stretch farther.” She is apprehensive about the future. “Financially, I feel like I’m in a situation where I’m spiraling down and I don’t know how to get out of it,” she says.

Morgan*, 26, is faring better. “I’m not feeling the pinch,” she said. A barista, she shares a Westside house with several housemates who have been working on creating a sustainable home for several years. She commutes to work via bicycle, and grows a lot of her own food. She and her housemates have installed solar panels, and are planning to build a second greenhouse. These lifestyle choices have made them more recession-proof, and she expressed fewer worries about the future than most people I talked to.

It would be nice to conclude that living sustainably is the answer. Certainly, adopting more sustainable practices can be economical and enjoyable as well; just ask any low income family who has a GRUB garden. Still, shifting to sustainable practices is something that takes time, resources, and guidance. Many people have grown cynical about how public resources will be allocated, and feel that the economic hardships of the poor and middle class are of little interest to the powers that be. “We need a New Deal!” said one person who was interviewed for this article. “Where’s FDR when you need him?

*not his/her real name