USD Magazine, Spring 1993

Last year, more than 350,000 Californians fled the Golden State in search of a better life. Not since the Dust Bowl days of the 1920s-when 86,000 Midwesterners headed West seeking the elusive "California Dream"-has there been such a flux of dis– satisfied Americans relocating across state lines. But for these pioneers, the cry is "Eastward, Ho." When the nation's economic downturn first hit on the East Coast and spread westward, many Californians sat back thinking the state-once an economic dynamo-was insulated. But no longer. As the rest of the nation shows slight signs of economic recovery, California remains in the midst of the harshest reces– sion since the Great Depression. More than 900,000 jobs have left the state since May 1990. The state has an 8.9 percent unemployment rate, the highest in the nation outside the eco– nomically troubled Northeast. San Diego County, which has its own unique economic problems, has a record number of bank– ruptcies and foreclosures. After 10 years of unprecedented growth, the state is looking at the worst real estate market since the Depression. Viewed as a nationwide model as recently as the mid-1980s, California's state educational system has been steadi– ly slipping for the past eight years and is now below the national average. And the state's financial future doesn't look too bright, either. The state budget finally passed by the California legisla– ture in September was nothing if not austere. It's no wonder that a large number of Southern Californi– ans-frustrated by the sour business climate, a shortage of affordable housing, government regulations and traffic snarls– are looking for greener pastures in places like the Pacific North– west and Central Texas. Some have been forced to make a move by a shrinking job market, particularly in defense-related industries, but others have decided that the Golden State is too tarnished to live up to their expectations. Traffic, smog, crime and high property taxes have driven some away. Other, younger people have left to follow jobs or to find a peaceful, more rural area to bring up their children. Some will be back when they discover that the grass isn't always greener on the other side, but California might well not have jobs for them.

Layoffs, business failures, overcrowded schools and a depressed real estate market add up to a badly tarnished Golden State. In what direction should we go next?

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