Santa Cruz Socioeconomics

Description

Occupying just 440 square miles, Santa Cruz County is the second-smallest county in California. It is located along the north side of the Monterey Bay on the central coast and is mostly rural. It contains four incorporated cities, the City of Santa Cruz located on Monterey Bay, Watsonville in the southern part of the county, Scotts Valley at the base of the Santa Cruz Mountains, and the City of Capitola on Monterey Bay. The City of Santa Cruz is a well-known vacation spot that offers a spectacular coastline, miles of accessible beaches, and other tourist activities. Watsonville in the Pajaro Valley is the center of the county's agricultural industry; food harvesting, food processing, and light manufacturing are the main industries (Community Foundation of Santa Cruz County 2000). Scotts Valley is a small town that has several electronics firms, and Capitola is a small beach community near Santa Cruz that contains many boutiques, craft galleries, and restaurants.

Santa Cruz County is a rural county that is becoming increasingly urbanized. Most of the residents live in urban areas, but residential development of former timberland is increasing. A low percentage of unoccupied housing suggests future demand for new housing, which will require careful planning in order to avoid detrimental effects on salmonid habitat. Residential development can negatively affect salmonid recovery by increasing sedimentation, invasive species, and impervious surfaces. Additionally, flood control projects can result in channelized streams and loss of riparian zones (see the Factors Limiting Salmonid Production section for more information). Tourism, agriculture, and timber harvest are significant industries in the county that can have important implications for salmonid recovery.

Demographics

In 2000, there were 255,602 people living in Santa Cruz County. People between the ages of 20 to 44 made up 39 percent of the population. Over one third (34.2 percent) of the residents had a bachelor's degree or higher while 16.6% had obtained a high school or graduate equivalent degree. About a third of the residents (33.4 percent) had obtained an associate's degree or attended some college without obtaining a higher degree (US Census Bureau 2000). Higher education is correlated with greater support for ecological restoration activities (University of Wisconsin-Madison 2003).

There were 91,139 households in Santa Cruz in 2000 with a median income of $53,998. Homeowners occupied 60 percent of the total occupied housing units while renters occupied 40 percent. There were 7,734 (7.8 percent) vacant housing units. The low rate of unoccupied housing implies that more housing may need to be created, with potentially negative effects on salmonid habitat. The median value of owner-occupied housing units was $377,500, and the median contract rent for rentals was $924 per month, suggesting that land and easement purchases to support salmonid recovery could be expensive.

In 2000, there were 218,122 individuals (85 percent of the population) living in urban areas of Santa Cruz Counties. Of the 15 percent of the population who lived in rural areas, 714 (1.9 percent) lived on farms, and the remaining 98.1 percent lived in non-farm residences. Non-farm residences in the rural areas present a challenge to salmonid recovery, because increasingly timber harvest land has been converted to low-density residential development. Timberland can be managed to support salmonid recovery; however, when it is converted to residential neighborhoods, management for salmonid recovery becomes more difficult. Residential development may cause habitat loss, increase roads, non-point source pollution, sedimentation, groundwater depletion, and have other impacts that diminish salmonid populations (see the Factors Limiting Salmonid Production section for more information).

Employment Trends

The predominant industry employers in Santa Cruz in 2002 were government, trade, transportation, and utilities, leisure and hospitality, and education and health services (California Employment Development Department 2002). The industries predicted to grow the most between 1999 and 2006 in Santa Cruz County are services, government, and retail trade. Services are forecast to add 4,900 jobs, a 17.5 percent increase. Government and retail trade are predicted to increase by 17.6 percent (3,300 jobs) and 7.2 percent (1,500 jobs) respectively. As employment opportunities increase, the population in Santa Cruz County will also grow and more residential development will be necessary. One of California Department of Fish and Game's recommendations for coho recovery is to decrease land converted from timber or agricultural production to residential or commercial purposes, because of the negative effects of such development on salmonid recovery (see the Factors Limiting Salmonid Production section for more information) (CDFG 2003). Salmonid recovery planners will need to accommodate growth with an eye towards preserving existing salmonid habitat. Unemployment in Santa Cruz County in 2002 was 8 percent, higher than the state average of 6.7 percent. This higher than average rate reflects job loss in the agriculture, manufacturing, information, and professional and business services industries in Santa Cruz County since 1998 (California Employment Development Department 2002). A high unemployment rate may mean that social services must be increased in the county, potentially decreasing local money available for salmonid recovery projects.

Information for this table was obtained from the California Employment Development Department 2002.

Information for this table was obtained from the California Employment Development Department 2002.

Economic Trends

Over the last twenty years, the county has been economically challenged because of several natural disasters, which included the 1989 Loma Prieta earthquake as well as severe flooding in 1982 and 1998. As of 2000 commercial areas that were damaged were still being rebuilt in the Pajaro Valley and the unemployment rate in 1999 was 6.3 percent compared to a national average of 5.2 percent. After the tragedy of September 11, 2001, there was a decrease in tourism in Santa Cruz County. Both agriculture and tourism are seasonal industries – Watsonville, which is heavily influenced by seasonal agricultural work, had a 13.1 percent unemployment rate in 1999. In spite of the seasonal labor opportunities, the previously migrant labor force is increasingly settling in Watsonville (Community Foundation of Santa Cruz County 2000).

Economic hardship can have a negative impact on salmonid recovery by making funding harder to obtain. Additionally, when an area is undergoing economic challenges, development that threatens salmonid habitat may be approved to stimulate economic growth. The seasonal aspect of the tourism and agriculture industries – both peak in the summer months – means that the impact of water diversions to supply crops, workers, and tourists is highest during the dry season, when salmonid habitat is most stressed.

Resource Industry Trends

Agriculture

Agriculture can have important effects on salmonid habitat. Agriculture may result in streambed channelization, an increase in sedimentation, increased runoff pollution, habitat loss, and cause other negative impacts on salmonid habitat (see the Factors Limiting Salmonid Production section for more information). Farming operations, however, can be managed to support salmonid recovery. Restoring and preserving riparian buffer zones, fencing streams, practicing integrated pest management, and instituting other "fish friendly" practices can help to protect and improve salmonid habitat (see the Private Lands Management section for more information).

In 1997 in Santa Cruz County, the market value of agricultural products sold increased 2 percent from 1992, to $247,815,000. Crop sales accounted for 95 percent of the market while livestock sales accounted for the remaining 5 percent of the market. The average value of agricultural products sold per farm increased 9 percent from $313,683 in 1992 to $343,234 in 1997 (USDA 1999) because of an increase in the average size of farms. In 1999, Santa Cruz County ranked 17th (out of 58 counties) in the State for total value of agriculture production and in 2000, it ranked 22nd, with $337,913,000 worth of agricultural products (Regents of the University of California 2001). Agricultural land can be managed for salmonid recovery more easily than alternative land uses such as residential and commercial development. Agricultural land managed to provide salmonid habitat also provides economic benefits – the value of the services provided by the ecosystem (see the Value of Recovery Planning section for more information).

Timber

Timber harvest can affect salmonid recovery. Timber harvest practices can destroy riparian habitat, increase sedimentation, increase landslide frequency and intensity, decrease habitat complexity, and result in deterioration of salmonid habitat (see the Factors Limiting Salmonid Production section for more information). Timber harvest practices can be implemented to support salmonid recovery. Management activities that improve or maintain habitat include: selective harvest, riparian buffer zones, and sediment monitoring programs. Timber production in Santa Cruz County contributes less to the local economy than does timber harvest in Northern California, but timberlands can pose unique opportunities for salmonid recovery. Also, timberland managed to support salmonid recovery can provide important and economically valuable ecosystem services (see the Value of Recovery Planning section for more information).

In Santa Cruz County in 1996, 25,394,000 board feet of timber with a net value of $11,508,367 was produced. All of the timber was produced by private entities (California Department of Forestry and Fire Protection 2003). In 2001, timber production in Santa Cruz County decreased by 71.5 percent from 1996 levels with only 7,230,000 board feet produced (Regents of the University of California 2001). The decrease in timber production was accompanied by a conversion of timberland to residential neighborhoods. As forested areas become developed for residential purposes, the change from a few landowners with large holdings to many landowners with small holdings makes coordinating salmonid habitat restoration more complex and costly.

Resource Extraction

Resource extraction may negatively affect salmonid habitat. Mining and drilling operations may cause habitat loss, increase sedimentation, road construction, and pollution (see the Factors Limiting Salmonid Production section for more information). Resource extraction activities can be managed to minimize their impact on salmonid habitat. Management practices that support salmonid recovery include institution of pollution prevention measures, preservation and restoration of riparian buffers, proper road installation, and equipment maintenance and repair. These management activities can impart economic value to a region by protecting ecosystem services such as water purification (see the Value of Recovery Planning section).

In Santa Cruz County, the number of people employed in the mining industry between 1999 and 2006 is expected to decline. Three of the eight quarries operating in Santa Cruz County will not be extracting resources by the end of 2004 (David Carlson San Mateo County Planning personal communication 2003, California Employment Development Department 2003). The mining industry will probably not significantly impact salmonid recovery in the county, although it may be locally important.

Tourism

Tourism can impact salmonid recovery both positively and negatively. Nature-based tourism may provide economic incentives to preserve and restore riparian habitat, yet the infrastructure required to support visitors can result in habitat loss, road construction, increased sedimentation, pollution, water diversions, and other factors that negatively affect salmonid recovery (see the Factors Limiting Salmonid Production section for more information). The economic benefits of passive use nature-based tourism go beyond income generated to include the monetary value of the ecosystem services provided by intact salmonid habitat (see the Value of Recovery Planning section). Additionally, people drawn to Santa Cruz County because of the natural beauty may be willing to donate time or resources to salmonid recovery efforts.

In the four main counties bordering the Monterey Bay National Marine Sanctuary (San Mateo, Santa Cruz, Monterey, and San Luis Obispo), tourism-generated income totaled about $9.9 billion in 1992. The number of tourists and the amount of income generated by tourism has generally increased in the past ten years (Weinstein 2001). Between 2001 and 2002 in Santa Cruz County, however, hotel tax revenue decreased throughout the county by 21 percent, from $9,451,948 in 2001 to $7,817,128 in 2002, a decline of 17.3 percent (Santa Cruz County Conference and Visitors Council 2003). This may reflect a larger number of day trips – rather than overnight trips – to the county, or it may be a result of the national recession in the early twenty-first century. Because of the importance of tourism to the Santa Cruz economy however, planners should develop and support any tourism that enhances salmonid recovery planning.

References

California Association of Resource Conservation Districts. 2002. RCD - Watershed Information Sharing Project [Web page] [cited 2003]. View on-line source.

California Department of Fish and Game (CDFG). 2003. "Recovery Strategy for California Coho Salmon." Report to the California Fish and Game Commission. Public Review Draft. Species Recovery Plan Report 2003-1, 786 pp. View on-line document.

California Department of Forestry and Fire Protection. 2003. Updated California Forest Statistic Abstract [Web page] [cited December 12, 2003]. View on-line source.

California Employment Development Department. 2002. County Snapshots, Santa Cruz [Web page] [cited December 6, 2003]. View on-line source.

California Employment Development Department. 2003. Industry Employment Projections Santa Cruz County [Web page] [cited November 8, 2003]. View on-line source.

Community Foundation of Santa Cruz County. 2000. Santa Cruz Landscape [Web page] [cited November 12, 2003]. View on-line source.

Regents of the University of California. 2004. Counting California [Web page] [cited December 6, 2003]. View on-line source.

Santa Cruz County Conference and Visitors Council. 2003. Santa Cruz County Tourism Statistics [Web page] [cited December 6, 2003]. View on-line source.

US Census Bureau. 2000. Profile of General Demographic Characteristics, Santa Cruz, California [Web page] [cited December 6, 2003]. View on-line source.

US Department of Agriculture. 1999. "1997 Census of Agriculture, County Profile: Santa Cruz, California." View on-line document.

University of Wisconsin-Madison. 2003. "Environmental Economics." Agricultural and Applied Economics Department. View on-line document.

Weinstein, A. 2001. Socioeconomic Uses. Monterey Bay National Marine Sanctuary Site Characterization [Web page] [cited December 6, 2003]. View on-line source.

General References

Brewster, E., and R. Grossinger. 2001. "Land Use Timeline for Crow Canyon and the San Lorenzo Creek Watershed." San Francisco Estuary Institute. 6 pp. View document (PDF).

US Census Bureau. 2003. Nonemployer Statistics, 2000 Mining Santa Cruz County, CA [Web page] [cited December 9, 2003]. View on-line source.

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