SIMILAR TO THE NATION, INCOMES STAGNATED IN RECENT YEARS
Why Is This Important?
A community’s standard of living can be estimated by the value of the region’s median household and per capita income. Per capita income rises when a region generates wealth at a faster rate than its population growth. We can learn more about the concentrations of income by examining household income distribution and trends over time. Looking at the sources of personal income reveals more detail about the community and its income streams. Bankruptcy filings provide an indicator for economic stress.
How Are We Doing?
Real per capita income rose across the board from 2003 to 2010, jumping 6 percent in Solano County. Over this period, the county’s income growth outpaced United States growth of 5 percent and California’s growth of 4 percent.With less than 1 percent change in either direction, real per capita income stagnated in 2010 across Solano County (-0.5%), California (-0.1%) and the United States (+0.2%). However, during the past two years, the income gap between Solano County and the nation was at its lowest since 1990. The region's real per capita income was 1 percent lower than the United States in 2009 and 1.6 lower in 2010.
Median household income has fluctuated over the past ten years, reaching a high of $75,000 in 2000 and a low of $66,000 in 2004.The long-term trend in median household income in Solano County has been a decline of 11 percent. In 2009 (the most recent reported year), median household income fell by 7 percent to $66,700 – resetting median household income close to 2006 levels.
Between 1990 and 2008, total personal income increased by 47 percent within Solano County and increased by 52 percent statewide. However, in the most recent reported year, the total personal income decreased in both Solano County (-1%) and California (-2%). Social Transfer Payments (federal, state, and local) increased fastest in Solano from $1.1 million in 1990 to $2.2 million in 2008. Related to the presence of Travis Air Force Base, the county has a larger percentage than the state of personal income derived from military-related Social Transfer Payments. In 2008, veterans’ benefits and military medical insurance benefits represented 7 percent of Social Transfer Payments, while in California the portion was only 2 percent. Military-related Social Transfer Payments have played an important role in maintaining income gains during a time when the recession has negatively affected other sources of income. Between 1990 and 2008, the percentage of total personal income represented by earnings dropped 3 percent in Solano County and 5 percent statewide.
When comparing bankruptcy data (for the second quarter of each year) over time, the rate of total bankruptcy filings per 1,000 people is higher in Solano County than in California.The most dramatic increases took place between 2007 and 2010 when filings per 1,000 people rose from 1.9 filings to 8.9 filings per 1,000 people.The same general trend is observed for California.