California drought worsening economic woes

One of my daughters lives in California, so she's been impacted by some of the economic woes there that is impacting the actual government of California, one way has been the fact that she's due a refund from the State of California for income tax and it appears all she can expect at this point is an IOU. She is however thankfully not impacted directly by the drought, as others in California are experiencing much worse than higher food prices or the potential of a loss of a state income tax refund:

Across the valley, towns are already seeing some of the worst unemployment in the country, with rates three and four times the national average, as well as reported increases in all manner of social ills: drug use, excessive drinking and rises in hunger and domestic violence.

With fewer checks to cash, even check-cashing businesses have failed, as have thrift stores, ice cream parlors and hardware shops. The state has put the 2008 drought losses at more than $300 million, and economists predict that this year’s losses could swell past $2 billion, with as many as 80,000 jobs lost.

“People are saying, ‘Are you a third world country?’ ” said Robert Silva, the mayor of Mendota, which has a 35 percent unemployment rate, up from the more typical seasonal average of about 20 percent. “My community is dying on the vine.”

Even as rains have washed across some of the state this month, greening some arid rangeland, agriculture officials say the lack of rain and the prospect of minimal state and federal water supplies has already led many farmers to fallow fields and retreat into survival mode with low-maintenance and low-labor crops.

This will of course have an impact far outside of California when it comes to increasing food prices. It's already been seen here in our area when it comes to items like avocados.