Category: Central Valley

Under SGMA all Groundwater Sustainability Agencies (GSA) are required to reduce groundwater pumping in their jurisdiction as the region faces land subsidence. That’s also true in the Greater Kaweah district that wraps around the perimeter of Visalia.

Studies show an overdraft of the local aquifer by around 180,000 acre feet per year that will be reduced by one third with plans to do recharge and other conservation projects. That leaves 120,000 acre-feet of excess demand – too much to overcome without reduced pumping.

Greater Kaweah administrator Mark Larsen says they have asked all well owners in the district to provide information about their well by registering them with the district. So far that has been a voluntary request. Now that has changed as of Feb 9, to a mandatory requirement with only 150 of the wells registered out of 1800 to 2000 wells in the district to date. These landowners in Tulare and Kings counties now face a mandatory deadline of July 1, 2026.

The district says they need to gather data on the depth, location, and type of wells “to keep us from just flying in the dark” says Larsen.

GSAs are tasked with managing local aquifers to reduce potential subsidence that is damaging hydraulic infrastructure up and down the Valley. Unchecked, the price tag to fix not only the damage but to do restoration of capacity to move water has been estimated in the billions.

Unlike some other Valley GSAs, the Kaweah subbasin avoided state intervention when the state Water Resources Control Board recommended the basin return to the oversight of the Department of Water Resources late in 2025.

In a statement the Greater Kaweah announced “In of the most exciting achievements for the Greater Kaweah and the Kaweah Subbasin as a whole, on December 2, 2025 the State Water Resources Control Board in Sacramento voted to officially remove the Kaweah Subbasin from the treat of probation and pass oversight back to the California Department of Water Resources. The State Board action acknowledged the significant work the GSA made in revising the Groundwater Sustainability and supported the elements developed to reach sustainability by 2040. This has been a multi-year effort and the Greater thanks their GSA partners for a monumental, collaborative effort! “

In general, farmers would rather deal locally with an elected regulatory body – in this case the board of directors of Greater Kaweah- then dealing with the state where costs and oversight are more painful.

If a GSA is on probation, it requires landowners to register their wells with the state at $300 each, report extractions and pay $20 per acre foot pumped.

In the case of Greater Kaweah with acceptance of the local plan by the state, the Greater Board of Directors voted to ease off some of the restrictions relating to groundwater transfers, allowing growers more flexibility and options to manage their water supplies. But they still will get penalties for over pumping.

Subsidence focus

The Greater Kaweah GSA subsidence issues are most concerning around Highway 99 and west of there within the district, says Larsen. This western area within the district coincides with the Corcoran clay soil profile that has seen declining groundwater levels.

It rains about 7 inches less in the western part of the GSA than in the east and the east has more surface water options. There is not one management tool that fits everyone.

Larsen says the real test of the GSA efforts will be in drought years when farmers will turn to their groundwater pumps. “In the past two years we’ve had good water years” resulting in beneficial river flows on the Kaweah as well as supplemental surface water supply.

The GSA needs this information to come up with strategies to reduce groundwater pumping. Right now they rely mostly on aerial Land IQ data that estimates the amount of water used in a particular area.

Larsen says the GSA‘s latest effort is to focus on management areas within the sprawling district down to perhaps 16 sq miles that could result in measures to address issues in that narrowed area

Besides agricultural wells, Greater Kaweah is focusing on any potential impact that groundwater pumping has on domestic wells nearby. Recently the district replaced three domestic wells, and there are three or four more in the pipeline. He says state regulations mandate that GSA‘s address any impact on domestic wells that groundwater pumping by agriculture affects.

Some are anxious

Why are some growers reluctant to register their wells? “Some growers are anxious that the information could be used against them while others recognize the benefit“ observes Larsen.

They need information on agricultural, domestic, industrial and retired wells that have not been destroyed.

The Kaweah subbasin GSAs, which also include East Kaweah and Mid-Kaweah, all have voluntary well registration programs as part of their groundwater sustainability plan. If some Greater Kaweah farmers refuse to submit their well information by the deadline, the Greater board may potentially take the next step to penalize the late comers.That is happening in a Kings County GSA.

This effort here does not just focus on the demand side for water. In December of 2025, with its partner Kaweah Delta Water Conservation District, the Greater was able to import 600-acre feet of CVP Class 1 water into the Kaweah River system, recharging the groundwater table. “We hope this is a first in many such opportunities and partners to help sustainability from the supply side!

The Greater Kaweah Groundwater Sustainability Agency (Greater Kaweah GSA) was formed with the intent to comply with the 2014 Sustainable Groundwater Management Act (SGMA) and initiated its effort by executing a Joint Powers Agreement (JPA) on August 23, 2016. The Greater Kaweah GSA became an “exclusive” GSA for its service area by the California Department of Water Resources in August 2017. The JPA members and partners consist of:
Kaweah Delta Water Conservation District
Kings County Water District
Lakeside Irrigation Water District
St. Johns Water District
Tulare County
California Water Service Company

The Greater Kaweah GSA is one of three GSAs formed in the Kaweah Subbasin that, in total, cover the entire Subbasin without overlap. The three GSAs have each developed Groundwater Sustainability Plans (GSPs) and executed a Coordination Agreement for the Subbasin to utilize the same data and methodologies ensuring consistent interpretations of the Basin Setting.

Kings County celebrates its own Black History

The African American community in both Tulare and Kings counties can take a bow as we remember Martin Luther King and locally celebrate the pending return of fresh water to Allensworth, the state’s only town founded by African Americans 118 years ago.Arsenic-laced groundwater and dry wells all just about killed the hopes of California’s only town founded by African Americans, many formerly enslaved.

A Jan. 20 2026 groundbreaking ceremony officially launched the construction of a new groundwater well for Allensworth in Tulare County near the Kings County line.
Funding for the project comes from the California State Water Board in the form of a $3.8 million Safe and Affordable Funding for Equity and Resilience (SAFER) drinking water program grant for the construction of the well, and an accompanying storage tank, to supply safe drinking water to the town of about 500.

Perhaps finally the town can thrive.

Kings County history

In Kings County the Board of Supervisors proclaimed February as Black History Month – the annual celebration of achievements by African Americans and a time for recognizing their central role in the nation’s history. What started as “Negro History Week,” the brainchild of noted historian Carter G. Woodson and other prominent African Americans, and is now Black History Month.
The board viewed a presentation delivered by Paula Massey of Women With Visions Unlimited, Inc. detailing information on local Black History in Kings County.
Massey’s presentation included the first black family to settle in Kings County, the first black Sheriff in Kings County,Chris Jordan, the first black Mayor of the City of Corcoran, Patricia Nolan, the first black City Councilwoman of the City of Hanford, Catherine (Cathy) Willis, the first black City Council member of the City of Lemoore, Edward Neal among other firsts.

The migration to California was launched by the Dust Bowl, says Massey, when many Black America families lived and worked on farms in Oklahoma, Arkansas, Texas, and other areas where there was no longer any work for them.There were farmers who owned labor camps in the Kings County Area. They recruited these families to come to California where there was plenty of work.Some of the families packed up what they could, and others came with the clothes on their backs. They were housed in buildings like Red’s Camp that was located off the 41 freeway. The long blue house was called the Big House. It housed large families. Many families were able to save money and buy homes or land after living on the camps for a few years.
The first family to settle in Hanford was Loyd and Bessie Welcher. Loyd moved to Hanford in 1888. He was the first Black graduate at Hanford High. He went on to college at Tuskegee University in Alabama.

Tommie Smith

The presentation also included a famous Kings Country Black activist, the 1968 Olympic champion Tommie Smith. Smith was a Lemoore High grad and holder of 11 world records.
Tommie’s Black Power salute with John Carlos standing on the medal podium caused controversy, and was criticized as politicizing the Olympic Games but remembered as a symbolic moment in the history of the Black movement. Born in 1944 Tommie later played several years of professional football, is a coach and teacher and continues to advocate for civil rights.

 7 Brew coffee, a chain based in Arkansas was founded in 2017 but has attracted major Wall St financing and grown from 14 locations in 2019 to over 600 spots around the country in 2026.
Now they have filed preliminary plans with the City of Visalia to replace the former Cask & Cleaver building, a once popular sit-down restaurant on South Mooney with what looks like a knock-off of another lively youth-oriented coffee place- Dutch Bros.
The 7 Brew name comes from its original formula of offering 7 different coffee options, now with many more.”The 7 Originals,” now includes over 20,000 potential combinations including coffee, energy drinks, and smoothies, according to the company.
Like other fast food chains, the emphasis is on speed, with high-energy service that includes loud music and roving baristas who take orders on a laptop.
The property was once the site of a very popular steak house that closed in 2009 but has failed over 17 years to attract new investment in the sit-down restaurant format despite a short stint as a Mexican eatery. Now in 2026 it’s clear – the double drive-thru rules. Think Chick-Fil A.
The property is owned by shopping center developer Dave Paynter who has the retail center anchored by Dicks.
If 7 Brew plans to compete with Dutch Brothers in the Visalia marketplace, they’re likely to look for other locations to open up with competitor Dutch Brothers having 4 regional locations in Visalia. 

Farmers are a productive bunch harvesting more corn per acre than ever. Ditto for many other crops 
Water not the only factor farmers face in search of profit. Sometimes fewer acres are a plus

Listen to famers who worry that harvesting fewer acres due to requirements to pump less water with SGMA or receiving less surface water will result in big economic losses for both them and for the region’s economy. The cries are among the loudest from regions like western Fresno County where few natural water supplies exist including Westlands Water District.

But there are other factors in the discussion in search of profitability.

In multiple crops, farmers are far more efficient and productive year after year producing more corn and soybeans per acre, more milk per cow, more processing tomatoes with less water and a drop in labor needs.

Focus on yields for example.

Case in point is the California avocado industry that has seen its bearing acreage decline from 76,000 acres in 1988 to 49,000 acres in 2025. Does that mean we’re producing a whole bunch less avocados or that the industry is suffering economically?

Comparing 1989 to 2025 the avocado industry may have shrunk by 25% in terms of acres harvested but they produced 325.6 million pounds of avocados in 2025 compared to just 271 million pounds on more acres in 1989.

Statistics from the California avocado growers say the value of their crop in 2025 was $9562 per acre compared to $3233 in 1989.

California avocado farmers are harvesting more than triple the number of pounds of avocados per-acre compared to 1989. More production on less acreage. By the way, they taste way better than Mexico’s huge avocado volume and that contrast helps California sales.
Now take a big crop grown here in the Central Valley – processing tomatoes – a tangy source for your salsa and pasta sauce.

In 2025 the California Tomato Growers Association said they had a bountiful tomato crop with an average yield of 55 tons per acre – an all time record eclipsing the 2018 record of 52.1 tons per acre.
At the same time, acreage under contract to processors in 2025 was just 200,000 statewide, the lowest contracted amount on record back to 1975. Acreage is down from 300,000 acres in 1975 and because of technology like drip irrigation, farmers use less water to produce their 11 million ton crop, Processors have a leash on farmers to keep from growing more because that is all they can sell! Like many other crops, managing volume, limiting it, helps keep the price paid to growers profitable.

Dairy more efficient

An even bigger crop in the Valley is milk. Here too, farmers are more efficient in large part due to scientific breakthroughs in milk production testing, first launched in 1905, resulting in breed associations and artificial insemination.All that leads to higher volume cows. In modern times, production of milk per cow has improved from around 13,000lbs in 1960 to over 24,000lbs annually today.
Meanwhile there are far fewer cows than in decades past. In the year 1900 the census found 37 million cows one year old or more.Today there’s about 9.5 million cows in the US. 

Those 9.5 million cows produce around 228 billion pounds of milk – almost three times as much milk with half as many cows compared to 1920.The latest figures from USDA says the industry is boosting production up 4.2% year over year as of September.

Back in 1920, milking machines were starting to appear, but hand milking of 8-10 cows remained a standard for a single worker. Pasteurization, leading to safer milk, helped reinforce the growth of the industry based on increasing consumer confidence.

Today constant improvement in the handling of milk on the farm has lessened the spoilage factor by reducing the somatic cell count that leads to decay. Science in action.

In recent years, the annual average production per cow has increased nearly every year. Overall production is up around 10% in the past decade. But now larger herds are leading to a dramatic drop in what dairymen are being paid for their milk due to what has been called a “gush” of milk in the marketplace.”Got Too Much Milk”. See chart of how much milk prices are down just this year to red ink levels. 

Like in a number of crops, dairy farmers manage their volume through self-organized dairy cooperatives like California Dairies Inc and Dairy Farmers of America.USDA notes that in 2022, there were 89 dairy cooperatives in the United States, accounting for 87% of the market share for U.S. milk and milk products.The co-op manages flow of milk after it leaves the farm “balancing” the supply between products  based on whether it can sell or not.

Co-ops adapt to market demand by shifting production between fluid milk, cheese or powders to handle perishability and price fluctuations. Co-op uses incentives for its members including penalizing excess production with lower pay as well as creating market programs that discourage oversupply. 

Speaking of too much of a commodity, both corn and soybeans, the nation’s largest crops, are in surplus right now based in part on President Trump’s tariff policy and retaliation from China and others who now choose to buy key food commodities from other countries instead of our farmers.
Both big crops have seen a dramatic increase in yields according to USDA.

This year the Midwest soybean crop has seen record yields in Iowa, Minnesota, and Wisconsin, despite reduced total area compared to 2024, with an average yield of about 53.5 bushels per acre.
But the average price paid to farmers has seen a downward trend.

The Trump administration has offered a subsidy of $30.88/acre for soybeans, but the American Soybean Assn argues that it “will not cover the significant financial damage soybean farmers sustained this year due to the high cost of production and losses sustained during the China trade war.”
Back in California, the nation’s largest water district Westlands Water District has been very vocal in their argument that less water delivered to farmers is leading to lower incomes and regional economic damage including job losses.

They say that because of lower surface water deliveries there has been a fallowing of 200,000 acres in the sprawling westside district.

But water is not the only factor.

Westland publishes an annual crop report that shows over a 10 year period , 206,000 acres were idled  in 2014 compared to 199,000 acres and 2024-about the same.

 Fewer acres not a death knell

Westland farmers planted 42,000 acres of processing tomatoes in 2024 down from 67,000 acres in 2014 reflecting more production from fewer acres. In Fresno County the annual county crop report shows that back in 2000, farmers planted 95,000 acres of processing tomatoes. But the latest report for 2024 says we have a much bigger tonnage with about 55% of the acreage.

Although Westlands complains about lower revenue, Fresno County’s latest crop report for 2024 shows farmers generated $9 billion in sales in the nation’s biggest ag county, an all-time record. Farm receipts in Westlands itself are not published and like Fresno County as a whole – crop revenue is likely up- not down.

That crop report shows in Fresno County processing tomato acreage was 64,000 acres with a yield of 59 tons per acre and sales of $429 million in 2024.In 2018 Fresno County acreage was 77,140 acres with a yield of 52 tons per acre and a value of $296 million. So growers managed to make more money from 17% less land and that is 17% less land that needed to be irrigated, saving that water for someone else.
Of course costs are up too, especially in California as been widely reported.

As wages have climbed there has been  a huge change in the cropping pattern in the Westland’s district, reducing the need for hand labor to harvest the crop when vegetable fields are converted to tree nuts that are harvested mechanically.

In 2000 Westlands had 19,000 acres of almonds. But by 2014 acreage had grown to 82,000 acres. It then dropped to 73,000 acres in 2024 following a trend statewide of reducing almond acreage in an effort to increase per pound price. It has been widely reported that the almond industry in California was in overproduction mode.

The upshot – reducing acreage helps lift the price for the whole group.Prices in 2025 have gone up to about $2.50 per pound.

There has been another major crop conversion in Westlands. In 2000 the district had just 5000 acres of pistachios, climbing to 34,000 acres in 2014 and 85,000 acres in 2024. Unlike almonds, pistachios are still selling well with farmers getting an average $2.10 per pound as world ‘s consumers can’t get enough. But the crop expansion certainly has reduced the need for farm labor in the district.

What about grapes?

In 2000 Westlands grew about 10,000 acres of grapes, mostly wine grapes according to their published crop report. In 2014 that grew to 18,000 acres. As of 2024 wine grapes acres were back down to 10,200 as district farmers fallowed unprofitable vines. Grape industry leaders have and still are arguing that growers need to pull acreage to reflect lower demand seen in the marketplace.Jeff Bitter, president of the Fresno-based Allied Grape Growers has told growers recently “the pain doesn’t go away,” he said, “until grapes go away.”  Water is not the only issue.You have to have a customer to buy the stuff and fewer people are drinking wine and some are not drinking at all.

One huge crop has almost gone away  here thanks  to worldwide competition and a US surplus-  a realty as big a factor as water. We are talking about cotton. Westlands grew 180,000 acres of upland cotton in 2000 reflecting a state that once grew a million acres of the fiber. In Westlands in 2024 the farmers there looked elsewhere for profit harvesting just 4,000 acres of upland- a 97% decline.

Lots of jobs were lost with scores of cotton gins all over the Valley going out of business.Water and drought were an issue for sure,but so was global competition, consumer taste for synthetic fibers and the prospect of better returns from nuts. Meanwhile, most US cotton that competes with Valley cotton is grown from rainfall. Farmers  from other states  don’t have to pay for water.Then there is price. The average price of upland cotton today hovers around 60 cents. USDA says this year global production is up nearly 1 percent year-over-year but consumption is flat.Like other US crops – yields are up around 15% in the past decade, says USDA. The upshot – there is a decline in cotton growing acres and that may not be a bad thing.

Westlands consultant Michael A. Shires, Ph.D, has highlighted two themes, including one that says less water delivered to the district has resulted in less economic activity and fewer jobs in the area.
Back in 2014 the same consultant report pointed out that crop choices made by farmers in the district have resulted in conversion from labor intensive, hand-harvested crops to permanent plantings like nut trees. That has resulted in a decline in jobs. So it’s not just water.

Professor Shires 2016 study found ” the share of permanent crops within the district has risen dramatically— from less than 10 percent of crops in 2000, to 25 percent in 2011 to just under 50 percent in 2015. This has both short and long-term implications for employment within the region as farmers shift away from labor-intensive produce to invest in tree nut and wine grape crops. Both of these crops have very different long-term labor demands.”

The consultant published a chart that shows between 1993 and 2015 the shift to permanent crops in the district resulted in a decline from 10,000 jobs in 1993 down to 6000 in 2015.The study found a total effect including indirect job loss of 10,700 positions.Clearly there are other issues that affect the region’s bottom line.

Farm work in grapes has declined in a dramatic way in Fresno County in the past few decades based on a grower conversion to dried-on-the-vine raisins that use mechanical harvesting. The industry used 50,000 to 60,000 workers during harvest time in the 1990s when there were 270,000 acres that needed hand labor. Farmers found that there wasn’t enough labor to get the work done.Now the labor needed to harvest raisins requires  just 10,000 to 15,000 workers as acreage has shrunk from 280,000 in 2000 to 90,000 acres statewide. 

Statistics show that Fresno County grew 171,000 acres of raisin grapes in the year 2000, By 2019 raisin acreage in the county dropped to 82,000. Now in 2025 the county’s raisin industry has shrunk to 68,000 acres, once Fresno’s claim to fame. While you could claim water as a factor – it is consumer behavior that appears to be more important with consumption in the U.S. showing a long-term downward trend. Consumption dropped from a peak of over 2 pounds per person in the late 1980s to around 1.2-1.3 pounds annually due to competition from fresh fruit and other dried fruits. California growers compete  with global exporters including Turkey, Iran, and Chile, supplying international markets like Europe. Again  growing these grapes is not just a water supply issue.

The last factor that needs discussion, but not mentioned in the Westlands studies, is the fact that the location in this otherwise dry landscape is totally dependent on outside water supplies shipped in from far away with few local natural waterways. How farmers have managed this water supply has led to soil high in salt and other impurities like selenium that poisoned wildlife in ponding basins some years back. Soil health is a big issue in Westlands Water District.

From Mavens Notebook-water blog

What  are we talking about?-Naturally Occurring Salts: Soils in the region naturally contain high levels of salts and boron, remnants of an ancient inland sea that once covered the area.-Inadequate Drainage: A low-permeability layer of clay known as the Corcoran clay, present beneath the surface, impedes the downward percolation of water, leading to a shallow water table and the accumulation of salts.-Irrigation Practices: The introduction of large-scale irrigated agriculture, coupled with the use of saltier imported water from the Central Valley Project, exacerbated the issue. Over time, irrigation water evaporates, leaving the salts behind in the soil and groundwater.-Lack of Freshwater: A lack of sufficient freshwater supply and rainfall to naturally flush the salts through the soil profile has intensified the problem. The upshot is that salinity threatens the long-term viability of agriculture in the region. High salt concentrations can damage crops, reduce yields, and in severe cases, render land unsuitable for farming.

Collapsing canals

 Still more threats. Farmers say they needed to pump more groundwater in recent decades because  of drought and they claim – flawed water policy. That has led to subsidence in this area damaging the very water infrastructure farmers need to bring in water from northern California. It will take estimates of over $4 billion to repair collapsing canals like the California Aqueduct that supplies Westlands and Friant Kern Canal on the eastside.At a recent almond grower seminar, Paul Gosselin, deputy director at the California Department of Water Resources noted that capacity in the westside’s California Aqueduct was predicted to decline by 87% if subsidence was not corrected. That would devastate supplies for Kern County and the farmers that depend on those supplies.He did not mention LA, but Metropolitan WD is a major beneficiary. But with a price tag for a fix amounting to billions of dollars, who should pay?

Should public pay?

Here is the answer quoting from a recent article in an ag publication.
“Nursery owner John Duarte argued that even if the farmers caused the problem, they simply do not have the capacity to pay.Duarte was direct in where the blame lies – subsidence is a direct result of failed environmental policies that depleted surface water supplies and forced farmers to turn to groundwater. On those grounds, the state and federal governments have the obligation to fix the choke points in the conveyance systems,” he maintains, reflecting farmers’ view.
 The huge aqueduct delivers water not just to Westlands, but farms and cities to the south through the State Water Project including millions of people in LA.

Farming kilowatts 

So it is not surprising that the Westland’s Board of Directors recently approved a plan to develop 136,000 acres of fallowed land to be dedicated to building the nation’s largest solar farm producing kilowatts instead of cotton. The plan will mean both new income on what is idled land and water savings. The Valley Clean Infrastructure Plan calls for building up to 21 gigawatts of solar energy and an equivalent amount of battery storage on along with a series of high-voltage transmission lines to connect the electricity generated to the state’s grid.The project will take up to a decade to be completed. and could provide a quarter of the state’s clean energy needs by 2035. The developer is the same group that is building Westlands Solar Park in Kings County._________

California’s EDD reports that jobs in key sectors like construction and manufacturing are down in the Central Valley in November, reflecting what is also a nationwide trend.

Kings County

Case in point is the latest employment report for Kings County for the month of November. The jobless rate in the county was 8.8%, some 6.1% higher than a year earlier. There were 900 fewer people working in the non-farm sector, but 500 more jobs were seen in agriculture from November to November. The biggest decline in non-farm jobs year over year was in manufacturing with the loss of 400 jobs. Healthcare jobs climbed 400 year over the same time.

Fresno

Meanwhile in Fresno County, the jobless rate was also up from 7.8% in November 2024 to 8.1% in November 2025.

Among the biggest sectors to lose jobs were in construction – down 700 people and manufacturing with a drop of 300 jobs.

Business services were down 700 jobs and transportation and warehouse jobs fell by 900. State government jobs declined by 900 as did federal jobs by the same number.

The big winner in Fresno County were healthcare jobs up a whopping 5700 jobs year over year.

Kern jobs

In Kern County the jobless rate fell year over year from 8% to 7.8%. But again the losses were seen in the same sectors.

Construction jobs were down 5% year over year and manufacturing jobs dropped by 2.3% in the county. Other significant drops were seen in department store jobs, down 4.2% in the past year.
Again the sector that was positive was healthcare where jobs were up 6% in the year in Kern county.

Tulare jobs

In Tulare County the jobless rate declined year over year from 10.2% to 10% while the number of non-farm jobs were up by 400 in the past year. But it was the same sectors that showed weakness with construction jobs down 500 and manufacturing jobs down 400 – similar to other counties. Tulare County saw healthcare jobs jump by 1100 year-over-year.

Nationwide numbers

Economists have noted similar trends across the country with manufacturing soft and building activity down, hurting construction jobs.

Manufacturing drops 10 months in a row

Weakness is seen in the latest ISM manufacturing report for the nation that came out last week. The report says economic activity in the manufacturing sector contracted in December for the 10th consecutive month, following a two-month expansion preceded by 26 straight months of contraction.

American manufacturers shed about 8000 jobs in December, adds the Wall St Journal.

New residential construction in the U.S. saw a steep drop in the month of October, according to a report released by the Commerce Department on Friday.

Another report from the Census Bureau says housing starts in the United States fell by 4.6% from the previous month to a seasonally adjusted annualized rate of 1.246 million units, the lowest since the Covid pandemic triggered a plunge in starts in the second quarter of 2020. The decline was marked for housing with five or more units (-25.9% to 347,000), offsetting the increase for single-unit houses (5.4% to 874,000). Among different regions, housing starts fell sharply in the US West- down 21%.

Beacon Economics employment analysis for the state says “while growth remains positive in California, employment levels are down 120,900 over the past year, a 0.8% decline, without the gains in Health Care. California’s labor supply is growing slowly, expanding by just 43,200 from September to November. Since February 2020, the state’s labor force has grown by just 277,500 workers, a 1.4% increase. This trails the nation’s 4.3% growth over the same period. California’s chronic housing shortage continues to be the greatest constraint to labor supply growth.The recent ICE raids do not appear to be having a significant impact on California’s labor force, however the state’s chronic housing shortage continues to limit its ability to grow.”

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This City of Visalia has seen steady growth of sales tax revenues from 1983 to 2011 from- around $5 million back in 1983 and now, nearing $50 million. Information is from the latest financial report presented to the city council.

Visalia sales tax revenue has grown from around $17 million in 2012 to $39 million in 2021 and in the latest report , it is $48.6 million in fiscal year 2025. Chart below shows how this key revenue source grew.

The city’s general fund is largely dependent on both sales tax and property tax revenue.

The city’s property tax revenue has grown by meteoric levels as well from $22.3 million in 2010 to $27.9 million in 2021 and $37 million in the latest financial report for fiscal year 2025.

Besides these two key funds, the city’s hotel bed tax revenue (transient property tax) is now over $5 million annually, almost double what it was back in 2020.

The report notes that fiscal year 2024-25 had growth in Visalia’s General Fund major revenue categories of Sales Tax, Property Tax, and Transient Occupancy Tax as of June 30, 2025.

Fiscal year 2024-25 ended the year with an overall increase of $3.0 million in the total economic-sensitive revenue category for the General Fund – Economic Sensitive Revenues. Most of this increase is from Property Tax which had a $2.7 million increase over the prior year.

Sales Tax for the year rebounded from last year’s contraction, ending fiscal year 2024-25 with a 2.2% increase. The addition of new businesses throughout the City and within our growing Industrial Park help contribute to the growth. The main areas of the increase in Sales Tax for Visalia were General Retail (department stores, apparel stores, furniture/appliance stores) which grew 2.30%, Food Products (restaurants, food markets, liquor stores) which grew 3.75%, and Transportation (new and used auto sales, service stations) which had a slight increase of .5%. Property Tax continued its trend increasing 7.9% as growth in property values remained strong; new development occurred; and the housing market continued to offer premium price levels. Travel stays to the area continued to grow for the year as we saw an increase of 4.4% in Transient Occupancy Tax (TOT) revenue.

Business license revenue decreased 3.8% when compared to last year as the implementation of a new online business license billing and receipt system resulted in adjustments that occurred due to the transition of systems.

More than 500 new businesses

But new business startups were seen.Visalia has 13,990 licensed businesses operating in the City, a net increase of 517 as compared to last year.These businesses include private manufacturing, technology research, retail and service businesses, educational services, healthcare and social assistance, consulting, arts and entertainment, hospitality services, along with non-profit institutions.

Construction activity in the City increased 5.4% (based on the number of all permits issued) in fiscal year
2024-25. The total valuation for all permits issued was $410 million, a 15% decrease from the prior year
as the City added .7 million square feet of new commercial property and 1.6 million square feet of space
overall. Issued single-family dwelling permits for fiscal year 2024-25 had a decrease of 7% when compared to the prior year.The construction value for 434 new single-family dwelling permits came in at $150 million, which was down 4% from the prior year valuation level.

For the calendar year however, the number of new home permits more than doubled numbering 562 in 2025 compared to 270 in 2024.

Total Revenue to the city in the last fiscal year came almost $11 million more than has been budgeted continuing the city’s conservative budgeting enjoying an upside surprise

Mooney Boulevard

Sequoia Mall is currently undergoing complete refurbishment. The next phases will include a conversion
of the former Bed Bath and Beyond building into smaller suites. This follows completion of a new Sephora,
Osh Kosh, Carter’s, and Sketchers which are all located near Hobby Lobby.
Local favorite Orange Works is looking to open a new Mooney Boulevard restaurant in the former Crown
Dry Cleaners located between Tulare Avenue and Walnut Avenue. The restaurant will also feature a drivethru.
Downtown
Tazzah, Coffee & Tea will open in the original Tulare Co. Farm Bureau historic building located at 112 East
Oak Avenue.
Owners of Sushi Kuu are going to be opening a new restaurant, Ramen Kuu, at 117 West Main Street in
the former Metropolis Body Spa building.
Moving forward this year is the Bridging Horizons Play Park project, Visalia’s first fully inclusive playground
and park. The project is located just east of Imagine U Children’s Museum.
North Visalia
Development at Orchard Walk West located at Dinuba Boulevard and Riggin Avenue continues to
progress. A new phase has been completed and includes Burlington Coat Factory, Ulta Beauty, and Five
Below which are all now open.
Raising Cane’s is now open in the Orchard Walk West center.
Construction of a new Costco at the corner of North Shirk Street and Riggin Avenue has begun. The
159,352 square foot Costco will also offer a car wash and fuel facility. Costco intends to be open early
2026.
Additional Visalia Developments
A second Vallarta Supermarket is currently under construction near Lovers Lane and Noble Avenue. The
53,000 square foot space will anchor additional spaces including a 26,000 square foot space and several
other retail and food spaces.
Construction of a new Towneplace Suites by Marriott is nearing completion. It is located near the Holiday
Inn Express in the Adventure Park area.
A new 2,800 square foot drive-thru restaurant is being proposed at the southeast corner of Stonebrook
Street and Caldwell Avenue across from The Human Bean.

The $11.4 million project will widen Riggin Avenue from Kelsey Street to Shirk Street converting
it from an undivided two-lane road to a four-lane road with median. This will improve traffic
mobility for the industrial park and surrounding businesses.

Local congressman Republican David Valadao bucked his party’s leadership this week voting with 17 GOP House members to extend Obamacare subsidies.

Even if it passes in the Senate it must be signed by President Trump who has been a major opponent of Obamacare.

The 17 Republicans who voted for the subsidy extension are:
Robert Bresnahan (PA)
Mike Carey (OH)
Monica De La Cruz (TX)
Brian Fitzpatrick (PA)
Andrew Garbarino (NY)
Jeff Hurd (CO)
Dave Joyce (OH)
Tom Kean Jr. (NJ)
Nick LaLota (NY)
Mike Lawler (NY)
Ryan Mackenzie (PA)
Carol Miller (WV)
Max Miller (OH)
Zach Nunn (IA)
María Elvira Salazar (FL)
David Valadao (CA)
Covered California- the Obamacare agency in the state, estimates that as of July 2025, about 202,000 residents in the San Joaquin Valley, from San Joaquin County in the north to Kern County in the south, were enrolled in Covered California. More than 90% have at least part of their costs for premiums subsidized by tax credits,says report from nonprofit newsroom Stocktonia.

Earlier this year, Covered California projected that its subsidized enrollees in Valley counties would experience large increases to their monthly health insurance premiums if the enhanced tax credits expired:

Fresno County: Average increase of 160%.
Kern County: Average increase of 160%.
Kings County: Average increase of 147%.
Madera County: Average increase of 139%.
Merced County: Average increase of 388%.
San Joaquin County: Average increase of 129%.
Stanislaus County: Average increase of 112%.
Tulare County: Average increase of 140%.
Despite the expiration of the enhanced credits, lower-income Covered California members would continue to benefit from the standard level of Affordable Care Act credits.

Downtown Visalia’s Main Street could see a mixed-use development with up to 41 apartment units according to a plan filed with the city this week.The quarter block development is planned where the Giant Chevrolet car dealership was for decades, at the SW corner of Main Street and Liberty, east of Santa Fe.

According to the preliminary plan to be heard by planners this week, the project involves two proposed buildings, one of which would have a retail ground floor space. One building would be four stories and the other would be three stories and include gated parking for the 41 residential units in the project.

The site is vacant, having been cleared years ago where the Chevrolet dealership once stood. The location is next to a transitional growth area for downtown and current site of a number of popular retail and restaurant spots including Barrel House,Simply Brewing and Sierra Bicycle Werks.

This part of downtown was known as the auto sales and repair district for the city but has, over the years, been reinvigorated with new investment in retail and restaurant spaces.Now the area could see its first major residential project right on Main St, only blocks from where the new Visalia Civic Center is being built.

The $7 million project at 617 E Main St is being proposed by Seng Saephan with Visalia architect Norwood David Williams submitting the plan. Buildings would add up to 65,000 sq feet with the ground floor retail space (in building A) of 11,722 ft.² feet being split into six different size storefronts. The design would replicate the small storefront frontage found next door along Main.

The City of Visalia has submitted plans for a new downtown fire station 51 located across the across from the current station that is part of the old City Hall complex between Conyer and Stevenson.The new 19,000sf station would be located across Conyer from Redwood High School to be built on a city parking lot.

The plan appears to clear the way for conversion of the several buildings of the old city hall cmplex on Acequia /Stevenson to other uses now that the police and fire administration and the existing fire station won’t be needed.Those other uses could mean sale of property once the new civic center is compete with construction underway now.

The new station will operate as a fully staffed, 24/7 emergency response facility serving the surrounding community. It will house an engine company, truck company, a 24/7 battalion chief, and a paramedic squad during the day.
The facility will include:

• Battalion Chief’s office for administrative and operational oversight
• Space to accommodate at least twelve (12) personnel, including the current eight (8) firefighters, two (2) paramedics during the day, one (1) reserve/visiting firefighter, and one (1) Battalion Chief
• Apparatus bays for two (2) large fire apparatus, one (1) paramedic squad (large SUV), and one (1) battalion chief command vehicle (large SUV)
• Storage space for a reserve ladder truck and engine
• A refueling station for emergency vehicles and a general supply depot to support nearby fire stations
• Training and meeting rooms for ongoing education, drills, and coordination
• Secure storage areas for firefighting equipment, medical supplies, and hazardous materials
• Dedicated parking for staff with fourteen (14) standard spaces, one (1) ADA space, and two (2) overflow spaces
• Eleven (11) new public parking spaces
• Emergency vehicle circulation routes designed for safe and efficient ingress/egress
  The total building footprint will be approximately 18,691 square feet, with a single-story design. The site will be developed to meet all applicable local zoning and safety requirements, including appropriate setbacks, landscaping, and stormwater management systems.
  Sustainability features will include solar panels, low-impact landscaping, and energy-efficient HVAC systems supporting the City’s environmental goals and reducing long-term operational costs.