Housing: Despite some reductions in housing costs, Santa Clara County has the highest real estate values in the country. Many SCS clients pay 70%-80% of their monthly income for rent. Someone working all year full-time for California's minimum wage grosses $15,600 a year ($16,640 as of January 2008), barely enough for a one-bedroom apartment let alone food, clothing, and transportation.

Contingent Employees: Santa Clara County has the highest percentage of contingent workers—part-time and temporary—in the country, 40% compared to 25% nationally. The vast majority receives no benefits whatsoever including paid sick leave. One illness wipes out a family’s limited savings.

Health Care: More and more clients who have medical benefits cannot afford higher co-payments and uncovered expenses, especially seniors. An increasing number of medications are sold over-the-counter and aren’t covered by any insurance.

Other Reasons: Costly car repairs, seasonal and weather-dependent work, long waiting periods for benefits especially for disabilities, lost rent when roommates move, and death related expenses.

More Complications:

• The local unemployment rate is high, and many people aren’t counted in the unemployment percentage once their benefits run out
• Many laid-off employees cannot afford COBRA payments
• Recent changes make many veterans ineligible for care through VA Hospitals
• HMO and Medicare co-payments are increasing
• Insurance doesn’t cover over-the-counter medications
• There is a long waiting list for in-home support services for seniors
• Families reaching 5-year welfare limits lose the subsidy they received if their jobs paid below the poverty level
• Bus service has been cut and prices raised affecting the elderly, students, and the poor
• Military reservists’ families are beginning to call for help as military pay doesn’t come close to their salaries
• Due to decreased funding, nonprofit agencies in all fields have slashed their budgets and services