Economists See One More Year Of Growth For Sacramento Region

SACRAMENTO (CBS13) — How much longer with the economic growth continue for the Sacramento region? At least one more year according to the Sacramento Business Review forecast presented on Tuesday.

"There is room to grow. Our momentum will carry us through 2017, but we see a lot of headwinds ahead," said Sanjay Varshney.

He is a finance professor at Sacramento State and the head of the group of analysts that explored the economic future of the Sacramento region.

"We are not expecting any major changes in the momentum we've been seeing in what really is a remarkable recovery for the region," Varshney continued.

Varshney says consumer spending is on pace with national numbers and small businesses are booming with confidence.

"We've seen our small businesses basically extremely optimistic about all the different aspects of business going forward for the next six months," said Varshney.

But like every economic cycle, there are peaks and valleys. So how much longer with this peak continue to rise?

" We're probably going to face a major crisis when the next recession hits, which is not too far away," said Varshney.

He continued, saying it's not time to panic, but prepare for the next economic downturn.

"When it does come around, and it's going to come around pretty soon. If not 2017, 18 maybe or 19. Are we prepared for it?"

The forecast shows people can make changes to prepare now especially when it comes to banking cash.

In the Sacramento area people are saving just 2% of their income, compared to 8% nationally.

The numbers may be a sign of tighter budgets and stagnant wages.

"You know personal income has not kept up with the cost of living," said Michele Skupic with Chicago Title. She sat in on the presentation.

The report detailed a widening wage gap and declining middle class. Homes bringing in less than $25,000 or more than $150,000 continue to grow.

"The challenge is going to be again, driving more jobs to the area," said Skupic.

Not any jobs, but higher paying jobs.

Varshney says that's a key take away from their 2017 forecast. The entire report can be found here.

The Sacramento Business Review has put out their forecast for nine years now; this year came with some controversy. One of the 17 authors, Jessica Kriegal, was left out of the presentation of contributors during Tuesday's event.

Kriegal has been outspoken about the all male panel of presenters.

"It makes sense to have a more diverse group of people on a panel so that you have a more diverse perspectives so that you have a more broad range of opinions," said Kriegal. Her name, picture, and biography was included in some of the printed materials.

Kriegal says she reached out to Varshney about her concern of only men presenting the findings and adding their perspective. Kriegal says her concerns were dismissed. She wrote an opinion piece which was published in a local paper earlier this week.

When asked Tuesday night about the panel discussion, Varshney stood by his decision to have the four men present.

"We feel very proud of the team. I think they did a fantastic job," said Varshney.

When asked about a reaction to Kriegal's opinion piece, Varshney said, "It's her opinion. It's unfair. That's her opinion."

Kriegal says she doesn't plan to volunteer her time on future reports.