Bay Area Council Releases Results of 22nd Annual Bay Area Poll.

Business/News Editors

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 11, 2002

Region's Most Comprehensive Measure of Public Opinion Reveals

Transportation, Corporate Governance, Internet Usage

and Airport Safety on Minds of Bay Area Residents

The Bay Area Council today released the results of the 22nd annual Bay Area Poll which finds that just getting from point A to point B (or traffic) poses the number one problem for people in the Bay Area. Traffic has remained the biggest issue of concern for Bay Area residents for the seven years running. Besides traffic with 32 percent, the other top concerns for residents include: The economy (20%), housing (12%), unemployment (6%), crime (6%), and homeless (5%). The Poll was conducted with 600 Bay Area residents between September 18-25 by the Field Research Corporation and has a margin of error of plus or minus 4 percentage points. The results are intended to serve as a tool for the region's policymakers to help guide them in their decision-making.

"Clearly, transportation woes still plague residents. Although building new roads and other such measures are being taken, mobility is not improving commensurately. We need to accommodate residents by building an adequate supply of housing close to job centers," observed Sunne Wright McPeak, President and CEO of the Bay Area Council, which commissions the Field Research Corporation each year to conduct the Bay Area Poll.

While the economy also continues to rank high on the list of concerns, Corporate Governance is another hot-button business issue: 71 percent of respondents confirmed that corporate wrongdoing has diminished their confidence in the financial reporting system. Other issues of note in this year's Poll include quality of life, financial state of families, fears of terrorism and airport safety, technology usage and the Digital Divide.

The Economy

When asked specifically about whether they expected regional economic conditions to improve or worsen in the coming 12 months, 41 percent of the residents surveyed expected improvement, while 36 percent saw the economy staying the same. Nineteen percent predicted a worsening economic scenario for the region. These opinions mirror the views of 407 CEOs and business executives confidentially surveyed in the Business Confidence Survey released by the Bay Area Council in November.

Corporate Governance

For many, 2002 will be known as a year in which Corporate Governance became the hot-button business issue and made individual investors flee the public markets. Given that more than two-thirds (or 69 percent) of Bay Area residents or their family members have had money in stocks or bonds at some point in the past year, the Poll respondents were well qualified to comment on corporate governance issues. A full 71 percent of respondents confirmed that corporate wrongdoing had diminished their confidence in the financial reporting system. Additionally, 59 percent of Bay Area residents indicate that overall decline in the stock market over the past few years has been either a "somewhat serious" or "very serious" problem for themselves personally or their family.

How did Bay Area residents respond to the scandals and stock market decline? More than half, or 54 percent of respondents, have decreased their share of investment money in stocks or bonds and only 6 percent increased their investment, compared to a year ago.

Quality of Life

Concerning quality of life in the region, 72 percent of Bay Area Poll 2002 respondents think that things are going "very well" or "somewhat well," versus 77 percent last year. While these numbers are still reasonably upbeat in the abstract, Poll respondents felt that 13 of 14 specific quality of life components had worsened over the past year. The only issue seen to have improved is "the supply of energy." The six quality of life issues that have suffered the most over the past year in order of degree of decline are: unemployment, the economy, the cost of housing, poverty, homelessness, and then the cost of energy. The three quality of life issues that have remained the most stable over the past year -- not significantly worse or better -- are: environmental quality, the adequacy of public transportation, and crime.

Financial State of Families

More than a third of Bay Area Poll respondents, or 37 percent, report that they and their families are financially worse off than they were one year ago. Thirty-six percent said that their financial condition is the same, while 27 percent find themselves better off. A hefty 74 percent of respondents added that the Bay Area is in economic "bad times." Last year, 31 percent of respondents reported they were worse off than in 2000, and another 31 percent said they were better off than the previous year.

Fears of Terrorism and Airport Safety

Fears of terrorism in airport terminals have done little to shake the resolve of most Bay Area travelers. Inconvenience plays a much greater role in travel decisions. Twenty-nine percent of the respondents say that fears about terrorism have a "great deal" or "some" effect on their desire to travel, while 42 percent say longer check-in lines and 47 percent say take-off and arrival delays impact their desire to travel.

A significant 38 percent of Bay Area residents report feeling safer while traveling, compared with only 12 percent of respondents who felt less safe than a year ago. Two-thirds of Poll respondents (66 percent) feel that the new security measures are effective in reducing the likelihood of a future terrorist attack. According to Poll respondents, there is still much to be done, however: 82 percent said there are additional measures to take in order to safeguard the skies. One possibility, according to respondents, is arming pilots: 63 percent of respondents feel that pilots should be allowed to carry firearms.

Technology Usage and the Digital Divide

The Bay Area Poll 2002 finds the region's residents advanced and sophisticated in their technology use. Three quarters (75 percent) of the surveyed Bay Area residents regularly access the Internet and online databases at work or at home, up three points from the 72 percent Internet user finding in 2001. Most registered computer usage in the Bay Area takes place at home (68 percent), while only 38 percent of respondents reported using a computer at work. The Poll also finds that the region is well prepared to serve as an early adopter of next generation services, including broadband products.

Despite the pervasiveness of technology in the Bay Area, the Digital Divide continues to persist. While 65 percent of those who make under $40,000 use a computer, 92 percent of those who make over $80,000 use one. For those who make over $80,000, 53 percent use either High Speed Cable or DSL and for those who make under $40,000, only 27 percent use these broadband technologies.

About the Bay Area Poll

A total of 600 residents of the nine-county Bay Area were surveyed by Field Research Corporation during the period of September 18 through September 25, 2002. Survey respondents were selected using a random probability sampling technique that gives all residents with telephones an equal chance of being selected for the survey. Interviewing was conducted by means of computer-assisted telephone interviewing.

The sample was stratified to obtain representative samples in each of six Bay Area regions: Alameda County, Contra Costa County, San Francisco County, San Mateo County, Santa Clara County and the North Bay counties of Marin, Napa, Solano and Sonoma. After the completion of interviewing, the sample was weighted to conform to the known demographic parameters of the adult population in each region. Percentage responses are rounded according to standard statistical procedures, with responses at 0.1-0.4 rounded down to 0, and responses at 0.5-0.9 rounded up to 1.0. Findings based on the overall sample of 600 Bay Area residents are subject to a sampling error of plus or minus 4 percentage points at the 95% confidence level, and findings based on separate county samples are subject to larger sampling error estimates.

About the Bay Area Council

The Bay Area Council established The Bay Area Poll in 1980. The Bay Area Council is a CEO-led, business-sponsored public policy organization founded in 1945 to promote regional economic prosperity and quality of life. The Council presents a strong, united voice for more than 275 major Bay Area employers and coalition partners to help shape public policy affecting transportation, environmental quality, economic development, housing and land use, sustainable development, water policy, energy, education and workforce preparation, and telecommunications infrastructure.

For more information on the Bay Area Council, go to www.bayareacouncil.org or http://www.bayareacouncil.org/pubs/bap/2002BAP.pdf.