In this part of north-central Arizona, we're seeing the economic downturn in several ways:

--Inventory of unsold houses went from 100 in 2005 to 1100 now.
--All of the towns in the Tri-City area (Prescott, Prescott Valley, Chino Valley) have experienced a serious dropoff in sales tax revenues. The county is feeling the pinch because declining real property values have led to a wave of lower real estate taxes. As a result, county and municipal budgets are in deficit. Teachers have been laid off, raises for all municipal employees have been suspended, and major capital projects (like a new firehouse for our town) have been put off.
--Higher gas prices have led to some employees of our hospital here being unable to get to work; or, if car-pooling, to work assigned shifts.