Sunday, November 22, 2009
In the news - California Recycling Program
"California recycling program is on the rocks" article.
Fall-out of the recession on supermarket style recycling centers.
Text below in two excerpts from article.
California's recycling program partly has been a victim of its own success, because each redeemed container takes a nickel or dime from funds for subsidies, outreach or operational funds. Redemption rates have risen from 67 percent in 2007 to 74 percent in 2008, and to 85 percent for the first six months of 2009. Meanwhile, beverage sales from January to June were 325 million containers less – about 3 percent – than for the same time span in 2008. Bottom line? Projected revenue has dropped by about $74 million the past year, from $1.15 billion to a projected $1.086 billion. But Chuck Riegle of state budget. (below) said the most painful blow was self-inflicted by the state: Politicians have raided recycling coffers, through loans, to help balance the
The number of supermarket parking-lot recyclers has grown gradually in recent years to about 2,100. But two of the largest operators, Tomra Pacific and NexCycle, announced the shutdown of about 90 centers recently, laying off more than 100 workers. Tomra, which projects losses of $9 million this year, has joined with two other firms to sue the state, seeking to "stop the dismantling" of the program. Exacerbating problems, the scrap value of aluminum cans has plummeted in the past year, and the market for other containers has struggled.
Submitted by Kathy Meeh