Whether businesses need a helping hand, extra storage space or heavy equipment, the Work Training Center is there to make life easier.

The center, a nonprofit organization, is dedicated to supporting people with disabilities as they achieve increased independence in work and leisure. Businesses using the center’s services are not only keeping business local, they’re helping local adults with disabilities earn a living.

The support can be especially helpful for businesses just starting out or businesses that have reached a point where they need to give up space to continue running. Owning a company can be hard work and with the tough economy it may not be feasible to rent workspace or buy delivery trucks.

“Our new tag phrase is ‘The Smart Way to Grow Your Business,’” said Carl Ochsner, executive director, Work Training Center. “We can keep businesses’ costs down and risks at a minimum, yet still allow them to increase product volume.”

The work done by the training center has included putting bottle caps on Klean Kanteens, folding up ChicoBags and making wooden gift boxes for Vino 100. The center has thousands of square feet of warehouse space, delivery trucks, forklifts and a strong work force. It also offers a wide variety of services, everything from assembly to packaging to delivery. Many businesses in the area have utilized these services, including Enloe Medical Center, Sierra Nevada Brewery and S&S Produce and Natural Foods.

“The thing that ChicoBag and Klean Kanteen like about us is that we’re super flexible,” Ochsner said. “We can get things done fast and it’s ok if they have nothing for us to do the next week.”

Hiring new employees can be costly and is impractical when mixed with erratic order flow, he said. The center can be a real asset to businesses that want things done quickly and aren’t looking to hire.

Another beneficial service the Work Training Center can offer is experience. The nonprofit has been around since 1949 and since then has become a big part of Butte County.

The knowledge the company has gained from working with a variety of successful and not so successful businesses has provided insight on how to effectively run a business. This can be especially beneficial for businesses just starting out. If entrepreneurs need help clarifying their ideas, coming up with a packaging design or figuring out how to get into markets outside the county, the Work Training Center can help.

“If you want to be successful, it doesn’t cost you anything to come and talk to me,” Ochsner said. “I might have people, resources and ideas that can really help.”
Ochsner considers the Work Training Center to be a great ally to have that is always there to lend a hand.

“Businesses should see this as another place to call, another supplier and a way to solve problems they might have,” he said.

For more information on the Work Training Center or to take advantage of their services call 530-343-7994 or visit www.wtcinc.org.

By Kayla Cook

I admit there seems to be something oxymoronic about “tweeting with a purpose.” The very tentacles of the social media octopus seem, in many ways, to perpetuate a lack of purpose. If that is taking it too far, at the very least, it’s a dangerous time-drain.
I know for me, without beckoning monastic-like discipline, I can easily get lost in the Twitter, Facebook, LinkedIn abyss. Only to wake up weeks later, wondering why it was I felt compelled to “Tweet this” or “Facebook that.” Alas, I breathe easily knowing such information has a 5-second shelf life—at best. No longer are the days when you have to wait for the next morning’s newspapers to bump your story to the bottom of the birdcage.
If posts, tweets and ‘what’s on your mind?’ are replaced almost immediately after you click the cold plastic keys, is there really justification in engaging? Are nonprofits and businesses creating new and valuable networks over the ethers? Can it help your bottom line or bottom lines (for those in public sphere)? What’s the point?
As the moon made way for the sun I decided to pull a small sampling from my Facebook stream. Here’s a peek, just as they appeared, in order and without edits:
Chico Bag: “The fan photo contest for a FREE ChicoBag ends today at noon! Only a few hours left to get your photos in.”
ARC of Butte County: “The Arc of the U.S. and all children and adults with intellectual and developmental disabilities and their families lost its all time legislative champion with the death last night of Senator Edward M. Kennedy (D-MA).”
Arnold Schwarzenegger: “Video of my tour at Twitter HQ yesterday with co-founders Biz Stone & Evan Williams.”
Friend: “Madonna’s “Sticky and Sweet” tour gets more of a sticky than sweet response when she stands up and speaks out against discrimination.”
Friend: “Golden Valley Bank Founders BBQ tonight.”
Friend: “It’s that awkward time of year when the first three weeks of the U.S. Chess League season conflicts with the WNBA.”
Friend: “I am looking for a husband. Any takers?”
I found this exercise oddly rewarding. First of all, I learned something. I learned quite a few things actually. I didn’t know about the ChicoBag contest and I absolutely love ChicoBags. A few months ago, I was in a World Market in Bend Oregon, and as I reached to grab a pack of gum I bumped into a basket of ChicoBags. The clerk and fellow patrons must’ve thought I’d been stung by a bee. I got so excited to see the little recyclable bags.
I had a similar experience last weekend in the De Young Museum in San Francisco. Here I was taking a cappuccino break in the cafeteria after consuming toxic but scintillating amounts of art, when I caught the reflection of a green labeled Sierra Nevada Pale Ale behind the counter—again, with unadulterated enthusiasm. I don’t know about you but there is a sense of what must only be described as undeserving pride whenever I see such Chico gems outside our city lines.
Clearly, I’ve digressed.
This morning’s Facebook thread taught me about the late Senator Kennedy’s legislative work for people with disabilities. Healthcare, yes, but that he fought hard for children and adults with intellectual and developmental disabilities and their families, I had not known. Our local Golden Valley Bank was having a BBQ—cool. Madonna was talking about something of significance—awesome. The U.S. Chess League conflicts with the Women’s National Basketball Association—um, ok.
But, other than learning stuff, does this better my business? Can these networks be mobilized to action?
The truth is, and not surprisingly, I don’t have definitive answers. A great deal of research has already been done about the impact and role of social media. There are ways to develop effective social media strategies (and tools) for outreach, fundraising, networking and branding.
In fact, I have been working with colleagues to train hundreds of local and international nonprofits about these very things. The North Valley Community Foundation’s curriculum at our Nonprofit Leadership Institute is plowing through new fields, exposing pitfalls to avoid and worthy mountains to climb.
There are countless ways to justify time spent on social media forums. But defining your measurement for success and holding yourself (or your staff) to that measurement is critical. Defining goals and outcomes will reveal what impact these tools are having.
Don’t just do it because (nearly) everyone is doing it…do it with a purpose!
For example, if you don’t have an audience on Twitter, then it doesn’t matter how often you tweet—to whom are you tweeting? If after great consideration, you believe this to be a social tool for you, then the first step would be to build your “twitter followers.” Chris Brogan (one of the best of the best) gives you the play by play in “Get More Twitter Followers TODAY.” Google him—trust me.
Speaking of trust, for most of you, your social media life has something to do with networking. But, that’s a means not an end. Ultimately, we want to be able to mobilize our networks to: donate to our cause, buy products, attend events, etcetera.
If our social media networks have yet to be mobilized, is all for naught? Of course not. You, your company or your organization, are establishing trust. Then, and only then, will you be able to pull off an effective online fundraiser or announce an event and have your e-network attend.
The point here is to be vigilant with your posts. Only share those things that will promote a greater understanding of your business or nonprofit. Make sure that your online presence correlates with the story a client or donor would hear if they left the ether-sphere and entered your bricks and mortar.
Be consistent. Be honest. Share the information and contacts you value most.
I’ll end by sharing the greatest social media gem I have stumbled upon. For anyone, at any point in their social media evolution, meet “Beth’s Blog: How Nonprofits Can Use Social Media.” Tweet it. Facebook it. Blog it. Grab a number #2 pencil or your Underwood Typewriter—just jot it down.
You’ll find a little more purpose behind your tweets, if you do!
Alexa Valavanis is the chief executive officer of the North Valley Community Foundation; a Northern California based nonprofit public charity, managing more than $6.5 million in assets – www.nvcf.org.

By Alexa Valavanis

The Burn

The phrase “speaking truth to power” was coined in 1955, when a Quaker group called the American Friends Service Committee published a pamphlet with the same title. This phrase has, at times since, become almost a cliché. Yet, neither its political nor its religious origins can deter it from being perhaps the most apropos saying of our time. Leaders must be strong and get the help they need to practice rigorous honesty and dispassionate decision making so that they and their businesses will not only survive, but grow stronger because of the substantial storm ahead.
In this time of economic uncertainty, many CEOs we work with are faced with perhaps some of the hardest decisions of their careers: Should my business’ plan be to hunker down for the long, hard winter, or aggressively go after these rare (but potentially high-risk) opportunities while others hibernate? How can I possibly squeeze any more efficiency out of my team? If I burn the ships behind us, will my team scatter or stand strong and face the many challenges ahead? Where are the answers? Which indicators do I follow?
The truth is there are no easy answers to any of these questions. Regardless of your industry, these meaningful questions require exhaustive due diligence. Now, with seemingly little time and even fewer resources, digging deep to ferret out the raw facts, getting in touch with your inner strengths and finding those foundational certainties is the only course of action that will carry the day. Are you doing your due diligence or are you caught in a knee-jerk reactionary cycle of designing plans of action on superficial symptoms? These times call for rigorous honesty, fearless courage, unwavering vision and people with skills to get the job done right. These are the times when transparent individual and organizational development are the heart of the matter.
Yet, knowing this and doing it are two different animals altogether. With the intense and unprecedented financial tidal wave crashing around all of us, it’s no wonder why so many skillful leaders are losing their grip on strategic design and implementation and being sucked into the day-to-day melee of managing “come Hell or high water.” With many financially upside-down for the first time in their lives, too many leaders are still stuck in the vicious cycle of using business-as-usual actions and assessments to gauge their direction, when in fact it’s their own old habits and choices that are taking their businesses deeper into danger. Although it may seem counterintuitive, these are the very times when, more than ever, business leaders need to seek out those who can help them look within for answers. And, although it may not be widely known, it is completely understandable why, according to the Bureau of Labor Statistics, leaders of more than 60 percent of all United States’ businesses are bringing on independent contract consultants to help them do just that.
But, which top-notch specialists do you trust? Find those who not only speak the truth to power despite popular trends or surface turbulence, but those who can bring out the best in you and your team. Those are the people you need to keep you strong through even this perfect storm. Find the help you need to create the cathartic heat your team must have to clean up and stay strong during this fiscal chill. Using the symbolism of the PHOENIX or those who “conquered” the new world, burn your ships as Cortez did and don’t look back. Instead, find your own unwavering inner strength and confidence, and lead your team strategically. Above all, be an exemplar. Through this process, you will rise again, leaner, wiser and stronger.
In these turbulent waters, business-as-usual will drown even the strongest swimmer. Seek outside assistance to help you look within for your truth. This is what individual and organizational development specialists do: get your team not only back to shore, but beyond the familiar to a better, more secure place where honesty, integrity and well-being lead the way.

by Kelly Graves and Liz Peterson Bilinsky

New Wildcat Rec Center

The long-awaited opening of the Wildcat Recreation Center is finally here, just in time for both returning and new students to use the facilities.
The Associated Students of CSU, Chico will open the doors of the Wildcat Recreation Center (WREC) on August 17th; the first day students are able to move into the residence halls for the fall semester.
“We thought it was really important to give our new freshmen the opportunity to use the facility and have some fun before classes start on August 25th,” said Teresa Clements, assistant director–member services for the WREC.
The WREC has everything you would expect in a quality recreation center. The 130,000 square feet provides room for a weight floor with top-of the-line equipment, over 100 cardio machines, a 25-meter pool and spa, 35-foot climbing wall, three full-sized basketball courts, a multi-activity court, four group exercise rooms, locker rooms and a 1/8 mile elevated running track.
The center is a one-stop shop for all students’ exercise and recreation activities. There are fitness trainers available, as well as counseling for nutrition and fitness motivation. Recreational sports will be housed in the recreation center, providing intramural sports, such as soccer, volleyball and flag football. The center is also home to Adventure Outings, the campus outdoor adventure program that provides students with over 40 outdoor trips each semester.
“Never before has Chico State had any space dedicated solely to student recreation use,” Clements said. “The WREC gives our students another alternative when it comes to non-class related activities.”
CSU, Chico has worked to make the campus green and sustainable in every way possible and the WREC is no exception. The Associated Students are very proud of the work they’ve done to make this a sustainable project, Clements said. They have devoted many resources in trying to achieve “Silver Certification” in the area of “Leadership in Energy and Environmental Design” or LEED, which is a rating system, developed by the United State Green Building Council in 1998, to provide a group of standards for environmentally sustainable construction.
The Wildcat Recreation Center is truly a showcase for sustainability. From the sensible use of natural resources, maximizing the use of regional and recycled products, to the renovation of the building site, the WREC serves as a model for green building.
Many CSU, Chico students have been anticipating using the recreation center since they first began building.
“I’m excited that they’re opening up a new gym for us to use,” said Gina Murillo, CSU, Chico student. “It will be nice having new equipment since the old gym was outdated.”
Murillo is most eager to use the pool. The university’s old pool was only open a few hours a day, so the center’s extended hours will bring convenience to students, she said.
The Wildcat Recreation Center will have their official grand opening on August 27th with music, food, giveaways and prizes. The center is open from 6 a.m. to midnight throughout the week and noon to 8 p.m. on weekends. This facility is open to all enrolled CSU, Chico students and paid for by a portion of their student fees. Staff and faculty will be able to purchase memberships at a cost of $200 per semester.
If you have any questions about the Wildcat Recreation Center call 530-898-4444 or e-mail their staff at wrecinfo@csuchico.edu.

By Kayla Cook

By Ryne Johnson

On a beautiful but hot May day in 2001, I rode up to Peter Chu’s restaurant on my newly assembled “townie” and met Steve Kay for the first time. Three hours later, Steve and I had shared personal stories, professional experiences and scribbled out the initial business plan for what would become The ChicoProject, on a dinner napkin. Thus, literally, our company was forged on the very green concept of riding a bike to work.
By steadfastly following a simple ride to work, ride wherever around town approach, my physical condition evolved remarkably and rapidly. In less than a year, I completed my first Wildflower Century then went on that summer to finish the Davis Double Century, the Eastern Sierras Double Century and the first two-thirds of the Terrible Two Double Century—I met my match that day!
Riding my bike to work had become a passion that transformed my physical condition enormously, enhanced my creative thinking, I believe, and gave The ChicoProject a truly unique personality. Simply put, people thought I was the strangest person they had ever had a professional meeting with. “Oh, you rode your bike,” I would hear regularly, “how unusual.”
At first I didn’t pay much attention to these comments. I looked upon being able to ride to work as the one of the great benefits of coming back to Chico after years of commuter slavery in big cities. Within two years, however, notwithstanding all the very clear personal benefits of riding, it became harder and harder to maintain a ride-to-work lifestyle for two inescapable reasons: First, as the success of my company grew, I simply found it increasingly awkward to arrive to meetings sweaty and looking like I had just come from the gym, wearing shorts because I didn’t want my pant leg to get greasy. Second, I just couldn’t find a viable solution for getting my 6-year-old son to and from school in a semi convenient fashion on a bike. He just never could figure out why his father made him ride to school when all his friend’s parents, most of who lived closer to his school than we did, got to drive everyday—very uncool.
The handwriting was on the wall; my days on the bike were numbered. Ultimately, it became a personal struggle to maintain my odd riding lifestyle in the face of professional decorum, family harmony and simple convenience. The forces of modernity ultimately won out and I parked my bike to simply make my life work more simplistically.
Except for the occasional twinge I would experience whenever I would come across a finisher’s patch from a century ride over the next seven years, I really never gave my riding days much thought. I drove an air conditioned car, I arrived to meetings only five minutes late and my son developed a strong since of belonging to his environmentally unfriendly cohort. So what if I put on 20 lbs and elevated my cholesterol to the threshold of needing prescription therapy. I was living the American dream a gallon at a time.
Then Chico’s Ride to Work initiative came along and threw me out of my easy chair. The event really struck a chord with our organization, and I’m pleased to be able to boast that The ChicoProject has won its division two years running. What I’m not pleased about is the fact that both years, I was low man on the contribution list. Why? Well, nothing has changed in eight years: I still can’t afford to arrive to meetings sweaty with a greasy pant leg and my son now needs to be carted all over town, not just to school and don’t get me started on the 8th grade cool thing!
I know there are some hardcore bikers out there who are rolling their eyes saying “Give me a break, wimp,” with their kids riding next to them or strapped in a tow-behind cart. But here’s the point to this article: It’s not about the hardcore converted riders. Or at least it shouldn’t be. Bike to Work Week should be about everyone else as well, and it shouldn’t be just a week. It should be about getting regular people, people who have regular jobs and regular kids to work, school, shopping or play on a bike every day that it’s not pouring rain. If we figure that out, we might change the world.
So how do we do that? First we need to change the dress code and maybe even how we dress. If we made it to “Casual Friday” we can make it to “Bike Friendly Friday” then expand from there to Monday–Thursday. We have “technical” clothing for every other activity, what would it take to develop a fashionable line of clothes with zippered pant cuffs, vented shirts and chafe-proof inseams? Sounds like an entrepreneurial idea that our municipal organizations and community minded businesses could help launch by requesting employees to serve as role models and ride to work sporting their new “Esigner” (for Eco-design) clothes. Employees might find that they could pay for their new togs with their savings at the gas pump and over the long-term, lower healthcare costs.
The spin-off benefits of this transformation might be really interesting to watch. Bike shops might begin to replace car lots. By the way, if you want to see some of the few winners from last year’s gas price hikes that sent everyone else into an economic tail spin, go talk to your neighborhood bike shop owner. Trek and Specialized are huge fans of OPEC and so are their dealers!
Next, imagine if everyone was doing an hour more exercise each day by simply pedaling to and from the office? What would our calorie intake suddenly look like? Our food consumption and composition would likely change dramatically. Back in my riding days I ate anything I wanted and still lost weight. Ultimately, I gravitated to healthier food products that provided me more useful energy. Extrapolated to a community level, we might opt to grow more local healthy food and even develop more useful energy enriched food products to power our pedaling clientele, which sounds like another entrepreneurial opportunity that should also amplify the health benefits of this proposed revolution. Over the long run, we may not need all those health insurance benefits we lost in part due to the oil shock exacerbated recession.
In time we’ll develop new bikes with new solar assist motors to help ease the pain of getting to work, though many of us might choose to live closer to work, town or our children’s school to reduce commute output. This might help change property values and encourage more people to live closer to town while still relieving traffic from our streets. We would telecommute to more distant locations, adding impetus to the development of new bike mounted, voice activated mobile telephone equipment, etc., etc., etc.
Finally, if our kids see us ride to work, the grocery store and the movies they might get back on their bikes with enthusiasm as some of us can remember before we all developed a drive wherever philosophy. We will know we have arrived when our children say, “Ah Dad, do we have to drive? It’s only sprinkling!”
So the next time someone shows up to a meeting at your office with a little sweat on their brow because they chose to ride to the office instead of drive, consider refraining from referring to them as “unusual.” Revolutions have a tendency to start with a few meager souls who tend to appear a bit strange at first but sometimes go on to cause big changes in the world. I look forward to seeing more two-wheeled revolutionaries at meetings that I attend this year.

Ryne Johnson is the CEO of The ChicoProject, LLC, and is also the director for the Center for Entrepreneurship at Chico State. He can be contacted at rjohnson@thechicoproject.com.

By Kayla Cook

In December it was predicted that Shasta Community College would be facing a $2 million shortfall in state funding, but on March 11 they found that no cuts would have to be made—at least for now.

The school found that state budget cuts weren’t nearly as deep as anticipated, and that they would be able to rely on reserves and revenue from additional enrollments.

“We’re hoping that with our increased enrollment and hopefully the continued support of the Governor and the state legislator that the community college system will be able to continue operating and providing learning opportunities for all the transfer students and career technical students,” said Gary Lewis, president of Shasta College.

The college farm, fire hall and heavy equipment program were among the list of programs to be cut. The list of potential cuts was released Jan. 23, and the college was met with a large response from community members.

There were many letters written and e-mails sent in support of the programs, Lewis said. There was even input given that helped provide solutions to a few of the school’s issues.

School administrators are still closely watching some of the programs on the list. They are evaluating the operation of the fire hall and options in terms of food service. The farm has also become a moving target due to the water shortage, and although they have decided to continue the program, they will now have to look at ways to utilize much more water than they did in the past.

In the next few months the college is going to be looking at different ways to be resourceful and help preserve the programs, Lewis said.

They will also be analyzing why the student drop-out rate is increasing. The programs start out with a good number of students and by the second semester that number has dwindled a great deal.

Another issue could arise because of the tremendous growth the community college system is seeing. There is an increase in the number of students that are going to community colleges as opposed to CSU, Chico or a UC. At the moment this is positive for the school, but that looks as if it is soon to change.

“The state is decreasing our funding and we have increased enrollment, so community colleges are facing some unfunded enrollment growth, which means we’re teaching students and not getting paid for it,” he said.

Shasta College employees are working to find innovative ways to provide learning opportunities for students and at the same time reduce costs.

“We’re trying to do everything we possibly can to deal with the budget crisis and not let it have a direct effect on student learning,” Lewis said. “We’re trying to tighten the belt as much as we possibly can.”

By Keith McElroy
Are we in the middle of an accident caused by human error, or are we in a catastrophe that was an inevitable shift? The influence of the Internet and related technologies over the last 20 years points our attention to a shift in the economy. Other factors catalyzed the shift. Baby boomers staging for retirement with lots of money to invest is a factor. The changes in China’s economy and of course 9/11. A crumbling of some things that we have taken for granted can be interpreted as a reminder that changing focus to survive may lead to opportunity.
I recall, years ago, watching a business owner save his company from a major financial loss by bringing his employees together and explaining the economic realities while also providing assurance that he had a plan to survive and would do all in his power to retain jobs. The following six months were dramatic in that margins more than doubled and the deficit loss was followed by exceeding performance beyond what would have happened if the loss had not occurred. His bold leadership paid off.

Opportunities to thrive?

Retail and business spending has a cause-effect aspect that opens doors to observant entrepreneurs. Dramatic reduction in traditional workforce positions leaves under-serviced markets. Corporations will contract out work to smaller, capable companies that understand the critical needs. Consumers will be on the search for ways to improve their quality of life on a frugal budget. For example, the reduction of car purchases will breed new needs for faster, cheaper and easier ways to extend the lives of our aging cars as well as better ways to get around. The movement of baby boomers through the aging process with better health than their ancestors (but diminishing income) will create demand for bridge housing that provides the ease of life of a retirement facility with the youthful independence of a time share. Less driving means we will want to be closer to shopping, dining and mass transit and we will seek to invest less time trying to find what we need.
Consider repositioning yourself or your organization as a facilitator of problem solving amidst the disaster. Learning from the lesson of US Air 1549, imminent danger is followed by heroic leadership, followed by success, followed by jubilation and reflection on the value of pulling together and the seasoned experience of a veteran pilot who responded to the need.

Tools to grow by

Applying technology to the opportunities before you can be a smoother path than you might imagine. Take, for example, these ideas that can accelerate the breeding of a new idea:

1. Use a monthly Intranet service to keep track of your projects and your growing client list. See www.37signals.com and www.salesforce.com. Cost $10 per month and up

2. Rent “by the month” Call Center and automated response. See www.angel.com. Cost $100 per month and up.

3. Develop an informational Web site about your industry. Cost $15 per month and up.

4. Reach out more proactively to existing and new clients with a focus on innovation and problem-solving. See www.constantcontact.com. Cost $20 per month and up.

5. Upgrade the accounting software. Quick Books online provides access anywhere which is handy when you are working hard on a shoe string. See www.quickbooksonline.com. Cost $50 per month and up.

The economic shift is real and the road is difficult. Consider making a migration toward the new global business landscape with technology that does not stretch your budget and increases your value to those you serve.

Keith McElroy is an independent software consultant specializing in development of software for a broad range of businesses and government agencies. Keith may be reached by e-mail at keith@mcelroy-tech.com or by phone at 530-591-3052.

By Dan L. Bay

Market uncertainty rises every time the Dow Jones Industrial Average (an unmanaged index of 30 widely held stocks) takes off on a volatile ride. Investors wonder if we’re facing a downturn or bear market. I know some clients are worried, afraid that if they don’t sell now they’ll lose more money; yet if they do sell, they might miss a rebound. The only certain thing about volatile markets is that they are uncertain.

Fortunately, there is now a way to remain invested in equities while protecting the future income on an existing retirement portfolio. By simply shifting some assets into a variable annuity with a living benefit, such as a Guaranteed Minimum Withdrawal Benefit (GMWB), you can assure yourself retirement income from a known minimum investment—and the amount may be at least twice the amount of your investment.

When you add a GMWB to a variable annuity, the provider tracks a separate “income account” alongside your regular account. The income account is guaranteed to grow at a rate of 5 percent to 7 percent per annum for at least 10 years (no withdrawals allowed ), and it can be tapped to provide a lifetime income equal to 5 percent of its value at the time the income begins. Generally, you have to be at least 59½ to receive lifetime income.

The graph above shows how this concept can work in an extremely poor market. Although the account value shows virtually no growth over the decade shown, its income account grew at 7 percent per year. In any year, you have the option of receiving 5 percent of the income account balance for life.

However, only the account value is available for lump sum withdrawal, and withdrawals over the 5 percent allowed by the GMWB will negatively impact the benefit.

Of course, such a low return over almost 10 years is very unlikely. But suppose this concept was put to the test in a period similar to 1997–2006, based on the performance of the S&P 500? There were strong gains initially, then a three-year bear market followed by

four strong years. You may have seen little progress overall during this 10-year period. But look at the graph below to see how the “income account” works along with the regular account to capture gains during the up years while still growing in the down years.

From 1997 to 1999, the regular account grows faster than 7 percent per year. Therefore, the insurance company increases the “income account” to match the regular account. Each time the “income account” increases (the industry calls it a “step up”), the insurance company compounds the 7 percent on the basis of this higher amount, so any market gains are captured. When the market goes south, as it did from 2000 to 2002, the “income account” continues to grow at 7 percent. Although the market recovered nicely from 2003 through 2006, you can see the regular account is still well below the income account. At this point you can: 1) choose to receive the annuity account value, 2) begin to receive 5 percent income or 3) allow both accounts to continue to grow (you should be aware that some products will stop compounding the 7 percent after 10 years).

Dan L. Bay is a vice president with Tri Counties Bank and branch manager with Raymond James Financial Services located at 780 Mangrove Ave. in Chico. In 2007, Dan was recognized as one of the top 50 bank financial advisors in the country by Bank Investment Consultant magazine, based on production-to-retail-deposit ratio. Dan has been a member of the Raymond James Advisory Counsel since 2002 and has been awarded to the Leaders Counsel in 2002, 2003, 2005, 2006 and 2007(based on production). Dan can be contacted at 530-898-0415 or toll free 1-866-822-4753. Tri Counties Bank Investment Services is a department of Tri Counties Bank and both are independent of Raymond James Financial Services, Inc. Securities and investment advisory services are offered through Raymond James Financial Services, Inc., Member FINRA/SIPC, an independent broker/dealer, and are: ●NOT FDIC insured ●NOT GUARANTEED by Tri Counties Bank or any other federal government agency. ●Subject to risk and may lose value.

Investors should carefully consider the investment objectives, risks, charges and expenses of variable annuities carefully before investing. The prospectus contains this and other important information. Prospectuses for both the variable annuity contract and the underlying funds are available from my office and should be read carefully before investing.
Variable Annuities are long-term investment alternatives designed for retirement purposes and are subject to market fluctuation, investment risk and possible loss of principal. Withdrawals of taxable amounts are subject to income tax and if made prior to age 59½, may be subject to a 10 percent federal tax penalty.
All guarantees are based on the claims paying ability of the issuing company. Guarantees do not apply to the investment performance or safety of the underlying sub-accounts in the variable annuity. Past performance is no guarantee of future results. The selection of additional protection features, options or riders will result in higher variable annuity charges.

While on vacation in China, Pat Furr’s tour guide said that the Chinese tell their students they need to be proficient in two things to succeed in the future—English and computers. This comment stuck with Furr and led her to develop a successful computer renovating organization in Chico, Calif.

“I realized that in America we had very few computers in schools at that time, so I decided to refurbish donated computers and give them to the schools,” Furr said.

In 1993, she got Chico Unified School District to work with her and become a part of her dream, and she started Computers for Classrooms.

In the 21 schools comprising CUSD, there were only about 600 computers in all compared to over 6,000 today, she said.

In 2002, Furr decided to supply computers to low-income families and nonprofits as well, in hopes that everyone will be able to have access to computers, technology and the internet.

A lot of people everyday stop by with equipment for the program, Furr said.

“The past few years we have been placing 5,000 computers per year in schools with non-profits and low-income families,” she said.

The program is run throughout California and is currently sending out 260 computers to middle schools in San Diego and LA. They will be working with Computers for Youth to train parents how to help their children do homework on the computer.

This will really impact the middle school students and their ability to do homework, Furr said.

On top of trying to connect people with technology, they are also working hard to reuse everything that gets sent in.

“Everyone assumes that recycling is great, but that is not true for electronics,” she said “By extending the life of technology, we lessen the need for creating new systems, and the greatest energy expenditure comes during the building of the new product.”

Reusing 100 computers is equivalent to removing 48 passenger cars from the road per year and it saves enough electricity to power 68 U.S. households in a year, she said.

“Reusing is 25 times better for our environment than recycling,” Furr said. “Reduce, reuse and then recycle.

Computers for Classrooms provides incentives for volunteers who devote their time to being a part of this program. The organization has about 40 volunteers that work there a week.

“If volunteers work for 50 hours, they can get a free computer or a laptop,” Furr said. “We have them working on computers, so they also get to learn a lot at the same time.”

Furr’s program has been so prosperous that she was hired by Microsoft last year when the company saw the manual she had made for creating a successful computer reuse program. She created a complete series of PowerPoint presentations and programs with several photographs showing you exactly how to do a complete refurnishing operation, so that Microsoft could create a similar program and give free computers to people in third world countries that really need them.

“They tested the material out in Kenya and Uganda and they had really good reports come back, she said. “They didn’t have anything negative to say.”

The organization also performs studies to find out the importance of computers for students. Last year they worked with Butte College to study how having a home computer can help minority students succeed in school. They came to find that it made a huge difference.

This year they are doing a one-year study with Chico Middle schools and the freshman class at Chico Senior, as well as working with Rob Fairly of UC Santa Cruz to study the effects of having a home computer.

“It’s kind of exciting that we can do these studies that are UC California approved,” Furr said. “Studies that can have national significance.”

Furr’s main goal is to “close the digital divide” and place systems with those least likely to have them.

“I passionately believe that everyone needs access to technology and the Internet,” she said. “It isn’t fair for students to compete for college scholarships or grades when some can afford to have computers at home while others can’t. It would be my hope to have access to computers and the Internet for everyone.”

If you have a computer you’d like to donate, drop it off at Computers for Classrooms anywhere from 9 a.m. to 5 p.m. For more information on the program or to become a volunteer contact Furr at 530-895-4175.

- Kayla Cook