Two tumultuous weeks in the financial and banking industries and a protracted debate in Congress about a $700 billion bailout have taken their toll, forcing individuals and families in the Coachella Valley to make hard financial decisions.

Here are six stories of desert workers and business owners dealing with the effects of the ailing local and national economies.

Restaurants shutter

Nearly two years after opening his Cali Pasta restaurants in Palm Springs and Palm Desert, Keith Haskins was forced to close.

His business partner also was involved in home construction. The valley's housing market started to decline, and that put the restaurants in jeopardy, he said.

“We couldn't keep funding the restaurants” with business slowing and rent remaining high, Haskins said. “It would have been nice for the federal government to bail my (butt) out a year and a half ago, to put it bluntly.”

Haskins wants to return to business, but he is waiting for the economy to recover. For now he continues to rent a home in Rancho Mirage and cut back on any extra spending.

“I just kind of put everything on hold and just survive,” Haskins said. Single mother living on less; a teacher out of work. Their stories on A9

Tough decisions

Claudia Casillas, a single mom living in Coachella, said she's been hit “very hard” by the economic downturn.

The 25-year-old works as a finance manager at the Dodge City Chrysler Jeep auto dealership in La Quinta and depends on commission for her income.

But auto sales have dropped — from about 140 car sales per month in 2005 to about 40 to 60 today at the dealership, Casillas said.

That's taken a toll on her income. When sales were good, she would earn about $5,500 a month. These days, she makes the equivalent of minimum wage, she said.

The drop in income has left her with difficult decisions. In recent months, Casillas has:

Taken her 5-year-old son, Chris, out of an after-school, child care program costing $450 to $500 per month. He now stays with relatives on weekdays after school.

Canceled health insurance for herself and Chris. Casillas said her work provides an insurance plan, but it was a stretch to pay for it. She found a more affordable one on the open market. Even still, it was too costly in these tough times, she said.

Cashed-out three weeks of vacation to take the income instead. That means less time for her to spend with Chris outside of long hours at work, Casillas said.

Taken out a loan to afford the coming month's mortgage payment. Casillas said she didn't know how she'd pay for the following month.

The Cathedral City native bought her Coachella home in 2007. The loan rate hasn't gone up, but her income has gone down — putting the mortgage payments out of her reach. She regrets purchasing it.

Considered borrowing against the funds in her 401(k) savings plan, which would incur a penalty, to get more income.

Applied for other jobs, including administrative work with the Larson Justice Center and Riverside County, where income isn't so affected by swings in the economy.

Doesn't go to the movies, which she used to do about twice a week. She doesn't buy new shoes, clothes, DVDs or video games for her son.

Casillas said she now takes her son to the park, which is less costly. They were at Ruth Hardy Park in Palm Springs on Sunday. “This is our entertainment,” she said.

Endless job search

Jeff Moomaugh, 48, recently returned to Cathedral City from Arizona after a 10-year hiatus.

He's a schoolteacher — the problem, he said, is none of the local districts have been hiring due to the record budget impasse, plus cuts to education.

“I'm having a horrible time finding a teaching job,” Moomaugh said Sunday, while hanging out at the Fountain of Life in Cathedral City. “There's just nothing out there.”

He left his teaching gig in Arizona in May, but he's been searching for a new job for about a year.

“They're screaming for math and science teachers, but they won't hire them” due to the state budget woes, Moomaugh said.

Moomaugh owns a home in Cathedral City with Marc Stites, 51. Moomaugh is living off savings, and he has $40,000 in student loan payments. “The sooner I start working, the sooner I start paying it off,” he said.

He's not sure how long he can continue to search locally for school jobs before he has to consider other options.

“Usually (the districts) are crying for substitute teachers. It's definitely changed in the last three to six months.”

He's already applied for jobs at several desert cities, Moomaugh said. “I'm just hoping something's going to pan out.”

Riding the ripple

More and more people are cutting back expenses, but the market for an inexpensive breakfast is still strong at The Jelly Donut in Palm Springs, owner Nick Fong said.

“Right now we're pretty busy, but I don't know what the future will bring because eventually it will have a ripple effect,” he said, adding that people seem to be favoring donuts over a more fancy — and more costly — restaurant meal.

The donut shop has been at the intersection of Vista Chino and Sunrise Way for almost 14 years.

Fong did have to raise prices last year — an extra nickle per donut — because the cost of raw ingredients kept climbing.

For now, Fong is just hoping things stabilize and don't get worse.

“If people don't have the money, they're not going to spend,” he said. “It doesn't matter how cheap your product is.”

Unfamiliar territory

Richard Parker, 46, was looking for a job on Tuesday.

“I just got laid off. I've been with Redi-Mix for 20 years,” said the Palm Springs resident.

He worked for the Thousand Palms plant for about three years before the construction market downturn put him out of a job seven months ago.

“Seventy percent of our business is new home construction,” he said.

Even though the cement business is all he's ever known, Parker said he's been dropping by local grocery stores looking for work. He was at an Albertsons in Palm Springs on Tuesday.

“I have to find a different field,” he said. “Trying to fit into a job you have no experience doing (is difficult).”

Parker said he's not picky about what kind of work he ends up finding.

“I'll work for minimum wage just to get the benefits,” he said.

Ready, willing, able

Despite the troubles in the banking industry, Palm Springs Motors is not having trouble making loans for car sales, General Manager Scott Simmers said.

But actual sales are a different story.

High gas prices and a decline in the construction business have contributed to about a 40 percent drop in sales, Simmers said. The truck segment is feeling the impact the most.

The Cathedral City dealership, along with many other car dealers, has a captive finance company.

Ford Motor Credit does the majority of the loans for Palm Springs Motors, and the dealer has not seen an effect from the most recent bank failures and stock market drops, Simmers said.

“We really haven't had any change in the bank's buying habits,” Simmers said. “We're ready, willing and able.

“You've just got to stay on top of your expenses and ride the storm out,” Simmers said.