Aug 15, 2018
ARTBA Estimates Big Economic Impact for SB 1 in California
BY AsphaltPro Staff
You don’t have to tell us twice that California’s Senate Bill 1: The Road Repair and Accountability Act, or SB 1, is great news.
But, now, six new reports have found that SB 1 will generate between $9.7 billion and $34.5 billion in economic activity in California’s major regions over the next decade, alongside supporting or creating tens of thousands of jobs throughout the state—with more than half coming in sectors outside of the construction industry.
SB 1 includes an additional $5 billion, annually, to invest in the state’s highways, local streets, bridges and transit systems.
The analyses were conducted by the chief economist at American Road and Transportation Builders Association (ARTBA), Alison Premo Black, and examine the impact of SB 1 on six major regions of California.
Here are some highlights for those regions:
- In the San Francisco Bay Area, SB 1 will generate $34.5 billion in economic activity and user benefits over 10 years. This includes $9.8 billion in savings for drivers, transit riders and businesses, and $19.3 billion in economic output. In addition, the increased investment will create or support nearly 12,300 jobs per year, totaling 122,932 job-years over 10 years; these workers will earn $5.4 billion.
- In the San Joaquin Valley, SB 1 will generate $20.1 billion in economic activity and user benefits over 10 years. This includes $4.9 billion in savings for drivers, transit riders and businesses, and $11.9 billion in economic output. In addition, the increased investment will create or support over 6,600 jobs per year, or 66,398 job-years over 10 years; these workers will earn $3.2 billion.
- In Los Angeles County, SB 1 will generate $29.2 billion in economic activity and user benefits over 10 years. This includes $6.8 billion in savings for drivers, transit riders and businesses, and $18.0 billion in economic output. In addition, the increased investment will create or support over 9,000 jobs per year, totaling 90,161 job-years over 10 years; these workers will earn $4.3 billion.
- In the Inland Empire, SB 1 will generate $15.6 billion in economic activity and user benefits over 10 years. This includes $3.3 billion in savings for drivers, transit riders and businesses, and $9.9 billion in economic output. In addition, the increased investment will create or support over 4,900 jobs per year, or 49,598 job-years over 10 years; these workers will earn $2.5 billion.
- In San Diego and Imperial Counties, SB 1 will generate $13.8 billion in economic activity and user benefits over 10 years. This includes $3.4 billion in savings for drivers, transit riders and businesses, and $8.1 billion in economic output. In addition, the increased investment will create or support nearly 5,000 jobs per year, totaling 49,455 job-years over 10 years; these workers will earn $2.3 billion.
- In Orange County, SB 1 will generate $9.7 billion in economic activity and user benefits over 10 years. This includes $2.3 billion in savings for drivers, transit riders and businesses, and $6 billion in economic output. In addition, the increased investment will create or support over 2,700 jobs per year, totaling 27,537 job-years over 10 years; these workers will earn $1.4 billion.
ARTBA had previously released a report analyzing the impact of SB 1 statewide, which found it would generate nearly $183 billion in economic activity and user benefits throughout all sectors of the state’s economy over 10 years, which would support or create more than 68,200 jobs per year, adding up to over 682,000 job-years over the next decade.