Six new reports by the American Road & Transportation Builders Association (ARTBA) find that because of the passage of Senate Bill (SB) 1 last year, California could see between $9.7 billion and $34.5 billion in economic activity throughout six of its major regions over the next decade. This activity will in turn help support thousands of new construction and non-construction related jobs, the report says.
To get to these figures, the report calculates direct and indirect economic impacts of the bill, as well as the safety benefits, lower operating costs, reduced congestion, modernized equipment and increased mobility that ARTBA says will come from SB 1 investments.
Also known as the Road Repair and Accountability Act of 2017, SB 1 was signed into law on April 28, 2017. The bill invests $5.4 billion annually over the next decade to fix California’s transportation system.
The in-depth analyses, released July 31, were led by Dr. Alison Premo Black, ARTBA’s chief economist. The reports examine the positive effects that SB 1 could have on the following California regions: Los Angeles County; Inland Empire; San Diego and Imperial Counties; San Francisco Bay Area; and San Joaquin Valley.
The San Francisco Bay Area will see $34.5 billion in economic activity and user benefits over the next 10 years thanks to SB 1, says the report. 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.
Covering the same societal segments and time frame as above, the ARTBA reports found that thanks to SB 1, San Joaquin Valley will generate $20.1 billion in economic activity; Los Angeles County will generate $29.2 billion in economic activity; the Inland Empire will generate $15.6 billion in economic activity; San Diego and Imperial Counties will generate $13.8 billion in economic activity; and Orange County will generate $9.7 billion in economic activity.
These regional reports build upon a statewide analysis of the impacts of SB 1 on California, released by ARTBA last February. That report found that the law will generate nearly $183 billion in economic activity and user benefits throughout all sectors of the state’s economy over 10 years. The additional demand, in turn, will support or create an average of over 68,200 jobs per year, adding up to over 682,000 job-years over the next decade.