September 27, 2021
  • 12:12 pm AASHTO Signs Letter Urging Passage of Infrastructure Bill
  • 12:10 pm Finalists Selected for America’s Transportation Awards
  • 12:06 pm FTA Making Nearly $410M Worth of Bus Grants Available
  • 12:01 pm USDOT Gives ‘Infra Extra’ Tag to 44 Transportation Projects
  • 11:57 am FAA Issues $431.8M in Grants for 60 Airport Projects

Federal, state, and local transportation infrastructure funding yields nearly $200 billion in economic activity and creates 700,000 jobs annually for California, according to a new report from the American Road & Transportation Builders Association.

[Above photo by Caltrans]

ARTBA added in its report that, over the next 10 years, investments in California’s transportation infrastructure should grow from $40.4 billion in 2021 to $52.6 billion in 2030. That means that every $1 spent on infrastructure in California creates $4.30 in economic activity, the group noted.

Alison Premo Black

“With California so dependent on transportation infrastructure, our research shows that investment in roads, bridges and transit systems clearly yields significant benefits, helping underwrite the Golden State’s continuing economic expansion,” explained Alison Premo Black, ARTBA’s chief economist, in a statement.

Accompanying ARTBA’s report – entitled “The Economic Impacts of Highway, Street, Bridge, & Transit Investment in California” – is a searchable online database that breaks down the economic benefits of infrastructure spending in every county in California.

According to ARTBA’s study, California highway, street, bridge, and transit investment will support $200 billion in annual benefits over the next decade, including:

  • Generating nearly $101.5 billion annually in economic output as businesses throughout the economy sell goods and services to both other businesses and consumers – totaling $1 trillion over 10 years.
  • Contributing $52 billion per year to California’s gross state product or GSP, adding up to $520 billion over 10 years. This accounts for nearly 2 percent of total GSP.
  • Supporting nearly 700,000 jobs on average each year throughout the economy, with 86 percent of the employment outside of the construction industry. This includes an estimated 220,000 jobs in transportation and warehousing, 80,000 jobs in manufacturing and trade, and 68,000 jobs in professional and business services.
  • Earnings for workers of nearly $30.3 billion in wages annually, totaling $303 billion over 10 years.
  • Adding $21.2 billion in tax revenues each year, totaling as much as $212.2 billion over 10 years. That includes $6 billion in annual state and local tax revenue from payroll, business, income, sales and use taxes, totaling $60.9 billion over 10 years, plus $15 billion in annual federal payroll, income, and business taxes, totaling $151.3 billion over 10 years.

ARTBA said that construction spending as well as expenditures on transit operations, planning and design work, right-of-way purchases, construction support, administration, and research is what drives “economic activity” described in this report.

ARTBA compiled this report on behalf of the California Alliance for Jobs, California Transit Association California State Association of Counties, and the League of California Cities.

editor@aashto.org

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