Proposition 16 Economic and Employment Costs

Case of State Transportation Contracting

  • Proposition 16 will result in a $10.5 Billion Increase over a Period of 10 years in California State Highway Construction and Repair Costs:
    • $7.3 Billion in Higher Construction and Repair Expenditures.
    • $3.2 Billion in Higher Costs for Catching up with California Department of Transportation’s Deferred Maintenance Backlog.
    • As fewer roads and bridges get repaired and transportation costs go up, economically disadvantaged households will bear the overwhelming burden having to drive longer and farther to work, spending more on gasoline and car repairs, and suffering the associated health consequences.
  • Proposition 16 will result in a $5.6 Billion Increase over a Period of 10 Years in State Procurement Costs:
    • The California Department of General Services will See Expenditures on Procurement Rising by $560 million per year.
    • $432.92 Increase per California Household.
  • Proposition 16 will lead to 50,000 fewer jobs:
    • A 0.26% Increase in Unemployment.
    • Job Losses Disproportionately Affect Minority Workers (60% the Labor Force).

Analysis by Economist Sean Masaki Flynn

Higher Tax Burdens, Longer Commutes, Higher Cost of Living, Decreased Quality and Quantity of Public Transportation Infrastructure, Environmental Cost…