Transportation Infra. Investment Generates $200B for CA

Aug. 9, 2021
2 min read

Federal, state, and local infrastructure funding yields nearly $200 billion in economic activity in California and creates 700,000 jobs each year for the Golden State, according to a new report from the American Road & Transportation Builders Association (ARTBA).

In the next 10 years, government investments in California’s transportation infrastructure will 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, ARTBA says.

“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,” said ARTBA Chief Economist Dr. Alison Premo Black, who conducted the research.

The report is accompanied by the launch of a new, searchable online database that breaks down the economic benefits of infrastructure spending in every California county.

According to ARTBA, 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 the Gross State Product (GSP), adding up to $520 billion over 10 years.  
  • Supporting nearly 700,000 jobs 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 80,000 jobs in manufacturing and trade.
  • 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. This 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, and
    • $15 billion in annual federal payroll, income, and business taxes, totaling $151.3 billion over 10 years.

The economic activity is driven by construction spending as well as expenditures on transit operations, planning and design work, right-of-way purchases, construction support, administration, and research.

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