California Transit Association

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New Study Reports Massive Economic Benefits of SB 1

February 28, 2018

Study shows SB 1 will provide $183 billion in economic benefits to California economy over 10 years
with annual savings for every household of $300 per year

Coalition working to defeat misguided ballot measure that would repeal SB 1

SACRAMENTO – Nearly $183 billion in economic activity and driver benefits throughout the California economy will occur in the next 10 years due to the passage of SB 1, the Road Repair and Accountability Act, according to a new study released today. 

The economic impact report, conducted by the American Road & Transportation Builders Association (ARTBA), found that SB 1’s $54 billion investment into statewide transportation projects would have a significant impact on the entire California economy – in addition to fixing roads and bridges, improving transportation safety, reducing traffic, and providing better access to public transit. 

“SB 1 is already making a profound difference in California, boosting our economy and also making our roads safer and less congested for motorists,” said Roger Dickinson, executive director, Transportation California. “Every driver in every city and county will benefit from road improvements and the economic benefits. Safer roads, less congestion, and improvements to our transportation network will make every Californian’s quality of life better.”

ARTBA researchers found that SB 1 will lead to more than 84,000 repaired or reconstructed lane-miles and the replacement of more than 500 state and local bridges. These improvements will equal more than $500 million in safety benefits for California and its drivers.  

According to the report, SB 1 will create or support 68,000 jobs annually and will add more than $32 billion in earnings over 10 years. SB 1 spending and construction also will contribute $57.9 billion to the state’s gross domestic product over 10 years. 

This report showing SB 1’s benefits to the state comes as certain politicians are seeking to qualify a measure for the November 2018 California ballot to repeal SB 1. 

“SB 1 is helping the California economy sustain its economic growth by supporting thousands of jobs and economic activity each year, something everyone should support,” said Michael Quigley, executive director, California Alliance for Jobs. “We knew SB 1’s impact would be significant and would benefit every sector of California’s economy, not just the construction industry. That’s why any efforts to repeal it are wrong-headed.”

The ARTBA study showed total user benefits averaging $3.8 billion per year in savings for California drivers, transit riders and businesses. This annual savings for California households over 10 years would be nearly $300 annually. 

“SB 1’s ripple effects are wide ranging and we don’t want to throw cold water on these investments,” said Josh Shaw, executive director of the California Transit Association. “SB 1 represents the state’s biggest investment in public transportation in more than 40 years, and will contribute to cleaner air and ease traffic congestion by getting more cars off the road. We will do everything possible to protect SB 1 and the benefits it brings to California.”  

In April 2017, California passed the Road Repair and Accountability Act (SB 1) – which will provide more than $5 billion annually to every California city and county to make road safety improvements, east traffic congestion, fill potholes, repair local streets, freeways, tunnels, bridges and overpasses and invest in public transportation. Money is split equally between state and local projects and comes with strict accountability provisions to ensure funding is spent efficiently and only on transportation projects. SB 1 took effect on November 1, 2017 and road safety and transportation projects are already underway or planned in every community. 

ARTBA’s study will be discussed at an informational hearing of the California State Senate Transportation and Housing Committee, Anaheim City Hall Chambers, on Friday, March 2, at 10 a.m. 

Transportation California, California Alliance for Jobs and the California Transit Association provided funding for the report in an effort to assess the impacts of SB 1 funding on areas of the economy outside of transportation. ARTBA has published several non-partisan economic impact reports on statewide transportation funding through their first-of-its-kind Transportation Investment Advocacy Center. This program and internet resource center helps educate private citizens, legislators, organizations and businesses on different transportation funding initiatives being introduced and implemented in America.  

Transportation California, CAJ and the CTA are also members of the Coalition to Protect Local Transportation Improvements the campaign to educate voters in coming months about the importance of opposing any efforts to repeal SB 1.