Dear BizFed members,
As we rev up our support for accelerating the use of Measure R funds before the Metro board's consideration April 22, I knew you would want to see this hot-off-the-presses report by LAEDC on the significant economic impact Measure R will have for the entire region.
Some key highlights for your quick review:
· Total spending, budgeted to exceed $34.7 billion, will generate $68.8 billion in economic output (measured by business revenues) in the five-county Southern California region.
· Average annual project spending is estimated at $1.157 billion, with an average annual economic impact of $2.292 billion and an annual average of 16,900 jobs with $746 million in annual earnings.
· Over the entire time-span of Measure R, this will add 507,500 jobs with earnings of $22.4 billion.
· The total economic output associated with highway and freeway projects is estimated at $46.3 billion, including new freeways or highways, expanding capacity on freeways and interchanges, and grade separations along major goods movement corridors and sound wall barriers.
· Transit projects including construction of light and heavy rail lines, subway extensions, and bus rapid transit lines will generate $22.5 billion in total (direct, indirect and induced) output for the Southern California region.
· Almost 40 percent of the total output earned by firms will be in the construction industry - and over 43 percent of the jobs generated. However, other industries are also significantly impacted including: manufacturing; real estate; retail trade; accommodation and food services; professional and scientific services; finance and insurance; and health care.
· Total tax revenues collected will exceed $9.3 billion, or an annual average of $310 million. Approximately 70 percent, or $6.6 billion, will be earned at the federal level. More than $2.3 billion in state taxes will be paid over the life of Measure R.
The 19-page report is attached and has detailed year-by-year breakdowns in categories including fiscal impact, job creation and industry-specific impact.
I hope you find this as helpful as I did in reinforcing the very real impact Measure R projects will have on our economy – and am excited that we have a united voice of support for the "30/10" Initiative and accelerating this impact into the next decade!
Tracy Rafter, CEO
BizFed, Los Angeles County Business Federation
818.429.0862 ~ email@example.com
Grassroots alliance of 70 top LA County business groups
Mobilizing over 100,000 business owners