The Economic Impact of Senate Bill 1 on California
Prepared by: the American Road & Transportation Builders Association (ARTBA)
A study by the American Road & Transportation Builders Association (ARTBA) found that the ripple effect from passage of SB 1, the Road Repair and Accountability Act, will result in nearly $183 billion in economic activity and driver benefits throughout California.
The study demonstrates how funds from SB 1 dedicated to improving California’s highways and local streets, bridges, and transit systems provide broad economic benefits to every community in California and improve overall quality of life.
According to the study, SB 1:
- Total user benefits will average $3.8 billion per year ($38.2 billion in 10 years) in savings for California drivers, transit riders and businesses—an annual savings of nearly $300 per California household.
- SB 1 will support the repair, repaving and reconstruction of over 84,000 lane miles on nearly 19,000 miles of roadway, including work on more than 18,300 lane miles of urban interstate, and 7,000 lane miles of rural interstate over 10 years to help ease traffic congestion.
- Better roads mean safer roads, adding up to $584 million in additional safety benefits, including reduced costs from highway crashes, fatalities and property damage.
- Operating costs for drivers will decrease by an average of $818 million per year, or $8.2 billion over the next 10 years.
- Additional investment under SB 1 enables the replacement of an additional 556 state and local bridges resulting in 387 fewer structurally deficient or functionally obsolete bridges across the state.
- SB 1 will support an additional 68,203 jobs on average each year adding up to 682,029 jobs over 10 years.
- Those workers will earn a total of $3.3 billion per year, resulting in $33 billion in additional earnings over 10 years.
- Sales and output by businesses in all sectors will increase by $112 billion.
- $145 billion in additional output and earnings, which will contribute $58 billion to gross state product.
“SB 1 is already making a profound difference in California, boosting our economy and also making our roads safer and less congested for motorists. 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.” Roger Dickinson, executive director, Transportation California
“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. 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.” Michael Quigley, executive director, California Alliance for Jobs
“SB 1’s ripple effects are wide ranging and we don’t want to throw cold water on these investments. 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.” Josh Shaw, executive director of the California Transit Association
SB 1 provides more than $5 billion annually to make road safety improvements, ease traffic congestion, fill potholes, repair local streets, freeways, tunnels, bridges and overpasses and invest in public transportation in every California community. It is supported by a broad-based coalition representing local government, business, labor, social justice advocates, community groups, public safety leaders, transportation advocates and taxpayers.