Listen: Robert Lapley, President of the California Business Roundtable.
The California State Assembly this week passed ABX2-1, which even state regulators admit will increase the price of gasoline. But this is just one of many policies the state is pursuing that will drive up the cost of gasoline and the price of everything we use and buy.
This report from the Center for Jobs and the Economy uses data and reports from California and federal agencies and departments to not only explain the reasons for California’s reduced gasoline supply, but also to quantify the impacts to working families and the state and local economy.
California policies have both knowingly and intentionally reduced the gasoline supply in California.
There is no debate that ABX2-1 will increase the cost of gasoline at the pump. To estimate the impacts of ABX2-1 on the economy and household budgets, the report considers three cost-impact scenarios, a 5, 10, and 15 cent per gallon increase. The below scenarios are based on 2023 gasoline usage.
HOUSEHOLD COSTS
- Job Loss California will likely lose between 3,000 and 8,700 jobs.
- Wage and Benefit Reductions California workers will lose between $207 million and $621 million in lost wages and benefits (Labor Income).
- Reduced GDP The state GDP (value added) will be reduced by $385 million to $1.2 billion.
- Total direct costs to Californians: $610 million to $1.8 billion each year.
STATE AND LOCAL TAX REVENUE IMPACTS
- Local Tax Revenue reductions of between $19 and $57 million.
- State Tax Revenue reductions of between $53 and $160 million.
- Total cost to federal, state and local budgets: $102 to $307 billion.
Form more information: https://www.cbrt.org/