The Los Angeles County Traffic Improvement Plan Sales Tax Ballot Measure Could Boost Local Economy

The latest economic forecast by the Los Angeles County Economic Development Corporation (LAEDC) estimated that more than 465,000 jobs and $79.3 billion in economic output would result from infrastructure projects funded by the Los Angeles County Traffic Improvement Plan sales tax ballot measure in its first 50 years. 

The ballot measure would add a half-cent sales tax in 2017 and continue the current half-cent Measure R tax after it expires in 2039. The two would then combine for one cent, which would continue until voters decide to end it. The tax measure would generate an estimated $120 billion in the first 40 years with projects delivered over the 40-year timeframe.

A breakdown of the LAEDC economic forecast showed:

• Transit projects — including the construction of light rail and subway extensions and the construction of bus rapid transit lines — will generate $51.1 billion in total direct, indirect and induced economic output for the Southern California regional economy over the first 50 years of the plan. Work on these projects will create 316,300 jobs with over $17.5 billion in labor income.

• Highway and freeway projects are estimated to have a total economic output of $28.2 billion. These projects include expanding capacity on freeways as well as major bicycle infrastructure projects. The total number of jobs related to these projects is estimated to be 149,390 with almost $8.6 billion in labor income.

• Over $9.5 billion in state, local and federal tax revenues will result from the economic activity generated by these transportation projects over the 50-year analysis period.

If passed on November 8, 2016, the ballot measure would help fund Metro’s Long Range Transportation Plan in the following areas: new transit and highway projects; services for seniors, students and the disabled; bus and rail operations; bicycle and pedestrian connections; ongoing system maintenance and repair; and local street improvements.

The LAEDC will continue economic modeling in the coming months and release a future report assessing the impacts of other non-capital programs proposed in the ballot measure, such as local return of sales tax dollars to the 88 cities in the county for local street improvements and transit operations.