Management & Operations

LA Metro: Measure R sales tax adding 400K jobs, $80B to economy

Posted on April 20, 2016

The Gold Line, which launched earlier this year, was funded by Measure R, the half-cent sales tax measure approved by the voters of LA County in 2008.
The Gold Line, which launched earlier this year, was funded by Measure R, the half-cent sales tax measure approved by the voters of LA County in 2008.

An updated estimate on the economic impacts of Measure R, the voter-approved half-cent sales tax, projects the initiative will contribute 426,980 jobs and $80.7 billion in economic output and $27.1 billion in labor income across the five-county Southern California region over the 30-year life of the tax measure, the Los Angeles County Metropolitan Transportation Authority (Metro) said.

The projections were included in a Metro-commissioned study by the Los Angeles County Economic Development Corporation and included in Los Angeles Mayor Eric Garcetti’s annual State of the City address.

“As Measure R projects are built and budgets are updated, estimates of the economic impacts must be updated as well,” said Metro Board Chair and Los Angeles County Supervisor Mark Ridley-Thomas. “The latest updates show that Measure R is fueling L.A. County’s economic engine.”

Measure R was passed by nearly 68% of Los Angeles County voters in 2008. The initiative named a mix of highway and transit projects designed to improve transportation and ease traffic. Total spending on proposed transportation projects over 30 years will be at least $51.1 billion.

The combined labor income and business revenues are estimated to be $67.7 billion for highway and freeway projects. The projects include new roadways, expanding road capacity, construction of bridges and underpasses to separate road and railroad tracks and new sound walls. The total number of jobs related to these projects will be 253,100.

Transit projects, including construction of rail lines, subway extensions and building bus rapid transit lanes, will generate $40.1 billion in total combined labor income and business revenues for the Southern California regional economy. The projects will create 173,880 total jobs.

In addition, the economic activity generated by the projects over the 30-year construction period will generate at least $9 billion in state, local and federal tax revenues.

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