It could cost California more than $800 billion to compensate Black residents for generations of over-policing, disproportionate incarceration and housing discrimination, economists have told a state panel considering reparations.
The preliminary estimate is more than 2.5 times California’s $300 billion annual budget, and does not include a recommended $1 million per older Black resident for health disparities that have shortened their average life span. Nor does the figure count compensating people for property unjustly taken by the government or devaluing Black businesses, two other harms the task force says the state perpetuated.
In an interview prior to the meeting, Jones-Sawyer said he needed to consult budget analysts, other legislators and the governor’s office before deciding whether the scale of payments is feasible. For those who support reparations, the staggering $800 billion amount economists suggest underscores the long-lasting harm Black Americans have endured, even in a state that never officially endorsed slavery. Critics pin their opposition partly on the fact that California was never a slave state and say current taxpayers should not be responsible for damage linked to events that germinated hundreds of years ago.
Financial redress is just one part of the package being considered. Other proposals include paying incarcerated inmates market value for their labor, establishing free wellness centers and planting more trees in Black communities, banning cash bail and adopting a K-12 Black studies curriculum. The statewide estimate includes $246 billion to compensate eligible Black Californians whose neighborhoods were subjected to aggressive policing and prosecution of Black people in the "war on drugs" from 1970 to 2020. That would translate to nearly $125,000 for every person who qualifies.
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Reparations for Black Californians could top $800 billionEconomists for a California task force on potential reparations for Black residents estimate payouts could reach more than $800 billion for harm caused by policing and housing discrimination
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