(NewsGlobal.com)- Economic analysts estimate that California’s proposed reparations plan could cost the state more than $800 billion, more than 2.5 times the state’s $300 billion annual budget, the Associated Press reported.
What’s more, the $800 billion reflects the cost of compensating black Californians for housing discrimination, over-policing, and other supposedly systemically racist policies. But that $800 billion doesn’t include the proposed $1 million payments to every older black resident struggling with health disparities or the cost to those whose properties or businesses were devalued by the government.
On Wednesday, the California reparations task force met to discuss the final budget before it adopts the final version of its reparations proposal to send to the California legislature.
The current proposal was calculated by a team of consultants created in 2020 by Governor Gavin Newsom consisting of five economic and policy experts.
However, black residents may not receive anything from California taxpayers unless the legislature and Governor Newsom approve the proposal. And if reparations are approved, the amount will ultimately be up to them.
Task force chair Kamilah Moore told the Associated Press on Wednesday that it would be up to the legislature to determine the amount of the reparations based on what the team of consultants recommends.
Moore explained that the task force was responsible for creating “a methodology” for calculating the “various forms of compensation” corresponding with the panel’s findings.
The $800 billion estimated price tag includes $246 billion to compensate blacks whose neighborhoods faced aggressive policing during the “war on drugs” from 1970 to 2020. That breaks down to an estimated $125,000 for each person who qualifies, the consultants determined.
Compensation for redlining in housing mortgages is estimated to cost another $569 billion, according to the consultants. That would break down to approximately $223,000 per eligible black resident from 1933 to 1977, assuming all $2.5 million California blacks are eligible.