Reparations Proposals Would Cost California $800 Billion: Economists

Reparations Proposals Would Cost California $800 Billion: Economists
A crowd listens to speakers at a reparations rally outside of City Hall in San Francisco, on March 14, 2023. (Jeff Chiu/AP Photo)
Travis Gillmore
4/3/2023
Updated:
4/11/2023
0:00

Economists estimated this week that reparations under consideration for black Californians could cost $800 billion, findings they provided to the state’s Reparations Task Force during meetings in Sacramento March 29 and 30.

After two days of discussion, the panel suggested the responsibility of determining individual payment amounts lies with state lawmakers.

Established in May of 2021 with the passing of California Assembly Bill 3121, the task force is composed of nine members, five appointed by the governor, two by the President pro-Tempore of the Senate, and two by the Speaker of the Assembly.

“The issue of reparations is a complex matter, especially when working to determine fair and just compensation,” said Assemblymember Reginald Jones-Sawyer (D-Los Angeles) and a task force member in an email to The Epoch Times March 29. “This process includes input from expert researchers, economists, criminal justice experts, and the legal field, alongside public engagement.”

Vice-Chair of the committee, Amos C. Brown, a member of the board of directors for the National Association for the Advancement of Colored People and who was traveling with Vice President Kamala Harris in Ghana at the time, opened the meeting virtually by saying he was “very pleased with the very thorough, scholarly, relevant, and substantive work” the task force has done.

Drafts of similarly guided proposals in the city of San Francisco were met with criticism this month, as lump sum payments of $5 million per eligible black resident are being considered.

Brown took a moment to respond to those who have said that payout is not tenable.

“Our position is through all the hell, the horror, and the harm that we’ve gone through. If it were a matter based on a sensible, factual plan for reparations, it would even possibly be more than $5 million cash given out to individuals.”

Eric McDonnell, Chair with the African American Reparations Advisory Committee (middle left) speaks at a reparations rally outside of City Hall in San Francisco, on March 14, 2023. (Jeff Chiu/AP Photo)
Eric McDonnell, Chair with the African American Reparations Advisory Committee (middle left) speaks at a reparations rally outside of City Hall in San Francisco, on March 14, 2023. (Jeff Chiu/AP Photo)

But some critics have argued covering the costs would present significant problems.

“The City of San Francisco proposal is completely delusional,” John Dennis, Chairman of the San Francisco Republican Party, told The Epoch Times March 29. “It’s a $50 billion price tag on a city with a $14 billion budget. We can’t afford it on a per capita basis.”

Last week’s meeting was to discuss the group’s final report, due June 1, which will be sent to the state Legislature, which will then decide how to respond and whether to adopt the task force’s proposals.

It has identified five-time frames to be considered for reparations dating from 1850 to the present for various harms, including unjust property takings, devaluation of black businesses, housing discrimination, mass incarceration and over-policing, and health-related issues.

According to the task force, compensation would be calculated for each harm and would be an “initial down payment” and “the beginning of a conversation about historical injustices, not the end of it.”

“Any numbers that arise out of our final report still must go through a final legislative process and debate. These numbers could change as a result of policy decisions,” Jones-Sawyer told The Epoch Times.

Concerns have been raised for the state’s $800 billion plan considering its current 2022–23 budget is $286.4 billion.

Meanwhile, one opponent of both the state’s and San Francisco’s current proposals believes there is a way forward that recognizes concerns and identifies solutions.

“This is something that has been talked about for generations, and there’s pain there that we as fellow Americans should address,” Dennis said about the proposals. “My mind is open, but let’s have the conversation in a serious way, so the community can see what the problems are.”

Travis Gillmore is an avid reader and journalism connoisseur based in California covering finance, politics, the State Capitol, and breaking news for The Epoch Times.
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