Estimate to compensate Black residents for generations of discrimination is over 2.5 times state’s annual budget
It could cost California more than $800bn to compensate Black residents for generations of over-policing, disproportionate incarceration and housing discrimination, economists have told a state panel consideringThe preliminary estimate is more than 2.5 times California’s $300bn annual budget, and does not include a recommended $1m per older Black resident for health disparities that have shortened their average life span.
The estimates for policing and disproportionate incarceration and housing discrimination are not new. The figures came up in a September presentation as the consulting team sought guidance on whether to use a national or California-specific model to calculate damages. 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 $246bn 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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