Reparations for Black Californians could top $800 billion

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.

Black residents may not receive cash payments anytime soon, if ever, because the state may never adopt the economists’ calculations.

The reparations task force is scheduled to discuss the numbers Wednesday and can vote to adopt the suggestions or come up with its own figures. The proposed number comes from a consulting team of five economists and policy experts.

“We’ve got to go in with an open mind and come up with some creative ways to deal with this,”

said Assembly member Reggie Jones-Sawyer

Reggie Jones-Sawyer is one of two lawmakers on the task force responsible for mustering support from state legislators and Gov. Gavin Newsom before any reparations could become reality.

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.

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.

But the task force must now settle on a cash amount as it nears a July 1 deadline to recommend to lawmakers how California can atone for its role in perpetuating racist systems that continue to undermine Black people.