New analyses of the California Chamber of Commerce ballot measure to streamline and modernize the construction of essential projects find it could result in a multibillion-dollar boost to the state’s economy and, in turn, add new jobs and revenues to help pay for vital government programs.
Separate reviews by the nonpartisan Legislative Analyst’s Office (LAO) and the Blue Sky Consulting Group, a research firm comprised of veteran state policy experts, found ample evidence of the economic benefits contained in the Building an Affordable California Act (BACA).
“The results of these in-depth studies are not only a reflection of why we want voters to take action in 2026, but also why we are so sure the proposal is key to California’s long-term prosperity,” said CalChamber President and CEO Jennifer Barrera. “Our state has so much potential that’s being locked up by well-intended but outmoded processes, and the Building an Affordable California Act will be a catalyst toward making the state a more affordable place to live and work.”
‘Likely to Result in Savings’
The LAO review, issued on Dec. 10, 2025, found that the net effect of BACA provisions — especially those related to shortened time limits for agencies and the courts — would “likely result in savings in the longer term.”
Analysts also concluded that inflationary costs of public works projects could decrease under new timelines for review. Completion of more private sector projects, the LAO report points out, “could lead to an increase in tax revenues, such as property tax revenue.”
The Impacts of Even Modest Changes
The Blue Sky Consulting Group report found that even a 5% increase in annual statewide spending on essential projects — as defined in the Building an Affordable California Act — could generate $12 billion a year in additional economic output and more than 38,000 new jobs in construction and other sectors.
The resulting wages, profits, and taxable sales would, in turn, add some $220 million a year to California’s general fund and $89 million in annual revenue for local governments.
The Blue Sky report notes that increased productivity in the construction sector will “allow firms to produce more output given the same inputs” — in essence, more bang for the buck.
Costs will also go down, the report’s authors conclude, when a project’s backers are no longer saddled with indefinite delays and bureaucracy.
“These delays impose costs in the form of uncertainty,” they write, “given that investors may require a higher rate of return to compensate for the uncertainty and development costs may increase by more than the rate of inflation during the delay period.”
Government costs are also likely to go down.
The current open-ended reviews “impose significant time burdens on government staff, who must prepare updated technical analyses, draft revised impact studies, and coordinate the review process across several public departments,” the report notes. It also points out that local and state governments would see cost pressures go down when building their own public works projects.
The Building an Affordable California Act, a comprehensive plan to modernize the permitting process while keeping all the state’s environmental protections in place, will soon receive title and summary from the Office of the Attorney General and is on track to appear on the ballot for voters to consider in November 2026.
