UPDATED with latest: Last month’s Palisades and Eaton wildfires caused between $28 billion and $53.8 billion in property damage, with business disruptions projected to result in economic losses of up to $8.9 billion in Los Angeles County alone over the next five years, according to a study published today.
There’s a large delta between $28 billion and $53.8 billion. According to the report, where the final tally falls will be determined by the rapidity of the process and whether a few key best practices are followed.
The report commissioned by the Southern California Leadership Council and the LA County Economic Development Corporation studies the impacts of the destruction and economic havoc caused by the fires, as well as data-driven recommendations to guide recovery efforts.
The study estimates that the fires could lead to up to 49,110 job-years lost and reductions in labor income of up to $3.7 billion, while federal, state and local governments could experience tax revenue losses ranging from $730 million to $1.4 billion.
The report looks at the economic damage and personal toll of the fires and discusses the need for investing in prevention and recovery, former state Gov. Gray Davis, SCLC co-chair, said during a virtual press conference.
“Speed matters in the recovery process … particularly from an economic perspective,” said Davis. “Job No. 1 is to help people rebuild and get back to their new homes…We have to learn the lessons of this fire and previous fires. We have to build homes better…so we don’t repeat this terrible tragedy…Let’s learn the lessons.”
