Reports of financial problems in California appear to be greatly exaggerated. What else can explain the recent news out of California that The Governator signed legislation that will permit the construction of a new football stadium in City of Industry, an LA suburb. The stadium will cost an estimated $800 million (subject to the usual cost over-runs, so better make that a billion or so by the time it’s all said and done) and will be “green.” Of course it will.
It also appears that someone in the governor’s office has been drinking the economic impact Kool-Aid. According to the press release put out by Governor Ah-nold, this new stadium will “generate 18,000 jobs and $760 million in annual revenue.” I think that the last 30 years of economic research showing no tangible economic benefits from professional sports stadiums has not yet reached California.