Bay Area Council Economic Institute Report: 530,000 new jobs and $16 billion in annual tax revenues
A new report co-authored by the Bay Area Council Economic Institute (BACEI) and Blue Sky Consulting Group reveals the transformative economic and fiscal potential of the next great American city in Solano County, consisting of the Suisun Expansion Plan and the Solano Shipyard.
The analysis concludes that the new city would create a massive and enduring economic engine for Solano County, California, and the United States. Offering America’s largest advanced manufacturing park, its largest shipyard, and the first walkable city built in a century, the projects also directly address several of America’s most pressing challenges: reshoring manufacturing, restoring our shipbuilding dominance, and the housing and affordability crisis.
Key Findings
The research projects that at full build-out, the combined impact of the Suisun Expansion Plan and Solano Shipyard would deliver:
- 530,000+ new jobs, consisting of 225,000 new jobs in the new city and 205,000 new jobs elsewhere in Solano County and across California
- $123,600 average compensation: 25% more than the current average salary in Solano County
- 170,000 new homes of all types
- $16 billion in annual tax revenue: $3 billion for local governments, $4.1 billion for the State of California, and $9 billion for the federal government
A $215 billion investment in California’s future
The report’s analysis shows that together, the Suisun Expansion Plan and the Solano Shipyard represent an unprecedented $215 billion private investment in Solano County’s future, or about $5 billion each year over the 44 year build out.
On average during this period, these investments would support over 17,000 direct construction sector jobs, which would pay an average total compensation of $107,900, and over 12,000 multiplier jobs in sectors supplying construction firms (indirect jobs, like building materials equipment and logistics) and serving construction workers (induced jobs, like healthcare, accommodation and retail).
At build out, over half a million new permanent jobs
The construction impacts outlined above are only the beginning. The analysis by the BACEI explored the scale of permanent job creation that the Suisun Expansion Plan, including the Solano Foundry, and the Solano Shipyard would support. Their research found that, at full build-out, the projects would support over 530,000 jobs statewide, including 225,000 jobs in Suisun Expansion and Solano Shipyard, and another 205,000 jobs elsewhere in Solano County and across California. On average, direct jobs created in Solano County across all sectors will earn $119,200 in total annual compensation, 20% more than existing jobs.
The report also details the types of jobs that would be created:
These are the stable, family-sustaining employment opportunities that California has been missing.
$16 billion in new annual tax revenue
The Suisun Expansion Plan and the Solano Shipyard have the potential to become a massive fiscal engine for Solano County and California, according to the report’s analysis, generating a combined $7.1 billion in annual local and state tax revenue once fully operational.
At full build-out, the BACEI estimated the projects would contribute nearly $3 billion to local governments to support essential public services like schools, infrastructure, and public safety and $4.1 billion annually to the State General Fund. Additionally, the federal government is projected to receive over $9 billion in annual income and corporate taxes. Together, these tax revenues would create a stable, long-term economic foundation for Solano County and the entire state.
An economic engine for the Northern California Megaregion
Ultimately, the Suisun Expansion, including its Solano Foundry, and Solano Shipyard would position Solano County as a new economic engine for the Northern California megaregion. The projects represent more than just a response to recent economic challenges; they establish a permanent, multi-billion-dollar fiscal foundation that will provide a long-term, reliable source of funding for public services across the region for decades to come.
The full report is available at https://www.bayareaeconomy.org/report/suisun-expansion-plan-and-solano-shipyard/.
