University of Alabama Study Concludes HB 56 Will Shrink Alabama’s Economy by at least $2.3 Billion and 70,000 Jobs

Alabama Coalition for Immigrant Justice: “We Must Repeal HB 56 and Get Alabama Back on Track”

Montgomery, AL – A new study <http://cber.cba.ua.edu/New%20AL%20Immigration%20Law%20-%20Costs%20and%20Benefits.pdf>  from economist Dr. Samuel Addy, the director of the Center for Business and Economic Research at the University of Alabama, provides the latest conclusive evidence that HB 56 has been, and will continue to be an economic disaster for the state of Alabama.  Dr. Addy concludes that  “Instead of boosting state economic growth, the law is certain to be a drag on economic development even without considering costs associated with its implementation and enforcement...While the law’s costs are certain and some are large, it is not clear that the benefits will be realized.”
 
Among Dr. Addy’s key findings:

• By driving some immigrants out of the state and others underground, the law will damage the economy by shrinking demand for the goods and services that Alabama businesses provide. Dr. Addy estimates that HB 56 will shrink the state’s GDP by at least $2.3 billion (1% of the state’s 2010 GDP), and possibly as much as $10.8 billion (6% of 2010 GDP).
  

• Supporters of HB 56 have misleadingly pointed to the declining unemployment rate among Alabamians to argue that the law is “working.” However, Dr. Addy points out: “recent data show employment falling in the four sectors (agriculture, construction, accommodation, and food and drinking places) that are often alleged to employ migrant and unauthorized workers.” Dr. Addy estimates that the law will ultimately cost Alabama 70,000-140,000 jobs.
  

• The supporters of HB 56 who deny that immigrants pay taxes might be surprised to learn that HB 56 is costing the state $57-$265 million in state taxes, with an additional $20-$90 million loss in local sales taxes. This is a staggering cost to the state budget even without considering the costs of enforcing the law and defending it in court all the way to the U.S. Supreme Court, which will cause the cost to balloon even more.
  

Zayne Smith, coordinator of the Alabama Coalition for Immigrant Justice said, “How much do Alabama’s political leaders expect us to pay for their extreme anti-immigrant agenda?  Economists like Dr. Addy know that our development as a state relies on all the residents of the state.  It is time to face the facts: passing HB 56 last year didn’t move us forward, it held us back, and every day that we don’t repeal this destructive and inhumane law our state loses millions of dollars.  Next week, Speaker Hubbard, Senator Marsh and their colleagues in the legislature have an opportunity to give Alabama a fresh start and put us back on the path of economic growth – we must repeal HB 56 and get Alabama back on track. ”
 

The Alabama Coalition for Immigrant Justice is a network of individuals and organizations which seek to provide a united voice dedicated to ensuring the social, legal and civic rights of all immigrants in Alabama. ACIJ’s members work to promote justice for all of Alabama’s immigrants. Please visit www.acij.net
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