The Los Angeles Area Chamber of Commerce revealed on Thursday preliminary estimates from the Los Angeles Economic Development Corporation (LAEDC) on the financial impact of the recent wildfires in the Los Angeles area.
The estimates account for property damage, lost wages, and other economic losses. Based on LA County fire maps and data from the Palisades and Eaton areas—home to the two largest fires—LAEDC reported approximately $53.8 billion in market-value property damage. The potential tax revenue loss is estimated at nearly $466 million.
In addition, the wildfires have significantly affected employment in the region. LAEDC estimates $1.2 billion in lost wages, with 15,000 jobs impacted and nearly 2,000 companies affected. Total economic losses from the disaster are estimated at $2.9 billion.
In response, the California State Assembly unanimously approved a $2.5 billion emergency fire aid package on Thursday to assist with recovery efforts. According to FOX LA, aid proposals include evacuation efforts, survivor sheltering, and household hazardous waste removal. Lawmakers also allocated $4 million to expedite rebuilding approvals for local governments and $1 million to help school districts rebuild affected facilities.
“We want to get these dollars out in real time, so there’s no anxiety and stress associated with that,” California Governor Gavin Newsom said during a press conference. “We’ll be talking a lot more in the upcoming days about next level philanthropic efforts. We’ll continue to do more to raise the bar of expectation and excellence as it relates to the work that FEMA and the SBA are doing.”
As of Friday, CalFire reported that the Pacific Palisades Fire is 77 percent contained. The Eaton Fire has been 95 percent contained.
