Task force economic experts say the current wealth disparity between Black and white California households — pegged at $350,000 per person — is the best indicator of the impact of racism. 

They also calculated the costs of other harms African Americans endured and estimated Black Californians could be owed more than $800 billion total, for decades of over-policing, disproportionate incarceration, home seizures and housing discrimination. That is more than two-and-a-half times California’s $310 billion annual budget. Yet it does not include a recommended $1 million per person to older residents for health disparities that shortened their average life span.

If those debts were paid, where would the money come from? 

Some people suggested tapping tax revenues from marijuana sales. Evanston, Illinois, a Chicago suburb, voted in 2019 to allocate $10 million of its marijuana tax revenues to reparations initiatives addressing gaps in wealth and opportunity for Black residents. 

Others told California’s task force the state should create a “superfund” with taxes and donations paid by wealthy donors.

Some task force members suggested the state make a “downpayment” on reparations or pay installments. Steven Bradford, then a Democratic state senator from Gardena on the task force, proposed diverting 0.5% of the state’s annual budget to a $1.5 billion annuity, to fund reparations programs and payments over time.

Ultimately, the governor and Legislature would need to decide where money for reparations would come from.