Alabama Immigration Law Could Cost $10.8 Billion

The cost-benefit analysis of Alabama’s new immigration law by University of Alabama economist Samuel Addy estimated up to 80,000 jobs could be vacated by illegal immigrants fleeing the crackdown, which would cost Alabama's economy up to $10.8 billion.

The report concludes that the lost jobs would cost Alabama up to $264.5 million in lost state sales and income taxes, and as much as $93.1 million in lost city and county sales taxes.

At the low end of the range, Addy found the crackdown could cost Alabama's economy $2.3 billion.

A U.S. appeals court has blocked Alabama from enforcing parts of the law, including a provision that permits Alabama to require public schools to determine the legal residency of children upon enrollment. But the court left most of the law untouched.

State Republicans who support the law say it will help create jobs for legal residents by driving out undocumented workers and their families, and save up to $280 million they said is spent by the state each year on health and education services for the undocumented.

Addy said he based his findings on the Department of Homeland Security's estimate that 120,000 illegal immigrants live in Alabama, and assumed some 40,000 to 80,000 workers could leave the state. As for income, Addy used an annual range of $15,000 to $35,000 per worker, below the state's average income of about $40,000.