Opinion: California’s Population is Stagnating as Immigration and Birth Rates Decline

CalMatters
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CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics. (Articles are published in partnership with edhat.com)
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Op Ed
Traffic moves along the 110 Freeway in Los Angeles on Nov. 22, 2022. Photo by Jae C. Hong, AP Photo

By Dan Walters, CalMatters

California’s population exploded during and immediately after World War II, from 6.9 million in 1940 to 19.9 million in 1970, thanks to waves of migrants from other states drawn to California’s surging economy and the famous postwar baby boom.

California absorbed its 13 million new residents by expanding its public infrastructure of schools, colleges, highways, parks and water systems and by welcoming immense private investment in new housing, new retail complexes, new factories and new office buildings.

Population growth slowed in the 1970s in the aftermath of the baby boom and as an economic evolution, from manufacturing to technology and services, changed the job market. The leading politician of the decade, Gov. Jerry Brown, declared that California had entered “an era of limits” and major infrastructure expansion was no longer needed.

However, the 1980s saw a new population surge, driven by immigration from other countries and a new baby boom. California’s population jumped by 6 million — 5-plus million of them babies — during the decade, a more than 25% gain.

The increase was so large, relative to the nation as a whole, that California was awarded seven new congressional seats after the 1990 census.

Unlike California’s expansive reaction to its postwar population increase, the 1980s boomlet sparked an adverse reaction in the 1990s, including new laws aimed at denying public services to undocumented immigrants and a power struggle within the Sierra Club over immigration’s impact on the environment.

Meanwhile, population growth slowed again, and in this decade virtually halted as immigration and birth rates declined and substantial numbers of people left California, thanks largely to the state’s sky-high living costs.

A recent study by researchers Hans Johnson, Julien LaFortune and Eric McGhee at the Public Policy Institute of California found that the total fertility rate has dropped from 2.21 children per woman in 2007 to 1.48 in 2023, far below what demographers call the “replacement level of 2.1 necessary to keep a population from declining.”

The state lost a congressional seat after the 2020 census and is likely to lose several more after the 2030 census. However, the impacts of California’s population plateau extend far beyond politics.

“A smaller population can offer benefits; it reduces pressure on housing and infrastructure needs,” the researchers wrote, “easing congestion and reducing the need for expansive public works projects.” They also cited potential improvements in the environment and increasing per pupil spending on education as enrollment declines.

“At the same time,” they added, “fewer births — and a smaller population — may bring challenges: they could accelerate K–12 enrollment declines and strain the state’s economic and safety net systems as fewer workers support a larger share of older Californians. Labor shortages could also hinder California’s economic development.”

Those are all valid points and many more potential impacts could be mentioned. But the underlying issue is whether political policies will reflect the new demographic reality.

The post-World War II population explosion manifested itself in a bipartisan effort to do what was needed to make the transition relatively painless. We haven’t seen such political adjustment to changing demographic trends since.

Meanwhile, the state’s population is twice what it was in 1970 and we still depend on what politicians wrought in the post-war era — such things as the State Water Plan and our extensive freeway network.

A stagnant population eases pressure for new infrastructure but we still need to maintain what we have and expand it to meet current needs. However, water projects have languished and we no longer build new highways.

Jerry Brown, who proclaimed the “era of limits” in the 1970s, returned to the governorship in 2011 and declared, “I want to get shit done.”

There’s still much that should be done.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.
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39 Comments

    • Nice try, can’t blame this on the right when the left owns CA.. Everyone knows why people are fleeing.
      Over taxation, too high of cost of living driven by liberal politics. It is well documented.
      It’s sad when faced by facts folks lie and result to name calling.
      You can start your insults now. . . . but you know I am right.

      • KAPO – GT said your MAGAt buddies are leaving CA, he/she is not blaming them for anything. And yes, as ALL know why they’re leaving – so they can be surrounded by their own kind. That’s great, we all wish more of you would leave.

        No one is disputing this. Can you please try to read comments before replying?

        • No your are wrong. People are leaving due to the high price of living here due to . . .. taxation.
          Please read the comments yourself.
          “People are leaving California primarily to escape the severe cost of living and soaring housing prices”
          Are you unable to fathom why costs are so high? You are supposed to be educated, yet somehow you avoid the truth here?

          • KAPO – I’m not wrong about anything. MAGAts are leaving CA because they don’t like the liberal policies, which includes higher taxation. That is exactly what I said and it is a stone cold fact. I also never said other people weren’t leaving due to high costs. Again…. NOTHING I said was wrong.

            Just because you can’t understand my comment, doesn’t mean I’m wrong. It just means you can’t understand elementary level English comprehension.

            Again, GT (nor ANYONE here) is blaming “the right” for anything. YOU. FAILED. Again….

            Stop embarrassing yourself.

            • “High taxation, soaring housing prices, and some of the highest gas prices in the nation have contributed to notable domestic out-migration, particularly for lower-income residents moving to more affordable states” I don’t see where it says who is leaving, they are just leaving.
              Again, you blame the feds for Newsom’s failure, and will never admit he is not doing a good job.
              Thanks for the insults,
              “Resorting to insults is a clear indicator that the other person has run out of logical, fact-based points. In argumentation and philosophy, this is known as an ad hominem fallacy—attacking the person rather than the argument.”
              Own it.

              • KAPO – “I don’t see where it says who is leaving,”

                That’s because you asked Google AI why people are leaving California, not who is leaving. That’s not proof of anything other than what we all already know – some people, even Democrats, are leaving CA because of the high cost of living in the most beautiful and desirable state in the union. No one ever said this wasn’t true.

                In fact, YOU said I was “wrong” about MAGAts leaving because they want to live somewhere with other MAGAts in places that align with their selfish views. That is 100% true and you refuse to address it.

                If you want to talk about logical fallacies, look up what you’re doing here. It’s called the Motte and Bailey fallacy.

  1. Governments at every level—federal, state, and local—rely on continuous population growth to fund the skyrocketing costs of Social Security and public pensions. Meanwhile, the private sector faces real accountability; regulations like Sarbanes-Oxley force corporations to balance their books and accurately report liabilities every single year. When will we demand that same standard from our governments? Hopefully, before the house of cards explodes.

      • In the year 2001, CalPERS had a healthy safety margin: 2 active working taxpayers contributing into the fund for every 1 retiree drawing benefits. Today, that ratio has collapsed to roughly 1.3 active workers per retiree
        For some public safety positions (like Highway Patrol, police, and firefighters), cities and the state must now pitch in an extra 50% to 70% of the employee’s salary just to cover pension obligations.
        For regular school and city employees, the contribution rate sits at roughly 26% to 31% of payroll.
        The system won’t “explode” in a single day, but during the next major stock market correction, California will face a severe reckoning. With a shrinking population and fewer young workers to shoulder the load, the state will be forced to make a painful choice: drastically raise taxes on a shrinking base, or severely cut funding for roads, schools, and social programs to keep the pension promises alive.

          • The root of California’s modern pension crisis can be traced back to Senate Bill 400 (SB 400) in 1999, passed by a Democratic legislature and signed by Democratic Governor Gray Davis.
            ​During the dot-com boom, when pension funds looked artificially flush, SB 400 dramatically increased pension benefits for state employees and allowed retroactivity.
            ​CalPERS wrongly projected that these increases wouldn’t cost taxpayers an extra dime, assuming the stock market would grow indefinitely. When the market corrected, taxpayers were left on the hook for those expanded, unsustainable promises.
            Blaming federal Republican policies for California’s state-level pension crisis ignores the reality that California has had the tax revenue and the absolute political power to fix this for over a decade. The underfunding is a direct result of local legislative decisions made right in Sacramento.

          • Attributing California’s pension crisis to Republican anti-tax policies is logically inconsistent. The state’s government is overwhelmingly controlled by Democrats, and its residents already face one of the highest per capita state tax burdens in the United States.
            Were you expecting the Feds to bail out CA pensions?

              • it’s bad mathematical modeling by CalPERS and CalSTRS administrators. For decades, these pension boards intentionally used overly optimistic, inflated investment return assumptions (7.5% to 8%) to hide how underfunded they actually were. This allowed politicians to keep promising massive benefits without forcing the state or local municipalities to actually fund them appropriately. When the tech bubble burst and the 2008 recession hit, the math caught up with them.

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