An Associated Press analysis shows that despite assurances from state politicians, North Carolina is losing money because of the bill.
RALEIGH, N.C. — Despite Republican assurances that North Carolina's "bathroom bill" isn't hurting the economy, the law limiting LGBT protections will cost the state more than $3.76 billion in lost business over a dozen years, according to an Associated Press analysis.
Over the past year, North Carolina has suffered financial hits ranging from scuttled plans for a PayPal facility that would have added an estimated $2.66 billion to the state's economy to a canceled Ringo Starr concert that deprived a town's amphitheater of about $33,000 in revenue. The blows have landed in the state's biggest cities as well as towns surrounding its flagship university, and from the mountains to the coast.
North Carolina could lose hundreds of millions more because the NCAA is avoiding the state, usually a favored host. The group is set to announce sites for various championships through 2022, and North Carolina won't be among them as long as the law is on the books. The NAACP also has initiated a national economic boycott.
The AP analysis — compiled through interviews and public records requests — represents the largest reckoning yet of how much the law, passed one year ago, could cost the state. The law excludes gender identity and sexual orientation from statewide antidiscrimination protections, and requires transgender people to use restrooms corresponding to the sex on their birth certificates in many public buildings.
Still, AP's tally is likely an underestimation of the law's true costs. The count includes only data obtained from businesses and state or local officials regarding projects that canceled or relocated because of HB2. A business project was counted only if AP determined through public records or interviews that HB2 was why it pulled out.
Some projects that left, such as a Lionsgate television production that backed out of plans in Charlotte, weren't included because of a lack of data on their economic impact.
The AP also tallied the losses of dozens of conventions, sporting events and concerts through figures from local officials. The AP didn't attempt to quantify anecdotal reports that lacked hard numbers, or to forecast the loss of future conventions.
Bank of America CEO Brian Moynihan — who leads the largest company based in North Carolina — said he's spoken privately to business leaders who went elsewhere with projects or events because of the controversy, and he fears more decisions like that are being made quietly.
"Companies are moving to other places because they don't face an issue that they face here," he told a World Affairs Council of Charlotte luncheon last month. "What's going on that you don't know about? What convention decided to take you off the list? What location for a distribution facility took you off the list? What corporate headquarters consideration for a foreign company — there's a lot of them out there — just took you off the list because they just didn't want to be bothered with the controversy? That's what eats you up."