The controversial immigration law that has been in effect in Alabama since September is hurting the overall economy of the state, according to one University of Alabama professor.

Samuel Addy, the director of UA’s Center for Business and Economic Research, released a position paper in January titled, “A Cost-Benefit Analysis of the New Alabama Immigration Law.”

Addy wrote that the law will annually shrink Alabama’s economy by more than $2.3 billion and will cost the state at least 70,000 jobs.

“This report presents an initial cost-benefit analysis of HB56, the new Alabama immigration law, and finds that the law is rather costly to the state,” wrote Addy.

“Economies are demand-driven,” he wrote, “So any policy, regulation, law or action that reduces demand will not contribute to economic development no matter how well-intentioned.”

The law requires proof of citizenship when renewing or applying for a driver’s license and requires all employers to use the ALverify system.

ALverify was developed by the Center for Advanced Public Safety at the University of Alabama and gives employers the ability to quickly check the citizenship of its workers against various state databases. The law makes it illegal for an employer to knowingly hire an illegal alien.

The law also mandates that all public schools check the immigration status of all of their students and criminalizes many activities that could be seen as aiding an alien, including giving them a ride.

John Merrill, a Republican member of the Alabama House of Representatives, is a strong supporter of the law.

“We know that there are people who need jobs, and we also know that there are companies that want to hire people,” Merrill said. “At the same time, we also know that there are some people that would rather stay at home and drink Coca-Cola than work. There are also people who would not take a job as a taste tester at a pie factory.”

Bill Poole is another Republican member of the Alabama Legislature’s lower chamber.  He supported the law and believes that it has had something to do with Alabama’s improving economy.

“Our unemployment numbers have fallen for a number of reasons,” Poole said. “I do think, however, that immigration has something to do with that.”

When asked about the hard time that many Alabama farmers are having finding workers, he said, “I have read and heard those [farmers’ concerns] and am sensitive to those challenges that our famers face. But at the end of the day, we need to have Alabamians fill Alabama jobs.”

In a recent press release from the office of Agriculture Commissioner  John McMillan, the commissioner recognized the economic realities facing many farmers and other small business owners due to the loss of a major chunk of their work force.

“Earlier in 2011, when Alabama’s new immigration law went into effect, tens of thousands of Latino workers moved out of state, presumably to avoid arrest due to lack of proper documentation,” according to the statement by McMillan’s office. “As a result, many farmers and agribusinesses, such as producers of poultry and catfish products as well as nursery growers, were left without a sufficient number of workers. Indeed, last summer and fall, we witnessed produce rotting in the fields throughout Alabama, again due to a lack of workers.”

As a result of this growing crisis, the Department of Agriculture has launched a program to “reach out to the industry and people in the local communities.”

However, it’s not all negative in the UA report. Addy also outlined some positives that the law could bring to the economy of the state.

“Potential economic benefits of the law include saving funds used to provide public benefits to illegal immigrants; increased safety for citizens and legal residents; more business, employment and education opportunities and ensuring the integrity of various governmental programs and services,” Addy wrote.

Although he laid out the possible benefits, Addy qualified his statement.

“Some of the law’s costs and benefits are qualitative and others are quantifiable, but difficult to estimate. While the law’s costs are certain and some are large, it is not clear that the benefits will be realized,” Addy wrote. “Are the benefits of the new immigration law worth the costs?”

“One group needs to get a check; one group needs to get a crop harvested,” Merrill said. “We need to make sure that everybody who lives here are paying taxes, and we need to do something to reckon this.”