Title
Recommendation to City Council to Consider and Provide Direction to Staff on a Proposal to Develop a Guaranteed Basic Income Pilot Program; and
Adoption of Resolution to Appropriate $4,600,000 of American Rescue Plan Act of 2021 Funds for a Guaranteed Basic Income Pilot Program. (Community Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
At the City Council meeting on March 16, 2021, as part of the discussion regarding the recommendations made by the Community-Led Committee on Police Reform and Racial Equity, the City Council approved a motion requesting action on a number of items. The motion included direction to staff to prepare a report on Universal Basic Income (UBI). At the July 6, 2021 City Council meeting, staff confirmed it would bring a report on UBI and present the finding to the City Council by March 2022.
Basic income programs provide a flat monthly cash payment to a defined population of residents. These programs are distinct from other financial assistance programs in that they are:
* unconditional;
* unrestricted; and
* include regular payments for a period of time.
This flexibility empowers recipients to make their own decisions on spending the money in a way that best meets their basic needs allowing for dignity and self-determination. The defined period of time associated with a pilot program allows valuable data to be collected, which may help inform larger policy and program development designed to alleviate poverty.
Research indicates that basic income programs increase expenditure on education and training, improve food security, and improve measures of well-being among the recipients. The City of Stockton's pilot program referred to as a Guaranteed Basic Income (GBI) program is the most well-known local example. This program demonstrated increased financial stability among the recipients compared to a control group established to evaluate the effectiveness of the program. (...
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