Title
Status Report on the City's Guaranteed Basic Income Pilot Program
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To: Members of the Mayor's Economic Development Advisory Panel
EXECUTIVE SUMMARY
At its May 17, 2022 meeting, the Alameda City Council approved a Guaranteed Basic Income (GBI) pilot program for the City of Alameda. The $4.6 million program will provide 150 low income residents with monthly payments of $1,000 for two years. The City will use funds from the American Rescue Plan Act of 2021 (ARPA) for the program.
The pilot program will provide the recipients with a steady, predictable stream of cash payments to spend without any restrictions, which allows the recipients the autonomy and judgement of how best to use the funds to meet their unique needs. Other local pilot GBI programs have proven to be an effective tool to provide financial, food, and housing security to vulnerable segments of the community.
The City anticipates to launch the program in the Spring/Summer of 2023. This status report is for discussion purposes only; no action is recommended.
BACKGROUND
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 is the most well-known local example. This program demonstrated increased financial ...
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