Workshop Recap: UBI, Direct Cash Transfers, and the Eradication of Poverty

On Tuesday, June 15th, SCANPH convened for a workshop on the topic of Universal Basic Income, Direct Cash Transfers, and the Eradication of Poverty: New Research on Strategies with Promising Results. SCANPH members know firsthand that affordable housing is a proven and important method of poverty alleviation as a foundational step to improve social outcomes. This workshop explored alternative and successful poverty alleviation strategies that complement efforts to stably house those most in need.

As residents within SCANPH’s five-county region suffer from financial instability throughout COVID-19, permanent and recurring aid can ensure equitable economic recovery and sustainable growth, even long after the pandemic is over. This workshop focused on the results of Stockton’s UBI pilot program, as well as the use of direct cash transfers and the national landscape of guaranteed income demonstrations. Distinguished experts discussed universal basic income approaches, direct cash transfer pilots, and public agency led experiments that have demonstrably improved the lives of so many struggling families.

Panelist Heather Hay, COO at Foundations for Social Change, shared insights on the New Leaf pilot project, a randomized control trial supported by Foundations for Social Change in partnership with University of British Columbia. The project distributed unconditional cash trials to individuals experiencing homelessness. The project provided resources such as access to checking accounts, used smartphones and counseling services. Targeting 22 shelters around Metro Vancouver, in just one month, 50 percent of cach recipients moved into stable housing. Seventy five percent of cash recipients moved into stable housing in 12 months and each cash recipient spent 88 fewer days homeless per year than non-cash participants. Program participants were able to set up bank accounts and secure financial training. The program generated $672 in net savings per person per year. Looking forward, Foundations for Social Change hopes to replicate the program in other major city centers.

Panelists Dr. Stacia West, Assistant Professor at the University of Tennessee College of Social Work and Dr. Amy Castro Baker, Assistant Professor at the University of Pennsylvania in the School of Social Policy and Practice provided an overview of the one-year findings of the Stockton Economic Empowerment Demonstration, the first city-led guaranteed income demonstration in the country. The research design focused on census tracts at or below area median income. The treatment condition group received $500 each month for 24 months, while the control condition participated only in research activities. The study found that people receiving $500 were less anxious and depressed than the comparison group. These individuals also showed improvement in emotional health, energy, and emotional wellbeing. The study also showed that individuals receiving a steady $500 each month had less income volatility than the comparison group. Additionally, recipients of the $500 removed material barriers to full-time employment and created capacity for goal-setting and risk-taking.

Panelist Hope Wollensack, Senior Strategist, Economic Security Project shared how the Guaranteed Income Community of Practice (GICP) is made up of 200 communities of practice from across the country who work together to advance guaranteed income. The community of practice is co-convened by the Economic Security Project, the University of Pennsylvania, and the Mayor’s Project for Guaranteed Income. Wollensack shared that youth experiencing homelessness disproportionately identify as BIPOC, LGBTQIA+ and transwomen of color. Through a mixture of public and private funding, the GICP provides an ethical alternative that places power into the hands of youth. While existing pilot programs succeed in providing income stabilization, Wollensack suggests that these approaches should be paired with additional benefits such as housing and healthcare.

Panelist Lucius Martin, Special Projects Officer at City of Long Beach Economic Development Department provided an overview of how Long Beach, the seventh largest city in California, plans to roll out a guaranteed income pilot. The current mayor of Long Beach was one of earliest signatories to the Guaranteed Income Project, supporting a task force that began the Long Beach Guaranteed Income Pilot rollout in April, 2021. In January of 2022, the city of Long Beach will begin direct cash assistance. The program plans to provide $500 cash transfers per month for one year to over 250 participants and households.