Guaranteed Basic Income (GBI) Pilot Programs
A Guaranteed Basic Income (GBI) offers system-impacted individuals the opportunity to break the cycle of poverty by providing unconditional cash payments to support the recipient’s basic needs. Research findings from the first cohort of former foster youth (First Cohort) suggest that providing a basic income creates normalcy, improving the individual's income stability, housing stability, employment stability, educational attainment, self-sufficiency, and overall well-being.
The County of Santa Clara (County) is piloting several guaranteed basic income pilot programs to help individuals achieve stability in their finances, daily life, and long-term well-being through monthly unconditional cash payments of $1,200 for two years. These GBI pilot programs will distribute almost $25 million in direct cash payments to over 800 individuals from the four participant groups.
The County is supporting GBI efforts throughout Santa Clara County to test the efficacy of GBI as an intervention strategy to increase self-sufficiency. Below are targeted outcomes for the County’s pilots.
- Self-sufficiency of Former Foster Youth.
- Education/employment of Unhoused High School Students.
- Recidivism rates of Justice-involved Clients.
- Child care and generational success of children of Young Parents.
All enrollment in the County's GBI programs is through referrals from partner organizations and not via an open application.
Focus groups from the First Cohort surfaced the importance and impact of adult and peer role models. Some of the participants spoke of the connection developed and maintained with their social worker. Other participants appreciated the volunteer mentors from Excite Credit Union who gave their time and financial expertise to increase credit scores, develop long-term financial plans, and served as sounding boards for important life decisions. Some participants became a community of support for each other and want to provide similar support for the next cohort. Additionally, the First Cohort reported other positive outcomes:
- Importance and impact of adult and peer role models.
- Developed and maintained connection with their social worker.
- Developed skills through the volunteer mentors from Excite Credit Union who gave their time and financial expertise to increase credit scores, develop long-term financial plans, and served as sounding boards for important life decisions.
- Grew a community of support for each other and a desire to provide similar support for the next GBI participant groups.
Below are highlights of positive, measurable impacts the GBI had on the First Cohort participants from the initial baseline survey in August 2020 to the first post-pilot survey in September 2022.
- Literal homelessness decreased from 11% to 5%
- Home ownership increased from 0% to 3%
- Renting increased in the following living arrangements:
- Place alone: from 19% to 23%
- Place with family: from 19% to 20%
- Place with friends: from 6% to 8%
- Place with others: from 14% to 23%
- Majority use of funds remained rent, but decreased from 76% of funds to 52%
- Enrollment in school full-time increased from 13% to 33%
- Enrollment in school part-time decreased from 88% to 67%
- Full-time employment increased 44% to 58%
- Individuals in a meaningful career increased from 56% to 60%
- Individuals whose work contributes to personal growth increased from 72% to 80%
- Individuals with a checking account increased from 72% to 88%
The second GBI cohort for former foster youth began monthly payments starting in August 2023. The County’s goal is to launch the remaining three pilots targeting unhoused high school students, justice-involved clients, and young moms throughout 2024. Co-design for each phase will happen with the assistance of stakeholders, community-based organizations, and lived-experience individuals. To learn more or get involved in GBI, please email [email protected].
If you are interested in the regional movement in Santa Clara County to expand guaranteed basic income, please visit guaranteedincomesv.org/