Durham’s Guaranteed Income Program. 109 formerly-incarcerated individuals were randomly selected by the Center for Guaranteed Income in Pennsylvania to receive an unconditional, cash transfer of $600 per month. The pilot lasted one year.
Summary
The objective of Durham’s guaranteed income or Excel Pilot Program is to evaluate guaranteed income’s effects on recidivism and re-incarceration, employment, economic security, and income volatility, as well as physical functioning, mental health, stress, and coping, parenting, housing, and interactions with other institutional systems.
We support such a policy because we believe that ongoing direct cash payments can have the dual effect of stabilizing families and stimulating the local economy; that families are best positioned to know their needs and cash transfer programs that come with no strings attached give families the agency they need to address them; and that a guaranteed income is part of a wider set of policies needed in our country to address rising income inequality. Our vision in embarking on this demonstration project in coalition with cities across the county is to strengthen a national value that declares there exists a floor beneath which we will allow no person to fall simply by virtue of their humanity. American cities are laboratories of democracy, and that it is incumbent upon cities to help advance and build evidence in support of transformative new approaches that hold promise for future generations.
With City funding, StepUp Durham will hire a full-time coordinator dedicated to the implementation of this pilot. Through a grant from Mayors for a Guaranteed Income (MGI), 115 formerly-incarcerated individuals will be randomly selected to receive an unconditional, cash transfer of $500 per month. The pilot will last one year.
Durham’s Guaranteed Income Pilot is also part of a collective evaluation by The Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania School of Social Policy and Practice. CGIR’s role is to consolidate key learnings from the pilots taking place in MGI-member cities, to address knowledge gaps in the contemporary understanding of guaranteed income’s impact for Americans, and to allow the organization to layer data with anecdotal evidence in federal advocacy.
Timeline
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Partners
Mayor Steve Schewel
“I am so excited that the planning of this pilot is progressing as it continues to build upon the work the City has already undertaken to support individuals who are returning from incarceration. StepUp Durham will be a magnificent partner and guaranteed income payments will go a long way in ensuring that individuals have a successful transition back into their families and our community. 2020 has exacerbated economic insecurity, not only for those who are system-impacted, but for many others across our city. I’m extremely proud of the many things Durham is doing to uplift vulnerable populations of residents, including this pilot program”
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Mayors for a Guaranteed Income (MGI) is a network of mayors across the country committed to advancing local pilots and the national conversation around guaranteed income. A guaranteed income is a monthly, cash payment given directly to individuals. It is unconditional, with no strings attached and no work requirements. This monthly cash payment to individuals is meant to supplement, rather than replace, the existing social safety net and be a tool to close the racial and gender income gap. Since its establishment in June 2020, the coalition has created a significant increase in support for guaranteed income policy across the country.
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The Center for Guaranteed Income Research (CGIR) is an applied research center specializing in cash-transfer research, evaluation, pilot design, and narrative change. CGIR provides mixed-methods expertise in designing and executing empirical guaranteed income studies that work alongside the existing safety net and serve as the centralized research partners for Mayors for a Guaranteed Income.
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With City funding, StepUp Durham will hire a full-time coordinator dedicated to the implementation of this pilot. Through a grant from Mayors for a Guaranteed Income (MGI), 109 formerly-incarcerated individuals will be randomly selected to receive an unconditional, cash transfer of $600 per month. The pilot will last one year.
FAQ
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A guaranteed income is a monthly, cash payment given directly to individuals. It is unconditional, with no strings attached and no work requirements. A guaranteed income is meant to supplement, rather than replace, the existing social safety net and can be a tool for racial and gender equity.
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Excel does not have a citizenship eligibility requirement, so we are hopeful that we can get documented and undocumented individuals in the program.
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Excel funding is not from tax payers but originated from the Twitter CEO and additional funding is from private investors.
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Because this is no strings attached income, it is deemed a gift and not taxable.
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There’s a number of guaranteed income pilots happening all across the country. New mayor-led pilots are launching all the time; see the interactive map for the latest MGI pilots. https://www.mayorsforagi.org/
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Cash is the simplest yet most powerful way to do the most good for the most people in these uncertain times. It is powerful for three reasons. First, it moves quickly. Even with Treasury problems, 80 million American households have already received a check the government just mandated a couple weeks ago. Second, it allows for flexibility. No two American households are identical in their needs. While one will need funds for rent, others will need it for childcare, and yet others will need it for a laptop so their child can engage in distance learning. And of course, most families need something different every month. Third, many people are only partially covered by or completely left out of existing social safety net programs. Cash can help fill these gaps and ensure everybody who needs help gets it
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Budgets are moral documents, and it’s time for the U.S. government to prioritize everyday Americans and their economic dignity. There’s a number of ways to pay for guaranteed income, from a sovereign wealth fund in which citizens benefit from shared national resources like the Alaska Permanent Fund, to bringing tax rates on the wealthiest Americans to their 20th century historical averages.
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More cash in people’s pockets keeps families financially secure and stimulates the local economy. Especially in the wake of COVID-19 and the ensuing recession, a guaranteed income will stimulate spending on Main Street and generate much-needed state and local revenue to drive the economic recovery across the country.
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Cities are the laboratories of democracy, and mayors are closest to the communities they serve. Mayors see the real, everyday effects of economic insecurity and are the best equipped to advocate for their residents.
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Cash is effective and immediate, but it is not a silver bullet. We cannot use it as the answer for everything from solving the climate crisis to repairing our broken healthcare system to addressing predicted job displacement from automation. We need meaningful, systemic change to our economy – and cash is just one part of that.