REDWOOD CITY — As inflation and the blow back from the coronavirus pandemic continue to put pressure on low-income people in one of the wealthiest regions in the country, San Mateo County is exploring expanded guaranteed income programs to help more families in need.
The idea of giving cash to low-income folks to help make ends meet has been gaining momentum in the U.S. in recent years. Less than a decade ago, there weren’t many programs handing out money with no strings attached, let alone anyone studying their effectiveness, according to Stanford’s Basic Income Lab.
But now this once-fanciful strategy is one of the new ways cities and counties across the country are combatting poverty after decades of failed anti-poverty policies. From St. Paul, Minnesota, to Compton, Stockton and South San Francisco, guaranteed income programs have given relief to low-income families facing high food prices, medical expenses, rising housing costs and more.
In the wake of a successful yearlong program in South San Francisco and a two-year program in Stockton, San Mateo County supervisors want to study starting their own version.
“We always talk about the two San Mateo counties,” Supervisor Warren Slocum said at the Tuesday board meeting. “One that is basically made up of wealthy people who really don’t have the kind of issues that the folks from the other San Mateo County struggle with day in and day out, which are basic things like paying rent and putting food on the table.”
The programs are often simple and usually funded through philanthropy. In Stockton, the Stockton Economic Empowerment Demonstration gave $500 a month via a cash card to 125 residents with $3 million of funding from private donations. It may not be much for some, but data shows the cash transfers helped a lot of families.
A study of the Stockton program over the years 2019 to 2021 shows that about 40% of cash transferred to bank accounts went to pay rent or bolster savings. The rest went to food (40%), merchandise (18%), utilities (11%) and auto care (9%). Overall, the program “reduced month-to-month income volatility, reduced anxiety and improved general health.” It also “increased full-time employment” for participants and improved relations with family and friends. One woman, the study says, “finally had the time and money to make a birthday cake for a family member.”
One program participant said “guaranteed income created a floor that allowed me to persist through difficult times.”
South San Francisco had a similar program. Mayor Mark Nogales said the city started the program in response to the coronavirus pandemic after receiving emails from folks facing hard times. The city raised about $1.2 million to give $500 a month to 160 participants for a year, with no tax implications or any strings attached.
“I told myself if it can happen in Stockton, why can’t that happen in South San Francisco?” Nogales said.
Seeing the value of guaranteed income, San Mateo County officials set up a subcommittee on Tuesday — headed by Supervisors David Canepa and Neolia Corzo — to study guaranteed income and determine how the county can best support cities such as South San Francisco and perhaps start a program of its own.
But Canepa said the county needs to “double down” if it wants to see impact.
“The problem with these programs is that there’s just not enough money to cover everyone,” Canepa said. “If you look at the need in South City, there were 700 people who applied, but it only covered 125 families. There’s so much need out there. If we want to be extraordinarily impactful, we’re really going to have to double down on this money we’re giving to these programs.”
Canepa pointed to the county’s Mission Asset Fund Immigrant Families Recovery Program as an example of an organization that needs more support. The county raised $2 million and received a donation of $5 million from the Sobrato Group to fund direct cash payments to immigrant families through the asset fund. He said the county needs to think big.
“It’s a big endeavor, but I think we have to be bold and audacious to really help people who need us the most,” Canepa said.
Corzo, who said she has lived in poverty most of her life, praised the county board for moving forward with guaranteed-income discussions. She urged, however, that those discussions include “folks we are intending to serve in this process.”
“Whether it’s via including them in some subcommittee work, focus groups, but I just really want to make sure that the folks we are intending to serve have a voice in that,” Corzo said.
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