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Guaranteed income pilot program eases financial hardships for Mountain View residents

‘Elevate MV’ participants spend bulk of cash on household needs, according to stories shared at recent forum

Panelists spoke about the benefits of a guaranteed basic income at a community event at the Mountain View Center for the Performing Arts on Jan. 11. Photo by Emily Margaretten.

Lauded for its direct impact, a temporary cash assistance program has helped some of Mountain View’s most vulnerable residents meet their household needs, without stipulating how the money should be used.

The $2 million pilot program, known as Elevate MV, launched about a year ago and is providing data for a national study that is investigating how a guaranteed basic income can help alleviate poverty. Early results indicate that the city’s program, which gives $500 a month to 166 extremely low-income participants, is making a tangible difference.

Whether it’s for food, rent, education or even a vacation, individuals can use the money in any way that they see fit, said Mayor Pat Showalter, who provided an overview of the program at the Mountain View Center for Performing Arts on Jan. 11.

Attended by about 70 people, the community event screened a documentary, “It’s Basic,” followed by a roundtable discussion of some of the challenges and successes of the Elevate MV program.

The idea of a guaranteed basic income is not new, but its implementation in the U.S. is fairly recent, with some of the first pilot programs launching in 2019. Since then, more than 48 cities and several counties have tried out the idea, offering regular and unconditional financial assistance to low-income residents.

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In 2022 the Mountain View City Council voted 6-1 to launch a basic income pilot later known as Elevate MV. To qualify for the program, applicants had to earn below 30% of the area median income, live in Mountain View and be pregnant or a caregiver to a child under the age of 18 years.

To help implement the two-year pilot program, the city contracted with its main service provider, the nonprofit Community Services Agency (CSA).

A year in, findings from the program show that retail sales and services account for the largest share of spending, at 43%, with food and groceries coming in closely behind at 38% and transport related expenses at about 8%, according to the city’s data dashboard.

Mohamed Kaci, a French school teacher and father of a 9-year-old son, said the extra income provided his household with the opportunity to participate in activities that they otherwise could not afford. “It’s helping us a lot,” he said.

Miriam Hernandez, a mother of four children, also said the income was a big help. After her husband lost his job, they used the money to pay for their rent and other household expenses.

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CSA Executive Director Tom Myers shared similar stories, describing the situation of Maria, a mother who used the money to cover a $500 medical co-payment for her daughter. Another recipient, Catherine, used the guaranteed income to buy formula and diapers for her newborn baby.

But programs like Elevate MV provide more than just financial assistance; it's a new way to view public assistance, Myers said.

“I personally believe that basic income has the potential to not only rewrite the way that government benefits are done in this country, it has the potential to completely rewrite the way the nonprofit sector deals with providing services in this country,” he said.

However, not everyone is on board with the idea of "no strings attached” payments, according to Myers. Some community members have expressed concerns that a guaranteed income makes it difficult to enforce accountability, he said.

But in many ways that’s the point, which the documentary emphasized. Individuals can make their own decisions about how the money is spent. It offers a sense of autonomy and dignity that often is lacking in social welfare programs, according to the film.

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It also helps establish a relationship of trust with local municipalities and the wider community.

“Programs like this make me feel more united with other citizens. I feel like I belong more in my community because of the support,” Hernandez said through a Spanish interpreter.

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Guaranteed income pilot program eases financial hardships for Mountain View residents

‘Elevate MV’ participants spend bulk of cash on household needs, according to stories shared at recent forum

Lauded for its direct impact, a temporary cash assistance program has helped some of Mountain View’s most vulnerable residents meet their household needs, without stipulating how the money should be used.

The $2 million pilot program, known as Elevate MV, launched about a year ago and is providing data for a national study that is investigating how a guaranteed basic income can help alleviate poverty. Early results indicate that the city’s program, which gives $500 a month to 166 extremely low-income participants, is making a tangible difference.

Whether it’s for food, rent, education or even a vacation, individuals can use the money in any way that they see fit, said Mayor Pat Showalter, who provided an overview of the program at the Mountain View Center for Performing Arts on Jan. 11.

Attended by about 70 people, the community event screened a documentary, “It’s Basic,” followed by a roundtable discussion of some of the challenges and successes of the Elevate MV program.

The idea of a guaranteed basic income is not new, but its implementation in the U.S. is fairly recent, with some of the first pilot programs launching in 2019. Since then, more than 48 cities and several counties have tried out the idea, offering regular and unconditional financial assistance to low-income residents.

In 2022 the Mountain View City Council voted 6-1 to launch a basic income pilot later known as Elevate MV. To qualify for the program, applicants had to earn below 30% of the area median income, live in Mountain View and be pregnant or a caregiver to a child under the age of 18 years.

To help implement the two-year pilot program, the city contracted with its main service provider, the nonprofit Community Services Agency (CSA).

A year in, findings from the program show that retail sales and services account for the largest share of spending, at 43%, with food and groceries coming in closely behind at 38% and transport related expenses at about 8%, according to the city’s data dashboard.

Mohamed Kaci, a French school teacher and father of a 9-year-old son, said the extra income provided his household with the opportunity to participate in activities that they otherwise could not afford. “It’s helping us a lot,” he said.

Miriam Hernandez, a mother of four children, also said the income was a big help. After her husband lost his job, they used the money to pay for their rent and other household expenses.

CSA Executive Director Tom Myers shared similar stories, describing the situation of Maria, a mother who used the money to cover a $500 medical co-payment for her daughter. Another recipient, Catherine, used the guaranteed income to buy formula and diapers for her newborn baby.

But programs like Elevate MV provide more than just financial assistance; it's a new way to view public assistance, Myers said.

“I personally believe that basic income has the potential to not only rewrite the way that government benefits are done in this country, it has the potential to completely rewrite the way the nonprofit sector deals with providing services in this country,” he said.

However, not everyone is on board with the idea of "no strings attached” payments, according to Myers. Some community members have expressed concerns that a guaranteed income makes it difficult to enforce accountability, he said.

But in many ways that’s the point, which the documentary emphasized. Individuals can make their own decisions about how the money is spent. It offers a sense of autonomy and dignity that often is lacking in social welfare programs, according to the film.

It also helps establish a relationship of trust with local municipalities and the wider community.

“Programs like this make me feel more united with other citizens. I feel like I belong more in my community because of the support,” Hernandez said through a Spanish interpreter.

Comments

SalsaMusic
Registered user
Cuesta Park
on Jan 16, 2024 at 2:49 pm
SalsaMusic, Cuesta Park
Registered user
on Jan 16, 2024 at 2:49 pm

I'm sure they feel like they belong more because they are getting a nice check every month from their neighbors. I wouldn't want to leave Mountain View either.

I don't understand what the point of this 'pilot' was. Did any one expect the outcome to be anything other than "I feel better when people give me money."? How exactly does this alleviate poverty in the long-run without costing the taxpayers? How does this scale? (Hint: It doesn't)

I would love that the same study show much these families spend on lottery tickets. The average poor family spends $412 a year.


SalsaMusic
Registered user
Cuesta Park
on Jan 16, 2024 at 2:51 pm
SalsaMusic, Cuesta Park
Registered user
on Jan 16, 2024 at 2:51 pm

I have an edit:
"But in many ways that’s the point, which the documentary emphasized. Individuals can make their own decisions about how [they spend their neighbors' tax] money.


I'm sure they feel like they belong more because they are getting a nice check every month from their neighbors. I wouldn't want to leave Mountain View either.

I don't understand what the point of this 'pilot' was. Did any one expect the outcome to be anything other than "I feel better when people give me money."? How exactly does this alleviate poverty in the long-run without costing the taxpayers? How does this scale? (Hint: It doesn't)

I would love that the same study show much these families spend on lottery tickets. The average poor family spends $412 a year.


Steven Nelson
Registered user
Cuesta Park
on Jan 16, 2024 at 3:51 pm
Steven Nelson, Cuesta Park
Registered user
on Jan 16, 2024 at 3:51 pm

Peace and Love. I "feel good" about this @Salsa! Better my (darn taxpaying) money be spent this way, than my spending $412 on the lottery. [@Salsa - please send us readers the reference for this number, is it a government study, a Rand Corp. research paper, the California Lottery?]

a long term taxpayer, not quite enough to 'declare the pennies on my eyes' [estate tax limited]


Mark Landefeld
Registered user
Sylvan Park
on Jan 16, 2024 at 5:41 pm
Mark Landefeld, Sylvan Park
Registered user
on Jan 16, 2024 at 5:41 pm

OK, so a more in-depth study is needed. But remember that the UBI concept has had success in increasing employment and raising people out of poverty -- Web Link


SalsaMusic
Registered user
Cuesta Park
on Jan 16, 2024 at 10:59 pm
SalsaMusic, Cuesta Park
Registered user
on Jan 16, 2024 at 10:59 pm

Mr. Nelson, This is well documented. None other than the NIH and surveys show the extent the lottery is a folly of the poorest among us

Web Link

Gambling on the Lottery: Sociodemographic Correlates Across the Lifespan
Web Link


A Mtn. View Resident
Registered user
Another Mountain View Neighborhood
on Jan 17, 2024 at 7:44 pm
A Mtn. View Resident, Another Mountain View Neighborhood
Registered user
on Jan 17, 2024 at 7:44 pm

Several studies with control groups show these giveaways don't work.

Web Link

Web Link


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