SACRAMENTO, Calif. — California Gov. Gavin Newsom wants to use a sliver of the state's massive budget surplus to encourage guaranteed income programs.
These programs give poor people money each month and they decide how to spend it. Newsom's proposal, announced Friday, would not create a statewide guaranteed income program. Instead, it sets aside $35 million over five years to help local governments fund pilot programs.
Critics say free money is a disincentive for people to work. Stockton ran a pilot program in 2019 and since then other cities have embraced the idea. Former Stockton Mayor Michael D. Tubbs launched the Stockton Economic Empowerment Demonstration (SEED), the country's first city-led guaranteed universal basic income experiment. It sent $500 a month for 24 months to 125 recipients with no strings attached.
The results of Stockton's pilot program were released earlier in 2021. The report showed people who were involved in Stockton's guaranteed income initiative transitioned to full-time jobs and better health, the report says.
Last month, Los Angeles Mayor Eric Garcetti announced a plan to give $1,000 monthly to 2,000 households.
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Another takeaway from the report on SEED's first year also found people used the money for necessities, and only 1% was spent on tobacco and alcohol.