Six months in, participants in a new guaranteed income pilot aren’t diving into pools of money; it’s just helping them tread water a little easier.
While there aren’t restrictions on what the money can be used for, Economic Mobility Program Officer Julie Mullen said most of the money distributed in the city’s ARISE Guaranteed Income Pilot is helping those in need with basic necessities.
“Anecdotally, what we’re hearing is that $500 a month really lightens their load,” Mullen said. “We’ve gotten comments like ‘I can go to the grocery store without stressing’ and ‘I can pay the rent without stressing.'”
A single father with three children in the program was able to quit his second job, Mullen said, and spent more time at home with his children without being as worried about making ends’ meet.
“The general sense is that the mental load is lighter,” Mullen said. “Especially for single parents, we know that group, especially in Alexandria, is under a lot of strain.”
Beyond the anecdotal evidence, Mullen said a consultant is researching how $500 per month impacts economic stability, market participation, and physical and mental health. For households with children, Mullen said they’re studying how it’s impacting the kids.
“The cost of living is astronomical,” Mullen said. “These are not problems easily solved by getting a better job… we’re really dealing with a bigger systemic problem.”
By and large, Mullen said most of the spending has gone toward basics.
“The biggest spending category is grocery stores,” Mullen said. “I think that suggests people are spending the money to get through the month and pay for basic needs. I think that underscores the need for something like guaranteed income.”
Mullen said that research should be available once the program hits its one-year anniversary in February.
One of the lessons, Mullen said, was the tricky process of navigating how the pilot intersected with other programs like Medicaid and housing vouchers.
“I think when we were launching, the big question was how are people’s current benefits going to be impacted, things like SNAP and Medicaid and housing vouchers,” Mullen said. “We were spending a lot of time and energy to get benefit waivers to make sure people weren’t losing benefits they were getting.”
It was easier for the program to get some waivers than others.
“We were able to secure quite a few benefit waivers, like SNAP,” Mullen said. “Housing vouchers and Supplemental Security Income (SSI) were the big ones — there’s currently no waivers given from those.”
Mullen said her office did benefits counseling with participants before they joined so they could understand how their existing benefits might be impacted. Some decided not to participate because they didn’t want to compromise their SSI enrollment.
Similarly, some potential participants with housing vouchers decided not to participate, but those in low-income housing did participate because the program was still a net financial gain.
“On the whole, how the current benefits would be impacted is a big conversation point,” Mullen said.
Mullen said she’s been in close contact with Fairfax as Alexandria’s neighbor prepares to launch a similar program.
While the pilot is only halfway through its first year, Mullen said she’s been encouraged by the results so far.
“The excitement is that it’s lightening people’s mental load,” Mullen said, “which is what we wanted.”
Good Thursday morning, Alexandria!
⛅️ Today’s weather: There is a 20% chance of brief showers and thunderstorms in the afternoon and evening, with mostly sunny weather and a high of 89°F. Light winds will shift from east to south in the morning. On Thursday night, the chance of showers continues with partly cloudy skies, a low of 73°F, and southwest winds around 8-10 mph.
🚨 You need to know
A little less than a year after Alexandria got its guaranteed income program going, neighboring Fairfax County is following suit.
Fairfax County announced last week that an application portal is opening next month for its Economic Mobility Pilot, which provides payment to eligible households, optional financial coaching, and supportive resources. The goal of the program is to promote economic stability and secure social capital for those in need. The pilot will pay $750 to 180 eligible families for 15 months.
The program consists of:
- A monthly payment of $750 to 180 eligible families for 15 months.
- Freedom of choice for the families to use the cash as they deem necessary.
- Optional financial coaching and the opportunity to increase their social networks through virtual or in-person events.
To qualify, applicants must be employed, have one child 16 or younger living in the household, and have an income somewhere between 150% and 250% of the Federal Poverty Level. Applicants also, obviously, need to live in Fairfax County.
According to the release:
While Fairfax County is a great place to live, work, learn and play, persistent racial and social inequities remain, which result in significant disparities in community outcomes. To confront these realities, Fairfax County has embraced a vision of One Fairfax: A declaration that all residents deserve an equitable opportunity to succeed.
Alexandria started its equivalent, the Alexandria Recurring Income for Success and Equity program (ARISE), earlier this year. Alexandria’s program gave 170 participants $500 per month over a 24-month period.
📈 Wednesday’s most read
The following are the most-read ALXnow articles for Aug 16, 2023.
- Woodrow Wilson Bridge opening scheduled Thursday night (6255 views)
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Earlier this year, the City of Alexandria dedicated some of its American Rescue Plan Act funding to a program that would guarantee a basic income, but now one of the non-profits working on the pilot said it’s hit some delays with no estimate of when the pilot will start.
The pilot program is now called, in a sort of transparent backronym, Alexandria’s Recurring Income for Success and Equity (ARISE). It will focus on 150 families who will receive a $500 monthly cash payment for 24 months, with no strings attached on its use. Eligibility has been set at 50% of the area median income or below.
The Department of Community & Human Services (DCHS) has been overseeing the pilot in cooperation with Bruhn Morris Foundation and ACT for Alexandria, two local non-profits. ACT for Alexandria said in an email that “while great progress has been made” there have also been some delays.
“Enrollment has been postponed and an estimated start date for applications is not yet available,” ACT for Alexandria said. “DCHS is in the process of securing a research partner to study and report on the outcomes of the pilot and to identify a partner to disburse the funds.”
ACT for Alexandria said the hope is to start the program sometime in spring 2022.
One of the most high-profile uses of American Rescue Plan funding in Alexandria is the city’s foray into providing a guaranteed basic income for some of the city’s lowest-income residents. At a meeting today (Monday), leadership of the program shared new information about how the program will work.
Kate Garvey, director of the department of community and human service, outlined the basics of the program in a Zoom meeting today.
“[Guaranteed basic income] raises the floor so that people can live with dignity and have the power to make their own choices,” Garvey said.
Garvey also specified that the city is pursuing guaranteed basic income — an income supplement that helps to elevate the standard of living for residents making below a certain income level — rather than universal income, which goes to eveyone equally.
The Alexandria program follows the work of other localities, and Garvey said the city is working off the model laid out by Stockton, California, in particular. The pandemic, Garvey said, was another push toward the program.
“The disproportionate impact [COVID-19] had on Latino and communities of color is profound,” Garvey said, “and it calls us to a different kind of action.”
Garvey said a guaranteed basic income is part of an attempt to close the gap in racial income disparities.
In the pilot stage of the city’s guaranteed basic income program, 150 individuals will receive $500 per month for 24 months. Other supportive services will be offered, Garvey said, but not mandated. Eligible residents will be those earning an income at 30-40% of area median income. Staff said the program will require that participants have some form of income other than the program.
Along with the group of residents receiving the funding, Garvey said there will a “control group” that is not receiving funding.
“Some of these things are challenging: the fact that we have a phenomenal project but only 150 individuals can be in that is one,” Garvey said. “We’re not normally comfortable with the idea of having a control group, but this will help inform: what’s the difference when you have a resource like this. It’s important as we’re pushing and pressing on policy makers for why it’s important.”
Lesa Gilbert, director of the Department of Community and Human Services Center for Economic Support, said the program’s success will be measured in how the funding impacts residents enrolled in the program.
“Success will be measured in better quality of life, quality time with family, paying bills and taking care of financial need without stressors,” Gilbert said.
There are still a few hurdles to clear before project implementation. Garvey said up next is that the project’s implementation plan will need to be reviewed and approved by the city manager. The city will also need to make decisions on how cash will be dispersed and monitor the future of the program.
“We will establish something we’re calling an economic mobility advisory committee to keep an eye toward the future on what transformation is possible,” Garvey said, “and looking at how individuals and families can be supported.”
Alexandria among areas with highest median income in Virginia — “According to a recent study by SmartAsset, residents in Alexandria are among the highest earners in Virginia. The analysis was completed as part of the company’s study on the places with the most purchasing power, and cost of living was factored into the calculations.” [Alexandria Living]
Target, Walmart, BJ’s, Costco: Virginia stores end masks for vaccinated — “BJ’s Wholesale Club, Starbucks, Costco, Sam’s Club, and Trader Joe’s will also no longer require masks inside stores. Initially, Target and Walmart had been among numerous establishments in a holding pattern after last week’s announcements.” [Patch]
‘The Physical Therapy Zone’ expands operation — “We just knocked a hole in the wall and expanded into the suite next door.” [Gazette]
Today’s weather — “Mainly sunny (during the day). High around 80F. Winds SSW at 5 to 10 mph… Clear (in the evening). Low 56F. Winds SSW at 5 to 10 mph.” [Weather.com]
New job: Bartenders — “Here at Doyle’s Outpost, we are looking for a great team who will “change the game” with us while providing elevated service each and every day while making lasting connections with our guests! We are searching for exceptional, motivated, charismatic and genuine people, who can work smart and thrive under pressure, all with a smile. Get in on the ground floor of this exciting opportunity.” [Indeed]
Still No Motive for Student Accused of Double Homicide — “George Ivan Maertens Aramayo said police have not told him why his daughter, 19, and Bianda, 21, were killed. He is not familiar with Mohamed Aly, the 18-year-old from Alexandria who is facing two first-degree murder charges. Aly attended T.C. Williams High School in Alexandria, where friends say he was a strong student and athlete hoping to play college football.” [Washington Post]
APD Testing Electric Parking Enforcement Vehicle — “APD’s Parking Enforcement Unit conducted a test of an electric GO-4 vehicle today. Pictured is Parking Enforcement Officer Ms. Fuller, who has operated the GO-4 type vehicle for the last 23 years.” [Twitter]
For Alexandria Families, $100K Doesn’t Cut It — “An analysis by personal finance site MagnifyMoney found that in some pricey cities it’s particularly hard to make it on $100,000. ‘The worst metro area for a family earning $100,000 includes Washington, D.C. and neighboring cities Arlington and Alexandria, Va. After factoring in monthly expenses, families would be $315 in the red.'” [MarketWatch]
Fail: King Street Metro Screens — “The status of the fancy new displays at King Street Station: THREE bios screens and a fourth dead one. The one beside the manager’s station has been showing the bios screen for WEEKS.” [Twitter]
Patent Office Holding Job Fair — “The United States Patent & Trademark Office is holding a job fair and hiring 100s of engineers to examine America’s patents in 2020… The Patent Examiner Recruitment Open House event in Alexandria, VA is designed to attract soon-to-be graduates and professionals.” [Zebra]
