Res. No. 569

Resolution Calling on the New York State Legislature to pass, and the Governor to sign S.7591/A.7920, to amend the state finance law, in relation to establishing and funding a universal basic income pilot program.

By Council Members Williams, Hudson, Ossé, Brooks-Powers, Marte, Salaam, Avilés, Banks and Brewer

Whereas, Universal Basic Income (UBI) refers to an unconditional, recurring, non-means-tested cash payment given to all individuals in a given population; and

Whereas, UBI policies have a controversial history, with proponents arguing that UBI can be used to alleviate poverty and bolster economic security, health, and wellbeing with a limited administrative burden, while critics note that UBI may dissuade recipients from participating in the labor market and earning their own income and could be ineffective in targeting those most in need; and

Whereas, According to a review of UBI pilots undertaken by the Stanford University Basic Income Lab, UBI-type programs, meaning those that have at least some, but not all, characteristics of a UBI, generally help alleviate poverty and improve health and education outcomes for recipients; and

Whereas, Guaranteed income (GI) pilots, which are means-tested and targeted at specific groups, such as low-income individuals, have been successfully trialed across the United States, including in New York City where, since 2021, the Bridge Project has been providing new mothers with either $500 or $1000 a month for three years; and

Whereas, After the first 6 months of The Bridge Project, researchers found there was a 63% increase in participants receiving outside childcare, which is proven to increase parental wellbeing and employment, compared to the control group who has not received any cash payments; and

Whereas, In Ulster County, New York, the Project Resilience GI pilot which provided 100 households who had an income of 80% the area’s median income level with monthly cash payments of $500 for 12 months resulted in an improved quality of life, according to research from the Center for Guaranteed Income Research at University of Pennsylvania’s School of Social Policy & Practice; and

Whereas, The largest UBI study to date, in which the nonprofit GiveDirectly worked with researchers to study different ways of providing UBI (long-term, short-term, and in a large lump sum) to villagers in Kenya, has recently released findings from the first two years of the pilot; and

Whereas, The preliminary findings of the GiveDirectly pilot are that lump sum and long-term UBI are highly effective at empowering recipients to become more entrepreneurial and productive and did not correlate with any increased unemployment; and

Whereas, Similarly, a smaller study in Helsinki, from 2017-2018, which provided €560 per month to 2,000 randomly identified but initially unemployed individuals for two years, was found to result in an increase in employment and well-being which lead recipients to engage more with their communities and the labor market, according to the analysis from researchers at the Helsinki University; and

Whereas, In the United States, the OpenResearch Unconditional income Study (ORUS), a randomized control trial (RCT) which ran from November 2020 to October 2023, provided a randomly selected group of participants located in Texas and Illinois who had a household income less than 300 percent of the federal poverty line either $1,000 per month for three years (the treatment group) or $50 per month for three years (the control group); and

Whereas, Key results from ORUS include recipients reporting increased financial well-being and resilience, increased probability of receiving dental care and spending more on healthcare, greater mobility and ability to move neighborhoods, and increased agency to think about, plan, and pursue goals; and

Whereas, These aforementioned GI and UBI pilots have proven that unconditional cash transfers have net positive benefits on recipients as well as their communities and local labor markets and no not decrease self-sufficiency or employment; and

Whereas, S.7591, introduced by New York State Senator Kevin Parker and pending in the State Senate, and companion bill A.7920, introduced by New York State Assembly Member Desmond Meeks and pending in the State Assembly, would establish and fund a UBI pilot program and a subsequent study to identify recommendations for implementing a statewide UBI program; and

Whereas, The pilot program would utilize a means-tested GI model to provide 10,000 participants who have an annual income of $35,600 per year or less with supplementary income of $7,200 for individuals or $14,400 for couples per year for two years; and

Whereas, The results of this pilot will be used to extrapolate cost savings and benefits of a statewide UBI program; and

Whereas, Following the completion of the pilot UBI program, S.7591/A.7920 also mandates recommendations on implementing a statewide UBI program and draft legislation to implement the recommended statewide UBI programs; and

Whereas, The number of New Yorkers facing poverty and material hardship is rising according to research form Robin Hood and the Columbia University Center on Poverty and Social Policy, with more than 23% of adults and 25% of children living in poverty in 2022; and

Whereas, UBI is an evidence-based policy option to reduce economic hardship and poverty as well as the resultant detriments to mental and physical health and wellbeing; and

Whereas, S.7591/A.7920 would allow the State to produce dedicated research and analysis on the specific needs of New Yorkers and the benefits of UBI to design and implement the most effective UBI program to best support and improve the lives of all New Yorkers across the City and State; now, therefore, be it

Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign S.7591/A.7920, to amend the state finance law, in relation to establishing and funding a universal basic income pilot program.

PR

LS # 17378

2:05 pm 8/20/2024