How UBI Will Work in Denver

As usual, I try to find neutral or non-partisan sources of news on these challenging topics. The sources used are listed below. I also thought it was interesting that this story is addressing an important societal issue in Denver.

For a more detailed understanding, I highly recommend taking a few moments to review the content at the links below.

Excerpts are provided with proper citation in case you don’t have time to read the whole article.

Here are the summation bullet points if you don’t have time to review the entire wealth of information available on this topic.

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How New Universal Basic Income (UBI) will work in Denver

$9 Million to Help 820 People

Denver City Council voted recently to contribute $2 million to the Denver Basic Income Project, an organization giving people experiencing homelessness $12,000 over the course of one year.
The city’s contribution will specifically go to 140 women, transgender and gender-nonconforming individuals and families — a group that has seen rising levels of homelessness during the pandemic.
The number of women using Denver’s homeless shelter system tripled throughout the pandemic.
Denver did not provide data on transgender and gender-nonconforming people using the city’s homeless resources, but studies show LGBTQ people are at a higher risk of homelessness in the U.S.
Administrators of the project say they’ll ensure that the pool of recipients is diverse and representative of Denver’s homeless population, which has an over-representation of Black and Native American individuals relative to the city’s population as a whole.
“Just as important as housing and shelter is a regular source of income for those experiencing homelessness,” Mayor Michael B. Hancock stated. “This direct cash assistance will help more than 140 women and families currently in shelters move in to stable housing, and provide support, so they can stay housed while opening space in our shelters to serve more people.”
The city is keen on figuring out not only whether the income provides people with housing stability, but also improves overall mental health — including substance use disorders like addiction.
The $2 million provided by the city is a portion of the overall funding, as the project seeks to help 820 people in total. The entire initiative will cost about $9 million.
Most of the remainder of the money is being raised through charitable foundations, including the Colorado Health Foundation and the Denver Foundation.
People participating are expected to begin getting money starting in November.
By the numbers: Overall, 520 people in Denver will get $12,000 for one year as part of the project; another 300 will get a small stipend as a control:
260 people will get $6,500 up front, and $500 a month for 11 months.
260 people will receive $1,000 monthly over the course of a year.
300 people will be part of a control group and get a $50-a-month stipend to determine whether there’s a difference in outcomes.
Of note: All participants will be able to get a free phone with a year of service included.
Research on similar programs in other cities have shown basic income payments to help people find stable housing, increase employment and spending on things like food, transportation and utilities and decrease spending on alcohol and drugs.
While researchers will track spending in the Denver program, participants can spend the money at their discretion.

Discussion Questions:

Like many big cities, Denver has struggled with how to address homelessness for years. Is this an innovative program or just a giveaway in your opinion?
Any thoughts on why the number of women in shelters has tripled throughout the pandemic?
Are the needs of homeless women, transgender and gender-nonconforming individuals and families different than those of other unhoused populations?
“Just as important as housing and shelter is a regular source of income for those experiencing homelessness,” Mayor Michael B. Hancock stated.

Is it not fair to suggest that a regular source of income would have likely, in the first place, prevented a person or family from being homeless?

Is $1,000/month enough to tackle the stated goals in an expensive city like Denver (or most cities?)
It seems logical to conclude that housing stability and basic income would improve overall mental health; but many housed (non-homeless) people still struggle with substance use disorders like addiction.
Will the provision of a phone prove empowering or useful to these recipients?
Is it wise to have (apparently) little or no oversight of how the money is spent?

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I would very much like to hear your responses to the above discussion questions in the comments, KEEP THEM CIVIL PLEASE — it’s a discussion, not a shouting match.

Sources:

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This post was previously published on medium.com.

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