REPORT TO COUNCIL
SUBJECT
Title
Update on Guaranteed Basic Income Funding (Information Only)
Report
BACKGROUND
In January 2022, City Council sponsored Study Issue CDD 22-07 - Evaluate a Pilot Program for Universal Basic Income (UBI) Including Potential Funding Sources (RTC No. 22-0285). Consultant funding for the study was approved in June 2022 (RTC No. 22-0128) as part of the FY 2022/23 Budget. Although this study initially started out as a UBI Study, staff was informed that UBI provides all individuals with a regular unconditional payment, whereas Guaranteed Basic Income (GBI) refers to a similar concept for a targeted population. As a result, this study has subsequently been considered a GBI study.
Following a competitive Request for Proposals process, in August 2023, the City contracted with Dalberg Advisors (Dalberg), a consultant firm specializing in social programs, to complete the GBI study.
At the October 24, 2023 Council Study Session, staff and Dalberg provided an update on the progress of the GBI study and solicited input on potential participant groups and program design (RTC No. 23-0597). While the Council did not identify a particular participant group, extremely low-income households and/or households with children were indicated as potential candidates. Based on the feedback from this Study Session, Dalberg completed their final GBI Report in March 2024.
On September 12, 2024, the final GBI Report was presented to the Human Relations Commission (HRC) (RTC No. 24-0076). No recommendation was requested from the HRC. This was an educational presentation, during which staff provided an overview of the program and responded to questions from HRC.
The Housing and Human Services Commission (HHSC) (RTC No. 24-0966) considered this item at a special meeting on September 19, 2024. HHSC arrived at a split vote and decided to not pursue any further motions, making no recommendation to Council.
The City Council considered this item on October 29, 2024 (RTC No. 24-1007). Council voted to approve the final GBI Report, including the recommended programmatic components. The vote was 6-0 with Councilmember Cisneros absent. Council also directed staff to continue pursuing non-City funding opportunities and to report back in one year with a funding update.
EXISTING POLICY
City Council Policy 5.1.1 Socio-Economic - Goals and Policies
Goal 5.1I - Monitor human service needs of the community in order to identify appropriate responses and encourage the provision of needed services.
Goal 5.IJ - Encourage and support a network of human services that provides for the basic needs of Sunnyvale’s residents.
GENERAL PLAN: COMMUNITY VISION
GOAL XIV. Caring Community - To provide support for those in the community who are not able to fully support themselves, so all residents may enjoy the City’s high quality of life.
DISCUSSION
As part of the final GBI Report, Dalberg estimated that implementing a two-year GBI pilot program would cost $2.8 to $4 million ($1.4 to $2 million annually). Currently, there are no City funding sources designated for this purpose. Staff conducted research of potential funders including Destination: Home (a public-private partnership located in San Jose), the County of Santa Clara, the California Department of Social Services, the Sobrato Foundation, and Mayors for Guaranteed Income (a network of mayors throughout the country founded by the mayor of Stockton in 2020), and reached out to a number of these agencies to inquire further about potential funding opportunities.
Attachment 1 provides an overview of GBI programs within Santa Clara County. Based on staff’s outreach to potential funders, the following findings were identified:
• Destination: Home is already supporting three GBI programs within Santa Clara County and has not indicated interest or funding availability to expand its support at this time.
• The County of Santa Clara has five GBI programs either active or planned within the County and is not considering additional programs.
• The California Department of Social Services funded GBI programs in 2021 and again in 2024; however, the Department has not indicated that any additional funding would be planned for new programs at this time.
• The Sobrato Foundation is not funding new GBI programs at this time.
• Finally, staff met with the lead of Mayors for Guaranteed Income to explore opportunities for engagement and support; however, no funding opportunities are currently available.
Overall, staff found that the organizations and agencies that have historically supported GBI programs are no longer funding new GBI programs. These findings are supported by Dalberg’s final GBI report, which describes a challenging funding scenario for new GBI pilot programs. As a result, it is not feasible for the City to implement a new GBI pilot program at this time with outside funding. Nevertheless, some of the active and planned County and State funded GBI programs may already be serving Sunnyvale residents.
While this report closes Study Issue CDD 22-07, Housing Division staff will continue to monitor local, state and federal funding opportunities for new programs and bring any identified opportunities to Council for future consideration. In addition, the City has contracted with Townsend Public Affairs to provide monthly updates on both public and private funding opportunities for City programs. Townsend will notify the City if a potential funding source for GBI becomes available.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Lorena Lopez, Housing Specialist I
Reviewed by: Ryan Dyson, Housing Specialist II
Reviewed by: Amanda Sztoltz, Housing Officer
Reviewed by: Trudi Ryan, Director, Community Development
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. GBI Programs - Santa Clara County