CITY COUNCIL MEETING
OCTOBER 29, 2024
Sunnyvale: Creation of a
Universal Basic Income
Pilot Program
2 Sunnyvale's GBI pilot study
Study Issue (SI) CDD 22-07
Evaluate a Universal Basic Income (UBI) pilot program
City Hired Dalberg Advisors to support this Study
Today:
• Review the proposal and Recommendations
• Address questions
• Facilitate a decision on whether and how to move forward 3 Agenda
• Context for the GBI Pilot Study
• Key findings and implications
• Next steps
4 Poverty in Sunnyvale
733 64
Unhoused1 Recently
housed2
Additional
residents
in
poverty3
Residents
below
federal
poverty line4
~7000 ~8000
Note: The 2022 Federal poverty level for a family of four was $27,750 as annual income.
Sources: [1] Santa Clara County Office of Supportive Housing, City of Sunnyvale HOME-ARP Allocation Plan Data Analysis, 2022; [2] Sunnyvale Community Services; 2023; [3] Dalberg analysis; [4] U.S. Census Bureau, Data for Sunnyvale City, 2022.
1. TBRA: Tenant Based Rental Assistance
• Objective:
− Time-limited rental assistance, maximum 2 years – coupled with case- management/employment services
− No HH pays more than 30% of income on housing
• Funding:
− HOME Investment Partnerships (HUD)
− Up to $1M per year in rental assistance
− $350k per year in local funds for case management/ administration • Capacity:
− 40 Households (recently increased from 20)
− Administered by Sunnyvale Community Services
5 What is Sunnyvale already doing? (1 of 2)
Supporting Various Local Non-profit Partners
• Funding:
– CDBG, General Fund, HOME, PLHA
• Program Examples:
–Unhoused job training program
–Food Programs
–Counseling Services
–Emergency Housing Services
–Legal Services
–Elder, Youth, and Disabled Supportive Services
6 What is Sunnyvale already doing? (2 of 2)
7 UNIVERSAL BASIC INCOME (UBI) provides all individuals a regular unconditional payment
GUARANTEED BASIC INCOME (GBI) refers to a similar concept for a targeted population
We use the term “GBI” in these materials
Guaranteed Basic Income (GBI)
8 20+ GBI pilots in CA1,2
100+ GBI pilots in U.S.1
6 GBI pilots in Santa Clara County3
Mountain View4, Milpitas, Google, Destination: Home5,
SC County
GBI is gaining momentum
Sources: [1] Economic Security Project, Champions for Guaranteed Income Celebrate, 2022; [2] New York Times, Guaranteed Income Programs Spread, City by City, 2022; [3] Santa Clara County, County of Santa Clara Expands Guaranteed Basic Income Pilot Program to Additional Vulnerable Populations, 2023: [4] City of Mountainview, Elevate MV | Guaranteed Income Pilots Dashboard, 2023; [5] Destination: Home, Announcing the Launch of the Silicon Valley Guaranteed Income Project, 2022.
9 GBI pilots have proven results (1 of 2)
Sources: [1] Stanford Basic Income Lab, Basic income and local government - a guide to municipal pilots, 2022; [2] Foundations for Social Change: New Leaf Project, Statement of Impact, 2021. — Higher probability of finding full-time employment1
— Increased housing stability2
— Improved physical and mental health1
— Reduction in household income volatility1
— Increased self-determination1
10 Control group GBI recipients
32% 37%
28%
40%
+5 percentage
points
+12 percentage
points
2019
2020
Percentage point increase in full-time employment,
from Stockton Economic Empowerment Demonstration1
GBI pilots have proven results (2 of 2)
Sources: [1] Stockton Economic Empowerment Demonstration, Preliminary Analysis: SEED’s First Year, 2021. 11Sources: [1] Stanford Basic Income Lab, The Guaranteed Income Pilots Dashboard, 2023.
Spending data from 7500+ participants show that GBI Beneficiaries use the money for1:
36%
31%
9%
9%
6%
4%
2%
1%
1%
Retail sales & services
Food & groceries
Transport
Housing Utilities
Financial transactions
Travel/leisure
Healthcare
Miscellaneous
Education
There is no evidence of misuse of GBI
Sources: [1] Alaska Permanent Fund Corporation, The Permanent Fund; [2] Chicago Sun Times, Are guaranteed-income programs working?, 2023; [3] Bloomberg, NYC Guaranteed Income Program Goes From Pilot to Permanent, 2023. 12 Permanent GBI Programs
NON-EXHAUSTIVE
Current permanent UBI programs:
GBI pilots committed to continue:
• Alaska Permanent Fund1
• Cook County (Illinois) - Promise Guaranteed Income Pilot2 • New York City - The Bridge Project3
13 • Benchmark of UBI programs
• Potential funding sources
• Pool size, application process, and amount
• Outreach process
• Administration requirements (e.g., metrics)
• Distribution process
Study Issue of GBI pilot
Sources: [1] City of Sunnyvale, Request for proposals No. F23-066 for professional services assistance for the creation of a universal basic income pilot program, 2023. 14 Agenda
• Context for the GBI Pilot Study
• Key findings and implications
• Next steps
15 Stage 1
Stage 2
Stage 3
We have interviewed 60+ stakeholders
Engage community stakeholders and City staff
Engage external experts and potential co-funders
Share initial findings with Council; hold community
outreach & focus group meetings
Re-engage stakeholders as needed and share final
findingsStage 4
16 Who?
What are the strategic objectives for the pilot?
What?
How?
Why?
Who is the pilot for?
What is the pilot design (amount, frequency,
duration, etc.)?
How will the City fund and execute it?
Four fundamental questions
17 Address
community
needs
Catalyze
permanent
GBI in
Sunnyvale
Cultivate
national GBI
advocates
GBI pilots may serve various objectives:
Compare
effectiveness
vs other
policies
Why fund GBI?
GBI
Movement
Sunnyvale
Community
Artists in
specific
neighborhoods
18 BroadTargeted
Saint Paul, MN
Parents with
income below
30% of AMI
Families
experiencing or
at risk of
homelessness
Santa Clara Co. Mountain View
Who is the pilot for? (1 of 2)
Sources: [1] Dalberg Analysis; [2] The Stanford Basic Income Lab, The Guaranteed Income Pilots Dashboard, 2023; [3] Mayors for a guaranteed income, Resources, 2022; [4] Mayors for a guaranteed income, End of Year Report, 2022.
Eligibility criteria can vary:
Example pilots
• Residents with 30% of AMI
• Domestic violence survivors
• Low-income seniors
• Undocumented residents
• Foster youth
• BIPOC communities
• LGBTQ+ population
• Unhoused residents
• Residents at risk of becoming
homeless or recently housed
• Low-income families with
children
• Low-income community college
students
19 Who is the pilot for? (2 of 2)
Most mentioned by interviewees Less mentioned by interviewees — Participants: 100 – 325
— Frequency: Monthly or Hybrid (lump sum + monthly)
— Amount: $500 - $1,000
— Duration: 1-2 Years
— Administration costs: ~15%* of distribution
20 What are the typical characteristics?
Note: The ranges for number of participants and duration of pilot reflect the 20th to 80th percentile of the pilots reviewed. The frequency of payments, administration costs, and range for the amount of support provided is based on expert interviews and research.
Sources: [1] Stanford Basic Income Lab, The Guaranteed Income Pilots Dashboard, 2023; [2] Mayors for a Guaranteed Income, Resources, 2022; [3] Dalberg research.
This implies min. total costs of ~$1.4 – $2 M per year
*Up to 40%
21 County & State
How will the City fund program?
Major employers
Philanthropic
funders
Potential sources of co-funding include:
• Appears unlikely to materialize
• May be possible
• No known design requirements
• Growing pilot fatigue
• Interest likely to be strongest in a pilot that
contributes to broader GBI movement or
focuses on a specific population
22 • Defining the rigor of monitoring and evaluation (e.g., randomized controlled trials vs tracking basic indicators through existing systems)
• Mitigating the benefits cliff issue
• Being thoughtful about the governance structure and how to engage beneficiaries
How would the City execute program?
Important considerations include:
23 Agenda
• Context for the GBI Pilot Study
• Key findings and implications
• Next steps
24 Who?
Assist vulnerable members of the community to
stabilize.
What?
How?
Why?
Lowest income populations; no special subset.
Monthly, up to $1,000 (with initial boost payment);
for 2 years, depending on funding availability.
Outside funding and contract administrator. Council
can decide on City funding if no source found.
Sunnyvale GBI Program Recommended Features
25 Questions from Commissioners
• How long have programs been tracked?
• How would success be measured?
• Are there benefits of a Universal Income Pilot Program at County level? • What would be the role of a co-funder?
Public Comment
• Support of GBI for Sunnyvale residents
Outreach
• Service Providers and Advocates
Public Outreach
Human Relations Commission
26 • Alternative 1: Accept the Final GBI Report, including the recommended Programmatic Components;
and
• Alternative 4: Direct staff to continue to look for non-City funding opportunities, and report back to Council in one year with a funding update.
Recommendations
• No Recommendation (2-2 votes on motions)
Housing and Human Services Commission
Staff
Discussion & Questions
COMMUNITY OUTREACH DETAILS
Annex
29 Dalberg engaged potential beneficiaries through two
focus group discussions, co-facilitating them with
local service providers in Sunnyvale
The City of Sunnyvale, Dalberg, and local community organizations, collaborated to plan two focus group sessions. These were held on December 13, 2023, at the Columbia Neighborhood Center in Sunnyvale.
Community organizations assisted in nominating participants and potential co-facilitators. Dalberg curated the list of attendees and selected front-line staff, who were familiar with some of these participants, to serve as co-facilitators, ensuring a comfortable environment.
The sessions, characterized by informal conversations, aimed to understand potential GBI recipients' perspectives through prompt questions, while maintaining flexibility in the discussions.
Everyone was given the option to share openly or submit anonymous written responses, fostering a safe and participant-centric space for genuine dialogue.
The focus groups had 6-8 participants per session.
Participants were individuals with low incomes,
such as those below the Federal Poverty Line
(~$28,000 annually for a family of four).
The group was arranged to ensure a diverse mix of
participants, including individuals from different
genders, age groups, ethnicities, and life
experiences. This included residents experiencing
homelessness, facing rent burdens, or encountering
housing insecurity, as well as parents of preschool
or school-aged children.
Participants
The purpose of these sessions was to understand the needs, challenges, and preferences of individuals who could potentially benefit from Sunnyvale’s GBI pilot program. By engaging directly with potential recipients, the goal was to ensure that the program's design and implementation align with their realities and perspectives.
Objective
Description
30 Dalberg also held two community outreach meetings
with the extended Sunnyvale community
The City of Sunnyvale and Dalberg organized two community outreach meetings. These were held on December 14, 2023, one fully virtual and the other one hybrid (virtual and in-person at Sunnyvale City Hall).
The agenda included i) Introduction and context of GBI, ii) Discussion on key questions, and iii) Closing remarks.
Key questions focusing on the “Why?”, “Who?”, “What?”, and “How?” of the GBI pilot were presented to participants to gather their input on strategic goals, potential beneficiaries, program characteristics, and success metrics.
The meetings utilized an interactive approach, incorporating the use of Mentimeter (menti) to facilitate engagement.
Both sessions were led by Dalberg and City staff, offering attendees the option to contribute through written submissions and oral participation.
The broader Sunnyvale community was invited to
participate. Anyone interested was welcome to
join.
The city promoted participation in these meetings
by leveraging existing lists of interested individuals
or relevant stakeholders and groups.
Each meeting attracted 10-30 participants.
Attendees included members of community
organizations and general Sunnyvale residents,
both those with a broad interest in the topic and
those keen on potentially participating as
beneficiaries.
Participants
The objective of these meetings was to gather the community’s perspectives on Sunnyvale's potential GBI pilot program. The goal was to actively involve residents and the broader community in providing input for the potential design and execution of the pilot.
Objective
Description
• Some local faith-based organizations have estimated
that the cost of living for a family of four is at least ~$90k annually1
• MIT’s living wage model* suggests that in Sunnyvale:
− A household of two adults working full-time and
one child must earn at least ~$115k to support
themselves2
− A household of one adult working full-time and
one child must earn at least ~$108k to support
themselves
2 • In 2020, 31.2% of households earned less than
$100k (~17k households)3
31 Numerous households are falling short each month in
their ability to fully support themselves
In Sunnyvale, nearly 1 in 3 households earn
under $100k, likely facing monthly shortfalls
14%
17%
18%15%
36%
< $50k
$50K - $99K
$100K - $149K
$150K - $199K
> $200K
Household share by income (2020)3
Note: (*) The living wage model, as an alternative to federal poverty measures, calculates the minimum employment earnings needed for a family's basic needs, factoring in geographically specific costs for food, childcare, health care, housing, and other necessities.
Sources: [1] Dalberg interviews and community engagement; [2] Living Wage Calculator MIT, Living Wage Calculation
for San Jose-Sunnyvale-Santa Clara, 2023; [3] Data USA. Sunnyvale, CA – Household income, 2020. 32 As a result, low-income Sunnyvale residents face
severe challenges, as proven by interviews with local
organizations and community members
The growing number of people on the streets, including families with young children, is a significant concern […] There is a big need. Evictions and low-paying jobs are key factors. It’s basically a money game at this point.
- Community-based organization that supports vulnerable individuals The high cost of rent in Sunnyvale forces families to squeeze into single households. We've observed people renting parts of living rooms or kitchens, with residents alternating [...] Many children and their families face food insecurity. We are underserving those who need assistance the most.
- Nonprofit emergency assistance agency in Sunnyvale
Community Organizations
Housing is a major challenge. Finding employment is also a hurdle due to Sunnyvale's size. People keep running into roadblocks [...] People have a very small cushion month over month. They struggle to build savings. There is a very small window for a medical emergency, a car breakdown, etc.
- Nonprofit organization in California that addresses homelessness I have four children, and I'm the only one working. After reaching earnings of two thousand per month, you don't get any more help. It can be very tough to get help. I became depressed and stopped asking for resources.
- Low-income Sunnyvale resident (potential GBI beneficiary) It doesn’t matter how many times you do a budget if you’re on a deficit. You can only cut expenses so far.
- Low-income Sunnyvale resident (potential GBI beneficiary) Community Members
Sources: Dalberg interviews and community engagement.
There is no breathing room […] In the past, an amount that might seem small, would seem big at that point, causing me to spiral negatively. If I just had received help at that time, everything wouldn’t have piled up because of one issue.
- Low-income Sunnyvale resident (potential GBI beneficiary)
33 The City Council has five decision points regarding
pilot design
Decision points:
Are you willing to fund the pilot if no co-funding is available, considering an estimate of minimum total costs of $1.4M - $2M per year? (yes or no)1
Who will be the target population in the pilot program? (Broad or targeted criteria. If targeted, which specific group and why?)
What will be the design characteristics and what budget will they imply? (i. Number of participants, ii. amount of support, iii. frequency, iv. duration of the pilot program, v. complementary services, if any) 2 3
After the budget has been refined, where will the funds come from?4 Will the City partner with outside agencies to implement and manage the pilot? (If yes, what types of partners and how to select them?) – see next slide5
34 The City Council has six decision points regarding
pilot execution
Decision points:
Who will be responsible for the implementation of the pilot? (outreach, screening of participants, benefits counseling, day-to-day support, etc.)1
Who will be responsible for mitigating the benefits cliff? (secure waivers) Who will be responsible for the distribution of funds to participants? 2 3
What metrics do you want to measure and how will you gather the data? (Potential metrics: full -time job, mental health, etc. Potential methods: Self-reported surveys, interviews, etc.)4 Who will be responsible for measuring and evaluation? (Collecting and analyzing data, generating reports, sharing learnings, etc.)5
What will the communication to the broader community be like, and who will be responsible for it? (How proactively does the City want to communicate, and through which channels?)6 Sources: [1] Philanthropy News Digest, Is Helping Black Moms Out Financially Unconstitutional?, 2023; [2] Los Angeles Times, Backlash to affirmative action hits pioneering maternal health program for Black women, 2023; [3] The Guardian, Californians on universal basic income paid off debt and got full-time jobs, 2021; [4] Dalberg Interviews; [5] SDPB, State lawmakers consider preemptive ban of guaranteed income programs, 2024; [6] State of Arkansas House of Representatives, District Daily Summary, 2023; [7] Business Insider, Texas state lawmaker criticizes 'universal basic income' programs: 'We can't just hand out money like popcorn on street corners', 2024; [8] The Center Square, New legislation seeks to ban government-backed guaranteed income programs in Wisconsin, 2023; [9] The Quad-City Times, Proposal would bar universal basic income programs in Iowa, 2024; [10] BoiseDev, Bill would preempt Idaho cities, counties starting universal basic income program, 2024. 35 While there has been opposition in California to
racially-targeted programs, some other states have
shown greater resistance to GBI
At a national level, local GBI initiatives have recently been blocked in states that tend to be more conservative Legal challenges to race explicit (vs. race conscious)
and other non-economic targeting criteria probably
represents the greatest risk to GBI programs.4
- GBI expert
In California, opposition to racially-targeted programs exists, but unlike in other states, there doesn't appear to be significant or coordinated resistance to the concept of GBI. While national negativity persists, it shouldn’t be a local concern if non-economic targeting is avoided In recent months, a small group of Republican state lawmakers in several states has emerged, proposing or passing laws preempting municipal governments from implementing GBI programs. For instance:
• In South Dakota, lawmakers mull banning guaranteed income programs, citing concerns about work dignity and government dependency5 • In Arkansas, Bill HB1681 was passed in 2023 prohibiting state or local governments from implementing universal basic income programs6 • In Texas, Senator Paul Bettencourt opposes GBI programs, aiming to declare them unconstitutional through the state attorney general7 Other states such as Wisconsin8, Iowa9, and Idaho10 also show significant opposition to GBI programs, although it is unlikely to impact support in more favorable states like California.
An evident instance of backlash in California is exemplified by the Abundant Birth Project (ABP) • A lawsuit has been filed against the city of San Francisco and the state of California over the Abundant Birth Project, alleging violation of the Civil Rights Act of 1964 by providing exclusive funds to women of color
1 • The lawsuit also targets other San Francisco GBI programs, including those for artists, transgender individuals, and Black young adults
2 Yet, general opposition to GBI in California does not appear to be widespread or organized, coming mainly from conservatives who dislike big government programs and some labor unions concerned about sacrificing other social safety net programs 3 California tends to support and promote GBI, but there has been considerable opposition to the practice of targeting by race and other non-economic criteria These government-sponsored and publicly funded
programs are designed to select beneficiaries on a
racially exclusionary basis. This is unconstitutional
[…] Defendants’ payment schemes also discriminate
unlawfully on the bases of gender/gender identity
and sexual orientation.
1 - Abundant Birth Project Lawsuit
No hesitant comments were noted during the community
outreach meetings and stakeholder engagement sessions,
although the City did receive one email containing a negative comment and another one seeking clarification1
36 The concept of GBI also received a few negative or
hesitant comments from Sunnyvale residents via
email and media
Some negative comments were also observed under The San Jose Spotlight article covering the city council meeting of October 24, 2023, during which initial discussions were held regarding the potential GBI pilot program2
The San Jose Spotlight reports the Sunnyvale City Council is considering sending monthly checks to certain residents. It is appalling to learn my city is interested in joining the list of government agencies, from Washington down, who are actively working to increase the number of citizens who are dependent on the government for their income. This is Communism by whatever fancy name you wish to apply to it. Please drop this misguided scheme. - Sunnyvale resident
May I please get some additional details on this pilot program […] I was a little concerned about the way it sounded. But it sounds more like a welfare assistance program based on socio-economic need. - Sunnyvale resident
Another California handout from the socialist state. Maybe we should build homes for these folks so they can live here. What a concept. - Sunnyvale resident
I wish Sunnyvale would stop giving away my money. The property tax here is obscene. Income tax, sales tax, gas tax are the most of anywhere.
I'm low paid, but I have never taken a cent from the government (minus the covid direct deposits). Now you want to give another $500 unearned money to my neighbors? Crazy.
- Sunnyvale resident
If the city of Sunnyvale can find third-party funding sources to pay for this program other than local taxes, then great! If instead the city decides to burden residents and taxpayers I hope they have the courage to put it up for a vote, and live by the results.
- Sunnyvale resident
Sources: [1] Community Development Department; [2] San Jose Spotlight, Sunnyvale wants to give residents in need monthly checks, 2023.
This situation reflects the landscape in California, where some opposition exists but does not appear to be substantial or organized. Thus, while there is some negativity present, it is unlikely to pose a significant concern for Sunnyvale.