* Let’s start with some background. According to the Federal Reserve Bank of St. Louis, Cook County had about 663,000 people living at or below the poverty line at the beginning of 2023. That’s way down from its peak of 927,000 in 2012, but it’s still a lot.
From a press release…
The Cook County Promise Guaranteed Income Pilot provides unconditional $500 monthly cash payments to 3,250 low-to-moderate income families in Cook County for a period of two years. The County held an open application period in October 2022 and participants were selected by lottery in November 2022.
It’s basically a lottery program, except you don’t have to buy a ticket. And it’s open to people who are up to 250 percent of the poverty level, so the odds of getting in are pretty small.
* For those fortunate enough to be chosen, it’s been life-changing. Fox 32…
The Cook County government’s guaranteed income pilot program helped its thousands of recipients feel more financially stable and less stressed, according to a survey of participants. […]
• 75% reported feeling more financially secure
• 94% experienced a financial emergency or unexpected expense and used program funds to manage it
• 73% of participants believed the payments will continue to impact them after the program ends
• 56% reported reduced stress
• 70% say the program had a positive impact on their mental health
* But, since its reach is so limited, comparatively few people are being helped. There’s just no way that the county, or the state for that matter, could afford to turn this limited project into a broad-based program covering all eligible households. The $7.5 million put into the county program this fiscal year is only enough to cover 1,250 recipients at $500 a month.
* Center Square…
Gov. J.B. Pritzker says he is not planning to follow Cook County by implementing a guaranteed income program, and one Statehouse Democrat wants to prevent government units from funding such programs with taxpayer dollars. […]
When asked for his thoughts about Cook County’s program, he said it was not inappropriate for counties and municipalities to try things.
“It’s not a policy that we’re looking at doing for the state of Illinois but, on the other hand, sometimes things that you don’t imagine would work do,” Pritzker said.
The governor said it was important to make sure people have the basics they need in life.
“I am concerned, I think that we should be providing jobs for people so they can earn a good living, and the dignity of work really matters,” Pritzker said.
* From the transcript…
Q: Cook County is using $7.5 million for a guaranteed income program. Is that something you are looking at, or your team is looking at at the state level, the state taxpayer dollars when it makes sense?
Pritzker: No. No.
Q: Any other thoughts on the program for Cook County? Is it a good idea?
Pritzker: Listen, I think that you know you’ve heard the old expression that states are the laboratories of democracy, meaning, you know, that states can try things out that ultimately, sometimes end up being federal policy. Municipalities and counties trying things out to see how they work, I think it’s not inappropriate. It’s not a policy that we’re looking at doing for the state of Illinois, but, on the other hand, sometimes things that you don’t imagine would work do. I haven’t looked at the data, so I can’t tell you whether the program is an effectual program.
I am concerned, I think that we should be providing jobs for people so they can earn a good living, and the dignity of work really matters, and so I guess I would throw that into the question of, is a universal basic income type program going to work to give people the dignity that they want? Ultimately, though, what we want is to make sure that people have the basics that they need in life, right? A roof over their heads, the ability to buy the groceries that they need to survive.
* Except a tiny pilot project appears to be in this year’s state budget. Legislators appropriated $827,274 for a guaranteed income program out of the Fund for Illinois’ Future. Hat tip: Illinois Policy Institute.
- Mason County - Friday, Dec 5, 25 @ 12:29 pm:
=When asked for his thoughts about Cook County’s program, he said it was not inappropriate for counties and municipalities to try things.=
If Cook county wants to do it- then do it. Personally, I am against it but it is the county’s prerogative. But only use Cook county taxes. Not other municipal, state of federal funding.
- don the legend - Friday, Dec 5, 25 @ 12:51 pm:
As AI rapidly begins to replace educated workers the demand for and acceptance of a guaranteed income program will be inevitable.
- Montrose - Friday, Dec 5, 25 @ 12:53 pm:
I don’t think a guaranteed income program is incompatible with helping folks access living wage work. We have all sorts of income support programs - SNAP, TANF, Medicaid - that help folks cover their basic needs. GIB does it in a more streamlined way that trusts people to use the money on what they need.
It seems contradictory for JB to raise this concern with guaranteed income but then also be an ardent supporter of other benefit programs.
- ArchPundit - Friday, Dec 5, 25 @ 12:55 pm:
Results from other pilots show increased work and a number of other benefits. This seems counter-intuitive to people who have never been dirt poor, but if you don’t have money for reliable transportation or cannot get your kids in child care it’s hard to work. Universal income helps with that.
That said, given the larger budget and economy that are shaky at best, it’s probably not the time to do a large scale effort.
- Perrid - Friday, Dec 5, 25 @ 12:57 pm:
Call it a negative income tax and see if we can trick republicans into going for it.
More seriously I don’t hate the idea of giving poor people $6k a year but I’d be very nervous doing something like this.