Coversheet

Board Action Request
22-0210

Item Description:
Transfer up to $4,000,000 of previously allocated funding for career pathways programming to respond to the COVID-19 pandemic to a guaranteed basic income (GBI) pilot program

Resolution:

BE IT RESOLVED, that the Hennepin County Board of Commissioners hereby authorizes up to $4,000,000 of funds previously authorized under Resolution 21-0342 R1 for career pathways programming to instead create a guaranteed basic income (GBI) pilot program to support residents disproportionately impacted by the COVID-19 public health emergency; and

BE IT FURTHER RESOLVED, in order to implement the above resolving clause, the County Administrator is authorized to negotiate agreements with providers to create, administer and evaluate the pilot program from June 1, 2022 through December 31, 2024 in a total not to exceed amount of $4,000,000; this includes but is not limited to negotiating amendments and increasing the not to exceed amounts for existing agreements with providers, negotiating new agreements with providers, or transferring funds to other units of government; that following review and approval by the County Attorney’s Office, the Chair of the board be authorized to sign the agreements; and the Controller be authorized to transfer or disburse funds as directed; and

BE IT FURTHER RESOLVED, in order to implement the above resolving clauses and pursuant to Minn. Stat. §§ 383B.101 et seq., the County Administrator is authorized to effectuate the goals of this resolution, including but not limited to directing and coordinating county personnel and resources as needed to conduct the GBI pilot program.


Background: Hennepin County invests in a wide array of strategies to advance racial equity, increase economic mobility, and support wealth-building. Homelessness prevention, affordable housing creation and preservation, workforce training services and supports, and entrepreneur development are just a few of the ways that Hennepin County helps deliver a higher quality of life and prosperity to our residents. One of the greatest barriers to economic security and mobility for low-income individuals are benefits cliffs. “Benefit cliffs” occur when individual income increases to the point that the individual is ineligible for public assistance, but where the increase in income is insufficient to offset the loss of public assistance. Hennepin County seeks to explore and assess GBI as an approach to mitigate benefits cliffs, address racial disparities, and accelerate economic mobility. Guaranteed basic income (GBI) is recurring, unconditional cash payments, to a targeted group of people. This direct cash payment model will allow recipients to make decisions that will meet their needs in the most efficient way possible. GBI differs from most public assistance programs, which commonly tie benefits to work requirements or fluctuations in recipients’ earned income and restrict how recipients can use the money. GBI may be a valuable tool for addressing disparities because it can reduce barriers to program participation and empower recipients to address their most urgent needs, rather than adhering to administrative prescriptions. The GBI pilot program seeks to answer these questions: Does GBI mitigate benefits cliffs, and support economic mobility, wealth building, and racial equity? What program design factors should be considered in a long-term program? What policy considerations have been surfaced that should be addressed? Income is foundational to self-sufficiency and opportunity. This board action request aligns with Hennepin County disparity reduction efforts by providing income that will allow pilot participants to pay for basic needs and that is critical for establishing wealth and growing assets. Current Request: The current request is to authorize the transfer of previously allocated funding the amount of up to $4 million to conduct a GBI pilot program.


Recommendation from County Administrator: Recommend Approval