ST PAUL, Minn. — A new study suggests St. Paul’s first guaranteed income program delivered economic, physical and mental health benefits to its participants.
On Monday, St. Paul Mayor Melvin Carter announced the results of the study done by the Center for Guaranteed Income Research at the University of Pennsylvania. Researchers evaluated the People’s Prosperity Program – which ran from October 2020 through April 2022 – and its impact on participants who received $500 a month.
Among the study’s findings:
- The number of people employed increased from 49% at the start of the program to 63% six months after the program ended.
- Families maintained or improved their financial stability, allowing 7% of program participants to transition to “better quality homes.”
- And participants also showed improved physical and mental health, with 15% of participants reporting “feelings of high hope” at the start of the program, compared to 22% six months after the program ended.
“As far as America's ‘War on Poverty’ goes, we've just never seen a toolbox this profound at lifting the quality of life of American people,” Carter said, noting the program was funded by a combination of federal, state and philanthropic funds.
Carter added: “This is about far more than guaranteed income. It's about what happens when you build policy around trusting low-income Americans to know how to manage their own money.”
Not everyone welcomed the program or the study results. In a statement, Anna Mathews, Executive Director of the Minnesota Republican Party said:
"Instead of fostering self-reliance and individual responsibility, guaranteed income programs create a culture of dependency on government handouts, stifling personal initiative and economic growth. Furthermore, implementing guaranteed income would place an unsustainable burden on taxpayers and hinder economic prosperity in our great city. Minnesota Republicans believe in empowering individuals and businesses through policies promoting job creation, lowering taxes, and reducing unnecessary government regulations. Rather than relying on the government to provide income guarantees, we should focus on policies that encourage personal and economic growth, allowing all St. Paul residents the opportunity to achieve financial success through their hard work and determination.”
Mathews continued: “In short, guaranteed income is not the answer; it's time to explore more effective, market-driven solutions to address St Paul's challenges."
In response, Carter said he welcomed critics to join the conversation with research, alternatives and solutions. He further noted this study – which follows a similar study in Stockton, California – is just the beginning of research that will further inform policy that considers guaranteed income.
One family’s story
Policy debates aside, Damara Clark – who’s participating in a similar guaranteed income program through the city of St. Paul – noted the direct benefit to her family, which includes four children and 10 grandchildren.
“That actually helped me with a couple of bills. That actually helped me stock up on Amary's Pampers,” Clark said about her 3-year-old daughter who has spina bifida.
Clark further touted the support available to Amary through CollegeBound Saint Paul, the city’s college savings initiative that provides every child born to a St. Paul resident on or after Jan. 1, 2020, with a college savings account and a $50 seed deposit.
“That's definitely going to give her an incentive that she can do whatever she wants to do,” Clark said, noting she, too, is returning to school with the hope of opening “a home with children that have disabilities.”
“This really helps you kinda sit back and say, ‘O.K., I got a leeway. I got a little bit of leeway. So yes, the program in itself is, I love it. I love it,’” Clark said.
Learn more about Mayors for a Guaranteed Income, a coalition of 125 mayors, at: www.mayorsforagi.org.
Watch more Breaking The News:
Watch all of the latest stories from Breaking The News in our YouTube playlist:
WATCH MORE ON KARE 11+
Download the free KARE 11+ app for Roku, Fire TV, Apple TV and other smart TV platforms to watch more from KARE 11 anytime! The KARE 11+ app includes live streams of all of KARE 11's newscasts. You'll also find on-demand replays of newscasts; the latest from KARE 11 Investigates, Breaking the News and the Land of 10,000 Stories; exclusive programs like Verify and HeartThreads; and Minnesota sports talk from our partners at Locked On Minnesota.
- Add KARE 11+ on Roku here or by searching for KARE 11 in the Roku Channel Store.
- Add KARE 11+ on Fire TV here or by searching for KARE 11 in the Amazon App Store.
- Learn more about the KARE 11+ app for Apple TV in the Apple App Store.
- Learn more about KARE 11+ here.