October 4, 2022 | From City of New Orleans
City of New Orleans Releases Data from Mayors for a Guaranteed Income Pilot Program
NEW ORLEANS — The Mayor's Office of Youth and Families today announced the initial spending and demographic results of the New Orleans Guaranteed Income Program. The results were rolled out as part of a major, nationwide step forward for the guaranteed income movement.
Mayors for a Guaranteed Income’s new data dashboard shows that in New Orleans and around the country, families are using their need-based cash payments to cover necessities in an uncertain economy — providing them with the opportunity, freedom and resilience they need to build financial security.
"A big part of New Orleans' Guaranteed Income pilot program was understanding that every person and their families have a different set of needs," said Mayor LaToya Cantrell. "Moreover, these priorities may evolve differently every month, and this program has given our youth the power and autonomy to make the choices that most benefit them, aligning with my administration's goals to create a more inclusive and equitable City overall. Having access to this data is essential because as more of these Guaranteed Income programs develop, we must continue to recognize the types of impacts Guaranteed Income has on some of the most pressing issues facing our communities, including physical and mental health, employment and job security, parenting, substance abuse and more. Once we receive additional data and are able to gain a better understanding of additional data and information over time, we will be well-equipped to determine how best to tailor Guaranteed Income programs for different cities for generations to come."
The City's Guaranteed Income Program, operated by the Office of Youth and Families, is providing $350 a month for 10 months to 125 young people between the ages of 16-24 who are disconnected from work and school. New Orleans is the only MGI-funded city in the country supporting individuals under 18.
Initial data from the New Orleans Guaranteed Income Program shows that:
- The majority of funds were spent on basic necessities like food, household goods and transportation.
- 48.8 percent of the funds were spent on food and groceries
- 32.1 percent of the funds were spent at retailers and discount superstores on items such as food, clothes, household goods and hygiene products
- 8.2 percent was spent on transportation costs such as gas and car repairs
- 4.5 percent went to housing and utilities
- Other expenses included loan repayments, medical expenses and tuition
- Guaranteed income pilot programs are an effective tool to improve racial and gender equity. The programs were not targeted by race or gender, yet the funds reached higher proportions of women and people of color because systemic racism and sexism makes it harder for them to achieve financial freedom.
- 58 percent of participants were women, 39 percent men and 2 percent non-binary
- 75 percent of participants were African American
- 9 percent identified as Latinos
- 12 percent were of mixed descent
- 10 percent identified as White
- 64 percent had a child in their household
"The Guaranteed Income Program has been such a great help for me and my two kids," said Symphony Lee, New Orleans resident and Guaranteed Income participant. "With the money, I've been able to save and also spend it on things I need like school, diapers and phone bills. Being a part of the Guaranteed Income Program has also helped me connect with other great resources."
“The data released today is a breakthrough for justice, equality and the guaranteed income movement. It proves that cash is an urgent solution to the failures of the American economy,” said Former Mayor Michael D. Tubbs of Stockton, Calif., the country's first city to experiment with guaranteed income. “It’s time for leaders, at every level, to join us in this guaranteed income movement to finally create an economy that works for all.”
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