(The Center Square) – Boulder County will spend $6 million in federal funds on a basic income program, giving $300 per month for two years to 725 qualifying households with no restrictions.
The program, commonly called universal basic income, is one of dozens around the country. A 140-page study by the National Bureau of Economic Research found the programs led to a reduction in annual total individual income of approximately $1,500 and a slight decrease in the number of hours worked per week. Total household income decreased approximately $4,100 per year, according to the study. However, it also found the money provided an opportunity for participants to explore entrepreneurial activities and a willingness to take risks.
“Duration of non-employment and unemployment both go up, as one might expect if, with the transfers, people feel less pressure to immediately take up a new job upon leaving one,” the study found as it examined employment.
Research by McKinsey, an international business consulting firm, found the amount of quantitative evidence for or against universal basic income “is still slim.” It reported Finland is the only country to complete a nationwide control trial of a basic income program.
Boulder County received $63,359,749 from the American Rescue Plan Act, signed into law in 2021. The direct-cash program, called Nurturing Futures, will be for families with young children. Online applications will begin on Aug. 6 and close at midnight on Aug. 27.
Families meeting the program’s qualifications will be selected for the cash infusion through a lottery in September and payments will begin in October.
To qualify for the lottery, applicants must live in Boulder County, be at least age 18 and have at least one child under age four when they apply. The family income must be 30% under the area median income. For a family of four, the area median income is approximately $30,600.
Anyone currently receiving assistance through Elevate Boulder, the city’s basic income program, won’t be eligible for the county program. The county also warned applicants their eligibility for other public assistance benefits, such as the Supplemental Nutrition Assistance Program (SNAP) or the Child Car Assistance Program (CCAP), could be affected if they’re selected to participate in the Nurturing Futures cash payment program.
“Direct cash assistance is proven to be one of the most effective tools to reduce child and family poverty,” Boulder County Commissioner Claire Levy said in a statement. “Getting financial support directly to families with young kids helps them meet basic needs like food, medication, bills, and rental assistance, and reduces stress and distraction. Nurturing Futures will help strengthen families, and in turn, our communities.”
Last week, a Missouri judge granted a 15-day injunction to pause a similar program in the City of St. Louis. A lawsuit was filed alleging the universal basic income program violated the Missouri Constitution and the city charter.
