Universal basic employment could be answer to ending generational poverty

The latest data from the U.S. Census Bureau show that Cleveland's median household income is $37,271, and 31.2% of the city’s population lives in poverty.

Cleveland City Council Member Stephanie Howse-Jones is pushing to launch a universal basic employment (UBE) pilot program in the city.

Monday night, she introduced legislation calling for a 2-year pilot program offering guaranteed jobs with a $50,000 annual wage.

She admitted that the $50,000 wage isn’t enough, but said it’s a starting point for a family to become self-sufficient.

“You can pay your bills, you can have stable housing, you have food, you have childcare, you have transportation…you have all the things that will enable you to have a sustainable a life here in the city of Cleveland,” Howse-Jones said. “It also puts you in a position to actually be a full participant in our market. You're in a better position to actually if you need to get a car you can get a car loan…you're looking for a house you actually show that you are able to withstand and hold and maybe be able to even get a mortgage.”

The legislation states:

Universal Basic Employment: Legislation allowing the city to provide a $600,000 grant to the United Way of Greater Cleveland to act as the City’s agent to partially finance costs for the development, administration and the providing of small business and participant support associated with development of a Universal Basic Employment and Opportunity two-year pilot program. Universal Basic Employment & Opportunity (UBE) is a public policy initiative with the mission to demonstrate that a federal jobs guarantee policy can eliminate poverty.

The concept involves eventually partnering with area businesses and supplying those businesses with the funding to cover that $50,000 wage.

Hired individuals would forgo accepting any public benefits like housing vouchers and food assistance.

"We know that we are spending an enormous amount of money in the public sector for things after the fact when someone is already hurting,” Howse-Jones said. “Why can we not think about having real investment in people and show a level of dignity for people? We think once we demonstrate success we can have some willing partners with the state and the federal government to see this as a different way how we invest public dollars to truly do public good."

News 5 asked Howse-Jones about critics' concerns that such initiatives could drive down wages and don’t address poverty's root causes.

“People should not be in a desolate situation to have partnership with their government,” Howse-Jones said.

The United Way of Greater Cleveland's President and CEO Sharon Sobol Jordan released a statement to News 5 stating in part, “Joining forces with the UBE team and other cross-sector partners will allow us to demonstrate how offering better financial security through meaningful employment impacts the trajectory of a person’s income and wealth going forward."

Howse-Jones said a focus group is helping her and others learn about different aspects of the UBE pilot program and its impact. She said there have been initial conversations with one of the area’s larger healthcare institutions and various small businesses.

The legislation still must go through the committee process at city hall.

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