Cleveland considers Universal Basic Employment pilot

The propsed UBE program would be implemented in partnership with the United Way of Greater Cleveland and, if successful, could present a leg up for the city’s impoverished.

Living comfortably in any major U.S. city comes at cost – about $96,500 annually to afford housing, groceries and other necessities, while also paying off debt and putting money into savings, according to personal finance website SmartAsset.

Although Cleveland’s cost of living is 6% below the national average, its denizens are still struggling. Cleveland’s median household income is $37,271, with 31.2% of the population currently living in poverty, per data from the U.S. Census Bureau.

This grim calculus does not have to be the case forever, said Cleveland City Council member Stephanie Howse-Jones, who is leading a push for a universal basic employment (UBE) pilot program in the city.

In late March, Howse-Jones introduced legislation calling for a two-year pilot program offering Clevelanders guaranteed jobs at an annual $50,000 wage – what Howse-Jones deems a starting point for families seeking stability and an escape from hopelessness.

“Ensuring people have stabilized lives is something worthwhile to pursue,” said Howse-Jones. “If this gets us closer to creating systems that invest in people and reduce poverty, then it’s a worthwhile goal.”

Howse-Jones’ proposal includes a collaboration with United Way of Greater Cleveland, which would receive a $600,000 grant for the pilot’s creation and administration. Should the legislation pass, officials will spend two years researching best practices before any official program launch. Questions yet to be addressed include how much access participating businesses would give administrators over the course of the pilot. 

As for the jobs themselves, there have been initial conversations with small businesses as well as an undisclosed regional healthcare institution, Howse-Jones noted. 

The $50,000 figure was calculated by an online tool as a baseline for surpassing public assistance, as hired individuals would forgo benefits such as housing vouchers and food support. 

“This is an opportunity for people to participate in our economy, and get access to a car or have a savings fund,” said Howse-Jones. “All the things you expect to have to stabilize someone, compared to depending on safety net services that take you through the wringer to just get a little (support).”

There is a danger of phasing out benefits too quickly, resulting in new employees being worse off than they were before landing work, said Ken Surratt, chief development and investment officer with United Way of Greater Cleveland.  

“We want to ensure people who go through the pilot have supports from community nonprofits – a safety net to help bridge families away from the benefits cliff,” said Surratt. “It’s about moving them to a new income bracket and making sure they are better off.”

Joining forces with the City of Cleveland also comes with an understanding that the current system is not helping the larger population, Surratt added. 

“This is an attempt to do something innovative; to flip the trajectory of people through work,” he said. “Employers need skilled workers. When individuals have these income supports, they tend to be okay. The idea is to give people agency around making decisions to make their lives better.”

UBE has its detractors, who believe the initiative drives down wages and doesn’t address poverty’s root causes. Howse-Jones has a more optimistic view of a plan that, ideally, will lift families from desperate situations not of their own making.

“This is a value proposition we’re trying to make,” said Howse-Jones. “When companies, organizations and the government partner with people, we can create win-win opportunities. It doesn’t have to be one side winning while the other does not. When people are not in a fight mode to just survive, they have more of a chance to enjoy life.”