Cambridge’s tightening finances cast an element of doubt on whether it can keep funding something like the Rise Up program, which gives money to low-income families.
The Cambridge City Council voted Monday to explore whether the city can essentially continue the $22 million guaranteed–income program, which relied on federal Covid-relief money from the American Rescue Plan Act. With that ended and the money expiring, a new source of funding will be needed for a replacement program.
“We’ll have less money in our coffers next year,” said Cathie Zusy in her first meeting as city councillor, pointing out vacancy rates in lucrative office and laboratory space – around 30 percent and 10 percent, respectively – that fuel tax and construction permit revenue. “We’re going to have to figure out where we’re going to get that money.” Zusy was sworn in Monday to take a seat left empty by the Aug. 30 death of Joan Pickett.
The vote asking city staff to explore how to continue the income program was unanimous, though others acknowledged the same complication about funding.
The order by councillor Sumbul Siddiqui, who launched the program during her second mayoral term, asks staff to look at “possible other target populations in need,” which on Monday she suggested could decrease the scope.
Financial concerns
Concern was shared by councillor Patty Nolan, co-chair of the Finance Committee, and Mayor E. Denise Simmons. “The financial climate is getting dim,” Simmons said. “We do want to be cautious about being able to fund this without having to take those dollars from someplace else.”
“I wonder if we’ll need to taper it down – extend it for a finite period,” Zusy said. “We’ll need to communicate with recipients of the funds really, really clearly so that they know what they can anticipate, because they’re really counting on this money now.”
Rise Up Cambridge has provided cash payments of $500 a month to Cambridge households with children ages 21 and under earning up to 250 percent of the federal poverty line – an amount that families will struggle with in Cambridge. The program includes 1,923 families, or about 6,400 people, who enrolled starting in July 2023.
“We know there’s a lot of need in our community,” Siddiqui said. “I think the council does a great job of thinking about long-term goals and putting them to action, like we’re doing with multifamily housing. That’s really important. I think it’s equally important that we do the work that can make a difference every day, one person and one family at a time.”
Investing in children
Several speakers during public comment – officials and participants – urged a continuation of the program.
“Investing in families is investing in our children,” said Geeta Pradhan, president of the Cambridge Community Foundation, who talked about how recipients of Rise Up money have used it: for their children. Joanna Jimenez, a Cambridge resident, said that the payments have allowed her to spend more time with her kids and enabled her to get a high school equivalency diploma and now study at Bunker Hill Community College.
The federal approach of providing aid in the form of food assistance, not cash, can make it hard for families who need other items. Rise Up participant Tamika McKinney said she used some of her money to buy school uniforms for her children whose schools require them.
Councillor Jivan Sobrinho-Wheeler noted that program participants had higher employment rates than those who did not participate. For some, this is because of increased ability to afford child care. Participant Portia Willis, a stylist at a Supercuts hair salon in Cambridge said she “was able to graduate from barber school and manage to afford child care so I can open and close on weekends.”
Other benefits
Another benefit has been participants’ ability to improve their credit scores, which can help them get better housing, councillor Ayesha Wilson said. Willis said she and her child live in a mold-infested apartment, and she is trying to afford better housing.
One positive of the program is that providing direct cash assistance means not having to hire as many middle managers and staff, Zusy said.
Participants were also grateful to get the funds immediately. “We’re waiting for so many months and years,” said Janine Francis of federal government assistance programs such as food stamps. Getting federal assistance can be lengthy and complicated.
“Direct cash reduces poverty without the red tape, stigma, abysmally low income limits and behavioral restrictions that plague government assistance programs,” said Deborah Harris, senior staff attorney at the Massachusetts Law Reform Institute. “Direct cash improves children’s cognitive and social development and health,” she added.
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To my knowledge, direct cash payments are supported in theory by all 9 councilors and are recognized in study after to study to improve peoples’ lives. As a resident, I have benefitted from one of the lowest residential property tax rates in the state. I have also benefitted from a ridiculously low parking permit fee, nowhere near what it is worth. I would gladly pay slightly more for property tax or parking to fund a program that helps those less fortunate AND allows more diversity in a community that desperately needs it.
I would also be happy to pay higher property taxes to support RISE.
This seems to be a wonderful program that directly helps folks without the bureaucratic costs & delays of other programs. Perhaps, if Harvard & MIT actually paid their full 25% ‘in lieu of taxes’ portion to the city, this program could easily be funded. However, as a recent Bloomberg Report pointed out, Harvard & MIT do NOT pay their agreed upon 25% & have not for years. That is a scandal & a disgrace as well as an insult to Low-income Cambridge residents.
For those interested in gladly & happily paying more to support the Cambridge Rise direct-income program, you can send your checks to Cambridge Community Foundation, 99 Bishop Allen Drive, Cambridge, MA 02139. All you need to do is write “Guaranteed Basic Income Fund” in the memo.
Jerry Vandesic, I hear you, but the small check that I or most individuals can afford is essentially meaningless in comparison to the $22 million that needs to be raised. If the public agrees that direct payment is a public good, the easiest way to make that happen is to fund it through public funds.
The article leaves out important info. The state has a law that prohibits a city from directly funding individuals. That’s why federal funds worked for this purpose. Taxpayer funds will not work. The Council is asking the city staff to try to find a new way to continue funding.
What amount is 250% of the federal poverty line is? It’s helpful in these types of articles to tell us what the calculation adds up to.