GUARANTEED BASIC INCOME PILOT

WCAC has received $250,000 from the City of Worcester SLFRF ARPA funds to conduct a Guaranteed Basic Income (GBI) pilot. WCAC will provide a guaranteed monthly payment for one year of income to 26 low-income families per year for two years, testing the strength and sustainability of self-determined, humanized choice tied to goal setting for families seeking to confront income volatility and gain greater economic independence. Guaranteed income will allow clients to take risks and fill wage gaps as they explore career pathways or attend training while supporting their families.

WCAC will use a tiered approach based on individual needs for selecting the level of supplemental income that families will receive, ranging from $100 to $500 per month. Families will have access to additional support and a menu of financial empowerment tools.

WCAC Executive Director Marybeth Campbell explained, "This pilot program will further financial stability for local families while allowing them to focus on self-determined goals around critical needs such as housing, employment, childcare, and health."

“On behalf of my administration, I am pleased to support the WCAC’s pilot program to allocate unrestricted financial support and coaching services to low-income families,” said Worcester City Manager Eric D. Batista. “This program will allow us to see the potential benefits that cash assistance can provide for families and empower them to achieve self-sufficiency through autonomous means. I look forward to seeing the results and how this model could be scaled up in the future.”

The core of the GBI model is a no-means, no strings attached stipend. Participating households will receive monthly surveys to gather data about how funds were spent in broad categories, including food, housing, household supplies, technology, and job training activities. The intent is to support households to overcome various barriers in their life such as food security, childcare, transportation, etc., and to measure if the supplemental income allows them to access greater opportunities including work, higher education and training, housing retention, car repairs, savings, credit building/debt reduction, etc.

Most GBI models only include the monthly supplement. WCAC’s program is unique in that it is also adding coaching services using EMPath’s Economic Mobility Mentoring model as a foundational approach. Based on coaching interventions that use the Bridge to Self-Sufficiency model, WCAC will track the categories of goals set by the household at the time of their first coaching session, such as employment, finance, well-being, housing, or education, and monitor progress toward economic mobility over one year.

The pilot is expected to launch in early to mid-Fall 2023. Participants must meet income eligibility requirements and live in the City of Worcester. Interested households are encouraged to submit an inquiry form for financial coaching through WCAC’s Financial Empowerment program. Learn more here .

MANAGING THE CLIFF

The “cliff effect” refers to a structural flaw in our public benefits system that inadvertently disincentivizes work. Eligibility for family support such as food, health care, housing and childcare assistance are based on income. The "cliff effect” happens when families’ income increases enough that they lose eligibility for these benefits, but not enough to yet afford housing, health care, childcare on their own. The result is that an increase in wages often leads to a decline in their standard of living – working harder but getting poorer. 

WCAC has been working with partners from across the Commonwealth to launch a statewide Cliff Effect pilot as a means of exploring innovative ways to incentivize work and career advancement. After several legislative sessions, the pilot was finally approved and is expected to launch this fall. A director has been hired and will begin work later this month.

As designed, participants will receive a payment adjustment that rewards work and closes the cliff effect gap during each year of the 3-year program. The adjustment will ensure that a full-time worker does not end up economically worse off, as their income rises.  This pilot will provide us with more data about appropriate interventions to offset the cliff effect and will serve as a scalable template for all communities in the Commonwealth.

The program is also a win for the taxpayers as Massachusetts will capture increased employment taxes and save on public benefit expenses. We estimate the pilot program to cost less per person than keeping a family on public assistance programs. 

As with the GBI Pilot, participants will be selected from community referrals and clients enrolled in WCAC's financial empowerment programming.

VITA VOLUNTEERS

ARE VITAL

Through the Volunteer Income Tax Assistance (VITA) program, IRS-certified volunteers prepare taxes and specifically look for tax credits the household may be eligible for, such as the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), Circuit Breaker Tax Credit, and others. Utilizing the free tax preparation services allows families to retain their full refund, avoiding typical preparation fees which can often cost hundreds of dollars.

During the 2022-23 tax season, 32 volunteers prepared income tax returns for more than 900 low-to-moderate income households. WCAC is presently recruiting volunteers to help support our VITA program. Training is provided. Won't you consider volunteering as a tax preparer to help families find a more financially secure future? Volunteers in the southern Worcester County area (Southbridge, Webster) are particularly needed. Email VITA@wcac.net for additional details.

COMMUNITY HEALTH EQUITY SURVEY

The Department of Public Health is conducting a Community Health Equity Survey designed to gather health needs information from a variety of populations. If you or someone you know falls into any of the following categories, participation is strongly encouraged!

• Immigrants;
• Parents and caregivers of children and youth with special health needs;
• Parents under 25;
• Pregnant people and parents of young children; 
• People with disabilities;
• People identifying as LGBTQ+; People of color (American Indian/Alaska Native, Asian American and Pacific Islander, Black, Hispanic/Latino residents);
• People whose primary language is not English;
• Rural residents;
• Veterans;
• Youth and young adults (ages 14-17 and 18-24)

The Community Health Equity Survey, which is available online in 11 languages, will help communities improve conditions that impact health, particularly those most impacted by health inequities. The survey was developed in collaboration with community members and partners across Massachusetts, and it reflects what residents want to know about how their communities experience housing, mental health, safety, and other drivers of health. The Massachusetts Department of Public Health and our partners will use CHEI data to allocate funding, improve programming, and develop policies that address health inequities.