A guaranteed basic income pilot project could be implemented in Las Cruces—giving select city residents access to monthly financial support. Councilor Johana Bencomo is advocating for the project, proposing that American Rescue Plan Act dollars could be used to partially fund the endeavor.
“Right now, we have an opportunity to be a leader in New Mexico and in the Southwest, by being one of the first cities to dedicate public funds, along with private foundation dollars, towards this transformational project,” Bencomo said. “A $2 million investment in a Las Cruces guaranteed basic income project could support, let's say, 250 Las Cruces families for $650 a month for 12 months, or some variation of that.”
According to the U.S. Census Bureau, nearly 24% of Las Cruces residents live in poverty. Councilor Bencomo says new data from the recent census could show an even dire picture—emphasizing hardships caused by the pandemic.
“The income and equity gap only increased for so many people who were already vulnerable before the pandemic,” Bencomo said. “The Distressed Communities Index shows a large part of the City of Las Cruces at risk, or already in distress. The index also shows that in zip codes like 88001 and 88005, the situation is much more dire with poverty rates as high as 36%.”
A similar program is in the works in Santa Fe, where half a million dollars in grant funding has been awarded for a pilot project estimated to reach 100 families. While council approval is still needed, the program is expected to target those under 30 attending Santa Fe Community College with children, giving them access to monthly payments for one year.
Before anything similar could be implemented in Las Cruces, Councilor Yvonne Flores expressed a need to see more data, saying a full economic analysis would need to be done before she would consider supporting the measure.
“People are starving, and that's very true. I'm not sure that this is going to be the answer. And I still see it as a Band-Aid,” Flores said. “Because there's no cause and effect, there's no correlation between this program, and people standing on their feet. I would like to see those people and their children 50 years from now to see if it's working.”
Data from a universal basic income program out of Stockton, California, found that full-time employment increased during the first year of the program, rising from 28% to 40%. It’s a trend Councilor Bencomo hopes to see continued in Las Cruces.
“The research has found that unconditional cash helped many participants find better full-time employment because it reduced and removed, so many of the material barriers to finding full-time jobs,” Bencomo said. “It created capacity for goal setting and risk-taking, once people's basic needs were met.”
Councilor Tessa Abeyta-Stuve says her biggest concern is the long-term sustainability of the program. While not against the project itself, she pointed to other uses for American Rescue Plan Act dollars, like increased funding for housing assistance, saying that councilors must really think about what they want to prioritize.
“If we are thinking about using the ARPA funds, there's competing priorities and most of the things that I think we've wanted to address are all within, trying to help in the same scope,” Abeyta-Stuve said. “And so, what makes this really the make or break out of some of the other projects that we could help assist and fund?”
Both Councilor Gabe Vasquez and Councilor Kasandra Gandara conveyed enthusiastic support for the pilot project. Gandara cited her experiences as a social worker, saying monthly payments will lead to greater emotional and financial security for Las Cruces residents.
“It's not the only answer. It's a piece of the puzzle and something that we really need to consider, especially those of us that live in the more distressed communities and zip codes,” Gandara said. “88001 experiences quite a bit of violence specific to child abuse and neglect. And so much of what I see as a social worker is this distress. This sort of stress about where my next meal is coming [from], how am I going to pay for housing, utilities, how am I going to pay for food?”
The pilot project is scheduled to be discussed in greater detail at a future work session.
