Guaranteed Income Works: Data from Shreveport, la
The City of Shreveport's Guaranteed Income Program
The City of Shreveport's Guaranteed Income Program (SGIP) provided $660 per month to 110 families for 12 months. To qualify, Shreveport residents had to be single parents or guardians with a school-aged child and an income below 120% of the Federal Poverty Level. Initiated by Mayor Adrian Perkins, SGIP was administered by the City of Shreveport and United Way of Northwest Louisiana through the Shreveport Financial Empowerment Center. The initial six months were funded entirely by private donations and the remaining six months were funded entirely by the Caddo Parish Commission.
Both recipients and people in the control group were randomly selected from qualified applicants. Researchers found that recipients exhibited greater financial stability, higher levels of food security, improved housing stability, increased time and space for parenting and an increased sense of personal agency.
Key Takeaways
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Midway through the pilot, SGIP parents were 20 percentage points less likely to report that they were “going into debt” compared with control group parents. More SGIP parents reported their household financial situation as “managing,” and this difference was significant at 20 percentage points.
At mid-pilot, analysis of survey data shows that a greater percentage of SGIP participants were able to cover a $400 emergency expense, with 25 percent of SGIP parents able to cover such an expense compared to 13 percent of control group members
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Survey findings show a significant and large reduction in food insecurity among SGIP households. At the end of the pilot, SGIP participants are significantly less likely to be food insecure compared with control group members, with 42 percent of SGIP participants reporting being food insecure compared to 64 percent of control group members.
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About half of interviewed parents described using the guaranteed income to pay expenses related to housing, such as rent, utilities, or mortgages. In some instances, the cash payments supported a move to a new location.
Researchers note a pattern of smaller changes that, taken together, suggest that participants might have had greater housing security while receiving guaranteed income. At mid-pilot, SGIP participants were 10 percentage points more likely to be renters, compared to the control group, and 2 percentage points more likely to be homeowners. They were 5 percentage points less likely to be living with friends and family and 5 percentage points less likely to report “other” living situations, which includes homelessness and temporary housing arrangements.
Survey findings also show a significant reduction of 7 percent at the end of the pilot on an index of household chaos.
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Guaranteed income also allowed parents to better attend to children’s health, mental health, and developmental needs. SGIP parents were able to spend more time with their children, which also affected children’s mental health.
About half of parents used GI to pay for enrichment activities such as sports or dance.
Interviewed parents reported that the increased ability to meet their children’s needs with guaranteed income had a major effect on their parenting practices and children’s well-being.
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Participants reported an increased sense of agency and mattering. Interviewed parents reported that guaranteed income improved their mental health by reducing financial stressors during the pilot. Most described having a “weight lifted” or having “a little of the pressure off my shoulders.”
The Shreveport Guaranteed Income Program’s primary goal was to stabilize families in the wake of the COVID-19 pandemic. Overall, the SGIP demonstrated its potential to bring about transformative change in the lives of participants, leading to greater financial stability, improved food and housing security, increased parent-child time and an overall higher level of wellness. These results confirm the power of guaranteed income to improve the financial stability of families and create a more resilient economy.