Cash for California students? Universal basic income pilot project gets major overhaul

A proposal that could have given Fresno State students $500 in guaranteed income each month has morphed into a plan to instead offer the money to the 15,000 high school seniors in California each year who are categorized as homeless.

Sen. Dave Cortese, D-San Jose, authored SB 1341, which would give youth experiencing homelessness the money from April through August each year to transition to post-secondary education or work. It’s now known as the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program.

According to census data, about 15,000 12th graders enrolled in school during the 2020-2021 academic year were considered homeless. Only about half of those students typically enroll in college, according to data compiled by the nonprofit SchoolHouse Connection, but a majority would pursue college if faced with fewer barriers.

Within the California K-12 system, over 269,000 children experienced homelessness in 2018-2019, including 4,380 in Fresno County, according to a 2020 report by the UCLA Center for the Transformation of Schools. Fresno County has a graduation rate of about 82%, but for homeless youth, it drops to about 60%.

About 46% of students in the county graduate with the requirements to enter a UC or CSU, compared to only 16.4% of students experiencing homelessness.

“The summer following high school graduation is a critical time for youth,” according to Cortese’s office. “During this transition period, youth lose the robust support system provided by schools, which includes food assistance, shelter, and school counselors, and must learn how to navigate adulthood.

“For youth experiencing homelessness, the transition to adulthood and becoming responsible for their own care and well-being can be incredibly challenging due to unstable housing conditions and unmet basic needs.”

When Cortese announced the idea of guaranteed basic income for college students in early 2022, he initially said the program might be targeted at students from families with the lowest incomes in the state at five colleges: Fresno State, Los Angeles, San Francisco State, CSU East Bay, and San Jose State. It would help bridge the gap between the actual cost of school and aid available to low-income students, such as Pell Grants.

The shift to helping young adults transition from high school to college or work was made for a specific reason, according to Terri Olle, the California campaign director for Economic Security Project Action, which sponsors the bill. Olle said putting cash in a student’s pockets would change their income level and affect their ability to qualify for other forms of student aid.

“Any support that is directly tied to one’s status as a college student would actually directly reduce that student’s aid package — so the student would be no better off,” she told The Bee.

Olle said that problem is one frequently encountered when advocates try to provide additional support. “It often comes at the expense of some other kind of assistance, meaning it’s nearly impossible to get above water,” she said.

The money from SOAR could not be counted as personal income and could not be considered when applying for social services such as Cal-Works, CalFresh, or Medi-Cal.

This no-strings-attached income would benefit students even if they decide not to go to college. If passed, the pilot program would start in 2023. Students who fill out the FAFSA or Dream Act application, are in 12th grade and “lack a fixed, regular, and adequate nighttime residence” (as defined in the McKinney-Vento Act) would qualify.

The program is taking cues from the success of several other basic income programs, such as SEED in Stockton, which gave 125 residents $500 a month for two years. Findings showed recipients showed less anxiety and depression, helped them find full-time employment, and created new opportunities.

Efforts are underway to create a universal basic income program in Fresno, also modeled after the Stockton program.

The Education Lab is a local journalism initiative that highlights education issues critical to the advancement of the San Joaquin Valley. It is funded by donors. Read more from The Bee’s Education Lab on our website.

This story was originally published April 13, 2022 at 5:00 AM with the headline "Cash for California students? Universal basic income pilot project gets major overhaul."