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California budget has $35 million for basic income programs

California Budget Guaranteed Income
Posted at 12:10 PM, May 14, 2021
and last updated 2021-05-14 15:10:52-04

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom wants to use a sliver of the state's massive budget surplus to encourage guaranteed income programs.

These programs give poor people money each month and they decide how to spend it.

Newsom's proposal, announced Friday, would not create a statewide guaranteed income program. Instead, it sets aside $35 million over five years to help local governments fund pilot programs.

Critics say free money is a disincentive for people to work.

Stockton ran a pilot program in 2019 and since then other cities have embraced the idea.

Last month, Los Angeles Mayor Eric Garcetti announced a plan to give $1,000 monthly to 2,000 households.