Basically, an area non-profit is being healed as the savior of a city income distribution plan that was challenged in court and stalled by a judge.
The James S. McDonnell Foundation (JSMF), in collaboration with other local private funders, is providing $1 million to extend the St. Louis Guaranteed Basic Income (GBI) program through December 2024.
The program offers $500 per month to 540 households and data is being gathered to determine the effects on the lives of the recipients and the St. Louis economy.
In July after a judge’s ruling, Mayor Tishaura O. Jones said, “The City of St. Louis will follow the judge’s order. We are exploring our legal options, and my administration continues to find every avenue possible to support the families of St. Louis City.”
An avenue to JSMF was found after the organization connected with city leaders to help continue the program after the court ruling paused it, according to Jason Q. Purnell JSMF president.
“Our focus is on ensuring that families receive the resources promised to them and that the program can continue to gather valuable data on how GBI might contribute to St. Louis’s economic growth,” he said in a release.
“Our priorities are the well-being of these local families and the insights that could emerge to inform more inclusive growth strategies.”
Conner Kerrigan, a spokesman for Jones’ office, told St. Louis Public Radio last week that the city was able to resume the program because it found a private funder. Court records show that the lawsuit is ongoing.
“We’re not using any public dollars,” Kerrigan said. “The lawsuit and the order from the judge prevented us from using public dollars for the programs. However, it did not restrict us from using private dollars.”
In March, the McDonnell Foundation announced it would focus all resources and expertise on St. Louis, and its assistance with the GBI program aligns with its mission to promote inclusive growth and shared prosperity in St. Louis, says Purnell.
Research shows that economic inequality derails regional growth. By supporting organizations and initiatives that address long-standing disparities, JSMF is working to build a more equitable and prosperous region.
In addition to a persistent strain on individuals and families, poverty imposes significant costs on the St. Louis economy by hindering economic development, increasing healthcare costs, and contributing to safety concerns.
Direct payment programs in other regions have proven effective in addressing these challenges. Research indicates that such programs can:
• Improve children’s educational outcomes and their future earnings.
• Enhance the health of both children and parents, reducing healthcare costs.
• Reduce crime rates.
“JSMF believes that the St. Louis GBI program has the potential to yield similar returns for its recipients and our entire community. By supporting this initiative, the accompanying evaluation can also continue gathering data to inform future strategies for inclusive growth and shared prosperity in St. Louis,” said Purnell.
The James S. McDonnell Foundation (JSMF) is a private philanthropic institution based in St. Louis. It was founded by its namesake to improve the quality of life. JSMF invests in organizations and initiatives working to improve economic mobility for St. Louisans facing the starkest disparities. To date, JSMF has awarded more than $400M in grants.
In August, the foundation launched its open call for grant proposals in “Civic Infrastructure” and “Wealth-Building” with a total of $2 million in awards.
JSMF encourages applicants to propose innovative ideas that advance inclusive and equitable economic growth in the St. Louis region.
JSMF is seeking additional funding partners to support the remainder of the St. Louis GBI program through mid-2025. For more information about JSMF and its effort to promote inclusive growth, please visit jsmf.org.
The post McDonnell Foundation funds stalled GBI program appeared first on St. Louis American.
