South City shapes cash aid program

Of the 11 concepts, officials spent the most time Tuesday, March 30, addressing specifics of a previous proposal to offer direct, monthly payments to residents who’ve been hit hardest financially by the pandemic.

Modeled around the concept of universal basic income, officials set their sights on offering $500 per month to 400 residents for 18 months through a program expected to cost roughly $5.5 million.

The funding would be earmarked in a tiered allocation system for those with the greatest need, such as former foster youth, single mothers with limited income, the previously incarcerated and other low-income families.

The most recent iteration expands the scope of the financial assistance, which was initially proposed to span one year. But citing concerns regarding assuring the financial security of residents, officials looked to extend the deadline of the program.

With the additional months comes added cost, and officials said they are hopeful that philanthropic organizations in South San Francisco would help offset the expense.

“It is incumbent upon us to really deep down do a strong search for that philanthropy partner that can really help us elevate this to the money and the level that we need,” Councilman Eddie Flores said.

Officials agreed to dedicate $2 million over two years in the federal aid funding toward the program, which they hoped would serve as the foundation for grant matching with local aid organizations.

Vice Mayor Mark Nagales said the contribution would show that the city has some skin in the game, and officials are not solely doling out money to residents with limited accountability.

“This isn’t just a hand out. What I’m hoping is this is a hand up for our community, for those who are struggling at this time,” Nagales said. “And I believe we have an opportunity to show our partners throughout San Mateo County that we are able to lead and willing to lead.”

To that end, City Manager Mike Futrell said San Mateo County officials have reached out to city staffers to discuss the initiative and discuss potentially collaborating.

He also observed that communities across the Bay Area such as San Francisco, Oakland and Marin are examining similar programs, and that studies from Stockton show it has been successful in assisting disadvantaged residents.

Mayor Mark Addiego also supported the intent behind the program.

“If we can relieve some of the pain in the community, that is a good outcome,” he said.

But he also noted the significant challenge associated with raising the money necessary to meet the new, increased budget target.

Futrell acknowledged the challenge ahead of officials, and said he would return later to further discuss details of the program.

“It is a tall order,” he said.

While officials largely supported the financial aid program, they were more skeptical of a $200,000 food voucher proposal which would have printed certificates redeemable at local restaurants, markets, pharmacies, gas stations and other local businesses.

Officials proposed printing packets with 10 vouchers worth the equivalent of $5 a piece that would be distributed to families who showed proof of need. The vouchers could be redeemed at local stores, and merchants would show proof of transaction to the Chamber of Commerce, where they would exchange the vouchers for currency.

Officials modeled the program after a similar initiative launched by Genentech that was intended to encourage employees to shop locally.

To protect against fraud, officials recommended printing the vouchers on foiled paper with distinct serial numbers which would assure authenticity. Doing back-of-the-napkin math, Addiego estimated that launching the program as proposed would require printing approximately 40,000 unique vouchers.

When he asked how much that would cost, officials estimated as much as 40% of the overall budget would go toward production costs — an amount immediately disqualifying for Addiego.

“I’m out on this one,” said Addiego, claiming that a $200,000 program intended to feed local families that only led to $125,000 in food was “government at its worst.”

When Flores backed Addiego’s perspective, officials relented and agreed to return at a future meeting with another proposal featuring lower overhead costs.

“We will come back with a better delivery model,” said Futrell.

austin@smdailyjournal.com