Ontario mayors ask feds to take over basic income pilot program

Four Ontario mayors whose communities were test sites for Ontario's basic income pilot program have asked the federal government to take over the program, after Doug Ford's government abruptly announced its cancellation.

The decision to end the pilot program early has lead to "financial crisis" for the 4,000 low-income residents who agreed to participate, said the mayors of Hamilton, Brantford, Kawartha Lakes and Thunder Bay.

The mayors ask Ottawa to "assume oversight" and pay for the remainder of the program. They argue finishing the pilot would generate important research about the impact of basic income, ensure money isn't wasted and protect the participants, many of whom are among the most vulnerable members of their communities and were reporting that the pilot was benefiting their health and lives.

• Ontario's basic income pilot to end March 2019
• 'Shocked and devastated' — photo series to reveal faces of cancelled basic income project

The four mayors published a joint letter to Jean-Yves Duclos, minister of Families, Children and Social Development, earlier this week.

"We fear that as a result of this ill-conceived provincial decision, many of the pilot participants will inevitably fall into situations of homelessness and significant financial distress through no fault of their own," said the letter, signed by Hamilton mayor Fred Eisenberger, Brantford Mayor Chris Friel, Kawartha Lakes Mayor Andy Letham, and Thunder Bay Mayor Keith Hobbs.

Ontario's former Liberal government launched the basic income pilot project, which started in 2017. It was intended to last three years, and explore the impact of providing no-strings-attached payments to people with low incomes. Participants were from communities including Hamilton, Brantford, Brant County, Thunder Bay and Lindsay.

The new Progressive Conservatives government announced this summer it would cancel the project, with participants receiving their last payment on March 31, 2019.

'A major setback'

Mayor Eisenberger, who says he approached the other mayors with the idea, said participants are feeling betrayed, hurt and confused. The program was set to run for three years and many people planned ahead to improve their lives, he said.

• Hamilton's basic income participants plead for city to fight for them
• Hamilton woman can't afford rent, stuck in lease after province scraps basic income

People moved into safer or more accessible housing and are now locked into tenancy agreements they can't afford, the letter says; others pre-paid fees to go back to school or upgrade their skills, and now have no way to cover the extra costs.

"Almost all of them are working poor," Eisenberger said. "Whatever challenges they have they were trying to overcome, and using these resources to do it. So it's a major setback for them."

One year of research not enough: mayor

The program would have provided "crucial" information, the letter says, and help determine the effectiveness of basic income on a larger scale.

"To truncate a research program based on ideology as opposed to evidence, is most unfortunate," said Eisenberger, who says this program may potentially help save costs and deliver services better in the future.

• Ford government ditched basic income pilot project before any data landed, researcher says

The mayors say it's practical and beneficial for the federal government to assume oversight of the project: staff, timelines and participants are already in place, and some up-front costs are already paid. The federal government would benefit from the information the pilot project generates, they said.

Plus, if it does not continue, at least one third of the province's slated $150 million for the project will be lost, the letter says.

'Up to the provincial government,' Ottawa says

Eisenberger said they have not yet received a response from Minister Dulcos.

In an emailed statement to CBC, the federal government says provincial social programs are in the hands of the province.

"While we have always been clear about our government's openness to sharing relevant data with provinces that are launching guaranteed annual income initiatives and to monitoring the implementation and progress of such initiatives, ultimately the design of provincial social programs is up to the provincial governments," said Valérie Glazer, press secretary for the Minister of Families, Children and Social Development.

Eisenberger said "I think it's in everyone's interest to understand what basic income can do." He said he's hopeful the federal government will see the value in the research.

​"Guaranteed basic income is something that the federal government has also talked about, but has not had any concrete evidence around. So this is an opportunity for them to get that."

Single participants receive up to $16,989 a year through the program, while couples receive up to $24,027, less 50 per cent of any earned income. People with disabilities could have received an additional $6,000. There were 4,000 people receiving the basic income every month, and 2,000 people in the comparison group.

Doug Ford's Progressive Conservative government announced it would cancel the project in late July.​ Ontario's Social Services Minister Lisa MacLeod has said the province has a "broken social service system."