Cleveland is the first city in the country to explore UBE as an opportunity to create a pathway out of poverty through a social innovation partnership led by UBE Founder Devin H. Cotten
CLEVELAND (May 22, 2024): The City of Cleveland, Universal Basic Employment (UBE), and United Way of Greater Cleveland announced today the launch of a two-year research and development process with Founder Devin H. Cotten to explore the launch of a UBE pilot in Cleveland.
The announcement follows a news conference held today at United Way of Greater Cleveland’s offices on Euclid Avenue after Cleveland City Council passed UBE legislation last week authorizing $600,000 in funding to United Way of Greater Cleveland for this initial research and development phase, with the full support of Cleveland Mayor Justin M. Bibb. Cleveland is the first city in the nation to explore UBE as an opportunity to create a pathway toward eliminating poverty and its many symptoms by providing guaranteed employment at a sustaining wage and reducing the need for public assistance supports. Mayor Bibb signed the legislation into law last week.
“The passage of this legislation signifies Cleveland’s commitment to leading the country in addressing poverty head-on by helping those who have been disproportionally represented in poverty-wage jobs,” said Mayor Bibb. “I want to thank our partners at United Way, Universal Basic Employment, and Councilwoman Stephanie Howse-Jones for their dedication to ensuring that our residents have a path out of poverty.”
The two-year planning process includes an extensive research and development study expected to run through mid-2026. As a social innovation partner, United Way of Greater Cleveland will provide fiscal sponsorship services for UBE during this phase, including office space, administrative support, and marketing, communications, and fundraising assistance.
Based on the results of the research and development phase, a three-year pilot is expected to follow, providing funding and technical assistance to several small businesses within one designated neighborhood to hire or elevate approximately 100 individuals to an annual wage of $50,000. UBE will subsidize participants’ wages for three years while the employers provide essential benefits such as medical coverage, retirement plans, and paid leave.
Councilwoman Stephanie Howse-Jones, who introduced the ordinance and has served as a UBE champion, stated, “Far too often, the public sector spends an enormous amount of money on programs and resources for residents in need – rather than the immediate self-sustaining support that can assist them in making real change and improvement right now. I believe this innovative program will move the needle and empower Clevelanders to improve their financial futures.”
If the pilot proceeds, independent evaluators will assess the pilot’s impact of this guaranteed, autonomous wage on mitigating poverty-related indicators within the neighborhood and enhancing the participants’ overall well-being. UBE defines an autonomous wage as income that allows a worker to surpass the use of most social safety net benefits, provides access to private banking tools such as loans, credit cards, and more, and warrants investment from the private sector.
“At United Way, we are interested in exploring what policies and practices make it easy or hard to build income and wealth here in our region,” said Sharon Sobol Jordan, president and CEO of United Way of Greater Cleveland. “UBE is a promising approach that invests in people in new and exciting ways. By supporting the pilot planning phase, we hope to understand better how offering greater financial security through meaningful employment can impact the trajectory of a person’s income and wealth going forward. At the same time, we will learn how UBE can help local businesses retain strong and productive employees and increase community and civic engagement throughout our neighborhoods.”
“United Way commends Councilwoman Stephanie Howse-Jones, Council President Blaine Griffin, and Mayor Justin Bibb for their support, advocacy, and leadership in passing UBE legislation to fund a two-year research and development study so we can begin this work with Devin,” Jordan added.
In addition to the salary and benefits package, the pilot program will allocate $5,000 in unrestricted funds to each employee, aimed at assisting them in navigating life transitions that may arise as they move from reliance on social safety net programs. Participants will also have access to supplementary resources like occupational skill enhancement programs, life coaches, and financial literacy and planning education.
The research and development phase aligns with the work within United Way’s Impact Institute, which identifies promising, long-term solutions to the root causes of poverty in Greater Cleveland – from lack of access to education and income to public policies. The Impact Institute has provided funding, partnership, and support for initiatives at various stages of innovation, including FamilySpace, Lead Safe Cleveland Coalition, Louise C. Stokes Scholar House, and Right to Counsel-Cleveland, among others. United Way also remains committed to helping meet the immediate needs of those experiencing crises, including housing and hunger, through its United Way 211 service, which connects community members with information and resources.
“UBE is excited to partner with the City of Cleveland and United Way of Greater Cleveland — both are commended for supporting a community-led initiative that places people at the center of policy,” said Cotten. “Demonstrating the ability of a jobs guarantee solution that simultaneously invests in people, place, and business to eliminate poverty makes this partnership a beacon for impact across our country.”
Devin H. Cotten leads the UBE initiatives and is a community and economic development practitioner who has placed people and their well-being at the center of his work. In addition to Devin, UBE has a 14-member advisory committee of subject-matter experts from across government, philanthropy, community development, and business sectors. United Way of Greater Cleveland will support UBE throughout the research phase as a member of the advisory committee and social innovation partner.
To learn more about UBE:
● Visit Commitment to Innovation – United Way of Greater Cleveland (unitedwaycleveland.org) and https://ubemployment.org/.
● Watch the April 4, 2024, recording of United Way of Greater Cleveland’s Community Conversation about Imagining a New Path to Prosperity in Cleveland: UBE.
Watch the news conference here: Innovative Universal Basic Employment (UBE) Program Launch (youtube.com)
Photos from the news conference are available upon request.
The City of Cleveland is committed to putting people and neighborhoods first, working to deliver high-quality city services, and leading bold change. The City is focused on building a stronger and safer Cleveland and modernizing City Hall to improve outcomes for residents, businesses, and visitors. To learn more about the City of Cleveland, visit www.clevelandohio.gov, follow us on X at @CityofCleveland, or on Facebook at www.facebook.com/cityofcleveland.
United Way of Greater Cleveland is a local, independent nonprofit organization that has been dedicated to identifying and addressing the causes and effects of poverty in the Greater Cleveland area for more than 100 years. Together with its cross-sector partners and support from the Greater Cleveland community, United Way of Greater Cleveland remains steadfast in its commitment to research-driven solutions and collective action, striving to create a future where economic equity and mobility are possible for all. For more information about United Way, visit unitedwaycleveland.org.
Media contacts:
City of Cleveland:
Sarah Johnson at sjohnson8@clevelandohio.gov
Cleveland City Council:
Darryle Torbert at dtorbert@clevelandcitycouncil.org
Universal Basic Employment:
Devin Cotten at 216.496.5647 (m) and devin@ubemployment.org
United Way of Greater Cleveland:
Katie Connell at 404.895.5513 (m) and kconnell@unitedwaycleveland.org
