Originally published by the Voice of America (www.voanews.com).
Voice of America is funded by the US Federal Government and content it
exclusively produces is in the public domain.
August 15, 2007

New York Poor to Get Cash for Good Behavior
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http://enews.voanews.com/t?ctl=18A8A13:A6F02AD83191E1604EBA45224C32FE579574F7DCC14957C0 Payments will be
made for such things as taking children to the doctor, keeping them in
school, and keeping a full time job New York City is starting a new
anti-poverty program that will reward good behavior with cash.
Supporters of the so-called "Opportunity NYC" program say it will help
lift people out of poverty. Detractors say giving cash for basic
responsibilities does not address the root causes of poverty. Victoria
Cavaliere reports from VOA's New York bureau that similar programs
have also been instituted in Mexico and Brazil.







Michael BloombergThe two year pilot program is an initiative of New
York Mayor Michael Bloomberg. It will kick-off in September with about
14,000 participants from some of New York's poorest communities. The
program is being privately funded by foundations and by Bloomberg
himself. If the pilot is deemed successful there are plans to roll it
out as a tax-supported government program.

According to Bloomberg, the program is aimed at alleviating some of
the financial setbacks poor families can face, such as foregoing a
wage to take a sick child to the doctor. Under the program, the parent
could receive up to $50 for taking his or her child in for medical
care.

Students who improve their scores on standardized tests will be
rewarded with up to $350. Adults who maintain a full time job can earn
up to $150 per month. All told, the awards could add up to between
$3,000 and $6,000 per year.

Currently, the poverty line in the United States is at just over
$17,000 per year for a family of three.

Linda Gibbs, New York City's deputy mayor for health and human
services, says the pilot program will test whether cash awards can
help people trapped in a cycle of repeated financial difficulties.

"Does the cash incentive change people's behavior? Families are
sometimes holding down two jobs or raising three of four kids. The
choice whether to go to that extra school meeting could often be a
choice about leaving a child without attendance or whether or not go
to a job where you earn an hourly wage. It very much is trying to
change the dynamic of each of those decisions," she said.

Cash awards would be paid for keeping up with routine medical care.
Families can earn $25 to $50 per month for making sure their children
attend school 95 percent of the time. Adults who complete job training
or new courses will receive a $400 reward.

All these cash bonuses have their critics. Some detractors say the
program does not address the root causes of poverty or inequities in
the U.S. social structure, such as a lack of health care or benefits
for full time workers.

Heather Mac Donald, a fellow at the Manhattan Institue of Policy
Research, says she does not think the program will change behavior.
Just the opposite. "I think it could end up being the most destructive
welfare system ever devised because it tries to pay people for
behavior that should be part of the ordinary repertoire of responsible
behavior towards one's self and one's children," she said.

Bloomberg's camp points out that New York is not the first place to
use cash awards to fight poverty.



In April, Bloomberg traveled to Mexico to study a similar program
called "Oportunidades." Five million Mexican households now
participate in the program, which began as a small, rural initiative
in 1997.

"Oportunidades" is credited with decreasing poverty and improving
health and education in regions where it has been instituted.

Similar cash awards programs also exist in Brazil, Turkey, Honduras
and Malawi.

Gibbs says the pilot program in New York will take on a unique
structure. "It's not just a question of whether the incentives change
behavior today. It's also the question about whether that incentive
can change behaviors over the long term and adopt the practices and
outcomes that we know are related to reducing the poverty that is
handed down from generation to generation," she said.

To measure the effectiveness of the New York City program, a control
group will not be paid but will be studied by participating in regular
surveys, interviews and reviews.


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