City to take on new anti-poverty pilot program?

from WABC

$42 million has been raised in private funds

New York is on the verge of becoming the first in the country to try a new anti-poverty pilot program.
So far, $42 million dollars have been raised in private funds -- funds that will be awarded to people willing to take steps to help themselves get out of poverty.

Political reporter Dave Evans has more on the story.

The mayor is betting such an incentive will motivate five thousand familes in New York to change their behavior. One supporter today called it risky. But it's a gamble the mayor is willing to take.

Brownsville is one of brooklyn's poorest neighborhoods where two out of every five people live below the poverty line. The mayor hopes his new plan might change that a bit with cash incentives. For example, $25 dollars for perfect school attendance, $300 for a high score on a state test or $50 dollars, perhaps, for keeping a doctors appointment.

"And if that's what it takes for them to do that, for them to get paid to take their kids to the doctor and stuff then yeah he should do that. But me personally i would take kids to the doctor regardless. I shouldn't have to be PAID to do that," said single parent Aurea Rosario.

In a grand two-year, $50 million dollar experiment, the mayor's staff will select five thousand familes. Half will get the cash incentives, the other half won't. It's all being paid for with private money, and it'll target six neigbhorhoods: two in the Bronx, two more in different Harlem neighborhoods and two in Brooklyn -- Brownsville and East New York.

"It is paying people to do something that we think is in society's best interest and in their childrens' interest," Mayor Bloomberg said.

For ten years now, Mexico City has had a cash incentive program. It's helped improve school attendance and reduced child labor. Families will be able to earn up to $5,000 a year, but more important the long-term goal is to teach good habits and help families climb out of poverty.

Geraldann Grub, a single mother, thinks it's a great idea.

"Now I'm going to try and sign up for eveything I can get because you know, there are working parents who need help," Grub said.

Geraldann may have to wait a while because you can't sign up for the program. City Hall will select families this summer.

"And if this works, shame on us if we're not willing to try," Bloomberg said.

To be eligible for the program, a single mother with two children for example couldn't make more than $20,000 a year. And if you're selected, this would not affect other government assistance programs.