Spectrum believes cash will help youth facing homelessness turn their lives around

Spectrum Youth and Family Services in Burlington is trying something new to help youth facing homelessness − $30,000 in direct payments to 10 young people selected for a pilot program to help them make progress toward securing housing and a job.

"Merrill Lynch put out a report in 2020, sharing that 79% of American parents help their children financially between the ages of 18-34," Spectrum Executive Director Mark Redmond said in a statement. "Most Spectrum youth do not have this as an option and that is why we are starting this Direct Cash Transfer program. We want to help give them a leg up, to launch them into adulthood − to give them the opportunity of financial support just like I, my sons, and 79% of American families have had."

Spectrum's Direct Cash Transfer program provides $1,500 per month, distributed bi-weekly for 18 months, to each of the 10 youth selected for the program. They can use the money however they see fit, to go after a job, an education, housing − whatever they need. The program also includes an additional one-time payment of $3,000 that can be requested at any time to cover larger expenses such as move-in costs for an apartment, or reliable transportation.

"Throughout the program, the young people will have ongoing access to a case manager to support them with financial literacy, housing navigation, case management and access to referrals as needed," Redmond said.

Plan is to expand the program to 30 young people total

Redmond stressed it's up to the young people involved to make the decisions about what they need to advance their lives. Redmond hopes the first 10 youth in the pilot program will be the first of three cohorts − or 30 young people total − in a pilot program that will last for 3 1/2 years. The first two years of the program are fully funded as a Congressionally Directed Spending project through Sen. Peter Welch's, D-Vermont, office, plus an anonymous donor.

Sara Brooks, Spectrum's housing intake coordinator, first broached the idea of the Direct Cash Transfer program, and was instrumental in selecting the first 10 young people to be involved.

"We knew we wanted to use this visionary new program to support Burlington's most underserved young people," Brooks said in a statement.

In an interview on Thursday, Redmond explained the process Spectrum went through to select the first 10 youth to participate in the Direct Cash Transfer program.

"What we did is, we explained the program to all our staff," Redmond said. "I'll be honest with you, we screened out certain people."

Those who were screened out included youth with severe substance use disorder who were refusing treatment; youth with untreated serious mental health illness; and youth who were receiving Social Security Disability Insurance for being permanently disabled.

"Social Security Disability Insurance is hard to get," Redmond said. "We didn't want to jeopardize them losing it if we give them money. It would be very hard to go back on it."

Lottery used to make the final selection of 10

Spectrum staff nominated 60 young people for the DCT program. Since there wasn't enough money to cover 60 youth, Redmond decided on a lottery to choose the 10 who entered the program.

"I think it was a fair process," Redmond said. "Almost all these (10) kids live with us or live in foster homes. A lot of these kids are stuck in a way. They've done everything. They've gotten a diploma. We've taught them how to drive a car. They don't have financial means to move out."

More: Vermont school district tries new approach to helping homeless students: find them a home

After one month, two of the youth in the program took the money and got themselves apartments, which then opened up beds at Spectrum for two other young people who were previously homeless.

"Another kid paid off credit card debt," Redmond said. "Even after one month we're seeing some very positive things. I like the way it's going."

Research shows the money is spent wisely, despite what critics believe

Spectrum worked with Point Source Youth, a national organization dedicated to eliminating youth homelessness in the United States, to design the program. Point Source Youth has experts on Direct Cash Transfer programs for youth experiencing homelessness, which were first piloted in New York City. While there are a few other cities with similar DCT programs nationally, Spectrum is the first organization in New England to pilot a DCT program.

Research on the DCT programs that have already been carried out shows the money was primarily spent on basic needs such as food, utilities and other essentials, not on substance use. The direct payments also did not reduce the motivation to work, according to the research.

"Cash pilots all over the world have proven that the myths surrounding DCT work are rooted in a combination of stereotypes, racism and classicism," Landon Woolston, director of direct cash transfers at Point Source Youth, said in a statement.

More: Burlington's City Hall Park: How city's centerpiece reflects community's pain and beauty

Redmond said Spectrum has hired a data consultant who will let the organization know over the next several years whether the Direct Cash Transfer program is working, and whether it's making a difference.

"Because if it is, we will make the case to continue it and to expand it," he said.

Contact Dan D’Ambrosio at 660-1841 or ddambrosi@gannett.com. Follow him on Twitter @DanDambrosioVT. This coverage is only possible with support from our readers.

This article originally appeared on Burlington Free Press: Spectrum is paying 10 homeless youth $30,000 in cash to help them