Many individuals and families in Calhoun and Kalamazoo counties are still struggling to keep up financially, according to the latest statistics from the Michigan Association of United Ways.
The 2021 ALICE Report, released today, shows 39% of the region’s 157,023 households didn’t earn enough to exceed the ALICE threshold—the income needed to be financially stable. That’s a slight improvement over the 2019 report, which showed 40% of the region’s households didn’t exceed the ALICE threshold. However, the number of regional households in poverty remains unchanged at 14%, indicating much more work is needed.
ALICE stands for Asset Limited, Income Constrained, Employed. ALICE represents the growing number of households in communities nationwide that do not earn enough to afford household necessities.
According to the new report, 26% of Calhoun County’s 53,827 households are ALICE, the same as in the 2019 report, while the percentage of households in poverty declined to 13% (vs. 19% in the 2019 report). In Kalamazoo County, the number of ALICE households decreased to 24% of 103,196 households (vs. 26% in the 2019 report), but the percentage of households in poverty rose to 15% (vs. 13% in the 2019 report).
United Way of the Battle Creek and Kalamazoo Region is currently investing over $5.57 million in 95 programs at 65 partner agencies to address some of the biggest challenges faced by individuals and families below the ALICE threshold. Learn about these investments on UWBCKR’s Partners and Programs page, changethestory.org/partners-and-programs. You can also see how United Way’s partnerships are making a difference through the latest impact report, changethestory.org/impact-report-2020.
In the weeks ahead, UWBCKR will share additional information from the ALICE Report. You can also find more details about ALICE online at changethestory.org/alice.
In addition, UWBCKR will host two community conversations about ALICE, the latest report and how communities can work together to address the needs. The virtual events happen on April 20, 3:30-4:30 p.m. (register here); and April 27, 9-10 a.m. (register here).
You can read the full 2021 ALICE Report here, along with specific data for Calhoun County and Kalamazoo County.
Below is the text from the Michigan Association of United Ways news release on the 2021 ALICE Report.
2021 ALICE Report Shows Progress Still Needed to Help Working People
Latest report includes enhanced methodology, adds Senior Survival Budget and ALICE Essentials Index
LANSING, Mich. – The Michigan Association of United Ways (MAUW) today released its latest study on the condition of Michigan’s working families, also known as ALICE households—Asset Limited, Income Constrained, Employed. The 2021 ALICE Report found 38% of households still struggled to make ends meet in 2019, prior to the onset of the coronavirus pandemic.
The number remained relatively unchanged from the 39% of households identified in the previous report, and significantly up from pre-recession levels—32% in 2007 (note: both data points have been updated using the 2021 report’s enhanced methodology). Of Michigan’s 3,963,558 households, 504,237 (13%) earned below the Federal Poverty Level in 2019, and another 1,004,047 (25%) did not exceed the ALICE threshold. According to a data point new to this year’s report, an additional 10% of households in Michigan were on the cusp of the ALICE threshold in 2019, with 236,620 households just one income bracket away.
“By showing how many Michigan households were struggling in 2019, the 2021 ALICE Report provides the backstory for why the COVID-19 crisis is having such a devastating economic impact,” said Mike Larson, CEO, Michigan Association of United Ways. “This data shows the ALICE population was completely unprepared to weather a storm like the one we have faced the past year, and those we have relied on the most—essential workers—were often receiving the least.”
According to the report, 70% of infrastructure jobs in Michigan paid less than $20 an hour in 2019, and 63% of nurturers—those in health care, education and care giving—made less than $20 an hour. The report also found households who are Hispanic, Black, and single, female-headed with children are more likely to be in the ALICE population by significant margins.
“Every day and especially in times of crisis, we rely on countless essential workers to keep us going,” said Michigan Governor Gretchen Whitmer. “These frontline heroes show up day after day allowing the rest of us to stay home and stay safe, but as this year’s 2021 Michigan ALICE Report shows, many of them are in need of our support. We must serve all Michiganders in need, especially those who keep us all going, with initiatives that invest in their health, education, and financial security. I am proud of the programs I have proposed to uplift working families like Futures for Frontliners and Michigan Reconnect and my administration’s historic investments in expanding access to childcare assistance.”
The report includes enhanced methodology, including new sources for more household specific data, to adjust to the reality of changing needs. The ALICE Essentials Index is a newly included measure of the change over time in the costs of essential household goods and services. It can be used as a companion to the Bureau of Labor Statistics’ Consumer Price Index (CPI), which covers all goods and services that families at all income levels purchase regularly. From 2007 to 2019, the cost of household essentials (housing, child care, food, transportation, health care, and technology) increased faster than the cost of other goods and services. During that same period of time, the cost of living, based on the ALICE Essentials Index, has increased by 3.4% for ALICE households in comparison to the 1.8% increase in the CPI.
“Consumers Energy believes it’s critical to ensure all Michigan residents have a chance to succeed,” said Carolyn Bloodworth, secretary/treasurer of the Consumers Energy Foundation. “We are proud to continue to support the development of the ALICE Report – a critical tool for providing the data and information needed for policymakers and organizations in Michigan to make informed decisions impacting our most vulnerable populations. Together, we can create sustainable communities that are able to thrive well into the future.”
The Senior Survival Budget, another new data point, more accurately represents household costs for people age 65 and over, including housing, technology, transportation, food, and health insurance premiums. The average ALICE Household Survival Budget in Michigan was $23,400 for a single adult, $26,244 for a single senior, and $64,116 for a family of four in 2019—significantly more than the Federal Poverty Level of $12,490 for a single adult and $25,750 for a family of four.
The Report concludes with an analysis of the economic benefits if all households had income above the ALICE Threshold—an estimated $98 billion added to the Michigan GDP.
Every two years, United For ALICE undertakes a full review of the ALICE Methodology to ensure the results are transparent, replicable, and current in order to accurately reflect how much income families need to live and work in the modern economy. The addition of new data sources included in this year’s report resulted in a slight shift in the report methodology. As a result, updates to previous years’ data are included in this report to allow for an accurate year-over-year comparison. In 2019, more than 40 external experts—drawn from the Research Advisory Committees across the United For ALICE partner states—participated in the review process. A full description of the Methodology and sources is available at www.UnitedForALICE.org/Methodology.