United Way of Monroe/Lenawee Counties: New ALICE reports show struggling households
Remember, ALICE? ALICE is the acronym for Asset Limited, Income Constrained, Employed. It is a United Way research initiative started in 2009 that encompasses 19 states, including Michigan. It’s a framework for measuring and understanding the struggles of the growing number of households in our communities that do not earn enough to afford basic necessities. The United Way launched its first report in 2014 and a new update (based on 2021 data) just came out this past week at a news conference in Lansing hosted by the Michigan Association of United Ways.
New data is available for Michigan and for Monroe County. Of Michigan’s 4,029,761 million households, 525,754 (13%) earned below the Federal Poverty Level in 2021, and another 1,044,970 (26%) were under the ALICE threshold. Between 2019 to 2021, the total number of households in Michigan increased by 2%, and the total number of households below the ALICE threshold increased by 4% (from 1,508,284 to 1,570,724). However, 39% were still under the ALICE threshold.
For Monroe County, in 2017, approximately 36% of households were below ALICE and poverty levels. Pre-pandemic, in 2019, ALICE findings showed 34% of households in Monroe County still struggling to make ends meet. In 2021, the number of Monroe County households increased by 1% to 61,574, and 39% of households were considered struggling financially. Note: Pre-recession, 2007 rates were 32%. Currently, in the county, the median household income is now $65,512 (compared to the state average of $63,498), and the labor force participation rate is 57.9% (compared to the state average of 60.9%).
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 time, the cost of living, based on this ALICE Essentials Index (measure of the change over time in the costs of essential household goods and services), increased by 3.4% for ALICE households. However, by 2021, the essential household costs rose 7.5% annually across the U.S. Comparing 2019 to 2021, the average ALICE Household Survival Budget (HSB) in Michigan rose from $23,400 in 2019 to $25,932 in 2021 for a single adult, $26,244 to $29,472 for a single senior, and from $64,116 to $59,016 for a family of four. In Monroe County, the HSB is now $26,460 for a single adult and $59,928 for a family of four. Compare these figures to the Federal Poverty Level of $12,880 for a single adult and $26,500 for a family of four. Statewide, 2021 reports showed black households, young households and single-parent households had the highest ALICE thresholds. The financial hardship rate was also higher for predominately rural counties (43%) compared to urban counties (38%).
What does this mean? These latest reports continue to show families at or below 100% poverty level AND working families are distressed, in Michigan AND Monroe County. With pandemic assistance waning while significant challenges remain, there are warning signs that the economic situation for households below the ALICE Threshold has worsened since 2021. This includes sustained high levels of food insufficiency, feelings of anxiety and depression, and continued difficulty paying bills. It shows that 34% of families in Monroe County were in crisis before COVID-19 hit, and now 39% are struggling. Collectively, health and human services agencies continue to work diligently to meet these increased needs for service — to provide a safety net for the targeted 39% of families in Monroe County. The United Way is a community partner in these efforts. It is our role to help assess, evaluate, advocate and financially assist in ensuring there is a safety net for families in crisis. For more information about the latest ALICE reports, go to www.UnitedforALICE.org.
The United Way currently funds 27 local agency programs in Monroe County. See our website (www.unitedwayMLC.org) for a list of those agencies. We appreciate your support to help fight poverty, homelessness, food insecurity, mental health and substance use disorders, domestic violence, and other important community needs! Additional direct programs and services provided by our local United Way include the 2-1-1 Health and Human Services Hotline, Project Ramp, Health Check, and the 21-Week Racial Equity Challenge.
For more information about LIVING UNITED, please contact us! Call us at 734-242-1331, email lpipis@unitedwaymlc.org, contact or visit us at 216 N. Monroe St., Monroe, MI 48162. OR visit our website at www.unitedwaymlc.org. Visit our Facebook, Twitter, Instagram and TikTok social media platforms, too!
Laura Schultz Pipis is the executive director of the United Way of Monroe/Lenawee Counties.
This article originally appeared on The Monroe News: United Way: New ALICE reports show struggling households
