We all know and are connected to people who are ALICE.
ALICE stands for Asset Limited, Income Constrained, Employed. These individuals earn more than the Federal Poverty Level, thus making them ineligible for many types of assistance, but they still struggle to meet basic living expenses. Several years ago, United Way undertook efforts to define and better understand the ALICE population at the national, state and local levels. The original ALICE study was released in 2017 with updates completed in 2018 and 2020. Each state convenes a Research Advisory Committee to ensure that data accurately reflects local conditions. BEACON’s Dr. Sarah Guy has served on the Maryland ALICE Research Advisory Committee since its inception.
Individuals and households who are ALICE do not earn enough to support a “survival budget.” The survival budget consists of basic needs, including housing, child care, food, transportation, health care, a basic smartphone plan, taxes and a small contingency fund equal to 10% of the budget. Many times, people who are ALICE are one unexpected expense (i.e. medical bill, home repair, auto repair) away from serious financial troubles. For comparison, the 2018 FPL was $12,140 for a single adult and $25,100 for a family of four; whereas, the survival budget for a single adult was estimated at $25,164 and $61,536 for a family of four with two school-age children or $71,832 for a family of four with two children in child care in Wicomico County, MD. A comparison of monthly budget amounts can be seen in the chart below. The differences become even more striking in geographic areas with higher costs of living.
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On the Lower Eastern Shore, 46.25% – nearly half – of all residents are struggling. In Somerset County, the county with the highest rate in the state, the percent of households struggling reaches 57%. Statewide, approximately 30% of families are ALICE and another 9% are below the federal poverty level. |
Along with the updated 2020 report, United Way has released a series of new dashboards to provide access to the rich data underlying the study. These dashboards are public facing and can help a variety of stakeholders better understand the ALICE population in a given geographic area.
Local decision makers can utilize the ALICE studies to better understand the struggles facing many of residents in their community. ALICE households must make difficult decisions when their basic budgeting needs cannot be met. The “Consequences of Insufficient Household Income” report provides insight into how ALICE households make these difficult decisions, how the decisions are interconnected and impact multiple areas across the budget categories, and how community stakeholders can build solutions and help address areas of needs for this population.
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