There are 39,611 ALICE households in Calhoun and Kalamazoo County and more than 1.54 million households in the State of Michigan according to the recent United Way ALICE Report released by local United Ways. 

ALICE stands for Asset Limited, Income Constrained, Employed.

These are households earning more than the official U.S. poverty level but less than the basic cost of living. These are hardworking, tax-paying individuals who go to work, get paid, yet struggle to make ends meet.  ALICE is a population that has a difficult time affording the basics of housing, food, health care, child care and transportation, even though they have jobs. 

ALICE plays a significant role in keeping our local economies humming and represents workers who provide invaluable services that we rely on in our daily lives. 

Living paycheck-to-paycheck, unable to set aside savings for an emergency, ALICE is forced to make short-term choices that can result in long-term consequences. 

Do I get a payday loan to get the kids ready for school? 

Do I pay the utilities or pay rent? 

Do I buy my medications or put dinner on the table? 

Do I pay for car insurance? 

Do I live farther away from my job?

ALICE is vulnerable to just one emergency – one health emergency, one car repair, one harsh storm. When that emergency occurs, ALICE may not be able to get to work, which has a domino effect. ALICE can quickly spiral into poverty. 

When ALICE suffers, we all suffer and our local economies suffer. If ALICE can’t afford the basics, that household falls into poverty, putting a greater strain on local services. That has an impact on the local economy, meaning everyone is affected.

While it is true that ALICE existed long before this, now there is an objective way to identify, quantify and discuss their financial challenges. This sets the stage for the entire community to create solutions. United Way hopes that this report will help launch a conversation about financial stability in Calhoun and Kalamazoo counties and that local residents, nonprofits and employers will come together to focus on the real issues and possible solutions.

We can change the story for some of the hardest-working members of our community. They need a hand up, not a hand out. Making that happen will require us all to work together. 

In the coming weeks and months, we look forward to sharing local ALICE stories with you. Stay tuned!

We invite you to view the full United Way ALICE Report here:  http://bit.ly/1oM7T55

 

ALICE was initiated at the United Way of Northern New Jersey in conjunction with Rutgers University and shared with local United Ways in Michigan. Through the Michigan Association of United Ways, local United Ways working with Rutgers University and supported by research specialists throughout Michigan have produced the 2014 United Way ALICE Report for Michigan.