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The Michigan Association of United Ways recently released new ALICE update that shows wage growth was no match for inflation after a decade of falling behind. ALICE stands for Assets Limited Income Constrained Employed. Though wages for the lowest paid jobs have risen across the country at the fastest rate in four decades, the number of households struggling to get by in Michigan grew by more than 100,000 from 2021 to 2022. As a result, a total of 1.7 million households or 41% were living paycheck to paycheck.
That calculation includes 537,322 Michigan households in poverty as well as another 1,133,874 defined as ALICE. ALICE households include those earning above the Federal Poverty Level but less than what is needed to survive in the current economy. Household survival budgets include monthly costs for housing, utilities, child care, food, transportation, health care, technology, tax payments and miscellaneous expenses. ALICE workers include child care providers, home health aides and cashiers -- those working in low-wage jobs, with little or no savings and one emergency from poverty.
The findings in this one-year period are consistent with more than a decade-long trend: Since the end of the Great Recession, despite some ups and downs, the number of ALICE household in Michigan has been steadily growing. From 2010 to 2022, the number of households rose by 6%, households in poverty decreased by 6% -- and the number of ALICE households grew by 20%.
"The data shows persistent and widespread financial hardship -- a red flag that the current system isn't working for ALICE," said Stephanie Hoopes, PhD., United For ALICE National Director. "Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, from lack of access to housing and child care that's affordable, to inadequate community supports such as broadband internet."
Most of my life I never thought too much about "poverty" or ALICE. Growing up, we always seemed to have the necessities and, after graduating from college, I secured employment that paid a wage that allowed me to fully support myself and provide all of life's basic necessities and this situation prevailed when I married and had children and was fully able to support my family. Then, one day when reminiscing with my mother, she told me a piece of my family history that I didn't recall as being so desperate. In 1961 at the age of 39 my father had a serious heart attack (back then it was called a coronary thrombosis) and treatment was much different than today. Therapy called for long bed rest, minimal physical activity and avoidance of any situation that would elevate one's heart rate. This heart attack was the result of my father having Rheumatic fever during World War II which seriously scars heart tissue. Needless to say, my father was not able to return to work for an extended period of time. My mother was a stay-at-home mother raising three boys ages 9, 13, and 17, and a baby sister born in 1961. She told me there were no sick and accident benefits, no income replacement benefits, there was no social security, and basically there were no savings and income.
So how did we survive? The generosity of friends, neighbors, coworkers and support from our community provided our needs. Our landlord, Mr. Berry, did not demand rent and did not evict us and said, "We can catch up when Joe returns to work." Bob Mischley, neighbor and owner of M&M Market would drop off some groceries occasionally with the same sentiment as the landlord -- "Joe will make it right when he returns to work." Our close family friends (Sally and Jerry Brilinski's) father -- Grandpa Brilinski would drop off a dozen eggs and a pint of cream every Thursday. My father was a chemist at HPC and the men in the lab would drop off their coffee club money to help out my mother until Dad returned to work. These are the people I remember and I'm sure there were plenty of others from our neighborhood and community who helped support our family during this tough time. I never knew. My family was a poverty and/or ALICE family. But for the love and care of our community, we survived and thrived.
Community! It is one of the missing ingredients in addressing and reducing our problems faced by poverty-level and ALICE income households. Too often, we expect government, nonprofit organizations and/or churches to address these issues. Not us, personally. Oh, I can pay my taxes and give a few dollars to support these organizations that are doing good and meaningful work. But it's just not enough. The ALICE data illustrates this fact. We must act. As a community of care and a community of kindness. We can't let others try to solve these issues. But how? By taking care of your family. By being a good neighbor and reaching out to those in difficulty. By not ignoring another's tough issues and stepping in to help. By thinking less of ourselves and a little more of others. Rev. Tom Downs indicated recently that Alpena could become "that shining city on the hill," if we all cared a little more and shared our kindness with others.
United Way of Northeast Michigan's service area includes Alpena County, Montmorency County and Alcona County. All three counties surpass the state averages -- Alpena has 17% of households in poverty and 31% ALICE; Montmorency has 18% in poverty and 31% ALICE; and Alcona has 15% in poverty and 32% ALICE. For more information, visit: UnitedForALICE.org. The most recent McKinney Vento consortium numbers indicate that we have 323 children (birth to 12th grade) in our three-county area who can be classified homeless and need educational support. The most recent MSHDA Homeless Preference and Project Based Voucher report indicates 42 households as Homeless Preference. The need is massive and we can do better, as a community.
Joe Gentry is the executive director of the United Way of Northeast Michigan. Reach him at 989-354-2221 or jgentry@unitedwaynemi.org.