Introducing...

ALICEAsset LimitedIncome ConstrainedEmployed

ALICE

● Earn just enough to stay above the federal poverty level (FPL)

○ $11,670 (FPL for a single adult)○ $23,850 (FPL for a family of 4)

● Live paycheck to paycheck

● Make tough decisions daily (i.e. paying for food vs. electric bill)

● Work, often multiple jobs, and still struggle to make ends meet

ALICE Households...

Who qualifies as ALICE?The ALICE Threshold

(AT)

● The average level of income a household needs to afford basic necessities, per county

● Based on average household size, local data and Household Survival Budget calculated for each county

● Two thresholds for each county:1. Households headed by someone

younger than 652. Households headed by someone 65

years and older● The ALICE population and those in poverty fall

below the ALICE Threshold (AT)

The ALICE Threshold

44%of

New York households struggle to afford basic needs

Poverty

ALICE

Above AT

Population: 19,746,227 Number of Counties: 62 Number of Households: 7,289,792 Median Household Income (state average): $58,878(national average: $53,657) Unemployment (state average): 7.3%(national average: 7.2%)Gini Coefficient (0 = equality; 1 = inequality): 0.51 (national average: 0.48)

New York State

45%of

Chenango households struggle to afford basic needs

County

Poverty

ALICE

Above AT

Population: 49,868Number of Households: 19,560 Median Household Income: $44,427 (state average: $58,878) Unemployment (state average): 8.6% (state average: 7.3%) Gini Coefficient (0 = equality; 1 = inequality): 0.41 (state average: 0.51)

Chenango County

AT <65 = $45,000AT >65 = $30,000

How does ALICE survive?The Household Survival Budget

(HSB)

● Follows original intent of FPL as a standard for temporary sustainability

● Bare-minimum cost option for basic necessities

● Based on most conservative data

● Provides threshold for economic survival in each county

Household Survival Budget

HSB Breakdown: Housing● Based on U.S.

Department of Housing and Urban Development’s (HUD) Fair Market Rent

● For a single adult: efficiency apartment

● For a family: two-bedroom apartment

● Includes utilities but not phone service, security deposit, or renter’s insurance

HSB Breakdown: Childcare● Includes the cost of

registered home-based child care

● Does not include licensed and accredited child care centers

HSB Breakdown: Food● Based on U.S.

Department of Agriculture’s (USDA) Thrifty Food Plan

● Thrifty Food Plan is designed to meet nutritional requirements of a healthy diet, but includes foods that need a lot of home preparation time, little waste, and skill in buying and preparing food.

HSB Breakdown: Transportation● Based on Consumer

Expenditure Survey● Includes gasoline,

motor oil, and other vehicle expenditures (?)

HSB Breakdown: Healthcare● Based on Consumer

Expenditure Survey● Includes nominal

out-of-pocket health care spending indicated in survey

● Does not include health insurance

○ ALICE does not qualify for Medicaid but cannot afford the Silver Plan or even premiums for the Bronze Plan through the ACA

HSB Breakdown: Miscellaneous● 10% of all costs● Covers overflow from

the basic needs categories

● Could be used for essentials such as toiletries, diapers, cleaning supplies, work clothes, or even a cell phone

● Does not cover cable service, automotive or appliance repairs, restaurant meals, movie tickets, travel, or holiday gifts

HSB Breakdown: Tax● Includes standard

federal and state deductions and exemptions

HSB Summary● Bare-minimum budget, not a “get-ahead” budget● No room for savings, leaving families vulnerable to unexpected expenses, such as:

○ Costly car repair○ natural disaster○ injury or illness

● No room for “financial indulgences” such as:○ Cable service○ Restaurant meals○ Movie tickets○ Travel○ Holiday gifts

● Requires strict planning and budgeting, no room for mistakes or decrease/loss of income● Families forced to cut corners, often in healthcare ● Families rely heavily upon support from family and friends, especially for childcare

What are ALICE’s biggest challenges?

The GapTotal Poverty + ALICE income = $85.6 billion

(includes Social Security)Total Government + Nonprofit

Assistance = $83.2 billion _________________

$168.8 billionStatewide ALICE Threshold = $169.4 billion

_________________ -$0.6 billion

$600,000,000 Gapto meet most basic needs

Low Wages, Limited BenefitsSince 1979 the national economy has lost about one-third of its capacity to generate good jobs – those that pay at least $37,000 per year and offer employer-provided health insurance and an employer-sponsored retirement plan (Schmitt and Jones, 2012).

Low Wages, Limited Benefits● Service sector jobs have become

essential, and ALICE fills them

● Service sector jobs have statistically low wages and workers must be physically on-site

● Only 14% of service sector jobs in the state pay enough to afford the HSB ($27.97 hourly wage for 4-person family in Chenango County)

Stigma and Preconceptions● National ideology that if you work hard enough, “pull yourself up by the

bootstraps,” you will be successful● People who struggle to survive are lazy, freeloaders and responsible for

their “failure”● People who receive assistance spend it on drugs, tobacco, alcohol, etc.

Why should we care about ALICE?Community Impact

ALICE does important work● ALICE commonly works in health, education, and other jobs important to

our community:○ Home Health Aides: $10.37 median hourly wage○ Personal Care Aides: $10.98 median hourly wage○ Teacher Assistants: $13.26 median hourly wage○ Security Guards: $14.42 median hourly wage○ Nursing Assistants: $15.87 median hourly wage

ALICE’s conditions impact the entire community● Increased population of foster care children and cost of foster care

system

● Future need for education and social services

● Increased healthcare costs, demand for healthcare and stress on emergency medical services

● Less skilled, productive, and stable workforce

● Reduced economic productivity

● Higher taxes to fill the gap

How can we help ALICE and our community?

Areas of Focus