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United Way ALICE Project Michigan June 2014 Stephanie Hoopes Halpin, PhD School of Public Affairs and Administration Rutgers University-Newark.

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Presentation on theme: "United Way ALICE Project Michigan June 2014 Stephanie Hoopes Halpin, PhD School of Public Affairs and Administration Rutgers University-Newark."— Presentation transcript:

1 United Way ALICE Project Michigan June 2014 Stephanie Hoopes Halpin, PhD School of Public Affairs and Administration Rutgers University-Newark

2 “ALICE - Asset Limited, Income Constrained, Employed” A Study of Financial Hardship in Michigan Introduction Letter The ALICE Project - Summary Executive Summary Introduction 2

3 Michigan ALICE Research Advisory Committee Luke Shaefer, Assistant Professor, University of Michigan Greg Pordon, Community Resource Coordinator, Department of Human Services - Washtenaw County David Clifford, Professor Health Administration & Co-Director, Institute for the Study of Children, Families & Communities, Eastern Michigan University Peter Ruark, Senior Policy Analyst, Michigan League for Public Policy Huda Fadel, Manager, Social Mission, Blue Cross Blue Shield of Michigan Brian Pittelko, Regional Analyst, W.E. Upjohn Institute for Employment Research Bridget Timmeney, Special Project Coordinator, W.E. Upjohn Institute for Employment Research 3

4 Michigan ALICE Research Advisory Committee (cont) Jane Johnson, DHS Director & UW Board member, Department of Human Services - Muskegon County Lee Coggin, College President & UW Board Chair, Baker College of Muskegon Barbara Mitzel, Area Manager, Public Affairs for Consumers Energy Jennifer Callans, Research Specialist, United Way for Southeastern Michigan David Callejo Perez, Carl A. Gerstacker Endowed Chair in Education, Saginaw State Valley University Joshua Long, Data Driven Detroit Amy Palmer, ALICE Steering Committee Chair, President Lenawee UW, Lenawee United Way 4

5 Report outline (cont) I. Who is Struggling in Michigan? Measure 1 -- The ALICE Threshold II. How Costly is it to Live in Michigan? Measure 2 -- The Household Budget: Survival vs. Stability III. Where does ALICE Work? How Much Does ALICE Earn and Save? IV. How Much Income and Assistance is Needed to Reach the ALICE Threshold? Measure 3 -- The ALICE Income Assessment V. What are the Economic Conditions for ALICE Households in Michigan? Measure 4 -- The Economic Viability Dashboard VI. What are the Consequences of Insufficient Household Income? Conclusion - Future Prospects for ALICE Households 5

6 Report outline (cont) Appendix A - Income Inequality in Michigan Appendix B – ALICE Threshold Methodology and Sources Appendix C - Household Survival Budget - Methodology and Sources Appendix D - Household Stability Budget – Methodology and Sources Appendix E – ALICE Income Assessment –Methodology and Sources Appendix F - Economic Viability Dashboard - Methodology and Sources Appendix G - Economic Viability Dashboard by County Appendix H - Table of Indicators by Municipality Appendix I - ALICE stats by Michigan Prosperity Regions 6

7 I. Who is Struggling in Michigan? Measure 1 -- The ALICE Threshold - defined by the Household Survival Budget Statistical picture of ALICE household demographics – race/ethnicity – age – geography – gender – family type – disability – language – immigrant status 7

8 Daily Record, 9.3.12 Household Thresholds in 2012 Federal Poverty Level (3 people): $19,090 ALICE Threshold under 65 years old: $35,000 - $50,000 ALICE Threshold over 65 years old: $20,000-25,000 Source: American Community Survey, 2012; and Household Survival Budget Who is ALICE? In Michigan, 40 percent of households have income below the ALICE Threshold

9 MICHIGAN: Number of households with income below the ALICE Threshold increased by 8 percent from 2007 to 2012. Total households: 2012: 3,817,249 2010: 3,810,831 2007: 3,849,007 2007-2012: Total HHs decreased by 1 percent from 2007 to 2012. Number of HHs below the ALICE Threshold increased by 8 percent from 2007 to 2012. Note: 2007-2010: Total households decreased by 1% from 2007 to 2010 and the number of HH below AT increased by 5%. 2010-2012: Total households remained flat from 2010 to 2012 and the number of HH below AT increased by 2%. 9

10 10 Source: American Community Survey, 2012; and Household Survival Budget

11 II. How Costly is it to Live in Michigan? Measure 2 -- The Household Budget – Household Survival Budget – Household Stability Budget 11

12 12 What does it cost to survive in MI? Household Survival Budget monthly costs – MI average - 2012 2007-2012 Single adult2 adults, percent 1 infant, 1 pre-k increase Housing $ 474 $ 6439% Child care $ - $ 1,0987% Food $ 196 $ 59216% Transportation $ 129 $ 6904% Health care $ 345 $ 51427% Miscellaneous $ 127 $ 3819% Taxes $ 131 $ 277-8% Monthly total $ 1,402 $ 4,1959% ANNUAL TOTAL $ 16,818 $ 50,3459% hourly wage 8.40/hour 25.17/hour

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15 III. Where does ALICE Work? How Much Does ALICE Earn and Save? Where members of ALICE households work Amount and types of assets 15

16 $15/hr = $30,000/yr Source: Bureau of Labor Statistics, Occupational Employment Statistics (OES) Wage Survey - All Industries Combined, 2012. In Michigan, 63 percent of jobs pay less than $20/hour

17 17 Occupations by Employment and Wage, Michigan, 2012 OccupationNumber of JobsMedian Hourly Wage Retail Salespersons130,6209.99 Office Clerks111,32013.30 Cashiers91,3209.13 Registered Nurses90,54030.69 Food Preparation, Including Fast Food86,2408.70 Customer Service Representatives73,28014.61 Waiters and Waitresses69,7908.78 Janitors and Cleaners69,78010.76 Team Assemblers66,23014.88 Stock Clerks and Order Fillers62,67010.24 Laborers and Material Movers59,76012.20 Sales Representatives52,13025.04 Nursing Assistants51,49012.34 Operations Managers49,62043.26 Heavy Truck Drivers48,22018.05 Secretaries and Administrative Assistants45,71015.89 Bookkeeping and Auditing Clerks42,78016.88 Teacher Assistants41,39012.90 Home Health Aides36,4609.92 First-Line Supervisors of Retail Sales Workers36,31017.07

18 IV. How Much Income and Assistance is Needed to Reach the ALICE Threshold? Measure 3 -- The ALICE Income Assessment ALICE income – wages, social security Public and private assistance – hospitals, nonprofits, and federal, state, and local government Remaining gap 18

19 V. What are the Economic Conditions for ALICE Households in Michigan? Measure 4 – The Economic Viability Dashboard The Housing Affordability Index The Job Opportunities Index The Community Support Index 19

20 ALICE is one emergency from crisis Costly car repair Can’t get to work Lose job Can’t pay rent/mortgage Homeless VI. What are the Consequences of Insufficient HH Income?

21 Difficult choices for ALICE

22 Conclusion - Future Prospects for ALICE Households Implications of current trends – Michigan’s aging population – Projected growth of low-wage and low-skilled jobs Strategies to assist ALICE 22

23 Strategies to assist ALICE Short-term - help ALICE weather a crisis - food pantry, TANF, and childcare subsidies, awareness of emergency services Medium-term - quality affordable childcare, safety network, car loans, house repair, energy assistance, health clinics, secure jobs, affordable insurance Long-term - affordable housing, attract medium skilled jobs, public transportation, healthcare coverage, higher paid jobs, housing in safe areas, reliable power and transportation infrastructure

24 Appendix Appendix A - Income Inequality in Michigan Appendix B – ALICE Threshold Methodology and Sources Appendix C - Household Survival Budget - Methodology and Sources Appendix D - Household Stability Budget – Methodology and Sources Appendix E – ALICE Income Assessment –Methodology and Sources Appendix F - Economic Viability Dashboard - Methodology and Sources Appendix G - Economic Viability Dashboard by County Appendix H - Table of Indicators by Municipality Appendix I - ALICE stats by Michigan Prosperity Regions 24

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26 Thank you http://www.unitedwaynnj.org/documents/UWNNJ_ALICE%20Report_FINAL2012.pdf


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