United Way ALICE ProjectMichigan

June 2014

Stephanie Hoopes Halpin, PhDSchool of Public Affairs and Administration

Rutgers University-Newark

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“ALICE - Asset Limited, Income Constrained, Employed”

A Study of Financial Hardship in Michigan

• Introduction Letter • The ALICE Project - Summary• Executive Summary • Introduction

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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

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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

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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

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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

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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

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

Poverty (605,210 HHs)

16%

ALICE (930,503 HHs)

24%

Above ALICE

Threshold

(2,281,536 HHs)60%

Michigan Households by Income, 2012

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MICHIGAN: Number of households with income below the ALICE Threshold increased by 8 percent from 2007 to 2012.

Total households:2012: 3,817,2492010: 3,810,8312007: 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% .

2007 2010 2012

13% 15% 16%

25%25% 25%

Michigan Households by Income, 2007-2012

Poverty ALICE

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

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II. How Costly is it to Live in Michigan?

• Measure 2 -- The Household Budget–Household Survival Budget–Household Stability Budget

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What does it cost to survive in MI?

Household Survival Budget

monthly costs – MI average - 2012 2007-2012

Single adult 2 adults, percent

1 infant, 1 pre-k increase

Housing $ 474 $ 643 9%

Child care $ - $ 1,098 7%

Food $ 196 $ 592 16%

Transportation $ 129 $ 690 4%

Health care $ 345 $ 514 27%

Miscellaneous $ 127 $ 381 9%

Taxes $ 131 $ 277 -8%

Monthly total $ 1,402 $ 4,195 9%

ANNUAL TOTAL $ 16,818 $ 50,345 9%

hourly wage 8.40/hour 25.17/hour

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III. Where does ALICE Work? How Much Does ALICE Earn and Save?

• Where members of ALICE households work • Amount and types of assets

$15/hr = $30,000/yr

Source: Bureau of Labor Statistics, Occupational Employment Statistics (OES) Wage Survey - All Industries Combined, 2012.

Less than $20 $20-$40 $40-$60 $60-$80 above $80 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Number of Jobs in MI by hourly wage, 2012

$20-30/hour

$30-40/hour

less than $10/hour

$10-15/hour

$15-20/hour

63%

30%

6%0.4% 0.4%

In Michigan, 63 percent of jobs pay less than $20/hour

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Occupations by Employment and Wage, Michigan, 2012Occupation Number of Jobs Median Hourly

WageRetail Salespersons 130,620 9.99 Office Clerks 111,320 13.30Cashiers 91,320 9.13Registered Nurses 90,540 30.69 Food Preparation, Including Fast Food 86,240 8.70Customer Service Representatives 73,280 14.61Waiters and Waitresses 69,790 8.78Janitors and Cleaners 69,780 10.76Team Assemblers 66,230 14.88Stock Clerks and Order Fillers 62,670 10.24Laborers and Material Movers 59,760 12.20Sales Representatives 52,130 25.04Nursing Assistants 51,490 12.34Operations Managers 49,620 43.26Heavy Truck Drivers 48,220 18.05Secretaries and Administrative Assistants 45,710 15.89Bookkeeping and Auditing Clerks 42,780 16.88Teacher Assistants 41,390 12.90Home Health Aides 36,460 9.92First-Line Supervisors of Retail Sales Workers 36,310 17.07

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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

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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

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?

Difficult choices for ALICE

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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

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

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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

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Thank you

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