The 2024 ALICE Report stresses that rising costs for child care and health care make it increasingly tough for families to break the cycle of financial hardship, and calls for more targeted support to address these disparities.
The latest ALICE (Asset Limited, Income Constrained, Employed) Report, published by the Michigan Association of United Ways, underscores the enduring financial hardship affecting Michigan households, particularly in Bay County, where approximately 43% of families struggle to afford basic necessities.
ALICE households typically earn more than the Federal Poverty Level (FPL) yet fall short of the income required to meet the county’s basic cost of living.
Many people within the ALICE designation, such as child care providers, retail workers, and cashiers, work full-time jobs but live paycheck to paycheck. They often remain unaware of their financial vulnerability, believing their employment status alone should ensure financial stability.
“The report recognizes that the Federal Poverty level doesn’t keep up with what the economy really costs,” says Nicole Luczak, President and CEO of United Way of Bay County. “It looks at the gap that exists due to the fact that qualifiers for federal assistance are based on that poverty level and people making above it are still not making enough to survive.”
'We hear people saying they don’t think they qualify for assistance since they’re working a full-time job. We say ‘Don’t struggle alone.’ We’re advocating for policy changes at the local level, working to figure out ways to fill the gaps in needs for those in our community.'
- Nicole Luczak, United Way of Bay County
An addition to this year’s ALICE report is a focus on children.
ALICE in Focus highlights the challenges children in Michigan face in households living below the ALICE threshold. Children in ALICE households often lack the stability necessary for healthy development due to limited access to essentials such as stable housing, health care, and food.
This year’s report stresses that rising costs for child care and health care make it increasingly tough for families to break the cycle of financial hardship, and calls for more targeted support to address these disparities.
The ALICE project was initiated to better capture financial hardship beyond the traditional poverty measures, which historically underestimated the extent of economic insecurity in Michigan.
With data-backed insights on essentials like child care, housing, transportation, and health care costs, ALICE paints a more comprehensive picture of the economic challenges facing Michigan families. The report's goal is to inform policymakers and stakeholders about the support needed to help this critical population thrive.
The 2024 report reveals a widening income gap amid economic challenges and inflation. In Michigan, 41% of households face economic insecurity, a number that increased with the instability caused by the COVID-19 pandemic.
Among the hardest-hit demographics are households led by single mothers, with 73% falling below the ALICE threshold.
Additionally, 44% of children in Michigan live in households classified as ALICE or impoverished, emphasizing the growing need for focused assistance for these families.
In Bay County, for example, a family of four requires an estimated $71,880 annually to afford the Household Survival Budget, which covers essential costs but excludes any provision for savings. (Read more about life on an ALICE budget in this Sept. 5 Route Bay City article.)
Comparatively, similar ALICE thresholds across the state show that even with recent wage increases, earnings for 70% of Michigan's most common jobs remain below what is necessary for a stable livelihood.
Bay County ranks close to other counties in the state regarding financial need, with several neighboring counties such as Saginaw and Genesee experiencing comparable levels of economic strain.
Economic disparities persist across racial and ethnic groups as well.
In Michigan, 63% of Black households and 47% of Hispanic households fall below the ALICE threshold, compared to 38% of White households. These disparities reveal that economic hardship disproportionately affects certain communities, amplifying the urgency for targeted policies and interventions to address these gaps.
With temporary pandemic supports, such as expanded child tax credits expiring, ALICE households have been left more vulnerable than before, often forced to choose between essentials, such as housing or healthcare.
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Graphic courtesy of 211 Northeast MichiganCommunity Support in Bay County
Bay County residents in need of assistance can find support through United Way’s 2-1-1 service. The hotline provides referrals for food, housing, and financial assistance programs tailored to ALICE households.
“We hear people saying they don’t think they qualify for assistance since they’re working a full-time job,” says Luczak. “We say ‘Don’t struggle alone.’ We’re advocating for policy changes at the local level, working to figure out ways to fill the gaps in needs for those in our community.”
The report urges policymakers to expand support for ALICE households to buffer families from future economic challenges, calling on leaders to sustain community-focused resources that directly assist working families.
As the ALICE population grows, so does the necessity for data-driven policies that support Michigan’s workforce.
For Bay County families and others statewide, the ALICE report underscores an ongoing struggle and a clear call to action for expanded economic support systems.
The report urges policymakers to expand support for ALICE households to buffer families from future economic challenges, calling on leaders to sustain community-focused resources.
Overall, the ALICE report provides a sobering view of financial hardship across Michigan and reaffirms the necessity of growing economic support systems. As policymakers evaluate this data, the hope is that future measures will more effectively alleviate economic strain for Michigan’s working households.
For more information on how ALICE impacts communities and specific assistance options in Michigan, see the full report at the Michigan Association of United Ways.
Click here for a menu that allows you to view the numbers for a specific county.
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Kathy Backus has been telling stories for more than 30 years. As a freelance writer, she has crafted stories for daily newspapers and magazines in Detroit and throughout Michigan. Establishing Backus Public Relations, Inc. in the early ‘90s; she leads a team of experts in creating eye-catching print and digital projects. Most recently, Kathy returned to her alma mater. Teaching in Central Michigan University’s Journalism Department has allowed her to train future journalists and public relations practitioners. Her insatiable curiosity and passion for storytelling led her back to freelance writing. In her free time, Kathy loves cooking, listening to podcasts and audiobooks and hanging out with family and friends … and her two dogs, too.