Report shows more Washtenaw County residents are above poverty level but can't afford basic needs

A new report from the United Way of Washtenaw County finds that 27% of households in the county are asset limited, income constrained, and employed (ALICE) – meaning they're above the federal poverty level, yet unable to afford basic needs.

Bridget Herrmann, vice president of impact and advocacy at the United Way of Washtenaw County, says United Ways across the country have been focusing on ALICE individuals and households. They've found that despite the massive amounts of federal support provided during the height of the COVID-19 pandemic, the amount of ALICE individuals has unfortunately increased.

“There’s a fundamental mismatch between cost of living and what most jobs pay,” Herrmann says. “This ALICE data is a call to action for us, because we’re seeing how economic choices made by local employers and public policies have played out.”

Herrmann says poverty in the county remains "relatively stagnant," but the amount of ALICE households rose from just over 17,000 in 2019 to over 19,000 in 2021. Racial and geographic disparities in ALICE households were pronounced. Black and Hispanic households were disproportionately represented. Older adults 65 years and older were also disproportionately represented for the first time this year.

The amount of ALICE households in Washtenaw County also varies vastly from community to community. Ann Arbor and Ypsilanti Township, which respectively have the highest and second highest overall number of households in the county, have ALICE percentages of 43% and 49% respectively. But even areas with a smaller number of households are seeing very high ALICE percentages. Manchester and Saline townships both have percentages over 30%. 

“What Manchester needs in terms of support looks very different from an organization working in Ypsilanti,” Herrmann says. “ALICE is everywhere. Sometimes people want to stereotype these families and we can’t do that.”

To improve conditions for ALICE individuals and families, Herrmann says community members can engage with their elected representatives regarding legislation. They can also be conscious of where they spend their money, ensuring that they support businesses that pay employees well. And employers can consider what they can do to ensure their employees are making enough money to support themselves and their families.

“At United Way, we focus on poverty and financial trauma, and financial stress can lead to physical manifestations like depression and heart disease,” Herrmann says. “With all of the smart, talented people and resources we have, we can do so much better. This is an opportunity to push legislation that ensures all Washtenaw residents have a fair shake.”

Visit unitedforalice.org to learn more about ALICE and ALICE data collection, or uwwashtenaw.org to learn more about the work United Way of Washtenaw County is doing to combat issues ALICE households are currently facing. 

Rylee Barnsdale is a Michigan native and longtime Washtenaw County resident. She wants to use her journalistic experience from her time at Eastern Michigan University writing for the Eastern Echo to tell the stories of Washtenaw County residents that need to be heard. 

Graphic courtesy of United Way of Washtenaw County.