What is an ALICE household?
This term, brought forward in a local study of the community, may help describe over 25% of all households in our community.
Last week, the Miami County Department of Development talked about the results of their highly anticipated Community and Workforce Needs Assessment. This publication introduced the results of the study here:
Many of our readers comments that the term “ALICE” to describe Households was something new to them. Today, we will dive deeper into the term and how these households try to navigate through some of the struggles that are common to them as welll as some broad policy interventions that may help these households.
Households identified as ALICE, an acronym for Asset Limited, Income Constrained, Employed, comprise a critical yet frequently underestimated portion of Miami County; in fact over one in four households in the county identify as an ALICE household; in PIqua, the figure is upward of 40%. These households earn more than the federal poverty threshold but still face the challenge of covering the basic costs of living due to elevated living expenses and inadequate income. Despite being employed, they often struggle to afford essential services and goods such as housing, food, healthcare, childcare, and transportation. The prevalence of ALICE households in the community has notably increased over time, a phenomenon influenced by a mix of stagnant wages, escalating living costs, and economic downturns that particularly affect earners in the lower to middle income brackets.
The growth in the number of ALICE households mirrors larger economic issues and challenges. Economic expansion and decreasing unemployment rates do not always benefit those in the lower to middle income range, which can lead to a rise in the ALICE population. The COVID-19 pandemic intensified these difficulties, as many individuals in ALICE households work in sectors that suffered severe impacts from restrictions and job cuts, such as retail, hospitality, and service industries.
How ALICE households struggle and potential responses
Communities of all sizes are pivotal in addressing ALICE households' needs. Below are recommended strategies and insights for effective implementation, enriched with a discussion on common challenges and setbacks ALICE families might face:
Not affordable housing, it’s about Housing People can Afford
ALICE families often grapple with finding affordable housing in safe, accessible areas, leading to longer commutes or living in inadequate conditions, both of which can drive the cost of living higher. Communities can collaborate with developers to promote the integration of affordable housing in new developments. Some communities have adjusted zoning laws for higher housing density, ensuring projects are financially feasible without compromising on quality.
Earning a Living; not just Earning a Survival
ALICE households may work multiple jobs yet still not meet their basic needs, highlighting the gap between wages and the cost of living. Many communities would benefit from performing local living cost assessments to guide living wage standards. Communities could partner with businesses and local commerce chambers to gradually introduce these standards with government possibly aiding small businesses with tax benefits or subsidies to adapt.
Access to Quality Childcare
For many ALICE families, the high cost of childcare limits employment opportunities or necessitates the choice between work and adequate childcare. Communities could considering using local funds or grants to make childcare more affordable for low-income families and motivate businesses to provide childcare benefits. Support the establishment of community childcare facilities.
Education and Workforce Development
ALICE individuals often face barriers to accessing education and training that could lead to better-paying positions. Communities should forge partnerships with local educational bodies and businesses to offer training programs aligned with local economic demands. Provide scholarships or reduced fees for fields with high de
Transportation Enhancements of all Types
Inadequate transportation can isolate ALICE families from essential services and job opportunities and keep these households from seeking and retaining employment. Communities should understand and enhance public transit systems linking ALICE households with job centers, and consider introduce subsidized transportation for low-income workers. Communities can do a better job of linking alternative transportation networks, such as bicycle lanes between neighborhoods and employment centers.
Healthcare Access
ALICE households frequently delay or forgo necessary healthcare due to cost, leading to worsened health outcomes.Bolster local clinics that provide affordable healthcare and push for policies at the state and federal levels to assist low-income groups. Launch preventive care initiatives to lower emergency healthcare expenses.
Financial Literacy Programs
A lack of financial literacy can perpetuate the cycle of poverty among ALICE households. Communities should create partnerships with non-profits and financial institutions for workshops on budgeting, saving, and credit understanding at low or no cost.
Utility Assistance and Energy Efficiency Programs
High utility costs disproportionately impact ALICE families, consuming a significant portion of their income. Communities should consider implementing aid programs for reducing utility bills through energy-efficient home upgrades and direct bill assistance or consider waiving late and shut-off fees.
Support for Small Businesses and Entrepreneurship
ALICE individuals may have entrepreneurial potential but lack access to capital and resources to start businesses. Communities should offer mentorship, loans, and grants to foster small business growth, particularly in underserved areas. Encourage networking and collaboration for local entrepreneurs.
Community Engagement
Without effective engagement, programs may fail to address the specific needs of ALICE households. Communities need to zctively involve ALICE households and community groups in shaping government programs to ensure they meet real needs. Utilize town halls, surveys, and forums for feedback and policy adjustments.
Brining it All Together
For these strategies to be effective, a comprehensive approach is essential, recognizing the interconnected nature of these issues. Collaboration with non-profits, businesses, and other government bodies can enhance the impact of these initiatives. Continuous monitoring and evaluation are critical to gauge the effectiveness of these interventions and to make necessary refinements. By concentrating on sustainable, community-based solutions, local communities can significantly reduce the number of ALICE households and improve the overall well-being of the entire community.
Which one of these ideas and insights seem to make the most sense to you? Are there are any struggles you see ALICE households go through more than others? Are you surprised by the number of ALICE households in the community? Leave your thoughts and ideas in the comment section!
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