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New research shows that in Texas, 4,025,176 households – 42{c2fdda2a9de60a0be0cbaa4f208e91401fe1a19673e3bdabdfd10f7d36528f09} of the population – could not afford basic needs such as housing, child care, food, transportation, health care, and technology in 2016, according to the Texas ALICE Report released today by the United Ways of Texas. In Williamson County, 27{c2fdda2a9de60a0be0cbaa4f208e91401fe1a19673e3bdabdfd10f7d36528f09} of households are ALICE and 5{c2fdda2a9de60a0be0cbaa4f208e91401fe1a19673e3bdabdfd10f7d36528f09} live in poverty, as defined by the Federal Poverty guidelines.
ALICE, which stands for Asset Limited, Income Constrained, Employed, places a spotlight on a large population of hardworking residents who work at low-paying jobs, have little or no savings, and are one emergency away from falling into poverty.
The Texas ALICE Report tracks struggling Texas households before and after the Great Recession (2007 and 2010) and then during the recovery through 2016. Texas is one of the fastest-growing states in the country; from 2007 to 2016, the number of the state’s households increased by 22{c2fdda2a9de60a0be0cbaa4f208e91401fe1a19673e3bdabdfd10f7d36528f09}. Yet economic activity and financial hardship in the state have been more uneven.
“ALICE represents men and women of all ages and races who go to work every day, yet still walk a financial tightrope in their struggle to make ends meet,” said Jodee O’Brien, CEO of United Way of Williamson County. “Most people know them as your childcare worker, home health aide, store clerk, service industry worker, mechanic, and office assistant – and many other employed individuals who are essential to the economic success of our communities. ALICE lives paycheck to paycheck and are one emergency, one illness, one car repair or one natural disaster away from sliding into poverty. The launch of the ALICE report will shed light on the challenges facing this invisible and growing population in Williamson County.”
The Texas ALICE Report uses data from a variety of sources, including the U.S. Census. The report includes measures, based on present-day income levels and expenses that show how many Texas workers are struggling financially, and why.
The ALICE Household Survival Budget identifies the minimum cost for each of the seven basic household items needed to live and work in today’s economy at a “bare minimum” level. The report is the most conservative estimate based on the local cost of living. The items identified in the budget include housing, child care, food, transportation, technology, taxes, and health care. The Household Survival Budget does not include any savings leaving households without a cushion for unexpected expenses and unable to invest in the future.
The 135-page Texas ALICE Report reveals many points of data, including:
- 2016 data shows the number of ALICE households in Williamson County at 27{c2fdda2a9de60a0be0cbaa4f208e91401fe1a19673e3bdabdfd10f7d36528f09} while the percentage of poverty is at 5{c2fdda2a9de60a0be0cbaa4f208e91401fe1a19673e3bdabdfd10f7d36528f09}. Since 2010, the number of ALICE households in Williamson County has increased by 10{c2fdda2a9de60a0be0cbaa4f208e91401fe1a19673e3bdabdfd10f7d36528f09}.
- ALICE households earning above the poverty level but below the Household Survival Budget face child care as the greatest expense averaging $1,305 per month for two pre-school aged children in licensed and accredited child care in Williamson County.
- The average Household Survival Budget (calculation created for the ALICE report) for a Texas family of four with pre-school aged children increased to $52,956 — significantly higher than the federally recognized family poverty level of $24,300. (Single Household Survival Budget is $19,428 with the FDL set at $11,880.) In Williamson County, that same family would need to earn $64,452 to meet their Household Survival Budget.
- Technology expenses (smart phones) are included in the ALICE survival budget.
The ALICE Report provides county-by-county, town-level data and analysis of how many households are struggling.
