ALICE:

• Asset Limited

• Income Constrained

• Employed

The

ALICE

Report

Michigan ALICE Research Advisory

Committee• Luke Shaefer, University of Michigan

• David Clifford, Eastern Michigan University

• David Callejo Perez, Saginaw State Valley University

• Lee Coggin, College President Baker College of Muskegon

• Brian Pittelko, W.E. Upjohn Institute for Employment Research

• Bridget Timmeney, W.E. Upjohn Institute for Employment Research

• Jane Johnson, Department of Human Services - Muskegon County

• Greg Pordon, Department of Human Services - Washtenaw County

• Joshua Long, Data Driven Detroit

• Peter Ruark, Michigan League for Public Policy

• Amy Palmer, Lenawee United Way

• Jennifer Callans, United Way for Southeastern Michigan

• Barbara Mitzel, Consumers Energy

• Huda Fadel, Blue Cross Blue Shield of Michigan

What does the ALICE Report describe?

Household Survival Budget

ALICE Threshold

ALICE Income Assessment

Economic Viability Index

What is a Household Survival Budget?

Cost of 5 household essentials:

1. Local housing

2. Childcare

3. Food (Thrifty)

4. Transportation

5. Healthcare

6. Taxes and 10% Misc.

No dining out or savings, 1 car, no frivolous expenses

Michigan Household Survival BudgetMonthly Costs – Michigan Average - 2012

Single Adult 2 Adults w/2 in childcare

Housing $474 $643

Childcare 0 1,098

Food 196 592

Transportation 345 690

Health care 129 514

Miscellaneous 127 381

Taxes 131 277

Monthly Total 1,402 4,195

ANNUAL TOTAL $16,818 $50,345

Hourly Wage 8.40 25.17

Daily Record, 9.3.12

Household Thresholds in 2012

• Federal Poverty Level

(3 people): $19,090

• ALICE Threshold under 65

years old: $35,000 - $45,000

• 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

8Source: American Community Survey, 2012; and Household Survival Budget

Consequences of Households Living

Below the ALICE Threshold

• Housing

• Child care and education

• Food

• Transportation

• Health and health care

• Income

• Savings

ALICE Income + Assistance

13% Gap

Need:

Approx. $8.5 billion

in additional

wages & resources

$15/hr = $30,000/yr

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

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

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

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%

63% of jobs in Michigan pay less than $20/hour

13

Top 20 Service Sector Occupations, Michigan 2012

Occupation Number of Jobs Median Hourly Wage

Retail Salespersons 130,620 9.99Office Clerks 111,320 13.30Cashiers 91,320 9.13Registered Nurses 90,540 30.69Food 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

Michigan Household Stability BudgetMonthly Costs – Michigan Average - 2012

2 Adults, 1 Infant, 1 Preschooler

Stability Survival Percent Difference

Housing $961 $643 49%

Childcare 1,504 1,098 37%

Food 1,101 592 86%

Transportation 1,109 690 61%

Health care 955 514 86%

Miscellaneous 563 381 48%

Savings 563 --

Taxes 946 277 241%

Monthly Total 7,701 4,195 84%

ANNUAL TOTAL $92,409 $50,345 84%

Hourly Wage 46.20/hour 25.17/hour

Meet ALICE

ALICE and Community Impact strategies

Discussion

• What is your reaction to the information presented today? Did anything surprise you?

• What are the primary issues that need to be addressed to ensure a strong foundation for those families living below the ALICE Threshold?

• What is the role of the community in helping these families thrive? • What about government?

• Business?

• Nonprofits?

• Individuals?

• Your organization?

• How should these organizations and sectors collaborate to address the issues that will make a difference in the lives of families living below the ALICE threshold? Are any of them doing this now?

Next Steps

Begin Conversations

Engage the Broader Community

Develop Collaborative Strategies

Here’s how you can help:

• Suggest where else we should share this information

• Identify places and people with whom you will share it