STN Staff

David Fair of 89.1 FM, WEMU, recently interviewed Bridget Herrmann, the Senior Director of Collective Impact for United Way for Southeastern Michigan, to discuss the findings of the latest ALICE (Asset Limited, Income Constrained, Employed) report for Washtenaw County.

The conversation delved into the challenges faced by nearly 40% of local households struggling to meet basic needs despite being employed, highlighting the urgent need for both immediate assistance and systemic change to support these vulnerable families.

The ALICE report, an initiative by the United Way, focuses on families and individuals who earn above the federal poverty level but still face significant financial challenges due to the high cost of living.

Herrmann emphasized that the cost of living in Washtenaw County is significantly higher than what is traditionally considered in poverty measures. “For a family of four, the true cost of living is around $94,000, far exceeding the federal poverty level of $31,200,” Herrmann said. This disparity highlights the inadequacy of federal poverty thresholds in reflecting the real economic conditions faced by many households.

The ALICE population in Washtenaw County includes many essential workers, such as childcare providers, retail employees, and home health aides, whose incomes do not cover basic living expenses. These individuals are often forced to make difficult decisions, such as choosing between paying for rent, food, healthcare, or childcare. Herrmann pointed out that a significant portion of the ALICE population consists of single, female-headed households with children, with nearly three-quarters of these families falling into the ALICE category. This statistic underscores the economic vulnerability of women and minority groups, particularly in areas like Ypsilanti, where the cost of living is high, and economic opportunities are limited compared to neighboring Ann Arbor.

One of the critical challenges identified in the report is the lack of affordable housing in Washtenaw County. The high cost of housing has pushed many ALICE families to the brink, with some spending more than half their income on rent. “Housing affordability is a significant barrier for ALICE families,” Herrmann noted. “Without affordable housing options, these families are stuck in a cycle of financial instability.”

The ALICE report also highlights the importance of community support services, such as the 211 helpline, which connects individuals to resources like food assistance, housing support, and mental health services. However, Herrmann stressed that while these services are essential, they are not a long-term solution. “We need to address the systemic issues that contribute to financial instability, such as access to affordable childcare, healthcare, and transportation,” she said.

Herrmann called for continued legislative efforts to support ALICE families, citing the recent increase in Michigan’s earned income tax credit as a positive step. “Legislative changes like these can make a real difference in the lives of ALICE families, providing them with the financial support they need to achieve stability,” she added.

The findings of the ALICE report are a stark reminder that many in Washtenaw County are living on the edge, despite being employed. Herrmann’s closing remarks served as a rallying cry for the community: “We are all invested in Washtenaw County, and this report is really a call to action. We must come together to create equitable opportunities and ensure that everyone in our community has the chance to thrive.”

For more information and to listen to the full discussion, visit WEMU’s Washtenaw United.