ABOUT BRIDGET HERRMANN:
As the Senior Director of Collective Impact for United Way for Southeastern Michigan, Bridget is responsible for mobilizing networks, cohorts, and resources to drive collective impact and systemic change across United Way’s four-county footprint of Wayne, Oakland, Macomb and Washtenaw counties. She is the lead for the post-merger integration work to ensure constituencies in Washtenaw County continue to have a positive experience working with United Way. Her employment with United Way has taken her from Florida to Washington and now, Michigan. Originally from Miami, FL, she now calls herself a Michigander after surviving 10 winters.
RESOURCES:
Washtenaw County ALICE 2024: Data
TRANSCRIPTION:
David Fair: This is 89 one WEMU, and I'm pretty sure you've noticed the price of everything has gone up, and it doesn't seem like it's coming back down anytime soon. For those working on limited incomes, it makes life even more difficult. For some, it becomes unsustainable. I'm David Fair, and welcome to this week's edition of Washtenaw United. The United Way is out with the 2024 update to its ALICE report. Now, ALICE stands for "Asset Limited, Income Constrained, Employed." Our guest today has not only done a deep dive on the data, but has a job designed to address the issues it identifies. Bridget Hermann is senior director of collective impact for the United Way for Southeastern Michigan. Bridget, welcome back to WEMU!
Bridget Herrmann: It's great to be here again with you, David!
David Fair: Well, before getting into some of the specifics, does the 2024 update bring cause for concern or reason for optimism or perhaps a bit of both?
Bridget Herrmann: I would say generally the former, which is why we're having this conversation today. But there's always opportunity.
David Fair: In the U.S., the federal poverty level for a family of four in 2024 is $31,200. The United Ways of Michigan have a different way of figuring what it really cost to live and work in Michigan, and that's how it identifies ALICE households. How big of a difference is it from the government figures?
Bridget Herrmann: Yeah, thanks for asking that question, David. You know, the ALICE report is designed to provide a true measurement of how families are faring by comparing household earnings to the true cost of living in a given city, county, region or state. And it does that by calculating the cost of a basic, no-frills household budget. And that's a little bit different than the federal poverty level. It lets you see what the actual costs of basic needs like food, housing and health care are for folks who are working at employed in a given area. Whereas the federal poverty level really is just that baseline. So, this gives us a different and more accurate picture of economic hardship for folks who are not otherwise eligible for government support in a community.
David Fair: So, $31,200 by a federal standard, and you're coming in at just under $80,000 for a family of four?
Bridget Herrmann: Yeah. Well, for two adults and two children, it's just under $80,000 in Washtenaw County. And that's the basic survival budget. But that number jumps to $94,000 and change if you have two children in childcare. And so, when we think about that, the cost of meeting your household's basic needs for food, shelter, transportation, childcare--that's $94,000 and change in Washtenaw County, right? And we know that the cost to get by in Washtenaw County is higher than other places in Michigan, because it's such a desirable county in which to live.
David Fair: Well, based on that, I would venture to guess the number of people living from paycheck to paycheck continues to only go up.
Bridget Herrmann: You know, David, interestingly, that number went down by a percentage in Washtenaw County since the last ALICE report was published. And so, we went from 40%. And that includes people who fall into that ALICE category, plus the number of folks who are experiencing poverty. And while some might point to that percentage point drop and say, "Well, hey! What does that due to?" I would caution us, right? Because there were some changes in how, the report itself was calculating that data. And so, while we could look to that as stable, so that the number hasn't increased, I think we can say, "Okay, that's a good thing! That's a number that has not increased. And it's gone down by a little bit," I would just put a big old asterisk there to say that there is more work to be done if nearly 40% of folks in our region, and our county, alone, are living paycheck to paycheck. We can and need to do better.
David Fair: Washtenaw United and our look at the latest ALICE report update on poverty continues on 89 one WEMU. And we're talking with the United Way for Southeastern Michigan's senior director of collective impact, Bridget Hermann. Here in Washtenaw County, Bridget, we often talk about the US-23 divide that kind of separates the west part of the county that includes Ann Arbor from the east part, which includes Ypsilanti. We know the income gap is growing everywhere in the country. So, do you see those increases happening more to the east of 23?
Bridget Herrmann: You know, the ALICE report continues to illuminate the inequities that have been present in Washtenaw County and that lots of folks are working to address. And so, yes. The ALICE report continues to illuminate that folks on the east side of the county, in terms of the percentage of folks who fall into that ALICE category and the folks who are experiencing poverty, there are higher concentrations of those folks on the east side of the county relative to the Ann Arbor area or the western half of Washtenaw County. And that holds true. You know, the latest ALICE report is also disaggregating data by race and ethnicity. And so, what we know is that the racial divide in terms of who experiences economic hardship, that gap continues to grow. And so, when I say that, that means that a greater percentage of families and individuals who identify as Black fall into that ALICE category, relative to white identifying individuals, regardless of where they're living in our county. What I also want to share is that when it comes to family composition, there's a concept out there called the feminization of poverty. And essentially, it means that women are disproportionately impacted by the systems that cause people to fall into that poverty category. And so, what we know, and here's really a number that I find particularly disturbing and that perhaps our listeners will, too, is that for single female-headed households with children, 75% of them fall into that ALICE category.
David Fair: That is disturbing.
Bridget Herrmann: Yeah. Three quarters of moms with children in our county fall into that ALICE category.
David Fair: Once again, we're talking with the United Way's Bridget Hermann on 89 one WEMU's Washtenaw United. So, we've identified some serious issues to contend with and approaching solutions for those living in ALICE households. You believe taking a two-pronged approach works--individual help and taking on the systemic issues that continue to more deeply impact traditionally marginalized communities. So, let's start with individual assistance. If I'm struggling and fall into what you've identified as an ALICE household, what can you offer me?
Bridget Herrmann: Yeah. You know, for United Way and the ecosystem of nonprofits that we support in Washtenaw County, this is really about working with individuals and households to reduce expenses and increase household incomes. And so, that means, for United Way, if you are experiencing a crisis or you know somebody who's experiencing financial hardship, the first place that I would turn to is by calling 211, which is the resource and referral hotline that we operate 24/7, 365 days a year. And what our resource advocates will do is to get you connected to the programs and services available closest to you. We look by zip code and we, where possible, do some warm handoffs, right, so that you're not just calling phone numbers. And so, that's the first step. United Way is delivering that service on its own. And then, you know us as a supporter of this network of social services in Washtenaw County. And so, there are providers hard at work every day working to connect folks who are at risk of or currently experiencing housing insecurity or even homelessness, getting those folks into emergency shelter or rapid rehousing, and then, ultimately, with the goal of getting folks permanently housed. Same when it comes to food insecurity. There'sa wide network of organizations and groups helping folks meet their families' basic needs for food. And in Washtenaw County, that's about 1 in 7 folks who are experiencing food insecurity. And that number bumps up even higher depending on where you live in the community. And so, that's at the program level. United Way also works at the systems level to remove those systemic barriers--
David Fair: And that's an animal all its own.
Bridget Herrmann: That is an animal all its own. And so, i don't want to be all doom and gloom. So, I want to highlight that last legislative session. We were really thrilled to see an increase in the state's earned income tax credit. And this is something that United Way for Southeastern Michigan and United Ways across our state advocated for. This was an essential stepping stone to support families with the rising cost of living in our state. So, what that means is when you file your taxes this year, if you are an ALICE family, you're going to get a greater return from that earned income tax credit than you would have for the prior tax season. And with the increase in ALICE health of what we're now advocating for is increased state investment. And so, one, affordable housing and, two, childcare, and boosting the incomes of families by building on the working families tax credit. Really, this is vital in stabilizing households--ALICE households. And really working to reform taxes and where we apply those refunds, that's a powerful leverage point to put more money back into the hands of working families in our state. ]
David Fair: The United Way for Southeastern Michigan and any number of organizations has been working a very long time to address these issues, and the work will continue and increase. But here we are all these years, and we're still dealing with these issues and, in some cases, seeing it worsen. What is your sense of what the next ALICE report may reveal?
Bridget Herrmann: You know, David, this was the first time the changes that we're seeing in this report are what we're seeing as a result of pandemic era tax and stimulus programs expiring. And so, I have a sense that we've yet to see the full impact of that attrition of ARPA dollars on the ability of local organizations and groups to meet the growing needs. We also know that there are some national and global factors around inflation. And so, I would imagine that it's going to get worse before it gets better. I would hope that we're able to turn the tide, but it's going to take some intentionality on the part of our elected officials to be working to address and enact policies that create greater equity and to help folks reduce household incomes and increase those household expenses and then on the part of our employers locally to be attending to the types of jobs that they're offering--the benefits packages that they're able to deliver to their employees.
David Fair: Well, I thank you so much for the conversation and the information today, Bridget! Much appreciated!
Bridget Herrmann: Hey, it's always good to be here! We are all invested in Washtenaw County, and this report is really a call to action!
David Fair: That is Bridget Hermann, senior director of collective impact for the United Way for Southeastern Michigan. For more information on the ALICE report and the work being done to help those in need and the call to action, pay a visit to our website at wemu.org. I'm David Fair, and this is your community NPR station, 89 one WEMU FM Ypsilanti.
UWSEM STATEMENT:
We all know people who are ALICE: Asset Limited, Income Constrained, Employed — earning more than the Federal Poverty Level, but not enough to afford the basics where they live. ALICE workers were celebrated as essential heroes during the COVID-19 pandemic, yet they do not earn enough to support their own families.
ALICE households and households in poverty are forced to make tough choices, such as deciding between quality childcare or paying the rent — choices that have long-term consequences not only for their families, but for all.
The latest United For ALICE data is a 2024 update and calculates the cost of household essentials for all counties in Michigan. These costs, outlined in the Household Survival Budget, are calculated for various household sizes and compositions.
Of Washtenaw County’s 150,945 households in 2022…
- Together, 39% of households in Washtenaw were below the ALICE Threshold (source: 2022 ALICE Washtenaw County snapshot)
Here are some important observations about the working families experiencing financial hardship:
- ALICE is in every community in our state and Washtenaw County is no different. ALICE lives in rural, urban, and suburban areas.
- ALICE households are especially vulnerable to national economic disruptions
- ALICE Households are Diverse, but Financial Hardship is Not Equally Distributed
- Black and Latinx/Hispanic households are disproportionately represented among ALICE. Asian households in our County are least likely to be ALICE.
- This inequity also plays out geographically. As an example, more households in the City of Ypsilanti are either ALICE or living below the poverty level; in the city of Ann Arbor, it’s lower.
- ALICE Works Hard, But It’s Not Enough
- A key contributor to the number of ALICE households in Michigan is the fundamental mismatch between the cost of living and what jobs pay.
- in 2022, 75% of the most common jobs in Michigan paid less than $20/hour.
- With temporary pandemic assistance expiring, households below the ALICE threshold have fewer options to find help.
- ALICE households make up a growing segment of our shrinking state population.
WEMU has partnered with the United Way for Southeastern Michigan to explore the people, organizations, and institutions creating opportunity and equity in our area. And, as part of this ongoing series, you’ll also hear from the people benefiting and growing from the investments being made in the areas of our community where there are gaps in available services. It is a community voice. It is 'Washtenaw United.'
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