United Way report: More than one-third of Wisconsin households cannot afford basic costs of living

WISCONSIN – A recent report shows that 35 percent of Wisconsin households cannot afford the basic costs of living.

The report comes from United Way of Wisconsin and United for ALICE.

United Way of Wisconsin is the statewide member association serving local and independent United Ways in Wisconsin, so they have capacity to individually and collectively build stronger communities, a release from the organization said.

Locally, there are United Ways in Merrill, Rhinelander, Antigo, Medford and Wausau.

United For ALICE is a U.S. research organization “driving innovation, research and action to improve life across the country for ALICE (Asset Limited, Income Constrained, Employed) and for all,” according to the release.

“Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged,” the release stated. “Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 41 states and the District of Columbia and includes United Ways, corporations, nonprofits and foundations.”

State of ALICE report

The release said the latest State of ALICE report “reveals that traditional measures of poverty have severely undercounted the number of Wisconsin households that are living with financial hardship.”

“The ALICE Report goes beyond traditional poverty measures to reflect the true costs of living in Wisconsin,” the release stated. “The report establishes a Household Survival Budget, which includes housing, childcare, food, transportation, health care, technology, taxes and a modest allowance for miscellaneous expenses.”

According to the release, while the report states that 11 percent of Wisconsin households (269,822 households) live beneath the federal poverty line, the new research demonstrates that 24 percent (603,981 households, or more than twice as many) were beneath the ALICE threshold, earning above the poverty level but still unable to cover basic needs. When combined, the data reveals that 35% of all households in Wisconsin are experiencing financial hardship, the release said.

Additional local, statewide data

According to the report, of the 12,772 households in Lincoln County, 1,579 are below the federal poverty line, while 2,827 households (34 percent) fall below the ALICE threshold.

Forty-one percent of Langlade County households are below the ALICE threshold.

In Price County, 39 percent of households are below the ALICE threshold.

Thirty-five percent of Oneida County households fall below the ALICE threshold.

In Taylor County, 37 percent of households are below the ALICE threshold.

Thirty percent of Marathon County households fall below the ALICE threshold.

Menominee County has the highest percentage of households below the ALICE threshold in the state with 48 percent, while Calumet County has the lowest percentage at 28 percent.

According to the release, the State of ALICE in Wisconsin also reveals that:

• Wisconsin ranked 7th in financial hardship among all 50 states, plus the District of Columbia (with 1st place representing the lowest rate of hardship).
• ALICE households were found in every major industry statewide, with the highest levels of hardship experienced by those working in accommodation and food services.
• Poverty rates in Wisconsin have remained relatively flat since 2010, while the number of ALICE households has steadily increased.
• Minimum wage workers in Wisconsin have seen no hourly pay rise since 2009. Yet for one full-time adult worker with one school-age child, that wage still was not enough to support the minimum cost of survival in any county across the state.

“Behind these numbers are families making impossible choices every day – between groceries and utilities, childcare and rent,” said Charlene Mouille, United Way of Wisconsin CEO. “Local United Ways across Wisconsin use ALICE data to help guide their programs and investment strategies so that communities are equipped to respond to the conditions preventing families from maintaining household stability.”  

More state and local data is available through the State of ALICE Report and the ALICE Essential Index.

How United Way aims to help

Beyond funding and operating programs, the release said, United Ways convene partners across sectors to solve the most complex interconnected challenges, including those faced by ALICE households.

“We invite state and local leaders to read the ALICE report and work with your local United Way to help ensure that every Wisconsinite has the opportunity not to just survive, but to thrive,” said Mouille.

The release said United Ways across Wisconsin are “uniquely positioned to respond to the challenges facing ALICE households.”

“United Ways invest in youth opportunities, connecting young people with the support they need; build healthy communities, ensuring all families can make healthy choices; strengthen financial security, helping everyone to sustain and build security for future generations, and; advance community resiliency, ensuring their communities can bounce back after the unexpected,” the release stated.

To learn more about United Way of Wisconsin, visit www.unitedwaywi.org.  

For more information about United for ALICE, go to www.UnitedForALICE.org.