United Way’s ALICE Report: 48% of Keys Households Are Struggling Financially

More than 14,000 Keys households—48% of the total—are struggling to afford basic needs like food, housing and health care, according to a groundbreaking report released yesterday by United Way of the Florida Keys.

United Ways in six states commissioned Rutgers University to conduct the research for the ALICE report, which stands for Asset Limited, Income Constrained, Employed. The report spotlights a large segment of the population that is working hard—sometimes at two or three jobs—but is still barely able to make ends meet.

“ALICE folks are our child care workers, mechanics, home health aides, store clerks, office assistants and other workers who provide invaluable services we all rely on in our daily lives,” said Margie Smith, President of United Way of the Florida Keys. “But as hard as they are working, all it would take is one emergency–a serious illness, an expensive car repair, a damaging storm—for them to spiral into poverty.”

The ALICE report is groundbreaking, Smith explained, because it more accurately portrays the extent of financial hardship in Florida. Federal poverty guidelines have not been updated since 1974 and are not adjusted to reflect cost of living differences, Smith said. “This is significant in an area like the Keys, which has traditionally had the highest cost of living in the state.”

The ALICE report states that 12% of Monroe County households are at or below the federal poverty level, but an additional 36% of households are in the ALICE category—barely getting by. “You really need to combine these two groups,” Smith said, “in order to get a true picture of how many people in our county are struggling financially.”

The ALICE report contains cost analyses of basic household expenses like housing, food, child care and health care for all 67 Florida counties, and compares these costs with household incomes. It concludes that in Monroe County, a bare minimum “household survival budget” would be $24,020 for a single adult and $61,962 for a family of four. Only 51% of Keys households are making that much or more.

“And these figures are very conservative,” Smith said. “Health care costs, for example, include only out-of-pocket expenses, not premiums. Housing costs are the cheapest housing you can get in an area.”

When ALICE households don’t have enough income, Smith said, they have to make difficult choices to reduce their expenses. “For instance, they might leave their child with a neighbor instead of putting him or her in an accredited facility, which could jeopardize the child’s safety and learning opportunities. Or they might skip preventative health care, which could cause a serious health problem in the future.”

It’s important to add, Smith said, that the whole community suffers when ALICE households don’t have enough income. “When ALICE children aren’t ready for school, they add a burden to the educational system. When ALICE households can’t afford preventative health care, they place future burdens on the health care system, increasing insurance premiums for everyone.”

Smith said United Way is releasing the ALICE report with the hope that it will encourage state and local decision-makers to initiate policies and programs that will support working families who are struggling to continue living in the Keys.

“We have been serving this fragile population for many years through our funding of food pantries and child care programs,” she said. “We care about them and want their lives to be better.”

To access the complete ALICE report, visit www.keysunitedway.org, or call 305-735-1929.

About United Way of the Florida Keys

United Way of the Florida Keys is an independent, local 501(c)(3) organization that has been supporting the Keys community for more than 30 years. UWFK supports strong working families by funding nonprofits Keys-wide that provide critical services to Keys residents in need. Money raised in the Keys stays in the Keys. United Way also plays a unique role in convening the discussion to enable businesses, nonprofits and government to work together to address community issues.