Making Tough Choices: How Working Families Struggle to Get Ahead May 21, 2019

ALICE Asset-Limited Income-Constrained Employed ALICE are above the Federal Poverty Level but can’t meet basic need budget…every week, every month, every year—bare bones budget ALICE is working and struggling

Iowa’s ALICE Threshold Started in New Jersey and is now in 18 states

Davis County Households by Income, 2010 to 2016 ALICE is growing. Third report and has grown from 19 to 29 (combined to 46%) 4.1% unemployment (state is 3.9%) Iowa average poverty rate is 12% Source: American Community Survey, 2007-16, and the ALICE Threshold, 2007-2016

Jefferson County Households by Income, 2010 to 2016 ALICE is growing. Third report and has grown from 17 to 31 (combined to 45%) 6.6% unemployment (state is 3.9%) Iowa average poverty rate is 12% Source: American Community Survey, 2007-16, and the ALICE Threshold, 2007-2016

Keokuk County Households by Income, 2010 to 2016 ALICE is growing. Third report and has grown from 20 to 28 (combined to 41%) 5.5% unemployment (state is 3.9%) Iowa average poverty rate is 12% Source: American Community Survey, 2007-16, and the ALICE Threshold, 2007-2016

Mahaska County Households by Income, 2010 to 2016 ALICE is growing. Third report and has grown from 16 to 26 (combined to 40%) 6.3% unemployment (state is 3.9%) Iowa average poverty rate is 12% Source: American Community Survey, 2007-16, and the ALICE Threshold, 2007-2016

Who is ALICE in your County?

Fast Demographic Facts--Davis 3,230 Total Households 1,486 households below the ALICE Threshold 549 below FPL (17%) Remainder in the ALICE population Over 50% of Davis County households with children are below the ALICE Threshold 48% of Davis County Senior Households (over 65) are below the ALICE Threshold

Fast Demographic Facts--Jefferson 6,896 Total Households 3,103 households below the ALICE Threshold 965 below FPL (14%) Remainder in the ALICE population Over 38% of Jefferson County households with children are below the ALICE Threshold 44% of Jefferson County Senior Households (over 65) are below the ALICE Threshold

Fast Demographic Facts--Keokuk 4,414 Total Households 1,810 households below the ALICE Threshold 574 below FPL (13%) Remainder in the ALICE population Over 25% of Maska County households with children are below the ALICE Threshold 51% of Mahaska County Senior Households (over 65) are below the ALICE Threshold

Fast Demographic Facts--Mahaska 8,983 Total Households 3,593 households below the ALICE Threshold 1,257 below FPL (14%) Remainder in the ALICE population Over 35% of Maska County households with children are below the ALICE Threshold 40% of Mahaska County Senior Households (over 65) are below the ALICE Threshold

What Does it Cost to Live in Your County?

ALICE Budget Methodology HOUSING – HUD Fair Mkt. Rent + Utilities CHILDCARE – Registered, In-Home Care FOOD – USDA Thrifty Plan TRANSPORTATION – BLS Consumer Expenditure Survey – average annual expenditure for vehicle HEALTH CARE – Out-of-pocket Expenses + ACA Penalty TECHNOLOGY – Consumer Reports Lowest-Cost Smartphone Plan TAXES – Federal & State Income Taxes + SS & Medicare Thrifty budget: All meals at home and 1.5 hours a day cooking (1 lb of beans a week) Just Budget Better?

ALICE Survival Budget FPL = IA minimum wage: $7.25/hour = $18,500/year $11,880 single adult and $24,300 family IA minimum wage: $7.25/hour = $18,500/year Thrifty budget: All meals at home and 1.5 hours a day cooking (1 lb of beans a week) Just Budget Better? Source: US Dept of Housing & Urban Development, 2016; US Dept of Agriculture, 2016; Bureau of Labor Statistics, 2016; Internal Revenue Service; Tax Foundation; and Iowa Child Care Resources & Referral

ALICE Survival Budget FPL = IA minimum wage: $7.25/hour = $18,500/year $11,880 single adult and $24,300 family IA minimum wage: $7.25/hour = $18,500/year Thrifty budget: All meals at home and 1.5 hours a day cooking (1 lb of beans a week) Just Budget Better? Source: US Dept of Housing & Urban Development, 2016; US Dept of Agriculture, 2016; Bureau of Labor Statistics, 2016; Internal Revenue Service; Tax Foundation; and Iowa Child Care Resources & Referral

ALICE Survival Budget FPL = IA minimum wage: $7.25/hour = $18,500/year $11,880 single adult and $24,300 family IA minimum wage: $7.25/hour = $18,500/year Thrifty budget: All meals at home and 1.5 hours a day cooking (1 lb of beans a week) Just Budget Better? Source: US Dept of Housing & Urban Development, 2016; US Dept of Agriculture, 2016; Bureau of Labor Statistics, 2016; Internal Revenue Service; Tax Foundation; and Iowa Child Care Resources & Referral

ALICE Survival Budget FPL = IA minimum wage: $7.25/hour = $18,500/year $11,880 single adult and $24,300 family IA minimum wage: $7.25/hour = $18,500/year Thrifty budget: All meals at home and 1.5 hours a day cooking (1 lb of beans a week) Just Budget Better? Source: US Dept of Housing & Urban Development, 2016; US Dept of Agriculture, 2016; Bureau of Labor Statistics, 2016; Internal Revenue Service; Tax Foundation; and Iowa Child Care Resources & Referral

Source: American Community Survey, 2007-16, and the ALICE Threshold, 2007-2016

Housing Cost Burden CHAS" data (Comprehensive Housing Affordability Strategy) (ACS & Census data) Source: U.S. Department of Housing and Urban Development, CHAS data, 2011-15

ALICE’s Job(s)

Workforce Trends Contingent Workforce Unpredictable Schedules No Benefits Contingent Workforce: Just in time workforce Unpredictable—scheduled for 30 but gets 20

Median Earnings of Workers age 25 and Above US: $29.15/hr IA: $27.04/hr Keokuk: $21.74/hr Jefferson: $21.75/hr Davis: $23.89/hr Mahaska: $23.84/hr Source: American Community Survey, 2007-16, and the ALICE Threshold, 2007-2016

66% of all Iowa jobs pay less than $20/hour 66% of all Iowa jobs pay less than $20/hour. Over ½ of those pay less than $15/hour.

ALICE’s Assets

Vehicle doesn’t help with emergencies (not liquid)

Almost 50% of Iowa households do not have enough money set aside to cover 3 months of expenses.

Making Tough Choices Simulation http://iowa.makingtoughchoices.org/

Questions?