United Way study finds 40% in state can’t afford basics

A United Way study reports 40 percent of households in Louisiana cannot afford basic living costs.
The Louisiana Association of United Ways released its ALICE Report for Louisiana Wednesday.
ALICE stands for Asset Limited, Income Constrained, Employed.
The reported stated 368,682 Louisiana households fall into what United Way calls the ALICE population. These are households earning more than the official U.S. poverty level but less than the basic cost of living in their communities. The number is higher than the official poverty level, which accounts for 327,037 households in Louisiana.
Combined, ALICE and those in poverty account for 40 percent of all Louisiana households — that’s two of every five households in Louisiana walking a financial tightrope and at risk of falling into a financial crisis with one set back.
The 253-page United Way ALICE Report for Louisiana found households struggling to afford the basics included:
— 48 percent in Evangeline Parish.
— 49 percent in St. Landry Parish.
— 45 percent in Acadia Parish.
Average annual income needed to afford the basics:
— In St. Landry Parish, $15,696 for a single adult, and $39,420 for a family of four.
— In Evangeline Parish, $16,308 for a single adult, and $39,420 for a family of four.
— In Acadia Parish, $16,680 for a single adult and $39,420 for a family of four.
Sarah Berthelot, Louisiana Association of United Ways president and CEO, said, “ALICE is the hard worker, caring for our elderly and young children, fixing our cars and waiting tables. ALICE families play a critical role in keeping Louisiana’s economic engine running, but they aren’t always sure that they can put food on their own tables.”
Berthelot said, “We believe this report could be placed in the center of tables across Louisiana to inspire the right kind of conversations— in non-profits, churches, businesses, municipal and state government offices, even on the dinner table in homes.”
She added, “Sadly, there is no single solution to ‘fix’ the challenges that so many in Louisiana face. However, armed with information from this report, everyone can make more informed decisions to create policies, programs and priorities to improve the lives of ALICE in Louisiana.”
The United Way ALICE Report is the most comprehensive depiction of financial need in the state to date, using data from a variety of sources, including the U.S. Census, a United Way news release stated.
The annual Household Survival Budget quantifies the costs of the five basic essentials of housing, child care, food, health care, and transportation. Using the thriftiest official standards, including those used by the U.S. Department of Agriculture and the U.S. Department of Housing and Urban Development, the average annual Household Survival Budget for a Louisiana family of four (two adults with one infant and one preschooler) is $42,444, and for a single adult it is $17,304. These numbers vary by parish, but all highlight the inadequacy of the 2013 U.S. poverty designation of $23,550 for a family and $11,490 for a single adult as an economic survival standard in Louisiana.
United Way ALICE Project National Director Stephanie Hoopes, Ph.D., report’s lead researcher, said, “This report provides the objective data that explains why so many residents are struggling to survive and the challenges they face in attempting to make ends meet.”
Hoopes also said,“Until now, the true picture of need in local communities and states has been understated and obscured by misleading averages and outdated poverty statistics.”
The report unveils new measures, based on present-day income levels and expenses that show how many Louisiana workers struggling financially, and why, the news release stated.
The average income needed in order to survive in Louisiana depends on local conditions and ranges from $39,888 to $48,492 annually for a family of four — in some cases, double the official U.S. poverty level.
ALICE represents men and women, young and old, of all races, closely mirroring Louisiana’s basic demographic make-up. More than 57 percent of the ALICE population is white and 37 percent are within their prime wage-earning years of 45 to 64 years old.
ALICE lives across the state: 85 percent of Louisiana’s 579 parish subdivisions have more than 30 percent of households living on an income below the ALICE Threshold.
There are large concentrations of households with income below the ALICE Threshold in Louisiana’s largest cities. Of the 12 cities with more than 12,000 households, all have more than 35 percent of households with income below the ALICE Threshold, and two have more than 50 percent: Marrero and Monroe.
The Household Survival Budget varies across Louisiana parishes. The basic essentials were least expensive at $39,420 per year for a family in Acadia, Evangeline, St. Landry and Vermilion parishes, and $15,696 for a single adult in St. Landry Parish. They were most expensive for a family at $48,492 in Jefferson, Orleans, Plaquemines, and St. Bernard parishes, and $19,248 for a single adult in in Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, and St. Tammany parishes.
As much as one-third of the population of the United States lives in an ALICE household.
To produce the United Way ALICE Report for Louisiana, a team of researchers collaborated with a Research Advisory Committee, composed of 19 representatives from around Louisiana, who advised and contributed to the report. Louisiana is one of the first 10 states in the country to produce an ALICE study. This collaborative model, practiced in each state, ensures each United Way ALICE Report presents unbiased data that is replicable, easily updated on a regular basis, and sensitive to local context. Working closely with United Ways, the United Way ALICE Project seeks to equip communities with information to create innovative solutions.