United Way report shows breakdown of household income data

Financial hardship isn’t an issue faced only by residents living at the federal poverty level.

The Asset Limited, Income Constrained, Employed Study of Financial Hardship released in January by the Louisiana Association of United Ways revealed 26 percent of households in Caddo Parish were considered part of the ALICE population – “households earning more than the official U.S. poverty level but less than the basic cost of living in their communities.”

“We see ALICE every day – hard workers who keep Louisiana’s economy running, but who aren’t always sure that they can put food on their own tables,” said Sarah Berthelot, president and CEO of Louisiana Association of United Ways, in a letter introducing the ALICE report. “We find ALICE each day working behind cash registers, fixing our cars, serving us in restaurants and retail stores, and caring for our young and our elderly.”

Hardships faced by those considered to be part of the ALICE population include living in substandard housing, longer commutes due to living far away from their jobs, no child care or substandard child care, substandard public education, less healthy or not enough food, utilizing an old vehicle, no car or health insurance, low wages and minimal or no savings.

The 2013-based data shows 44 percent of Caddo’s 98,570 households and 33 percent of Bossier Parish’s 47,151 households fell under the ALICE population criteria or the poverty level.

The statewide level of ALICE households totals 368,682, which “is higher than the official poverty level, which accounts for 327,037 households in Louisiana,” according to the United Way. “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 setback.”

The report offered an Economic Viability Dashboard, rating parishes with a score of 1 to 100 on housing affordability, job opportunities and community resources.

For housing affordability, Caddo (36) and Bossier (41) both received a rating of “poor.”

Key indicators for housing affordability were affordable housing stock, housing burden (housing costs that exceed 30 percent of income) and real estate taxes.

For job opportunities, Caddo (50) was rated “fair” and Bossier (53) was rated “good.” Key indicators in determining the quality of job opportunities included income distribution, unemployment rate and new hire wages.

For community resources, Bossier (52) was rated “poor” and Caddo (57) was rated “fair.”

Community resources were scored based on education resources, health resources and social capital.

“The choices that ALICE households are forced to make often include skipping health care, accredited child care, healthy food or car insurance,” the report states. “While these ‘savings’ have direct impacts on the health, safety and future of these households, their wider effects can include reducing Louisiana’s economic productivity and raising insurance premiums and taxes for everyone.”

Breaking down the Caddo Parish data further, 56 percent of households were above the ALICE threshold, while 26 percent were considered ALICE households and 18 percent were at the poverty level. Forty-seven percent of 77,784 Shreveport households were considered to be at the ALICE and poverty level.

In Bossier Parish, 67 percent of households were above the ALICE threshold, while 18 percent were ALICE households and 15 percent were at poverty level.

The estimated annual budget that a household needs to survive in Caddo and Bossier parishes is $18,048 for a single adult household and $43,392 for a household comprised of two adults, one infant and a preschooler, according to the report, while “the U.S. poverty level is $11,490 for a single adult and $23,550 for a family of four.”

“The bare-minimum budget does not allow for any savings, leaving a household vulnerable to unexpected expenses,” the report states.

The median household income for Caddo Parish was $39,683; in Bossier Parish, it was $51,796.

“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,” said United Way ALICE Project National Director Stephanie Hoopes, in a news release.

“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 United Way of Northwest Louisiana comprises Caddo, Bossier, Webster, Claiborne, DeSoto, Red River, Bienville, Sabine, Natchitoches and Winn parishes.

“ALICE provides valuable information in an easily accessible format that will help those who are focused on improving the lives of our citizens who are working but not getting ahead,” said United Way Northwest Louisiana CEO Bruce Willson in a release.

–Sarah Crawford

Learn more:

For more information about the local United Way, go to www.unitedwaynwla.org.