ALICE 2020 Update and How COVID-19 May Impact ALICE Households
Who Is ALICE?
In 2018, 3,610,770 Florida households (46%) had income below the ALICE Threshold, meaning that they were unable to afford even the most basic budget. ALICE households, earning above the Federal Poverty Level, were not eligible for assistance. The large number of households struggling before the COVID-19 crisis helps explain why the dual impact of the current health crisis and economic disruption is so severe.
ALICE in Lee County
2018 Point-in-Time-Data
Population: 754,610
Number of Households: 281,222
Median Household Income: $56,129 (state average: $55,462)
Unemployment Rate: 4.4% (state average: 5.2%)
ALICE Households: 35.0% (state average: 33.0%)
Households in Poverty: 12.0% (state average: 13.0%)
- The number of ALICE households will increase with the economic disruption caused by COVID-19.
- Rising unemployment, closed businesses, and halted production of many goods and services has already reduced the income of millions of families. The 14% of households that were on the cusp of the ALICE Threshold in 2018 are especially vulnerable.
- The number of households unable to afford household essentials had been growing over time before the pandemic began. The percentage of households below the ALICE Threshold increased from 33% in 2007 to 46% by 2018 (Figure 1 in the Report).
- Inequalities are exacerbated by the pandemic. Households of all ages, genders, races, and ethnicities, living in rural, urban, and suburban areas, are impacted by the COVID-19 pandemic. But isolating in place is a luxury that many ALICE families cannot afford. Differences in income and savings determine who can stay home, buy protective gear, buy essential items in bulk, take time off work when sick, and access quality health care.
- ALICE families without savings and working hourly paid jobs are more likely to fall into debt and may not be able to protect themselves or afford treatment if they get sick.
- Groups that are disproportionately ALICE will be impacted even more severely. Many ALICE families have been skimping on basic essentials for years, from healthy food to routine health care. Along with the added stress of living paycheck to paycheck, these factors increase the risk for chronic health conditions, making ALICE even more vulnerable during a public health crisis. Initial reports are showing that groups that have underlying health conditions, face persistent discrimination in health care services, or live in areas with fewer support services (health care deserts and rural areas) make up a higher proportion of COVID-19 deaths.
- Seniors are a high-risk group, in terms of both health and finances. In 2018, 1.3 million senior households (49%) in Florida had income below the ALICE Threshold. Due to age, underlying conditions, and often living in group quarters such as assisted living facilities or nursing homes, those over age 65 are more susceptible to getting and dying from COVID-19 than the general population. This increased vulnerability and the closing of senior centers, houses of worship, and other community organizations has heightened anxiety and isolation among the senior population. In addition, with the rapid decline in the stock market, many seniors’ income and resources will be drastically reduced. In addition, some supply chains have been disrupted impacting the availability of necessities such as generic medicine.