Groundbreaking Study Reveals One in Four Kansas Households Struggled to Afford Basics in 2021
A new report released today by United Ways of Kansas highlights the hardships of nearly 450,000 Kansas households who were unable to afford the state’s cost of living in 2021.
ALICE in Kansas: A Study of Financial Hardship places a spotlight on a large population of hardworking residents who work at low-paying jobs, have little or no savings and are one emergency away from falling into poverty. ALICE stands for Asset Limited, Income Constrained, Employed. The Report is the most comprehensive depiction of financial need in the state to date, using the latest data from a variety of sources, including the U.S. Census. The Report unveils new measures, based on 2021 income levels and expenses, that quantify how many in Kansas’s workforce are struggling financially, and why.
In 2021, a total of 310,108 Kansas households fell 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. This number was double the official poverty rate, which accounted for 137,011 households in the state. Combined, ALICE households and households in poverty fell below the ALICE Threshold of Financial Survival and accounted for 39% percent of all households in Kansas.
“We all know ALICE,” said United Way State Chair, Lisa Gleason “ALICE is the recent college graduate unable to afford to live on their own, the young family strapped by childcare costs and the mid-career professional now underemployed. These folks are vital to our state’s future economic well-being, and they face barriers beyond their control – frustrating their ability to become financially stable.”
The Report is a project of United For ALICE, a grassroots movement of United Ways, corporations, nonprofits, and foundations in more than half the United States, all using the same methodology to document financial need. ALICE Reports provide county-by-county data and analysis of how many households are struggling, including the obstacles ALICE households face on the road to financial independence.
“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 the Report’s lead researcher, United For ALICE National Director Stephanie Hoopes, Ph.D. “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 ALICE Report reveals:
▪ Households below the ALICE Threshold span all races, ages, and genders, closely mirroring the state’s basic demographic make-up. Yet for certain groups, the struggle is disproportionate. For example, 60% of Black and 49% of Hispanic households in Kansas were below the ALICE Threshold in 2021, compared to 36% of white households.
▪ Because wages had stagnated for a decade, 28% of the state’s 30,020 retail sales workers lived below the ALICE Threshold in 2021.
▪ Half of Kansas’ 105 counties – 61– had 40 percent or more households unable to make ends meet in 2021. The average income needed in order to survive in Kansas depends on local conditions and ranged from $50,700 to $76,596 annually for a family of four, more than double the official U.S. poverty level.
▪ Even with the variety of temporary pandemic supports available, in 2021, a family of four with two-full time workers earning salaries as a retail salesperson and a cashier – two of the most common occupations in Kansas –were just able to meet their basic expenses with the help of these supports.
United Way is focused on providing the basic foundation in the areas of education, financial stability, and health to help improve the lives of both ALICE and those in poverty, for the long- term benefit of the wider community.
The Report was released in partnership with United For ALICE, a U.S. research organization driving innovation, research and action to improve life across the country for people in financial hardship and was funded by Blue Cross and Blue Shield of Kansas.
“When individuals struggle financially – their communities also struggle. The social determinants of health, like someone’s zip code and the amount of money they make, have a significant impact on a person’s and community’s health and well-being,” said Virginia Barnes, director, Blue Health Initiatives. “Across one’s lifespan, increased financial instability also increases risk for mental illness, chronic disease, higher mortality, and lower life expectancy. We believe this United for ALICE report will spur action to better support the whole health of Kansans.”
For more information or to find data about ALICE in local communities, visit www.UnitedForALICE.org. or https://unitedwaysofkansas.org
