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47 | Page
ALICE Index
The ALICE Index, which stands for Asset Limited, Income
Constrained, and Employed provides a different view of financial
burden than the official measure of poverty used by the Census Bureau.
United Way, the developer of the index, describes ALICE as
representing “those who work hard and are above the poverty line, but
due to high costs and factors often beyond their control, must live
paycheck to paycheck.”
ALICE households are determined by the ALICE Household Survival
Budget, a county-specific estimate of the minimal cost of living. It
includes housing, food, transportation, health care, childcare, taxes, a
modest phone bill, and a small “contingency fund” equal to 10% of the
total budget. Incidentals like emergency repairs, Internet and cable, or
holiday gifts are not figured into the ALICE Household Survival
Budget. Due to skyrocketing housing prices, healthcare, childcare,
transportation, food costs, and other essentials, more families are
unable to afford their basic needs and have fallen below the ALICE
threshold into poverty.
The COVID-19 pandemic exposed exactly the issues of economic
fragility and widespread hardship that the United for ALICE and
ALICE data reveals. United for ALICE’s most recent 2020 report which
uses 2018 data, shows that the cost of living for the ALICE population
is growing significantly in both urban and rural areas, often driven by
the cost of housing. It should be noted that this data, although best
available from United for ALICE, is pre-pandemic data.
ALICE Households with Children and Poverty Levels
A review of data from United for ALICE shows that in 2019, 16% of
children in the U.S. lived in poverty while another 33% were ALICE
households earning above the poverty level but earning less than what
it costs to purchase basic necessities. In 2019, Broward and Miami-Dade
counties had a higher percentage of ALICE Households with Children
with 41% and 42% respectively. Broward County’s poverty rate of
Households with Children in 2019 was equal to that of the United
States at 16% while Miami-Dade’s poverty rate was higher at 20%. In
this study, Miami-Dade and Monroe counties were combined.32
South Florida Poverty Rate Miami-Dade Poverty Rate
Broward County Poverty Rate Monroe County Poverty Rate
14.55%
ALICE Households 37%
Poverty Households 15%
2018 Data
16%
ALICE Households 37%
Poverty Households 17%
2018 Data
12.7%
ALICE Households 37%
Poverty Households 13%
2018 Data
10.6%
ALICE Households 29%
Poverty Households 8%