KIMT3 reports…

A new report says over a third of Minnesota households were living paycheck to paycheck from 2021 to 2022.

The report, “ALICE in Minnesota: A study of Financial Hardship,” is from the United Way of Olmsted County (UWOC), United Ways of Minnesota, and research partner United for ALICE.

ALICE is an acronym for Asset Limited, Income Constrained, Employed.  UWOC says it’s a way of understanding families, neighbors, and colleagues who work hard, earn above the Federal Poverty Level, but don’t make enough to afford a basic household survival budget.  ALICE workers include childcare providers, home health aides, cashiers, retail clerks, waiters, nonprofit professionals and others working low-wage jobs, with little or no savings, and one emergency from poverty.

The report found a total of 834,343 Minnesota households or 36% were living paycheck to paycheck.  That calculation includes 233,779 Minnesota households in poverty as well as another 600,564 defined as ALICE.

In 2022 in Olmsted County, 24% of households were ALICE, compared to the state average of 26%, and 9% of Olmsted County households were in poverty, compared to the state average of 10%.  UWOC says this means in Olmsted County, 22,593 households are struggling, with 33% percent below the ALICE Threshold.

“The data is showing persistent and widespread financial hardship — a red flag that the current system isn’t working for ALICE,” says Stephanie Hoopes, Ph.D., United for ALICE National Director.  “Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, from lack of access to housing and childcare that’s affordable, to inadequate community supports such as broadband internet.”