Many working families in Lee County struggle to make ends meet as inflation drives up household costs.
The latest report from the nonprofit United for ALICE shows 42% of households in Lee are challenged to keep up with what it takes to run a household.
A family of four needs a monthly income of $7,994, or $95,928 annually, for a basic household “survival budget.” That is more than three times the federal poverty level of $31,200 for a family of four, according to the findings.
That scenario includes two children enrolled in child care programs at a cost of $1,438 a month.
For a family of four in Lee with two children not enrolled in child care, a survival budget needed is $6,975 a month, after taxes, or $83,700 annually.
Overall Florida ranks 47th among the 50 states and the District of Columbia for families facing financial hardships.
What is ALICE?
The nonprofit ALICE, based in New Jersey, examines household budgets and costs on behalf of United Way agencies in 31 states.
ALICE is an acronym for Asset Limited, Income Constrained, Employed.
It is used as an alternative to federal poverty level guidelines, in part because earnings may be above poverty guidelines but are not enough to cover basic expenses.
It involves standardized measurements to quantify what is needed for a basic household budget, and how many households struggle to get by.
In Lee, 11% of families live below federal poverty guidelines yet another 31% that do not fall within poverty levels cannot afford household necessities, according to the data.
In total, nearly 36,574 households in Lee live below poverty levels. Another 105,879 households fall within the ALICE threshold and struggle to afford basic necessities despite employment.
What does United Way of Lee say?
United Way of Lee, Hendry and Glades says the report validates how rising costs burden families.
“The latest ALICE report highlights the challenges facing many local households, with nearly one-third of Lee County families struggling financially,” Madison Mitchell, interim chief operating officer, said.
“The cost of basic necessities such as housing, childcare, transportation, health care and technology has risen dramatically in the last 20 years, making it increasingly difficult for households to make ends meet,” she said.
The United Way chapter sees the growing need reflected in the demand for services among the 92 nonprofit partner agencies and over 250 programs it helps to fund, Mitchell said.
“United Way funding helps improve the lives of more than 500,000 people that are in need each year, and the ALICE report provides valuable insight that helps us direct resources where they are needed most,” Mitchell said.
What to know about ALICE
The nonprofit ALICE has introduced an “essentials index” which tracks the cost of six basic necessities: housing, child care, food, transportation, health care, and technology.
The gap between wages and expenses remains significant, according to the index.
A household in Lee, a married couple with two children who are not enrolled in child care, needs $6,975 a month to survive based on wages of $42 an hour.
A breakdown of expenses is $1,892 for housing, $469 for child expenses, $1,614 for food, $869 for transportation, $900 for health care, $131 for technology, $588 for miscellaneous expenses and $512 for taxes.
For a family of four with two children enrolled in child care programs, the budget needed to survive changes with child care costs of $1,438 a month, food at $1,424 and miscellaneous costs at $665 a month. That comes to an hourly wage of $48.
More state and local data is available through the interactive dashboards at UnitedForALICE.org/Florida.
To learn more about United Way of Lee, Hendy and Glades, visit https://www.unitedwaylee.org/
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Liz Freeman is a health care reporter. Reach her by emailing lfreeman@naplesnews.com
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This article originally appeared on Fort Myers News-Press: A ‘survivor’s budget’ to live in Lee County is how much?
Reporting by Liz Freeman, Fort Myers News-Press & Naples Daily News / Fort Myers News-Press
USA TODAY Network via Reuters Connect
By Liz Freeman, Fort Myers News-Press & Naples Daily News | USA TODAY Network
