Latest “ALICE In Focus” Report Reveals that 48% of People with Disabilities in Michigan are Living in Financial Hardship
Michigan Association of United Ways’ Report Demonstrates Population is Being Undercounted and Underserved
Lansing, Mich., July 26, 2022 – The number of people with disabilities in Michigan who struggle to afford the basics is far higher than federal poverty data indicates — 48% compared to 19% — according to a new report from Michigan Association of United Ways and its research partner United For ALICE.
In 2019, while 19% of Michigan residents with disabilities were deemed in poverty, 28% — more than one and a half times as many — were designated under ALICE (Asset Limited, Income Constrained, Employed). ALICE households earn more than the Federal Poverty Level but less than what it costs to live and work in the modern economy. Combined, 48% of Michigan residents living with disabilities were below the ALICE Threshold, with income that doesn’t meet the basic costs of housing, child care, health care, transportation and a smartphone plan.
“On the 32nd anniversary of the Americans with Disabilities Act, we see residents with physical, mental or emotional conditions who are struggling financially and are not only being undercounted but underserved,” said United For ALICE National Director Stephanie Hoopes, Ph.D. “There is still work to do, as having a disability puts individuals at substantial risk for financial instability, more than many other factors. Daily, and even more so during the COVID-19 pandemic, these individuals face barriers to accessing a quality education, secure jobs and critical supports.”
The new research also shows that outdated federal guidelines prevent the majority of residents with disabilities who are living in financial hardship from accessing critical public assistance. According to the new report, a staggering 82% of residents with disabilities below the ALICE Threshold did not receive Supplemental Security Income (SSI). The program requires that recipients have income below the poverty level, be unable to work, have a “severe” impairment and have less than $2,000 in their bank accounts, $3,000 if they are a married couple.
“Income eligibility requirements for SSI haven’t been updated in nearly four decades, which is one of the big reasons why more than 530,000 residents were shut out of receiving a much-needed financial lifeline,” said Holly Miller, a board member of the Michigan Association of United Ways. “By using data that takes into account the true cost of living — we can establish critical supports that help those who need it the most.”
Other findings from ALICE in Focus: People With Disabilities include:
Black and Hispanic residents with disabilities — 65% and 54% respectively — disproportionately experienced financial hardship compared to 43% of white people with disabilities.
Females with disabilities struggled more to afford the basics — 51% — compared to 44% of males with disabilities.
Michigan saw 59% of residents with disabilities below the ALICE Threshold spend 35% or more of their income on their mortgage, plus utilities, taxes and insurance.
Whether working full or part time, people with disabilities were more likely to be living paycheck to paycheck than those without disabilities: 21% of full-time workers with disabilities were below the ALICE Threshold compared to 16% of full-time workers without disabilities.
Hoopes also pointed out that rates of hardship are likely even higher than could be counted, as data is not available for individuals living in nursing homes, correctional facilities and other group settings.
In conjunction with the launch of ALICE in Focus: People With Disabilities, Local United Ways across the state of Michigan will be joining local Centers for Independent Living to hold a 21-Day Disability Equity Challenge. The Challenge, developed in partnership with the Disability Network of Southwest Michigan, aims to explore disability from a position of equity and pride and is designed to raise awareness, increase understanding, and shift perspectives about disability in our culture. The free, interactive challenge begins on August 1st – visit www.miunitedwayequity.org/disabiltiyequitychallenge to register or learn more.
More data is available through the ALICE in Focus: People With Disabilities interactive data dashboard, which provides filters for regional and local geographies, age, race, disability status, living arrangements and household work status. Visit UnitedForALICE.org/Focus-Disabilities for more information.
ALICE in Focus: People With Disabilities marks the second installment in the ALICE in Focus Research Series, which draws from the U.S. Census Bureau’s American Community Survey (ACS) Public Use Microdata Samples (PUMS). Each installment in the series highlights a specific segment within the ALICE demographic. The first installment focused on children; the next report, scheduled to be released in November, will feature veterans.
About the Michigan Association of United Ways
Michigan Association of United Ways (MAUW) is a partner in developing powerful responses to current and emerging issues in local communities. The State Association provides leadership in policy influence and capacity building to affect positive change. MAUW serves approximately 35 local United Ways that represent the largest network of non-governmental service providers and service funders in Michigan, collectively raising and distributing significant resources to support local health and human service organizations.
About United For ALICE
United For ALICE is a driver of innovation, research and action to improve life across the country for ALICE (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 24 states and includes United Ways, corporations, nonprofits and foundations in Arkansas, Connecticut, Delaware, Florida, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.
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