Nearly two in five Ohio households fell below a threshold where they could afford a “survival budget.”
That’s according to a new report from United Way of Central Ohio and United For ALICE, which stands for “Asset Limited, Income Constrained, Employed.” It found that nearly two in five Ohio households (39%) were below the ALICE Threshold and faced financial instability in 2023.
That includes 14% of Ohio’s nearly 4.9 million households that earned below the Federal Poverty Level in 2023. It also consists of a quarter of Buckeye State households called “ALICE” households.
Households in this category earned more than the Federal Poverty Level but do not have enough money for the ALICE Household Survival Budget, which is the minimum costs of household necessities plus taxes, adjusted for all U.S. counties and various household compositions. It amounts to $26,892 for a single adult and $79,224 for a family of four with two adults and two children in childcare.
However, the problem is not new. According to the report, the share of households below the ALICE Threshold has “varied only slightly for more than a decade. " It has persisted through varied administrations, economic conditions, and the COVID-19 pandemic.
“When we underestimate how many households are struggling, we underestimate what it takes to build thriving communities,” Lisa Courtice, president and CEO of United Way of Central Ohio, said in a release. “It’s not just an ALICE problem, it’s a community problem.”
According to the report, ALICE households face day-to-day challenges in attempting to make ends meet and are more vulnerable to the impacts of crises, both widespread, such as natural disasters and public health emergencies, and personal, including unexpected car repairs and major health issues.
“And while isolated interventions can help ameliorate some of these challenges, the core issue remains: There is a wide gap between households’ income and what they need to make ends meet),” according to the report.
“But what if all households had enough income to cover their basic needs?” the report added. “In Ohio, bringing all households to the ALICE Threshold would have taken $35.8 billion in 2023. Working to meet this gap through coordinated effort and investment from multiple sectors, including government, nonprofit, business, and philanthropy, would change the trajectory for Ohioans who are struggling financially — and it would also benefit the state economy.”
Of Ohio’s 20 most common occupations, 14 paid less than $20 per hour in 2023. Of all workers in the top 20 occupations, more than a quarter (27%) lived in households below the ALICE Threshold.
“Over the last decade, the number of ALICE households in Ohio has been on the rise as wages have failed to keep up with the cost of household basics,” according to the report. “When prices increase faster than wages, purchasing power decreases. This is especially challenging for ALICE households that are already struggling to make ends meet.”
The report concludes that everyone has a role to play, including the government, employers and nonprofit organizations.
Republican Gov. Mike DeWine has been advocating for his family tax cut, which he said would ease the financial burden for working families across Ohio. Under the proposal, working families would potentially receive $1,000 tax cuts for each child under the age of seven.
“We have parents with young children who are working hard every day and yet are still feeling strained. Investing in our families is worth it because, when our families are stronger, all of Ohio is stronger,” DeWine said in a statement. “My family tax cut proposal will provide real relief to parents—helping with costs of food, clothes, diapers, and other essential needs, so more families can thrive.”
According to DeWine, an estimated 450,000 Ohio families could benefit from the tax cut.
