New Data Points Reveal Disproportionate Financial Hardship in Black Households Across Michigan
The Michigan Association of United Ways (MAUW) released new ALICE (Asset Limited, Income Constrained, Employed) data, which shows 63% of Black households statewide are unable to make ends meet. Heart of West Michigan United Way is taking action by reinforcing its commitment to race and equity in both policy and action.
“Poverty and racism have been inextricably connected since this country’s inception, yet official federal statistics have never fully portrayed the economic impact of that link. The ALICE and Black Households Data clearly illustrates the inequities that are deeply rooted in our national, state, and local systems and institutions,” Michelle Van Dyke, CEO President. “Through the release of this data, Heart of West Michigan United Way hopes to support the many efforts underway to dismantle racism, raise awareness, shift attitudes, and change outcomes. As an organization, we are committed to understanding and undoing racism in the communities we serve.”
The ALICE data indicates that 40 percent of all Michigan households did not earn enough to cover basic expenses in 2018, including housing, child care, food, transportation, health care, and a basic smartphone plan. The 63 percent of Black households falling below the ALICE Threshold was almost double that of white households—just 36 percent. The percentage of Black households unable to make ends meet is also almost three times higher than the antiquated Federal Poverty Level (FPL).
During the recovery from the Great Recession, outcomes didn’t improve for Black households. Instead, the number of Black households under the ALICE Threshold in Michigan increased by 11% from 2010 to 2018. The number of white households struggling to make ends meet increased by only 1% statewide during that time frame.
The data comes as United Ways across Michigan reinforce their commitment to race and equity, both in policy and in action. United Way Worldwide recently implemented the following benchmarks as membership requirements: develop, maintain and publicly post an organizational statement opposing all forms of racism; at least annually provide racial equity training for all board members and staff; and develop and use a racial equity funding criteria for all community investments.
As part of their commitment to diversity, equity, and inclusion, Heart of West Michigan United Way has engaged Inclusive Performance Strategies (IPS) to conduct an independent equity-focused review and analysis of their grant application and review process. The objective is to identify and affirm factors that may contribute to inequities or be discriminatory within the grant application and review process, that may limit consideration of certain applicants based on organizational attributes and/or identity markers.
In an effort to ensure that United Way’s grant-making process continues to provide equitable opportunity to leverage community resources, a final report by IPS will provide a summary of the review process, outline significant findings and present recommendations.
United For ALICE was founded on the need to more accurately measure and track financial hardship nationwide. For more than a decade, its research has been shedding light on the disparity of economic opportunity that exists in every state. The Michigan Association of United Ways releases a study on the condition of Michigan’s working families, which it has dubbed ALICE households, every two years. The “ALICE and Black Households Data” is an analysis of new data points from 2018.