COVID-19 Hit As Record Number of Louisiana ALICE Families Were Priced Out of Survival
Aug 5, 2020
BATON ROUGE, La., Aug. 6, 2020 /PRNewswire/ -- When COVID-19 hit, more than 576,000 Louisiana households were already one emergency away from financial ruin, a 10-year record high, setting the stage for the economic impact of the crisis — according to the state's latest ALICE Report, released Aug. 6, 2020, by the Louisiana Association of United Ways, in partnership with United Ways throughout Louisiana and United For ALICE.
Amanda Stelly and her two sons shop at the grocery in Arnaudville, Louisiana. Stelly is a hardworking mother and ALICE. (photo taken in January 2019.)
"Before the pandemic, more than one in three Louisiana hard-working households were financially vulnerable — one emergency is all that stood between them and spiraling into a financial crisis," said Sarah Berthelot, Louisiana Association of United Ways President and CEO. "For many, COVID-19 became that one universal emergency. Without the ability to save or build assets, the job interruptions and income losses have pressed hard against ALICE over the past six months. These Louisiana workers have faced the fears of contracting COVID-19 without adequate healthcare coverage or paid sick leave with very limited or no options to perform work duties virtually. Plus, childcare access and school closures have impacted critical services supporting children."
With income above the Federal Poverty Level, ALICE households earn too much to qualify as "poor" but are still unable to cover the basics of housing, child care, food, transportation, health care, and technology in the parishes where they live. When including households in poverty, there were just over 891,000 households below the ALICE Threshold (ALICE and Poverty combined) in Louisiana before the pandemic…over half of the state's total population.
Over the course of the last decade, conditions for ALICE have not moved in the right direction. Louisiana's low-income families systematically lost buying power and financial stability as the rising cost of essentials outpaced wages, driving the number of ALICE households to rise from 23% in 2007 to 33% in 2018. Additionally, the cost of six essentials in Louisiana grew on average 3.4% annually — nearly double the national rate of inflation of 1.8%. In contrast, poverty levels remained largely flat, between 18% and 19% over this same time period.
The Report confirms that in 2018, the cost of survival ranged annually from $24,252 for a single adult, to $27,000 for a senior citizen and $69,732 for a family of four with an infant and a preschooler. Putting this in perspective, the median hourly wage for cashiers, the most common occupation in Louisiana, was $9.10, or $18,200 per year — less than all the budgets.
"This ALICE research provides the backstory for why the COVID-19 crisis is having such a devastating economic impact on families in Louisiana," said Berthelot. "Results from the Louisiana United Way COVID 19 Survey conducted this past May painted a vivid picture of the deep financial challenges of families living below the ALICE Threshold, with 20% concerned about making rent or the mortgage payments as Louisiana entered into the third month of the pandemic crisis."
Supplemental to ALICE in Louisiana: A Financial Hardship Study, LAUW also releases the expanded results from the Louisiana United Way COVID19 Survey, conducted in May. These results focus on the COVID-19 impact on those living below the ALICE Threshold, capturing the challenges of ALICE and those living in poverty. Louisiana in the Age of COVID-19: Through the Lens of ALICE results from the Louisiana United Way COVID19 Survey is available at www.launitedway.org/ALICE.
Today's release joins a series of Louisiana-specific research-based reports made possible since 2015 by the Entergy Corporation and United Ways across Louisiana, aimed to equip stakeholders across all sectors to use its findings to remove obstacles to financial stability, identify gaps in community resources and build data-driven solutions to help ALICE families achieve economic stability, bolstering the state's economy overall.
This is a project in collaboration with the United For ALICE, a grassroots movement of some 650 United Ways in 21 states, corporations and foundations, all using the same methodology to document financial need.
"As a longtime partner of United Way and the state sponsor of the ALICE report, Entergy's concern for ALICE in Louisiana is growing — especially as the pandemic has only made the road to recovery more difficult for so many," said Patty Riddlebarger, Entergy vice president of Corporate Social Responsibility. "We challenge other companies and organizations to dig into the insights the latest ALICE report provides. We believe that by working together we can identify specific ways to aid communities across the state."
For more information or to find data about ALICE in local communities, visit www.UnitedForALICE.org/Louisiana. View or download a full copy of ALICE in Louisiana: A Financial Hardship Study at www.launitedway.org/ALICE.
About Louisiana Association of United Ways
The Louisiana Association of United Ways is an association of nine regional United Ways serving 53 parishes throughout Louisiana. Our mission is to integrate action and resources for the common good. We work across our communities to tackle challenges that affect individuals, families and whole communities — challenges that are ultimately bigger than any of us and impact our entire state. Our association supports statewide coordination and development of the Louisiana 211 Statewide Network. We are part of a global network of more than 1,800 United Ways, servicing communities in 41 countries.
About United For ALICE
United For ALICE is a driver of innovation, shining a light on the challenges ALICE (Asset Limited, Income Constrained, Employed) households face and finding collaborative solutions. Through a standardized methodology assessing the cost of living in every county, this project provides a comprehensive measure of financial hardship across the U.S. Visit UnitedForALICE.org to learn more.
Contact: Sarah Berthelot
Louisiana Association of United Ways
To schedule interviews:
Contact Joelle Polisky 615-516-0358
[email protected]
SOURCE Louisiana Association of United Ways
Related Links
More News
Mumbai Indians part ways with Malinga, Mhambrey and Hopkinson; end of an era for Sri Lankan legend
Mumbai Indians confirmed the exit of Lasith Malinga, Paras Mhambrey, and Carl Hopkinson from their coaching positions. Malinga, a key player and mentor, inspired many during his time with the franchise. Mhambrey contributed significantly to developing the team's bowling talent and understanding its culture. Hopkinson, who joined recently, helped improve the fielding standards of the team as well.
US removes top military strategy official amid possible Iran strikes
Army Lieutenant General Brett Sylvia has been relieved of his strategy and planning duties within the Joint Chiefs of Staff. This removal coincides with reports of President Donald Trump contemplating new military strikes against Iran. Defense Secretary Pete Hegseth previously announced significant cuts to military leadership, emphasizing accountability and a shift in military focus.
North Korea fires missile barrage toward the sea as tensions with South rise
In a show of defiance, North Korea has test-fired nearly 10 short-range ballistic missiles into the sea off its eastern shores amid rising frictions with South Korea. This move follows North Korea's threats to revive propaganda efforts and introduce new military assets to the region. Kim Jong Un recently strengthened ties with China, highlighting their support amid escalating tensions linked to past border disputes.
Carbelim secures ₹10 crore from IIT Madras Unicorn Frontier Fund
The climate-tech company, founded by Karthika Gopi and Rahul Babu, develops microalgae-based systems to capture carbon dioxide and purify air
Scientists set up 45 artificial ponds near St. Louis and studied them for 7 years; even when ponds got the same species, the order they arrived changed the outcome
A recent examination of 45 plastic cattle tanks has shed light on the significant role that species arrival order plays in biodiversity. Tanks with low nutrients exhibited similar communities irrespective of this order, while high nutrient tanks presented diverse variations. This phenomenon, termed the priority effect, has implications for community stability and ecosystem restoration efforts, cautioning restoration ecologists against presuming automatic self-repair in nutrient-rich habitats.
No UP govt job if you back organisations advocating violent 'regime change': New rules explain what could get candidates disqualified
The Uttar Pradesh government has tightened character verification rules for direct recruitment to government jobs, making individuals associated with organisations that advocate changing the existing social system through violence ineligible for appointment. The order clarifies that political ideology alone, an FIR or a pending investigation cannot automatically disqualify a candidate.
IMF proposes China’s Min Liao as deputy managing director, Bo Li to exit in November
The International Monetary Fund has nominated Min Liao, China’s Vice Minister of Finance, for Deputy Managing Director. His appointment follows the term expiration of Bo Li, which ends on November 30, 2026. Liao has extensive experience in financial regulation and macroeconomic governance, contributing to global economic policy coordination. He has played significant roles in various financial institutions since beginning his career.
Jensen Huang lists three countries that may lead manufacturing and advanced technology, and neither US or India are in that list
Nvidia CEO Jensen Huang has named Germany, Japan and China as three countries with strong positions in advanced manufacturing, citing China’s integration of computing and industrial production. He also said US export restrictions had accelerated China’s semiconductor ambitions, while maintaining that American technology companies were prepared to compete globally.
China promotes General Zhang Shengmin, a key player in PLA anti-graft drive, to Politburo
Beijing has promoted General Zhang Shengmin, the key player in the anti-corruption campaign that has cut deep into the military’s top leadership, to its top decision-making body, the Politburo. Zhang, who was last year promoted to vice-chair of the Central Military Commission (CMC), the top command body, was the military’s anti-corruption chief from 2018 until July this year, and is the top enforcer in Beijing’s fight against corruption in the People’s Liberation Army (PLA). That drive left the...
'Extremely Unprofessional, Ethically Wrong': Pramod Bhagat Wants Action After Badminton Coach's Medal Prediction Controversy
Pramod Bhagat has urged authorities to take action against former head coach Gaurav Khanna for publicly predicting India's medal tally at the Asian Para Games.
'Extremely Unprofessional, Ethically Wrong': Pramod Bhagat Wants Action After Badminton Coach's Medal Prediction Controversy
Pramod Bhagat has urged authorities to take action against former head coach Gaurav Khanna for publicly predicting India's medal tally at the Asian Para Games.
Hegseth pitches new US-Asean defence framework, but doubts run deep
What are Southeast Asian nations doing to help the United States tackle its challenges? A reporter with the American right-wing organisation Turning Point USA put the question bluntly to US President Donald Trump’s defence chief this week in the Philippines. As US Defence Secretary Pete Hegseth pitched closer naval ties and maritime security cooperation at a gathering of defence ministers from the Association of Southeast Asian Nations (Asean) and other regional powers, the question injected...
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.