NEW REPORT SHEDS LIGHT ON LOCAL FAMILIES LIVING ON THE EDGE

Nearly One Third of Washington County Households Struggle to Afford Basic Needs

According to a report released by the 43 local United Ways in Wisconsin, 14,035 Washington County households are employed, but struggle to afford basic needs. An additional 2,699 local households are in poverty.

That means a staggering 31% of households in Washington County deal with financial hardships every day.

United Way’s ALICE (Asset-Limited, Income-Constrained, Employed) Study of Financial Hardship spotlights the large and often overlooked population of families living on the edge of financial stability. These households are often just one emergency away from the gulf of poverty and homelessness.

“We hope this report will help open dialogue and overcome misconceptions,” said Kristin Brandner, executive director of United Way of Washington County. “Sometimes people have preconceived ideas about those who struggle financially. But money problems are not always a result of bad decisions.”

Despite the recent economic recession and low inflation rate, the cost of basic housing, childcare, transportation, food, and healthcare increased by 14 percent from 2007 to 2014. Furthermore, Wisconsin’s housing stock does not match current needs. Most ALICE households are renters, yet fewer than half of Wisconsin’s rental units are affordable (i.e., cost less than one-third of a household’s income).

“We all know ALICE,” Brandner said. “They’re the families overwhelmed with childcare costs. They’re the individuals living paycheck to paycheck. They’re our family members and friends who fight so hard to hold on, but they can’t save and pull themselves up.”

In Washington County, the cities with the highest percentage of ALICE and poverty level households are: Jackson (45%), Newburg (42%), Hartford (41%), Kewaskum (41%), and West Bend (40%).

“I think most people would agree that Washington County is a great place to live, work, and raise a family,” said Tom Hostad, executive director of Hartford Area Development Corporation and president of United Way of Washington County’s Board of Directors. “But the information in this report tells us that a lot of our neighbors are struggling. This is important because financial instability doesn’t just affect the family involved. It affects the whole community.”

Because ALICE households earn more than the Federal poverty rate, they don’t qualify for many government assistance programs. Local nonprofits often provide resources to help fill in the gaps.
Consumer Credit Counseling Service is a nonprofit agency that receives United Way funding for their local budgeting and financial counseling programs.

“Every day, I meet families and individuals who are struggling,” said Keith Braun, Financial Counselor at Consumer Credit Counseling Services. “When you’re trying to make ends meet, you can end up with a lot of debt, which makes it even harder to take control of your situation. A lot of people that come through our doors feel hopeless and alone. We have the opportunity to share tools that allow them to take control and build a better future.”

Last year, programs funded by United Way of Washington County helped 5,477 people improve their financial stability, but the need for services continues to grow.

“Washington County has lower poverty levels, higher median household income, and lower unemployment,” said Paul Roback, Community Development Educator at UW-Extension Washington County. “But these indicators contradict what many nonprofit agencies in Washington County are experiencing: an increased demand for services. ALICE helps explain this contradiction and it provides a standardized measurement to quantify the number of people in our community who may be working, yet find themselves struggling financially.”

“United Way works to address the underlying or root cause of these kinds of community-wide issues,” Hostad said. “But first we need to define the issue, and the ALICE report helps us do that. Helping ALICE households improve their financial stability is an enormous undertaking, so we need help and support from all sectors in Washington County. It really is a team effort.”

 

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