More than one-third of Wisconsin households can’t afford the basic necessities, according to a new report from the United Way of Wisconsin.

The household survival budget includes housing, food, transportation, health insurance, for families that have children, child care, and new this year — the cost of a cell phone.

Statewide it takes about $60,000 to get by on those basic necessities for a family of four, according to the report, which also breaks cost of living down county by county. And that budget is very conservative, said Charlene Mouille, executive director of United Way of Wisconsin.

"What's interesting too about the survival budget is this really is basic need," said Martha Cranley, director of community impact for United Way of Dane County.



Graph from the United Way ALICE Project.

The ALICE — asset limited, income constrained, employed — report originated with a partnership between the United Way of Northern New Jersey and Rutgers University, with United Ways around the country replicating the report, Mouille said.

Data was collected from the U.S. Census Bureau, U.S. Department of Housing and the U.S. Department of Agriculture, among other public sources from 2010 to 2016, Mouille said.

"It's a new way of looking at those households that are struggling to get by ... a way to really understand what was going on in their community and that disconnect between the economy seeming to be strong and people saying they were struggling to get by," Mouille said.

Those households that fall above the federal poverty level, but below a basic survival budget are categorized as ALICE households, Mouille said. In Wisconsin, that’s nearly 38 percent of households — an increase of 5 percent since 2010 — 12 percent of those households fall under the federal poverty level.

For households of color, the likelihood of living below the ALICE threshold is "startling," Mouille said. Almost 70 percent of African-American households and nearly 60 percent of Hispanic households make less than $60,000.



Graph from the United Way ALICE Project.

Adjusted for inflation, Americans are making about the same salary as they did in the 1980s, according to the Pew Research Center. And, the federal minimum wage has lost nearly 10 percent of its purchasing power since it was last raised in 2009.

Yet costs continue to climb and expand. Take the addition of cell phone costs added to the report, along with the increasing costs of housing, health care and child care, Mouille said, while inflation has increased 9 percent, the cost of the expenses in the report have increased 18 percent.

Child care is the largest expense for households that also work, Mouille said. In 2016, costs came in at over $1,200 each month, versus $1,100 in 2014, according to the 2016 report, which looked at data from 2007-2014.



Graph from the United Way ALICE Project.

"As we're digging into that, really what's coming to light ... (is) they want to work, but they can't either find quality child care or find affordable child care, particularly second and third shift," she said. "We've heard some stories of really great jobs being available that start at second and third shift ... but they can't take the job because there's not the child care."

Health care costs have also dramatically increased, Mouille said. In the 2016 report, health care costs came in at $802 per household, against $589 in the 2014 report.

"We know that health care costs are one the largest things that confront families and one of the biggest reasons for people going bankrupt," Cranley said. "So it's clearly a huge problem for families."

Cranley encourages people to take advantage of the resources available to them, like calling 2-1-1, when they are in need.

"That's a first call for help, 2-1-1 has been instrumental during these floods right now, but they’re also a great place to call for where can you find resources," she said.

Mouille hopes the report will help change perceptions and increase understanding so communities and individuals can help more households reach financial stability.