Though wages have risen across the country at the fastest rate in 40 years, the number of Kansas households struggling to cover the cost of daily living grew by more than 8,500 from 2021 to 2022. As a result, a total of 39% of Kansans are living paycheck-to-paycheck, according to a new data available from United Ways of Kansas and its research partner United For ALICE.
ALICE stands for Asset Limited, Income Constrained, Employed—meaning those families and individuals which are earning above the Federal Poverty Level but less than what is required to afford daily needs like food and housing, have little or no savings and are one financial setback from falling into poverty.
ALICE in the Crosscurrents: An Update on Financial Hardship shows that while wages were increasing, so too were living costs. For a family of four with an infant and a preschooler, the basic costs to live and work in Kansas (excluding tax credits) rose from $68,220 in 2021 to $71,892 a year later.
“There is no doubt, bigger paychecks have helped, but inflation and the loss of pandemic supports converged to keep ALICE trapped,” said United Ways of Kansas State Director, Lisa Gleason, “This latest data is a reminder that while we have made some progress, our work is far from over.”
The findings in this one-year period are consistent with a more than decade-long trend: the number of ALICE households in Kansas has been steadily growing. From 2010 to 2022, the total number of households rose by 6%, and while the number of households in poverty remained flat, the number of ALICE households grew by 28%.
“The data is showing persistent and widespread financial hardship — a red flag that the current system isn't working for ALICE,” said Stephanie Hoopes, Ph.D., United For ALICE National Director. “Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, from lack of access to housing and child care that’s affordable, to inadequate community support such as broadband internet."
Additional insights from this update include:
- From 2010 - 2022, people aged 65 and over made up the fastest-growing age group in Kansas — and the group with the largest increase 35% in the number of households struggling to make ends meet.
- Racial disparities persisted in the rates of financial hardship; 58% of Black and 48% of Hispanic households in Kansas were either in poverty or ALICE in 2022, compared to 37% of white households.
- Food assistance continued to elude many vulnerable families in Kansas. Partly due to the SNAP income eligibility level in the state (130% of the Federal Poverty Level), only 30% of all Kansas households in poverty, and 8% of all ALICE households, participated in SNAP in 2022.
To read more of the updated ALICE data at the state, county, and local levels, visit: www.unitedforalice.org/state-overview/Kansas.
About United For ALICE
United For ALICE is a U.S. research organization driving innovation, research, and action to improve life across the country for ALICE (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate, and collaborate on solutions that promote financial stability at local, state, and national levels. For more information, visit: www.unitedforalice.org/state-overview/Kansas.
Blue Cross and Blue Shield of Kansas, in partnership with United Ways of Kansas, have made the ALICE report available to the public.