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Arkansans who are just above the federal poverty line struggle to get by

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Monday, December 30, 2024   

Many households across Arkansas are just above the federal poverty line, but earn less than they need to cover their basic needs.

These people, like Aida Borrero of Little Rock, are known to be a part of an ALICE household.

ALICE stands for asset limited, income constrained, employed - and describes the unique socio-economic status of workers and households.

Earlier this year, Borrero got treatment for colon cancer. She said because of that, and the rising cost of goods, her family has struggled to get by.

Borrero said they were living off her husband's salary while she recuperated. That was before he was diagnosed with the same cancer.

"My husband is limited to the work he can do," said Borrero. "He's currently working two days out of the week due to his various medical conditions, and I'm not currently working because of my own health conditions. What I get from Social Security isn't a lot. I can help, but it really isn't sufficient."

Between 2021 and 2022, the 'ALICE household survival budget' for a single adult in Arkansas increased from almost $24,000 to approximately $25,000 a year.

That is well above the federal poverty line of about $13,500 a year. Advocates want change.

In 2023, Hawaii Gov. Josh Green signed legislation to extend family tax credits to offer more assistance to ALICE families.

Borrero, who is Latina, said other communities of color also endure higher financial hardships.

In 2022, 51% of Hispanic households were below the ALICE threshold - compared to 43% of White and 33% of Asian households, according to United For ALICE.

The grassroots organization says systemic racism, discrimination, and geographic barriers can limit a family's financial stability.

Borrero said she wants policy makers to know households like hers have to make tough choices with risky trade offs.

"The economy is inflated," said Borrero. "One buys food at the grocery store, and many don't buy the healthy foods they want because they can't afford to buy healthy - because it is too expensive."

Like in all states, the cost of living varies across Arkansas.

ALICE budgets are determined at the county level. These budgets include housing, child care, food, transportation, health care, technology and taxes.


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