By Wesley Brown for the Arkansas Delta Informer.
Broadcast version by Freda Ross for Arkansas News Service reporting for The Arkansas Delta Informer-Winthrop Rockefeller Foundation-Public News Service Collaboration.

Although the COVID-19 pandemic is well in the rearview mirror in Arkansas, the number of working-class families on the brink of financial calamity has steadily climbed over the past two years.

New data from the ALICE in the Crosscurrents: An Update on Financial Hardship in Arkansas report shows nearly 11,000 more Arkansas households are struggling to make ends meet in 2022 compared to the previous year. That news comes even as wages for the lowest-paid jobs have risen nationwide at the fastest rate in four decades.

This brings the total number of households living paycheck to paycheck across Arkansas to 562,879, representing 47% of the state's population, according to the latest update from ALICE in Arkansas, in partnership with United For ALICE.

This includes 195,972 Arkansas households in poverty and another 366,907 defined as ALICE (Asset Limited, Income Constrained, Employed), earning above the federal poverty level but less than what's needed to survive in the current economy. ALICE workers include childcare providers, home health aides, and cashiers-those working low-wage jobs with little or no savings and one emergency from poverty.

"ALICE is the families that we all know and love," said Sherece West-Scantlebury, CEO of Winthrop Rockefeller Foundation.

The new ALICE report was shared at a press conference at the Delta Dental of Arkansas Foundation office in Sherwood. In addition to Winthrop Foundation, the report's sponsors include Delta Dental of Arkansas Foundation, Entergy Arkansas, Baptist Health, Arkansas Blue Cross Blue Shield, and Heart of Arkansas United Way.

The original ALICE in Arkansas report in 2020, unveiled just weeks before COVID-19 was declared a global pandemic, indicated that 41% of Arkansas households were either below the federal poverty level or had incomes that struggled to afford housing, childcare, food, transportation, and healthcare.

At the time, the federal poverty line for a family of four was $24,600 or 17% of Arkansas households, while ALICE households were between that amount and $46,812, or about 24%. Between 2021 and 2022, the number of impoverished households in Arkansas increased by 6,141 (remaining at 16% of all households).

During the same period, the number of ALICE households increased by 4,813 (remaining at 31% of all households), continuing a more than decade-long trend in the growth of this population. In 2022, of the 1,201,499 households in Arkansas, 562,879 - 47% - were below the ALICE threshold. This brings the total number of households living paycheck to paycheck to 562,879-representing 47% of the state's population, according to the latest update from ALICE in Arkansas, in partnership with United For ALICE.

The reports show that while wages were increasing, so were costs. For a family of four with an infant and a preschooler, the basic costs to live and work in Arkansas, excluding tax credits, rose from $54,948 in 2021 to $71,052 a year later. Compounding the issue in 2022 was the loss of up to $15,000 in federal child tax credits and stimulus payments that families had access to in 2021.

"There is no doubt, bigger paychecks helped, but inflation and the loss of pandemic support converged to keep ALICE trapped," said Delta Dental of Arkansas Foundation Executive Director Sharon Lanier. "This latest data is a reminder that while we have made some progress, we must continue to work together to address the challenges ALICE face."

In 2022, the Bureau of Labor Statistics (BLS) reported that 70% of Arkansas's 20 most common occupations were still paid less than $20 per hour. Of the workers in these 20 most common occupations, 31% lived below the ALICE survival budget in 2022.

"As we gather to share this critical report and announce steps that our Arkansas banks and financial institutions are taking, we urge community leaders, businesses, and nonprofits to join us in addressing the pressing issues of child care, debt, and housing-the three primary budget busters impacting ALICE families," stated Mollie Palmer, vice president of communication and engagement for the Heart of Arkansas United Way. "Together, we can make a meaningful difference in the lives of those who are essential to our local communities and state economy."

In response to these challenges, Encore Bank, Southern Bancorp, and Diamond Lakes Federal Credit Union have officially joined the ALICE@Work initiative to support struggling ALICE employees and families. This effort exemplifies how employers across Arkansas can invest in ALICE workers and foster impactful partnerships within the community.

ALICE@Work is part of the broader ALICE in Arkansas initiative led by the Arkansas Asset Funders Network-a regional grantmaker chapter focused on improving opportunities for low- and middle-income families to build economic well-being. The initiative includes a variety of methods, such as individualized data reports, extensive course curricula, and self-guided action plans, to help businesses understand their employees' daily challenges and then take action for change.

"We are proud to participate in the inaugural ALICE@Work cohort," said Phillip Jett, CEO of Encore Bank. "By investing in the financial health of ALICE employees, we're not only empowering individuals but also strengthening the resilience and vitality of our communities."

The ALICE in Arkansas initiative encourages community leaders, business owners, and nonprofit organizations to engage with ALICE, highlighting the critical issues of childcare, debt, and housing-the three primary budget busters affecting ALICE families. Legislators are also urged to address these pain points in their budgets, ensuring comprehensive support for those in need.

For more information on ALICE and the ALICE@Work initiative, please visit aliceinar.org.


Wesley Brown wrote this article for the Arkansas Delta Informer.


get more stories like this via email

Overflow crowds are showing up at town hall meetings in Iowa, which had been planned to allow people to ask questions of their congressional representatives. But the lawmakers are not showing up.

Constituents are attending town hall meetings at libraries across the state to ask about potential changes to Social Security, cuts to government agencies - and rollbacks of Diversity, Equity, and Inclusion programs.

But Iowa American Federation of Labor President Charlie Wishman said U.S. Rep. Mariannette Miller Meeks - R-Davenport - and U.S. Rep. Zach Nunn - R-Bondurant - are among lawmakers who haven't shown up to listen.

"And if they don't show up, we still have crowds that are standing room only or overflowing," said Wishman, "just to try and talk to an empty chair."

Wishman said advocacy groups are trying to find other ways to connect people with their representatives - including by writing postcards or emails, or calling their Washington offices with questions about the Trump administration's effort to reduce spending and downsize the federal government.

The advisory group, the Department of Government Efficiency - overseen by SpaceX and Tesla CEO Elon Musk - has announced plans to terminate leases for seven federal office buildings in Iowa, including for the IRS, the Food and Drug Administration, and the U.S. Fish and Wildlife Service.

Wishman said the cuts mean terminating important positions for federal workers in Iowa.

"Bird flu people," said Wishman, "or they work at the disease lab up in Ames or, like, something that we really need staffed."

Wishman said since lawmakers didn't show up to the scheduled town hall meetings, attendees wrote their questions on postcards - which he says will be delivered to the congressional representatives' offices.

Apprenticeship programs are getting more attention these days to help fill skilled labor shortages but accessibility is seen is a barrier and Minnesota could boost support for a program that opens its arms to disadvantaged populations.

A Minnesota House committee heard testimony this week on a bill that would provide $800,000 over the next two budget years to the Building Strong Communities program, a regional nonprofit spearheaded by construction union partners.

Natalie Pilrain, a recent graduate of the program, said as a single mom trying to finish high school, it gave her the chance at a promising career by overcoming up-front hurdles.

"At the time, I didn't have extra money lying around for work boots or hotel expenses for going up to the training center," Pilrain pointed out. "Building Strong Communities covered those costs for me."

She is now earning strong wages as an apprentice with the International Union of Operating Engineers Local 49. Bill sponsors said additional state funds could help the program further fulfill its mission to recruit women, minorities and veterans. The measure has bipartisan sponsors but like other proposals this spring, it faces an uncertain future with Minnesota's budget surplus getting smaller.

Dorlisa Squires, also a program graduate, said officials were very responsive when she asked about it. After working in the medical device field for many years, Squires told the committee she wound up homeless without a promising career outlook. She stressed her new journey through the trades has given her a fresh start.

"Now I have a career and now I have placement," Squires explained. "I have an apartment, a car."

Officials said the free training has led to 107 job placements over a two-year period.

A new study commissioned by the federal Department of Labor said registered apprenticeship programs dramatically increase the ability of participants to afford basic needs, especially initiatives led by unions. The movement comes as the industry still hears complaints about long-standing issues such as nepotism.


get more stories like this via email

The seven national parks in Arkansas have not been spared from job cuts by the federal government.

Nationwide, 1,700 park employees have been let go by the Trump administration.

Eboni Preston, southeast regional director and National Park Service diversity lead for the National Parks Conservation Association, said the cuts will impact park services and the Arkansas economy.

"By fewer people being able to come to the parks, enjoy the parks, hotels are suffering, restaurants are suffering," Preston pointed out. "Walking up and down the community, it's really taking a toll, and so places like Hot Springs National Park and Buffalo National River, unfortunately they won't get the visitation that they did before."

She noted park visitors will also experience reduced hours, longer lines and closed campgrounds and facilities. Anyone going to a national park is encouraged to check the park's website for schedule changes.

Last year a record 331 million people visited national parks. Preston stressed with 9% of the workforce gone, park visitors will have a different experience this year.

"The National Park Service is always going to prioritize safety," Preston explained. "The rangers are going to do everything that they can to manage that, but what that means is there may be fewer opportunities to experience some of those unique places, especially if they're difficult to get to. So, just be mindful of that and then offering grace to the people that are there."

Preston added although morale is down, park employees are dedicated to help you have a good experience.

"It's really, really hard, but they're a committed group of people," Preston observed. "They're still smiling, they're still prioritizing the visitors. They're still making sure that everything is safe, they still are committed to the work that they signed up to do. You talk to most rangers, if you talk to most staff, they really feel called to this work."


get more stories like this via email