Oshkosh agencies measure the impact
By Samantha Strong, Herald Contributor
The existence of poverty is a reality in most cities, regardless of whether its residents choose to acknowledge it. Oshkosh is no exception. While it’s easier to ignore here than in other places across the country due to factors that will be considered in this series, the issue of poverty in Oshkosh is real.
There are two terms used when referring to poverty: the federal poverty level (FPL) and the Asset Limited, Income Constrained, Employed (ALICE) threshold.
ALICE is used to describe households that earn more than the FPL but less than the basic cost of living for the country. The ALICE survival budget associated with each household type — single adult, single adult and one infant, etc. — is the income each type of household needs to survive each year.
This amount is determined by the United Way through a series of studies over the course of several years. It is higher than the FPL because it considers modern-day necessities, is adjusted for inflation and accounts for changes in the way Americans live. This amount does not include savings for emergencies or future goals such as college.
“The ALICE report has opened a lot of eyes that we have population of people who fall between the cracks,” former Oshkosh Area United Way president Sue Panek said. “(The ALICE report) focuses on what it takes to achieve self-sufficiency, not the federal poverty line, which was established more than 50 years ago and hasn’t been adjusted properly.”
According to data from the United Way’s 2018 ALICE report, nearly 19 percent of Oshkosh residents are living below the federal poverty level and 28 percent are below the ALICE threshold. Statewide, nearly 38 percent of Wisconsin residents are part of an ALICE household.
“Forty-six percent of the members in our community don’t have their basic needs met, and that’s just unacceptable,” Mary Ann Dilling, Oshkosh Area United Way president and chief executive, said.
The FPL is an income the federal government deems appropriate to be eligible for aid, does not vary from state to state and does not take into consideration inflation, lagging wages or rising health care costs. It is re-evaluated annually by the Census Bureau. The FPL for a single adult differs by nearly $7,000, at $12,140. It is determined by the federal government and is used to verify eligibility for government programs such as FoodShare, the WIC federal assistance program and BadgerCare.
The FPL for a single person in 2019 has increased by only $1,000 annually since 2013.
The ‘benefits cliff’
Although there are resources for those in need, many face what is called the benefits cliff, which is the point at which someone is bringing in an income the government deems “livable” and no longer qualifies for most federal programs. That does not mean that person realistically has enough money to live.
These are typically ALICE households — working individuals and families who typically do not have a savings account, who usually have enough to cover the essentials but can’t afford any type of financial setback.
When someone receives an increase in wages, it can trigger a reduction or loss in benefits. This can be disruptive for families because even though they are now bringing in more income, they do not have enough funds to be self-sufficient or to live without government programming. For example, if a person receives a $20 weekly raise they might lose their child care benefit, which amounts to $600 a month.
“You have an economic system that is working against you,” ADVOCAP Executive Director Mike Bonertz said.
Many families face the tough decision of whether to turn down a potential promotion and pay raise or keep their current salary so they can still receive benefits. This becomes more complex if the person is a single childless adult, as many of the federal aid programs require a dependent to qualify.
“I see a lot of our individuals who stay at the shelter having to weigh their options because if they lose their benefits, they don’t think they’ll be able to manage their funds to cover what they’re losing,” Amanda Hammond, operations manager of the Day By Day Warming Shelter, said.
Oshkosh vs. other cities
Compared with other municipalities in Winnebago County, Oshkosh ranks highest for households living below the ALICE survival budget, which is $19,848 annually for a single adult, $28,584 for a married couple and $48,012 for a household with two adults and two school-age children. Additionally, 41 percent of Oshkosh Area School District students live below the FPL, and of those 41 percent — 210 — are homeless, according to an Oshkosh United Way study.
Northeast Wisconsin women living in poverty fare worse than men, according to a 2017 study funded in part by the Women’s Fund of Oshkosh. The Women’s Fund is a subset of the Oshkosh Area Community Foundation dedicated to improving the lives of women, girls and all community members of Winnebago County through philanthropy, grant making and education. This is the second such study the group has conducted over the past 20 years.
The study found poverty rates are higher for women than men across all age groups, and that older women are twice as likely as older men to be in poverty. Regionally, the wage gap ranges between 72 and 78 cents on the dollar. As income is compounded over time and wages remain stagnant, women see the effects of this gap.
“The difficult thing is, as you study poverty, you’ll come to learn that there are so many things around you that can go wrong and affect your life,” Women’s Fund Executive Director Karlene Grabner said. “It’s not just a job; it’s not just a house; it’s not just getting your dental work or mental health in order. And when one peg gets shifted, everything else is affected, which is why it’s such a hard issue to attack at any one angle because there are so many angles. That’s why the Women’s Fund has invested so much in this because we need to take a focused lens on how we can make change in this community.”
Next week: Women versus men in poverty –the differences and why
