A growing number of Baldwin County residents are working full time, paying their bills as best they can and still falling short of covering life's basic expenses.

They're known as ALICE households — Asset Limited, Income Constrained, Employed — families who earn too much to qualify for most government assistance but not enough to afford necessities such as housing, child care, food, transportation and healthcare.

According to the latest United For ALICE data presented by United Way Baldwin County, 39% of Baldwin County households live below the ALICE threshold, the minimum income needed to meet a basic household survival budget. That includes families living below the federal poverty level and those earning above it but still unable to afford the essentials.

Christopher Lugo, executive director of United Way Baldwin County, said the issue is fundamentally about the widening gap between wages and the actual cost of living.

"ALICE comes down to one gap, which is what a job pays versus what it costs to live here," Lugo said. "A family of four needs about $89,556 a year to cover a bare-bones survival budget. A single adult needs over $36,000. Wages haven't kept up, and 39% of our households fall below that line."

According to the U.S. Census Bureau American Community Survey data, Baldwin County's median household income is higher than the state average, but rising housing costs and population growth have made affordability an increasing challenge for many working families. The Census Bureau also reports that housing costs have continued climbing in fast-growing coastal communities like Baldwin County, placing additional pressure on middle-income households.

Lugo said housing and childcare have become the biggest financial obstacles for local families.

"They're also the two areas where local investment can move the needle the fastest," Lugo said. "We can't fix federal wage policy from Baldwin County, but we can work on housing supply and childcare capacity right now, with partners we

already have relationships with."

The data presented by United Way shows financial hardship is not spread evenly across the county. Among Baldwin County residents, 64% of adults younger than 25 live below the ALICE Threshold. Single-parent families face some of the steepest challenges, with 83% of female-headed households and 67% of male-headed households classified as ALICE.

One reason many working families continue struggling is what's commonly known as the "benefits cliff."

Because many assistance programs rely on federal poverty guidelines rather than the higher ALICE Threshold, even a small raise can push someone above federal eligibility limits while still leaving them unable to cover their monthly expenses.

Lugo said many workers are forced into impossible financial decisions.

"There is still a steep ledge that they're staring off — income and asset limits for public assistance create benefits cliffs that limit economic mobility," Lugo said. "Households considering a pay raise have to consider if even a $1 raise will make them ineligible for the public assistance they're receiving."

The data also found relatively few ALICE households receive public assistance. Only 17% participate in SNAP compared with 44% of households living in poverty. Participation in Temporary Assistance for Needy Families (TANF) is even lower, with only 2% of ALICE households receiving benefits.

Lugo said he believes employers, policymakers and nonprofit organizations all have a role to play in improving financial stability.

"Employers need to look at their own data. If you're paying wages or building schedules without accounting for what it actually costs to live in this county, you're going to keep losing good employees to the budget. Small changes like more predictable scheduling or a look at entry-level wages pay for themselves in retention."

He also called on local governments to rethink how assistance programs are structured.

"Right now, a lot of assistance is still built around the federal poverty line, which massively undercounts who's actually struggling. If you're only measuring poverty, you're missing 39% of the story."

Beyond housing and wages, Lugo said financial hardship becomes even more severe during natural disasters, medical emergencies or unexpected expenses.

He said ALICE households often lack emergency savings, making recovery from hurricanes, tornadoes or temporary job losses significantly more difficult. Childcare costs, he said, often exceed monthly rent for families with infants and toddlers, forcing parents to choose between employment and caring for their children.

Looking ahead, Lugo said the community should focus on measurable outcomes rather than one-time solutions.

"The clearest number to watch is that 39% ALICE threshold figure itself. That's our baseline, and it's the number I want to see move."

He also said progress should be measured by whether participation gaps in programs such as SNAP and TANF begin shrinking and whether disparities among young workers, seniors and single-parent households improve over time.

According to the U.S. Census Bureau's American Community Survey, Baldwin County remains one of Alabama's fastest-growing counties in the nation, adding tens of thousands of new residents over the past decade. That growth has increased demand for housing while contributing to rising home prices and rents, trends that reinforce many of the financial pressures identified in the ALICE report.

For Lugo, the report is ultimately intended to spark action.

"The ALICE report is a conversation starter and dialogue tool that will lead to broad and real change," he said. "Spreading the word about ALICE and using this framework will help acquaint so many people with this hidden population."

Gabriella Chavez is a Report for America corps member who writes about growth and development in Baldwin County and our natural spaces for Gulf Coast Media. Your donation to match our RFA grant helps keep her writing stories like this one; please consider making a tax-deductible gift of any amount today by visiting https://tinyurl.com/yaf8yf5n.