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New data show CT families struggle to afford the basics

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Wednesday, October 9, 2024   

New data show many Connecticut residents can't afford daily life. This year's ALICE update shows the number of asset-limited, income-constrained employed families grew 13% in 2022. This is the largest increase in a decade.

The report says a family with two adults and two children in the state need an income of $114,000 per year just to afford the basics - not including emergency expenses.

Daniel Fitzmaurice, director of advocacy for the United Way of Connecticut, said some of what people do to make ends meet falls outside the data's scope.

"It's a little hard sometimes to quantify, for example, the compromises families make to maybe put their child in only a couple days a week of childcare rather than full-time childcare, or live with many people in their household rather than have the type of housing they want," he explained.

Three priority affordability issues for Connecticut residents are childcare, housing and food. Fitzmaurice and other advocates feel implementing a state child tax credit can be the best way to help ailing families. The state's proposed credit would provide an additional $600 for a family's biggest expenses.

One challenge for families to receive the child tax credit is ensuring they file their income taxes. Fitzmaurice noted those eligible people might not know about it or other programs. Another issue could be they either earn too much or too little to qualify for some state programs. He offered Connecticut's childcare subsidy as one example.

"Families at that income bracket actually work outside of the traditional economy; say hair braiding or driving an Uber or delivery services," he continued. "And so, they struggle to qualify for the childcare subsidy that would enable them to work, because they don't have enough documented work."

Beyond the benefits cliff, there is a mismatch between everyday costs and the jobs of ALICE families. Half of the most common jobs in the state in 2022 all paid under $20 an hour. But Fitzmaurice said most of these jobs - like cashiers, truck drivers, and personal care aides - are essential to the economy.

"These most common jobs are also some of our most essential jobs, but they have just traditionally had very low wages for what it costs to live," he said.

Disclosure: United Way of Connecticut contributes to our fund for reporting on Budget Policy & Priorities, Children's Issues, Housing/Homelessness, Social Justice. If you would like to help support news in the public interest, click here.


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