Study: More than 1 million Virginians are ‘working poor’

July 28--For eight years, LaShonda Gillis lived in the gray area between making too little to get by and too much to qualify for help with groceries, child care or rent.

As a janitor and single parent, the Newport News resident kept her head above water and made a way when she could, but that meant no health insurance.

"I know how to make a dollar stretch, but an unexpected expense of any kind (a sick child or broken-down car), could set us back for six to 10 months," Gillis said. "I was too embarrassed to ask for help, but somehow, with God's grace, we got by."

Gillis is one of more than 1 millions Virginians who work, sometimes two or even three jobs, but still don't make enough to cover basics such as rent, groceries and transportation, according to a recent United Way study. Researchers looked at ALICE, or Asset-Limited, Income Constrained and Employed, households statewide to get a better picture of people living just above the federal poverty threshold, often called "the working poor."

"ALICE can be a new graduate just starting out in life, a young family or retiree," United Way of Virginia Peninsula's President Steven Kast said in a news release. "Some households become ALICE due to an unforeseen life event: a life-altering health diagnosis, job loss, or family crisis such as a death or divorce."

Kast said people see ALICE every day in people working as child care providers, home health aides, mechanics, retail workers, service providers, store clerks or office assistants. ALICE households vary in size and makeup, and researchers say there's no typical ALICE family in Virginia. The study also shows ALICE households are diverse, led by single mothers, single fathers and young couples.

"There are young and old ALICE households, those with children, and with a family member with a disability," the study states. "They vary in educational level attained, as well as in race and ethnicity. They live in cities, suburbs and in rural areas."

Virginia Peninsula United Way worked with 23 other chapters across the state for the first time to collect data in this study to show how many Virginia workers are struggling and why. The study found one of the main reasons people struggle financially is that the cost of basic household expenses in Virginia is more than most of the state's jobs can support.

In Hampton Roads, the three localities with the highest percentage of households below the ALICE threshold were Williamsburg, with 4,538 households or 57 percent; Newport News, with 70,546 households or 49 percent; and Hampton, with 53,132 households or 47 percent. The number of ALICE households statewide have increased 20 percent from 2007 to 2015, the study shows. The percentage of ALICE households in the region ranges from 30 to 57 percent, according to the study.

"The gap between having a job and earning the minimum wage income necessary to live outside of poverty remains very real," research advisory committee member Dr. David Urso said. "This report prevents people from dismissing the data as 'someone else's problem,' by proving those impacted are our friends and neighbors."

Students and young families may move out of the ALICE group as they get better jobs and earn more. Seniors can move into poverty after a prolonged illness, job loss or a personal crisis, the study showed.

"When households cannot make ends meet, they are forced to make difficult choices such as foregoing health care, accredited child care, healthy food, or car insurance," the study states. "These 'savings' threaten their health, safety and future -- and they reduce productivity and raise insurance premiums and taxes for everyone."

Fourteen other states participate in the project and collect data on ALICE households to help lawmakers and agencies develop policies to help them achieve financial stability and improve their quality of life, researchers said.

Gillis said someone gave her a chance in the form of a better job to support her family after years of struggling.

"I'm no longer there, but this was my family's reality for way too long. I know how hard it is," she said.

Canty can be reached by phone at 757-247-4832.

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