2023 ALICE Report Highlights Struggles for

One-third of Hudson Valley Households

Despite the influx of pandemic assistance and tax credits that benefited some in the Hudson Valley Regions households in 2021, 34% of households still struggled to afford the basics, according to the 2023 NYS ALICE Report, which was unveiled by four local United Ways, United Way of the Dutchess-Orange Region, United Way of Rockland, United Way of Ulster County, and United Way of Westchester and Putnam, on Tuesday, July 11. The presentation also discussed how the report found that the cost of six household essentials in New York State has risen at a faster clip than inflation, leaving low-wage workers priced out of affording the basics.

According to the report, for a family of four with an infant and a preschooler, the annual ALICE Household Survival Budget, which is the basic cost needed to live and work in the Hudson Valley, was $113,316 in 2021. The Child Tax Credit and Child Dependent Care Tax Credit helped to soften the blow, bringing the family Survival Budget down to $90,936.

While job disruptions and inflation delivered significant financial pain, a combination of pandemic supports and rising wages did help to blunt what could have been a deeper financial crisis, the report finds. However, as some benefits are peeled back and inflation persists, signs of greater financial stress are on the horizon.

The ALICE Essentials Index shows basics rising in price by 5.5%, with projections for 2022 and 2023. In contrast, inflation — as measured by the National Consumer Price Index (CPI) — rose 4.8% during that time.

The ALICE Essentials Index tracks the rising cost of essentials, including housing, childcare, food, health care, transportation, and a smartphone plan. In contrast, the Consumer Price Index (CPI) tracks inflation across more than 200 categories of goods and services, including luxury items, such as power boats and landscaping services. Yet, CPI is used to calculate increases in critical support for low-income families, including Social Security and Medicaid.

Access to the video of the presentation and links to the reports are available below.