According to a recent study conducted by SmileHub, a nonprofit tech company, Alabama has been ranked as one of the poorest states in terms of poverty support across the nation. SmileHub specializes in rating charities and providing resources to assist donors in maximizing the effectiveness of their contributions, and this includes their efforts in the state of Alabama.
In the study, Alabama was ranked 48th overall. The study evaluated 20 different metrics across three dimensions.
Access to education and transportation is an essential factor to consider when evaluating the livability of an area. This includes factors such as the availability of public transportation, the number of public schools per capita, the amount of public school spending per student, and the presence of free community college education for income and benefits.
The factors considered under “Income and benefits” category include various aspects related to poverty reduction and income distribution. These factors encompass the per capita income, the proportion of residents living in poverty, the expenditure on public welfare per person, the minimum wage, the percentage of individual income tax in relation to personal income, and the level of income inequality measured using the Cheney index. Additionally, the presence of mandatory paid sick leave and paid family leave are also taken into account.
The factors considered for housing, healthcare, and food include the rate of food insecurity, the average benchmark premiums for health insurance, the presence of an expanded Medicaid policy, Medicaid spending, the per capita cost of living, the median monthly rent, the availability of affordable rental homes per 100 extremely low-income households, and federal rental assistance per capita.
According to Luke Powers, a business manager at SmileHub, being impoverished involves more than just having a low income.
According to the expert, poverty is primarily determined by comparing income to a poverty threshold, which takes into account the family size and cost of living. If an individual or household earns less than this threshold, they are classified as being in poverty. The measure of poverty is also influenced by factors like the local cost of living and economic conditions. Furthermore, access to public assistance and social services can play a role in determining whether someone is considered to be living in poverty.
The absence of accessible public transportation hampers economic progress, as it results in missed work shifts, educational opportunities, and other crucial services, according to Powers.
According to the speaker, the lack of accessible public transportation poses significant challenges for individuals in terms of accessing employment opportunities, education, and essential services. This limitation directly impacts their ability to improve their economic circumstances. Without reliable transportation options, individuals may encounter obstacles in finding stable, well-paying jobs and pursuing educational advancements. Consequently, this perpetuates cycles of poverty.
According to a report by nonprofit group Alabama Possible, the state of Alabama was ranked 44th in terms of the percentage of residents living in poverty. In 2020, it was found that around 800,000 Alabamians, including 256,000 children, were living below the federal poverty threshold, making Alabama the fifth poorest state in the country. Although the poverty rate in Alabama had decreased, it remained higher than the national average.
In contrast, Alabama has been placed 27th in terms of per capita poverty reduction charities. The state offers a range of charitable organizations and initiatives that aim to address poverty, including the Southern Poverty Law Center, the Equal Justice Initiative, and People for Care and Learning. To explore a comprehensive list of charities and organizations in Alabama focused on poverty alleviation, please refer to this resource.
Alabama’s ranking in the study was adversely affected by the absence of Medicaid expansion and a high food insecurity rate. Food insecurity refers to the inadequate access to food that meets basic needs in terms of quality and quantity.
“The lack of an expanded Medicaid policy and the low per capita spending on Medicaid have a significant impact on the accessibility and affordability of healthcare for residents,” Powers explained. “Furthermore, with a food insecurity rate of 12.4%, many households are currently struggling to obtain sufficient nutrition.”
Medicaid expansion policies have been a contentious issue in Alabama for several years, with the state being among the 10 that have not yet expanded Medicaid. As a result, approximately 300,000 individuals in Alabama find themselves in a healthcare coverage gap.
Earlier this year, a letter was written to Gov. Kay Ivey by Cover Alabama, an organization consisting of over 120 community partners, consumer groups, businesses, health care providers, and faith groups. The letter urged her to consider closing the healthcare coverage gap.
Alabama, also known as the Yellowhammer State, had a food insecurity rate that ranked 42nd in the report. Feeding America revealed that more than 800,000 people in Alabama face food insecurity, with a staggering 250,000 of them being children. In addition, those affected by food insecurity reported an annual need of over $650,000 to fulfill their food requirements.
Powers clarified that Alabama’s limited poverty support is not a deliberate choice, but rather a result of resource constraints and other challenges.
“In Alabama, the lower ranking in poverty support can be attributed to a combination of limited resources and structural issues,” he explained. “These key factors include limited public welfare expenditure, with Alabama ranking 45th in public welfare expenditure per capita. This directly affects the support that is available to those in need.”
The United States Census Bureau’s latest poverty report reveals that approximately 38 million individuals were living in poverty in America in 2022.
To better support impoverished individuals, Powers emphasizes the importance of enhancing access to crucial services like education and transportation.
According to the expert, one way to reduce the impact of poverty is by increasing public school funding, providing free community college education, expanding public transportation, and improving social safety nets such as affordable housing, healthcare, and food security. Additionally, raising the minimum wage, guaranteeing paid sick leave and family leave, and addressing income inequality are also important measures.