Dear Friends,

Growing up in the South, I learned early on that November 26th was a day to celebrate. No, it’s not Thanksgiving, since Thanksgiving floats around the calendar. November 26th, for those who don’t already mark it on their calendars, happens to be the birthday of Willis Carrier, the man who invented modern air conditioning. For those of us in the South, and indeed across much of the country, Carrier’s invention is nothing short of a lifesaver. But as temperatures rise, so do the costs of staying cool, and for many working ALICE families, that means making tough choices—like cutting back on groceries just to pay for the electricity that keeps the air conditioning running.

A disturbing report from Fortune Magazine says that 1 in 3 Americans are cutting back on groceries to help pay their electric bill. That is a shocking stat. While all of us can relate to minor cutbacks to save some money, imagine being in a financial position where your monthly grocery budget is dictated by how high your electric bill was that month. As wonderful as Mr. Carrier’s invention may be on a hot summer day, air conditioners don’t put food on the table, diapers in the bin, or washing detergent in the cabinet. 

While the stats are disturbing, they unfortunately make sense when you look at the data. The average AC bill in the south between Texas and Florida is $858 between the months of June and September. For many families - especially those in poorly insulated houses - this is an insurmountable charge that can only be paid by cutting other portions of the family budget.  

Scenarios like this can be the beginning of a devastating financial cycle that can upend a family’s life. If money is not available to pay an AC bill, this can lead to excessive credit card debt or unsecured personal loans. As unpaid credit card balances compound at 20%, this can lead to larger payments, lower credit ratings, repossession of vehicles, and ultimately eviction. While scenarios like this sound far-fetched, our team at The Brookdale Resource Center hears similar stories on a regular basis. Multiple studies show that the relational effects of financial problems like this often indirectly impact young children the most. 

The sad scenario we are describing is the anatomy of a financial hole. For millions upon millions of Americans, this seemingly impossible situation for me or you could happen at any moment to them. An unexpected bill, a vehicle that won’t start, a surprising medical expense… all of these scenarios can create the beginning of a financial crisis that mentally, physically, and emotionally devastates an entire family. 

United Way has created a term for these people known as ALICE - Asset Limited, Income Constrained, Employed. These are hardworking Americans who are striving for self-sufficiency but are one unexpected expense away from falling into poverty. ALICE families are all around us. 35% of Bibb County residents and 33% of Houston County residents fall into this category. The head of an ALICE household could be the cashier at your local grocery store, the parents of your kid’s best friend at school, or the greeter at your church. 

As a nonprofit that maximizes the use of our resources, we have found the most effective way to impact change in Central Georgia is to help ALICE families from falling into poverty. Last year alone the homeless rate increased by 10% in a national count reviewed by The Wall Street Journal as more Americans slipped into poverty. These are real people being impacted in our community. Our bold goal is to help 10,000 ALICE families over the next 10 years find financial stability and prevent situations like those I described above. I hope you will join us.