40 Percent Of Napa County Households Face Financial Ruin: Report

NAPA COUNTY, CA — When the coronavirus pandemic hit, millions of California households were one emergency away from financial ruin — setting the stage for the unprecedented economic impact of the crisis. Here in Napa County, just under 20,000 households fit the profile.

That's according to the latest ALICE —Asset Limited, Income Constrained, Employed— Report from the United Way. ALICE reports provide county-by-county data and analysis of how many households are struggling, including the obstacles ALICE households face on the road to financial independence.

The hardest hit counties are in the far northern and southern parts of the state and the Central Valley. Bay Area counties, including Napa County, fare much better. Here in Napa County, 7 percent of the 49,308 households live in poverty. Another 33 percent fall below ALICE.

As the cost of housing, child care and other essentials rose over recent years, low-income families systematically lost buying power and financial stability, said the report.

"No matter how hard ALICE families worked, the gap between their wages and the cost of basics just kept widening," said Jessica Muroff, speaking on behalf of the United Way. "These already-fragile ALICE households are now facing an even deeper financial hole due to the state of emergency created by COVID-19."

Oftentimes, ALICE households are forced to make tough choices, such as deciding between quality child care or paying the rent, the report says. Since the closure of restaurants and stores amid the coronavirus pandemic, struggling families have sought food donations, protection from eviction and relief from other bills.

Statistically, Napa County as a whole is among the best performing counties income-wise in California. Santa Clara and Placer counties have the highest percentage of households above the ALICE threshold, at 67 percent, while Napa is 60 percent.

Households above the ALICE threshold:

• Alameda County: 64 percent
• Contra Costa County: 63 percent
• Marin County: 64 percent
• Monterey County: 48 percent
• Napa County: 60 percent
• San Francisco County: 63 percent
• San Mateo County: 65 percent
• Santa Clara County: 67 percent
• Santa Cruz County: 58 percent
• Solano County: 62 percent
• Sonoma County: 62 percent
• Yolo County: 55 percent

The hardest hit counties are Imperial County on the Mexican border with just 36 percent of households over the ALICE threshold and Del Norte, on the Oregon border, with 42 percent.

The county-level figures cited in the ALICE Report are based on three-year averages.

— Patch editors D'Ann Lawrence White and Bea Karnes contributed to this story