Long winter ahead for those who rely on enegy-assistance programs
As area residents dig out of the season’s first major snowstorm, it could be a long, cold winter for those who rely on energy-assistance programs to help pay their monthly heating bills. A triple threat of a winter like last year’s – it ranked as the 10th coldest on record since 1871, according to the National Weather Service – higher heating bills and expected cuts in the federal Low Income Energy Assistance Program (LIHEAP) could spell trouble for those scraping by to keep their homes warm.
While experts predict that the price of natural gas and heating oil will rise this winter, the National Energy Assistance Directors’ Association (NEADA), representing the country’s state directors for LIHEAP, reported Friday that the low-income energy program would be cut by almost $200 million for 2004 under a conference agreement on a year-end appropriations bill under consideration in Congress.
If the bill is approved, Pennsylvania, the second highest beneficiary of LIHEAP funds after New York, would see its LIHEAP budget trimmed to $120 million from about $136 million last winter, when the program served 306,980 households across the state, according to NEADA.
Mark Wolfe, executive director of the NEADA, said states will have no choice but to make the significant cuts in assistance, unless Congress provides additional funds or the Bush administration releases program emergency funds. The conference agreement includes $100 million in emergency funds, the NEADA indicated, adding that even if that money were released, program funding would still be down by nearly $100 million from last year.
“Because of the reduction in funding, many states will close programs earlier this year and reduce payments to needy households,” Wolfe said. “There is no question that this will result in (heating payments being late) and utility shut-offs, as low-income families struggle to pay their home energy bills this winter.”
LIHEAP, a federal program administered by the states, offers two types of funding: cash grants and crisis (emergency) grants. The cash grants, designed to help pay heating bills, are awarded based on income, family size, the type of heating fuel and heating regions. Crisis grants are awarded to people in jeopardy of losing their heat, including those facing a termination of utility service and those with broken heating equipment or leaking lines.
As of Nov. 29, the Fayette County Assistance Office had authorized 5,928 cash grants totaling $1.2 million and 625 crisis grants totaling $117,012, while its Greene County counterpart had authorized 931 cash applications at $203,427 and 135 crisis applications at $25,079, according to the state Department of Public Welfare (DPW).
“But this is only the beginning of the season,” said DPW Deputy Press Secretary Stephanie Suran. “The biggest influx comes later.”
According to the Pennsylvania Gas Shopping Statistics for Oct. 1 from the state Office of Consumer Advocate, Columbia Gas determined that Fayette County had 18,744 low-income households, while Greene County had 4,128.
A few options that states have for addressing cuts in LIHEAP funding are to reduce the level of grant assistance, tighten eligibility and shut down programs when funds are exhausted, according to the NEADA. In previous years, cuts of this magnitude have resulted in a combination of all three options, resulting in late payments and shut-offs, as states have fewer resources to help low-income households pay their bills, Wolfe said.
“The emergency funds are what we are worried about,” Wolfe said. “If it’s a cold winter and the unemployment rate stays high, then we hope additional emergency funds are released. But, Pennsylvania is lucky in that it has a lot of possibilities and supplemental spending. Utilities and state programs are available.”
If the area endures another severe winter, Suran said, the state could receive emergency funds, as it did last year. That money can be used to increase the number of cash and crisis grants residents receive and to allot more money to those already enrolled in LIHEAP.
Suran said people who still find themselves in a crisis may be able to receive funding from other community programs, such as the Dollar Energy Fund and the U.S. Department of Energy’s Weatherization Assistance Program.
While LIHEAP money is limited, money to augment the program from agencies like the Fayette County Community Action Agency is nonexistent, for the time being.
Sheila Kendall, Community Action project manager for the energy assistance program, said this year’s funding to help pay residents’ utility bills has been exhausted because the money was used to pay for electric, sewage and other utility bills throughout the year.
“Funds will be renewed in January, but by the time December rolls around, all the funds are already used,” she said.
Last year, the agency offered $75 vouchers to families that exhausted their LIHEAP funds.
Although all of its 2003 funds have been depleted, Community Action has the chance to receive funding from the Federal Emergency Management Agency, as it did last year, come January.
Kendall said Community Action processes about 50 applications a month.
She estimated that half the people who apply to Community Action are below poverty level, and she is overwhelmed with the calls she receives daily from those seeking help. She directs the residents to the Fayette County Assistance Office so they can inquire about available LIHEAP funds.
Nelson Martin, executive director of the Greene County Assistance Office, said his office expects to receive about 700 more cash applications this winter than it did last year. He sympathized with Fayette County, which will receive many more LIHEAP applications throughout the winter.
“It’s a hectic time, especially for Fayette County,” said Martin.
For assistance after LIHEAP, Martin recommended the Catholic Charities in Greene County at 724-627-6410.
LIHEAP benefits are available for those who rent or own their homes, even if they are receiving other assistance. Individuals must show proof of income. According to the application guidelines, the name of anyone who shares the applicant’s household and the monthly income of each person who shares the home must be included.
Two fuel sources can be included, and LIHEAP payments can be sent to either fuel provider. Applicants also may list a secondary fuel source that acts as a supplement to the main fuel heating system. LIHEAP funds are distributed to users of all fuel types, including natural gas, propane, wood and oil.
Although the LIHEAP program is administered through the DPW, the applications are sent to the county assistance offices.
After the application is submitted, the applicant typically must wait three weeks before eligibility is determined. Those seeking crisis grants can expect a waiting period of no longer than 24 hours.
The LIHEAP program runs from November to March and may even be extended, as it was last year, depending on the severity of winter cold and snowstorms.
Applications for social services are available online at www.compass.state.pa.us or at the county assistance offices.
Help for Fayette County families with a heating emergency is available 24 hours a day by calling the assistance office at 724-439-7125 between 8 a.m. and 5 p.m. Monday through Friday and 724-439-7056.
On the Web
Weatherization Assistance Program, U.S. Department of Energy: www.eere.energy.gov/weatherization.
Applications for social services: www.compass.state.pa.us