Baby, It's Cold Outside (Source:
American Progress Action)
For millions of low-income Americans, it's going to be a long, very cold winter. Fuel prices have skyrocketed – according to the Center on Budget and Policy Priorities (CBPP), the average cost of home heating this winter will be a whopping 24 percent higher than last year. To make matters worse, the number of people living in poverty, who are especially likely to need help paying their energy bills, rose last year by 1.3 million to 36 million people, or 12.5 percent of the population. Yet Congress is underfunding the Low-Income Home Energy Assistance Program (LIHEAP helps poor households – many of which include people who are elderly or disabled – pay their heating bills during the coldest months of winter). About 30 million households qualify for help, but a lack of funding means only about one out of every seven families receives assistance. And initial sampling shows that this year, with temperatures dropping, fuel prices soaring and more Americans living in poverty, requests for assistance could reach an all-time high.
THE CHILLING STATISTICS: Energy costs can be devastating for low-income families. According to a survey conducted by the National Energy Assistance Directors' Association, families assisted by LIHEAP "spend three times as much of their income on energy costs as middle-income families." The survey also found a quarter of people the program serves skipped medical care or paying their rent or their mortgage at least once because of energy bills. One out of every five said they skipped meals because they were forced to "use food money to pay a utility bill."
CONGRESS'S FROSTY RESPONSE: In early October, a bipartisan group of 17 governors wrote to Congress, asking that funding for LIHEAP "include a larger base grant and $600 million in emergency funding." Millions of low-income families and frail elderly citizens, the governors wrote, "will likely be forced to choose between eating, paying rent or mortgages, buying prescription drugs or paying their heating bills." Congress didn't come through. In the recently enacted omnibus bill, the paltry increase in LIHEAP funding was "$164 million less than needed to cover the expected 24 percent increase in home heating costs." In fact, according to research by the CBPP, "adjusting for the price of fuel, the 2005 level of LIHEAP funding is lower than in any of the previous five years – 23 percent lower than the funding level for 2001."
BUSH'S COLD SHOULDER: President Bush has shown a decided lack of dedication to getting poor Americans funding for heat. In his first budget, for the 2002 fiscal year, Bush actually tried to cut LIHEAP funding by $300 million as compared with the previous year, despite higher unemployment and a colder winter. While energy costs have soared, "funding for LIHEAP and other energy assistance programs grew 7 percent under the Bush administration, barely matching inflation." When LIHEAP started 22 years ago, the program helped about 7 million families. Today, it only helps about 5 million.
STATES LEFT HOLDING THE BAG: With the federal government failing to provide necessary funding, the burden is falling on the states. Some governors are ready to take on the challenge: In Montana, Gov.-elect Brian Schweitzer announced he intends to make low-income heating assistance a budget priority next year. Wisconsin's Gov. Jim Doyle also got a jump on the crisis, opening LIHEAP enrollment a month ahead of schedule in anticipation of heightened need and the state is "kicking in $18.5 million to help keep Badger State residents warm." Many states are not as lucky. Colorado, for example, is slashing the amount of money eligible families will receive by $100. The state's lawmakers passed a bill to tack a voluntary 25-cent surcharge onto utility bills to subsidize the state's heating assistance program, but it was vetoed by Gov. Bill Owens "because it required utility customers to 'opt out' of paying the surcharge and he preferred an 'opt in' approach."