FUEL OFFICE UPDATE – 8/3/11
Hello HEAT Force ….
Some folks are starting to pick up odd bits of information or are asking questions about the status of LIHEAP funding out of Washington – and there is some resulting confusion. Actually there should be no confusion at all. Which is simple when congress takes no action ya got nuthin’!!!! Here is how I would summarize the current state of Vermont’s LIHEAP nation ….. at this time:
Winter’s Coming
Well those cool August nights are starting to creep in and this morning coming over Ap-Gap at Mad River Glen I saw some leaves changing color. You know what that means??? Time to strap yourself into the LIHEAP funding rollercoaster!!! And as of August 1 ESD has received well over half of the 42,000 fuel applications and reviews that we will process for this winter’s LIHEAP eligibility.
Federal LIHEAP Funding
The Obama Administration tabled a budget months ago with a 50% cut in LIHEAP funding based on lower fuel prices. HHS Secretary Sebelius in early May testimony acknowledged the predicted price drop did not occur and the administration would “revisit the figure.” Based on the Obama budget Vermont’s base LIHEAP block grant will fall from $25.6M to $11.6M (a 55% cut based on the funding formulas).
Budget mark-ups won’t start until after Labor Day – so we don’t have a preliminary read on where members of congress stand on the national funding level. However, the proposed Obama budget cut established a major road block. To dismantle that road block the Administration requires current price data to aid their re-examination of the market assumptions made in spring 2010 (when they formulated their FFY2012 budget proposal).
VT’s Average LIHEAP Benefit & Energy Burden
Like Vermont, most NE states are predicting home heating fuel at $4.00 per gallon. The average Vermont household uses 764 gallons in the winter at a projected cost of $3,056. The average full season fuel liability benefit will be $400 compared to $866 last winter. For an elderly widow living on less than $800 of monthly social security benefits, the balance of $2,656 will consume at least ¼ of her fixed income. (Her name is Flora and earlier this week I reviewed her eligibility with a gross monthly SS income is $764.)
Crisis Fuel Assistance
At this time my LIHEAP budget for FFY2012 contains the following line items:
Crisis Fuel Benefits $2,500,000
Crisis Fuel Direct Service $450,000 (please don’t call it “Admin”)
Crisis Fuel After-Hours $65,000 (services only – not benefits)
