Frankfort, KY-The federally funded Low Income Home Energy Assistance Program (LIHEAP), which on annual basis helps over 200,000 Kentucky households including the elderly, the disabled, and families with young children heat their home is out of money in all but one county in the state according to Community Action Kentucky officials. LIHEAP in Kentucky is operated by Community Action Kentucky (CAK) through a network of 23 Community Action Agencies that provide poverty fighting services in all 120 counties of the state. As of February 18^th, 22 of 23 agencies have completely exhausted their funds. Only the Community Action Agency in Jefferson County has any LIHEAP funds remaining and they will likely run out within the next week, according to CAK Executive Director Kip Bowmar.

“We have never had nearly every agency in the state be completely out of funds this early in the winter,” Bowmar said. “This is a real crisis for low income households in Kentucky.”

The crisis component which began operating on January 7^th was initially provided with $7 million for the program, which has been budgeted with over $20 million annually for the preceding two years. In the first 10 days of program operation 15 of the 23 agencies had to shut down. On January 18th, another $7 million was received from the Department of Health and Human Services in Washington, D.C. was received. Of the $14 million, $13.7 million has been expended in 28 working days. Even with the additional funding, CAK’s crisis component of the LIHEAP program is still approximately 30% below previous funding level in each of the last two years. “This is a tough year to have a funding short fall,” said Bowmar, “ Particularly considering the dismal impact higher prices have had on Kentucky’s poor and now added to that we are approaching what appears to be some of the coldest days of winter.”

“We have seen nearly 50% more clients this winter and they have been the working poor that we have not seen as much of previously,” said Jack Burch, executive director of Community Action Council in Lexington that also serves three rural counties in addition to Lexington. “We combine LIHEAP funds with privately raised dollars, but it still has not been enough to meet the need this winter.” Burch’s sentiments were echoed in other parts of the state. “The need has been even greater in rural areas this year because of significant increase in the prices of kerosene, fuel oil, and propane,” said Rick Baker, of LKLP Community Action in Hazard. “We have had to open up and shut down as the funding has started and stopped before we completely ran out of LIHEAP funds in early February. It has been hard on our clients.”

There is a bill in the Kentucky General Assembly that would add $10 million dollars to the crisis component in LIHEAP in Kentucky this winter. HB 153, sponsored by Rep. Darryl Owens (D, Louisville), has 28 co-sponsors including Majority Floor Leader Rocky Adkins (D, Sandy Hook), but it has languished in the Appropriations and Revenue Committee since January 10^th.

“With out additional funds from the General Assembly, we will serve nearly 50,000 fewer households this winter,” Bowmar said. “People may have thought that when additional dollars arrived in mid January that the crisis was over, but really it just bought us time. With out action from the General Assembly, many of Kentucky’s poor families may be facing life threatening situations.”    

With the burden of high home heating costs, those on fixed income are faced with making choices about whether to buy groceries, medicine or to stay warm, according to Dan McKenize, Director of Energy Programs at Community Action Kentucky. The Crisis segment of Low Income Home Energy Assistance Program (LIHEAP) is designed to assist households at or below 130% of the poverty level and having an imminent home heating emergency as defined by a disconnect or past due notice from their utility company or be within four days of running out of a bulk fuel such as coal, propane or fuel oil. Community Action Kentucky is a 23 member association of Community Action Agencies serving all of Kentucky’s 120 counties with a vast array of programs and services designed to build the capacity of individuals and families working to achieve self sufficiency.

  
 
Kentucky’s Low Income Home Energy Assistance Program, which is designed to help low income households pay their heating bills, is rapidly running out of funds as the weather begins to get much colder. 

Community Action Kentucky has twenty-three member agencies across the state providing energy assistance to Kentucky’s low income households in all one hundred twenty counties. Of those twenty-three agencies sixteen will be closed by tomorrow and 19 of the 23 could be closed by Friday, according to Community Action Kentucky Executive Director, Kip Bowmar. The Crisis component which began operating January 7, 2008, was provided with $7,423,665 which represents about one-third the funding of the previous two years. Last winter, Kentucky’s Community Action agencies served over 120,000 households that qualified for Crisis assistance. The Crisis component of the Low Income Energy Assistance Program (LIHEAP) is designed to assist households at or below 130% of the poverty level and having an imminent home heating emergency as defined by a disconnect notice from their utility company or be within four days of running out of a bulk fuel such as coal, propane, or fuel oil. 

“It speaks to the need of the General Assembly too pass HB 153, which would provide $10 million in emergency benefits to the LIHEAP program” said Bowmar. “The General Assembly did that in 2006 and the need is much greater this year with higher fuel prices.” According to Bowmar, to have this funding shortage occur during a year when energy costs are among the highest is particularly disheartening when consideration is given to the needs of the elderly, disabled and families with children who are trying to make ends meet. With the burden of high home heating costs added to the sky rocketing prices of gasoline, food and medicine, those with fixed income are facing near impossible choices. “We must recognize, said Bowmar, that Kentucky’s most inclement weather is traditionally yet to come.” The impact resulting from the lack of Crisis funding may be illustrated by the Public Service Commission data citing the months of January and February as having about 7,000 disconnections per month by the regulated major utility companies which is during the time Community Action Kentucky normally operates the Crisis assistance. In March, when energy assistance benefits are not readily available, disconnections by these same utility companies soar to over 17,000. The point of concern is that with the budget shortfall, energy assistance benefits will be expended much earlier in the winter creating elevated numbers of disconnects when temperatures may be at their lowest.

The twenty-three Community Action Agencies serving Kentucky’s one hundred twenty counties have experienced an 18% increase in the number of households receiving heating assistance this winter compared to the same period last year. Kentucky’s Community Action Agencies have provided energy assistance to over 105,000 low income homes at a cost of nearly $11 million dollars. According to Community Action Kentucky’s Executive Director, Kip Bowmar, energy assistance is nearly a million dollars more than for the same period a year ago and “we are rapidly expending our funds to the point that we may not be able to help people as weather conditions deteriorate in late winter.” Compounding the concern is a funding shortfall of $12,000,000 from the previous year’s energy assistance funding. To have this scenario develop during a year when energy costs are among the highest they have been is disheartening when consideration is given to the elderly, disabled and families with children that are accessing energy assistance. To stave off the impending crisis, Community Action Kentucky is calling on the General Assembly to provide additional energy assistance dollars for the 2007-2008 heating season. 

Community Action Agencies in Kentucky traditionally operate the subsidy program from the 1^st week in November until the end of the second full week of December. During January, the agencies open the crisis component which is designed to address home heating situations in LIHEAP eligible homes that are facing utility shut off or fuel outages. Resources which have typically funded the crisis component are now being used in December because of the increased need. According to Bowmar, “unless we receive additional funding to supplement the crisis program, some low income Kentuckians are certain to face desperate times.” In data obtained from the Public Service Commission, the impact of the depletion of energy funds running out is clearly demonstrated through disconnection from utility service. During the months of December, January and February, (the months Community Action provides energy assistance) disconnections average nearly 7,000 per month from the major regulated utilities. In March when energy assistance benefits are not as readily available, disconnections by these same utility companies soar to over 17,000. The point of concern is that with the budget shortfall, energy assistance benefits will be expended much earlier in the winter creating a likelihood of elevated disconnects during what is the traditionally coldest period of the year. 

The dramatic increases in energy costs have had a severe impact on low income citizens. People are faced with very difficult choices including whether to purchase medicine, buy food, pay the rent or do without sufficient heat. In addition, households that have lost utility service may turn to unsafe methods of heating homes such as candles, gas stoves and other potentially dangerous devices. These practices contribute annually to fire fatalities in Kentucky. It is especially disheartening when we recognize that to this point, winter has been relatively mild and that historically the most difficult days are ahead of us. LIHEAP is one of the most critical components of the social safety net. The program provides heating assistance to low-income households, including the working poor, those making the difficult transition from welfare to work, disabled persons, elderly and families with young children.