Note: The following provides a state-by-state
summary of available information on the status of each state's
Low-Income Home Energy Assistance Program (LIHEAP). As of June
11, 43 states have responded to the survey. This survey will
be updated as additional information becomes available.
Key Points
Of the states that have responded
to date to the NEADA summer survey, 19 states and the District
of Columbia reported that they were either out of funds or had
very low balances. States reporting they were out of funds:
District of Columbia, Iowa, Maine, Minnesota, Montana, New Hampshire,
New Mexico, Rhode Island, and Wisconsin. States reporting very
low balances: Alabama, Colorado, Georgia, Illinois, Kansas,
Kentucky, Maryland, Massachusetts, Nebraska, New York, and Utah.
The remaining 24 states have at least the same amount of funds
available to help low-income families as they last year at this
time: Alaska, Arizona, Arkansas, California, Connecticut, Delaware,
Florida, Hawaii, Idaho, Indiana, Michigan, New Jersey, Nevada,
North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South
Dakota, Vermont, Virginia, Washington, West Virginia and Wyoming.
The NEADA survey follows two earlier
surveys this year. The first survey reported that the number
of new families applying for program assistance had increased
by more than 1 million, bringing the total of recipient families
up to more than 5 million. The second survey, reported that
4.3 million households in 19 states and the District of Columbia
were in arrears on their utility bills and faced possible shut-off
of service. Summary tables from the two surveys are included
at the end of the narrative.
The federal Low-Income Home Energy Assistance
Program (LIHEAP) provides heating and cooling assistance to
low-income families. During the current fiscal year (October
1, 2001 to September 30, 2002) the program is expected to
provide assistance to at least 5.1 million households, an
increase of 1.1 million over last year. Due to the rapid increase
in demand for program services, many state program managers
responded by spending most, if not all, of their program funds.
In contrast to previous years, states retained fewer funds
in order to address the immediate needs of low-income applicant
households.
Alabama's LIHEAP program has about $2-3 million remaining
this year, which is less than last year as a result of
the worst winter weather for many years and increases
in fuel prices. All remaining funds will be expended for
cooling assistance. The state has always had a cooling
program, but there are less funds available this year.
It is estimated an additional $5-6 million is needed for
summer cooling, especially if the state experiences a
severe summer.
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Alaska has about 9% of its funding left, which is the
same as last year, in spite of an unusually warm winter
this year. Although there are no winter shut-off moratoria,
the state does help with arrearage payments and shut-off
avoidance throughout the winter as part of the regular
heating assistance program. There is no summer cooling
program.
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Arizona runs a year-round program for heating and cooling
and the supplemental contingency dollars received this
fiscal year will be added into contracts effective July
1, 2001. These funds will be helpful in providing either/or
higher benefit payments and serving more households. Arizona
is a hot weather state and summer has arrived early this
year, with triple digits in early May. As a result, more
households are expected to apply and higher benefits will
be needed to offset increases in utility rates.
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Arkansas has $1.1 million remaining as of June 1, 2001,
compared to $558,8000 at this time last year. No cooling
assistance program has been planned for the summer. Unless
additional funds are released, Arkansas most likely will
not have a summer cooling program. The state will use
all of the remaining funds to avoid shut-offs, for connection/reconnection
fees and on arrearages, if they are creating a crisis
situation for the household. Approximately $1.2 million
is needed to implement an adequate cooling program. Because
of the harsh winter in Arkansas this year, many families
are still trying to pay large arrearages on both gas and
electricity bills in addition to their current bills.
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California has about $900,000 left to provide shut-off
and arrearage repayment assistance. The state is also
disbursing about $30 million dollars from June 1- August
31st for cooling assistance and has appropriated $120
million dollars to provide supplemental funding as a result
of higher prices due to the state's energy crisis.
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Colorado's caseload increased significantly this year
and there are still 1,000 applications to be processed
that were received before the program ended on April 30th.
The current $1 million balance had been targeted as carryover
for the start-up costs of next year's program, but will
instead be used to fund the remaining applications (at
a cost of approximately $150,000) and continue the year-round
furnace repair and summer fan distribution programs. The
summer Crisis Intervention Program (estimated to cost
$200,000) and the summer fan distribution program (estimated
to cost $50,000) may be discontinued for lack of funding
and it appears very likely there won't be any start up
money for next season. By comparison, last year at this
time there was $2.5 million remaining after most cases
had been processed.
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Connecticut operates only a heating assistance program
and anticipates approximately $4 million of this year's
funding will be carried forward for start-up of next year's
program. No cooling assistance program is planned, but
one will be provided if weather conditions warrant it
and funds are available early in the season.
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Delaware will have approximately $110,000 of unrestricted
funds remaining at the end of June, compared to $0 last
year at this time. The state has set aside $1.1 million
for the Summer Cooling Assistance Program this year, compared
to $600,000 set aside last summer. Although no funds were
earmarked for arrearages last year, the $110,000 balance
this year may be utilized for that purpose. Due to a moratorium
from the Public Service Commission that prohibited the
state's largest electric and gas utility from terminating
a customer's utility services for about 16 months, many
households are now faced with arrearages in the thousands
of dollars. Specific numbers of households that may be
eligible are not available, but the $110,000 remaining
at this time would only help approximately 366 households
if they each received a benefit of $300. Delaware is considering
avoiding paying any arrearages if not enough households
can benefit from the $110,000 and using the funds instead
to purchase and install new furnaces under the weatherization
program. Or the state may provide assistance to the most
severe cases of arrearages and help about 110 households
at $1,000 each. If Energy Emergency Contingency Funds
are released this summer, they will primarily be used
to help low-income customers with arrearages who are facing
service terminations.
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The District of Columbia operates a 12 month program but
ran out of fund at the end of April. There is a the District
might be able to use some local TANF funds to provide
supplemental cooling assistance this summer.
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By the end of June, Florida's LIHEAP program will have
expended all the winter contingency funds. As a result
of the increase in base funding this year, there is approximately
$1 million (18%) more that will be available for summer
cooling assistance than was expended last year. Typically,
the state is able to provide cooling assistance to less
than 5% of the eligible population. With the increase
in base funding this year, the summer cooling program
will be able to assist 1-2% more of these eligible households.
At this time, there does not appear to be a problem with
a backlog of arrearages.
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Any remaining LIHEAP funds in Georgia at the close of
the regular program will be used for cooling assistance.
Last year a total of $5.4 million was expended for cooling
assistance, and this year the current balance available
is only $2.1 million as of May 7, 200l. All of these remaining
funds will be used for cooling assistance. However, at
a maximum of $194 per household, only 10,644 households
will be able to receive cooling assistance. Based on last
year's expenditure data, an additional $1 million is needed
for summer cooling. Sufficient funds are also not available
to meet the needs for arrearage/shut-off avoidance assistance.
In order to provide arrearage/shut-off avoidance assistance,
an additional $3.7 million is needed, since there are
200,000 households in Georgia who owe approximately $80
million in natural gas bills alone.
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Hawaii's program does not begin until June 1.
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Idaho has a current balance of $2.9 million as compared
to $1.3 million last year at this time. None of the remaining
dollars are targeted for cooling assistance or arrearage/shut-off
prevention programs at this time.
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Only $5 million remains in the Illinois LIHEAP program
this year, compared to $17 million last year. This $5
million balance will be used for summer energy assistance
(last year's effort expended $10 million). The state committed
$6 million this year for arrearage and shut-off prevention
programs (compared to $2 million last year). The Illinois
program estimates it needs $15-20 million for a statewide
summer program and $10-15 million for arrearage/shut-off
avoidance assistance.
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The State of Indiana has a little less than $2 million
dollars remaining in the Energy Assistance budget (which
includes LIHEAP & oil overcharge funds). These funds
(about the same amount as last year) will all be used
for summer cooling and summer fill. Funds have not been
set aside for arrearage assistance this year, nor have
they been in the past. The state is concerned about meeting
the needs out of next year's funding, when it is anticipated
many households will be coming in with high amounts in
arrears.
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Iowa has exhausted all funds available. Approximately
79,000 households received a benefit that lowered their
out-of-pocket expense (energy burden) to 6% of total household
income. There are still approximately 5,000 eligible households
that applied, but who, in the absence of supplemental
funding, will not receive any benefit. Last year at this
time, 62,000 households had received a benefit that lowered
their out-of-pocket expense (energy burden) to 3.5% of
total household income and there was a balance of approximately
$2 million unexpended that was available for cooling emergencies
if necessary. Ultimately, those funds were used for contracting
with deliverable fuel vendors, locking in a lower price
in August for delivery beginning in October. Unfortunately,
this will not be an option this year. If the remaining
5,000 households are to receive the average benefit that
the 79,000 households received, an additional $2.8 million
is needed. In the interim between now and the receipt
of any supplemental funding, those 5,000 households will
have no alternative other than to make payment arrangements
that include the hoped-for LIHEAP benefit.
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By March 12th it was determined that applications for
LIHEAP benefits were exceeding the 18.6% increase originally
anticipated for the federal funds available. As a result,
central office instructed field staff to pay only eligible
households meeting the newly defined emergency criteria
of: 1) disconnected, 2) out of fuel, or 3) tagged for
disconnect (only households that were not regulated under
the shut off moratorium, which had been extended to April
30th). LIHEAP benefits were paid out at 100% of the determined
benefit matrix for a portion of the LIHEAP program. Since
the amount of funding available was not sufficient to
provide benefits at the 100% amount to all eligible households,
the remaining eligible households were paid at a prorated
portion of the original benefit matrix amount (47%). If
the decision had not been made to pay prorated benefits,
approximately 7,000 eligible households would not have
received any type of energy assistance in a winter in
which fuel costs escalated and the temperatures were extremely
cold. The prorated benefit method was chosen in order
to provide all eligible households as much of a benefit
as possible with the remaining federal funds available.
If additional funds become available the agency will further
supplement benefits to those households that received
only a prorated amount.
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Kentucky only has $100,000 - $150,000 of LIHEAP funding
remaining. Approximately $7 million is needed to operate
a cooling program. Already, early in the season, areas
of the state have been experiencing temperatures in the
high 80's with high humidity. In addition, nearly 3/4
of the state has been declared to be in a severe drought.
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All of Maine's LIHEAP funds have been obligated and there
will not be any carryover over for next year. There are
no funds available for summer cooling or arrearage and
shut off avoidance programs, which is the same situation
the state experienced last year.
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Maryland has less than $1 million remaining. These funds
will be used for furnace repair and replacements. The
state does not have any funds available for cooling assistance.
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Massachusetts will deplete all federal funds with a possibility
of having up to $1 million left for carryover to next
fiscal year. There will be no funds available for cooling
assistance.
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Michigan does not expect to have any funds left at the
end of the program year. Of major concern is that the
program will need to revert to FY 2001 program limits
because of reduced funding in FY 2002 (unless funding
is increased to include the amounts awarded as supplemental
appropriations in FY 2001). This means the program will
not be able to increase eligibility to higher levels of
poverty, nor sustain CAPS (rates paid for energy), despite
the fact that customer expenses are increasing. Additionally
weatherization efforts could not continue at the same
level, thereby exacerbating the long-term energy consumption
problem.
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Applications are up 34.6% over last year at this time
and the benefit level is 34.7% larger to address higher
energy costs. All funds have been exhausted and new applicants
are being turned away, even though the plan states that
applications will be taken until June 1, 2001. Last year
there were sufficient funds to serve all who applied and
an additional $4 million to carryover from FY 2000 to
FY 2001. Minnesota has not traditionally offered cooling
assistance. The FY 2001 state plan states that a medically
necessary cooling program will be operated if funds are
available, but it does not appear funds will available
for this purpose.
The state's crisis program, which
addresses disconnections and emergency fuel deliveries,
has increased this year by almost 400% over the previous
year. The Public Utilities Commission estimates that
total customer arrearages are $71 million. There are
not sufficient funds to address those households who
are still seeking assistance because of pending disconnects.
Last year the program was able to assist all eligible
households who applied. The PUC also indicates there
are a minimum of 1,000 households statewide who have
medical needs for cooling who may be income eligible
for LIHEAP. An additional $300,000 would be needed to
provide each of these households a benefit of $300.
To serve all the applications currently pending would
require an additional $1.9 million. Another $3 million
in requests for crisis assistance are expected by June
1.
The Minnesota Department of Revenue
mailed applications to 80,000 senior households early
in April, and those applications are just coming in
now. Last year a similar mailing resulted in a 12% return.
If a similar return is experienced this year, an additional
$5.4 million will be needed to serve these households
with the average grant of $558. In previous years carryover
funds were used to pre-buy propane and/or oil for the
next heating season. Summer purchases have greatly benefited
low-income households, providing them with more fuel
for their money. In past years, the average early pre-buy
program has purchased $2.3 million in delivered fuels.
Unfortunately, there are not sufficient funds to pursue
this activity this year. The total amount Minnesota
needs for the remainder of this program year is approximately
$12.8 million in additional funds.
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Montana has no remaining funds from the regular and emergency
appropriations this year, compared to a $400,000 balance
last year. The state has not been able to offer summer
cooling assistance or assistance with arrearages.
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Nebraska has approximately $670,000 that has not been
designated for client payments, weatherization, administration
or FY 2002 carryover. Approximately $1.7 million that
was designated for FY 2002 carryover can still be used
in the current year. These amounts are less than the balances
last year by about $1 million. Approximately $350,000
will be expended in the original cooling payment and then
as other households qualify for cooling, the additional
payments will increase. This initial payment is about
the same as last year. During the summer months about
$75,000 - $100,000 a week has been expended for additional
cooling and cooling crisis payments. Unless additional
funds are received, Nebraska will not be able to help
with any additional heating arrearages or shut-off notices.
Clients are being advised to make payments over the summer
and heating crisis assistance will be available next winter,
as in the past. An additional $2 million would allow the
state to avert more heating shut-offs.
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Although funding for Nevada's LIHEAP program increased
by 15% in FY 2001, expenditures were up 22% compared to
FY 2000, a shortfall of approximately 7% for FY 2001.
This summer cooling assistance will be available statewide
instead of only in the southern part of the state, at
a total expected cost of $724,711 (up from $457,284).
Due to limited federal funding in Nevada, the program
was not designed to pay off arrearages, but eligible households
can avoid shut-off by paying a portion of the outstanding
balance. FY 2001 funding will be used to start up the
2002 LIHEAP Program effective July 1, 2001, which will
run through May 31, 2002 (11 months). It is estimated
42% of the funding used will be used to assist households,
statewide, with cooling costs. This is a new component.
FY 2000 funding was not delineated for specific cooling
needs. Only households in southern Nevada had their regular
LIHEAP benefit split between their heating provider and
their cooling provider. Approximately 55% of the households
receiving LIHEAP benefits live in the southern part of
the state where temperatures are easily above 100 degrees
during the summer.
Approximately 146,000 households
in Nevada are below 150% of the poverty level. Natural
gas prices have increased 68% statewide, and electric
costs, thus far, have climbed approximately 14%. However,
incremental electric increases up to 45% have been presented
to the PUC and are likely to be approved. Propane has
increased 75%. Nevada increased the benefits for clients
using these three major fuel sources, retroactively.
The average benefit will be $304 once these retroactive
supplemental payments are made (within the next 30 days).
As such, if Nevada receives the same funding in FY 2002
as was received in FY 2001, the LIHEAP program will
only be able to serve 7,988 households. This represents
only 5% of the state's low-income households at 150%
of poverty. Experts have presented data to the Nevada
Legislature projecting the average monthly summer electric
bill in southern Nevada will be $275 by next year. LIHEAP
pays a one-time average benefit of $304 per year. Low-income
households, particularly those on fixed incomes such
as the elderly and disabled, will be unable to pay such
high cooling costs. As it is now, these people must
make choices between medicine, food, or power.
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New Hampshire reports that all combined emergency/regular
appropriations for FY 2001 have been obligated. Any remaining
funds will be used to restore monies originally targeted
for the state's weatherization program. The increased
demand for assistance this winter season (18% increase
in the number of households enrolled) caused the state
to suspend other fuel assistance program components including
the Summer Pre-buy program. At this point, sufficient
funds do not exist to fully restore the two programs for
this program year. Last year at this time approximately
$409,185 had not been obligated. A cooling assistance
program is not a regular component of New Hampshire's
LIHEAP program.
At this point, the state is not
in a position to further address the need to assist
with arrearage payments and shut-off avoidance. Due
to the demand for assistance and available LIHEAP
funding, the program could not be extended beyond April
30th this year. Last year, the program was open for an
additional month (to May 21, 2000). Although an analysis
has not yet been completed on the amount of funds
necessary to assist with arrearage/shut-off avoidance, the
largest utility in the state has reported that as of March
30, 2001 the amount of residential accounts receivable had
increased by 84% over last year (approximately $2.2
million).
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New Jersey has not exhausted its FY 2001 funding. Although
New Jersey raised its income limit to 175% of the federal
poverty level and extended its application period, the
state did not receive as many applications as anticipated.
Remaining funds (up to 10% of total funds) will be transferred
to the Weatherization Assistance Program after all outstanding
applications for assistance are processed.
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New Mexico has no remaining LIHEAP funding. The program
has remained open with money received from the State.
Even with the supplemental benefits that were issued,
there are daily reports of households losing service or
unable to purchase propane. The average benefit this year
is $250, whereas the average benefit in FY 2000 was $118.
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As of May 25th, New York estimates a LIHEAP funding balance
of only $23 million, which includes funds carried forward
from FY 2000 to FY 2001. Last year at this time the balance
was $35 million. No cooling assistance is provided, nor
does the state set aside funds for arrearage payments
and shut-off avoidance. Crisis funds are still available
to avert shut-offs through the HEAP emergency component.
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After meeting all commitments (including weatherization
and other services), North Dakota will have about $2.5
million remaining. There is no "cooling program"
as such, but the program does purchase air conditioners
for people with a medical need, at a total cost of approximately
$200,000. Expenditures in the emergency (crisis) program
have been 84% higher this year than last.
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Ohio's LIHEAP program will expend about $5 million on
cooling assistance this year, which is the same as last
year. A supplemental heating assistance benefit will be
provided to everyone assisted in FY 2001 with the remainder
of the uncommitted funds (estimated to be around $20 million).
Because so many households had such high natural gas bills
this winter (and 75% of the households assisted use natural
gas), this additional benefit will lessen the chances
of these households facing a shut-off during the summer.
This additional benefit was not provided in FY 2000. The
contingency funds provided benefits to an additional 50,000
households this year, who will have to be turned away
and/or benefit/eligibility levels reduced if funding in
FY 2002 is not at the same level as FY 2001.
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In addition to the $16.2 million Oklahoma received in
LIHEAP funds this year, $11.5 million was transferred
into the program from TANF, and $4.8 million was received
from the state. The estimated balance remaining, after
excluding the $1.5 million set aside for crisis assistance
and summer cooling, is only $3.7 million.
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Oregon has expended about 80% of the total funding received.
If the additional contingency funds had not been allocated
to the state this year, the program would have been fully
expended by the beginning of January. The remaining funding
will probably be targeted for weatherization assistance
and pre-purchases of oil and bulk propane. Additionally,
some cooling assistance may be provided in the eastern
part of the state or in the metro area where more households
reside in apartments.
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For the most part, Rhode Island's program is currently
out of funds that were allocated for fuel bills. Last
year the program was able to stay open for most of the
summer to help out with shut-offs. It does not appear
there will be funds available for cooling or summer crisis,
although $3-4 million is needed.
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South Carolina has approximately $779,308 remaining from
this year's combined emergency fund/regular appropriations,
compared to $259,400 last year. An estimated $3,024,995
will be used for cooling assistance, compared to $1.3
million last year. Although the maximum benefit was raised
from $250 to $800 this year, there are still a large number
of households in arrearage. The largest utility company
in the state is averaging 37,000 arrearages a month. Given
the maximum benefit of $800, an additional $1 million
is needed to provide assistance to alleviate these arrearages.
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South Dakota has less than 10% of the funds received this
year remaining, which is about the same as last year.
No summer cooling assistance is available, and, although
the state is getting reports of very large arrearages,
there are no funds available to help families deal with
their balances or prevent shut-offs.
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Utah has set aside $500,000 for cooling and crisis assistance
this year, compared to $650,000 last year. The state provides
cooling assistance only as part of the crisis program.
It is anticipated the need in FY 2002 will exceed that
experienced this year. Funds may have to be taken out
of the 10% carryover set aside for next year to supplement
crisis/cooling assistance through the summer.
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In Vermont out of $14.5 million received in FY 2001 (block
grant, contingency grants, carry forward, leveraging incentive,
and reallotment funds) only $490,000 has not been allocated
(3%). Last year at this time, out of $11.4 million, $685,000
had not been allocated (or 6%). None of the remaining
funds are targeted for cooling assistance or arrearage
payments and shut-off avoidance. Last year, $200,000 was
allocated for spring, summer, and fall emergency assistance
(heat and electric service disconnections - but not cooling
assistance). Vermont does not anticipate a similar allocation
will be available this year.
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Virginia has approximately $3 million remaining from its
combined emergency fund/regular appropriations for FY
2001, which is the same as last year. Also, as last year,
this entire amount will be targeted for summer cooling
assistance. Based on applications received last year through
the cooling assistance program, this amount is not sufficient
to meet the need. Virginia would need an additional $2.1
million to serve the number of applicants from last year.
The state does not have a program that specifically targets
clients with arrearages and/or cutoffs because the current
appropriation does not provide sufficient funds to initiate
a new targeted type of assistance. However, due to the
tremendous increases in fuel costs during the past winter
many citizens experienced severe hardship in making payments
and are now threatened with shut-off and have huge arrearages.
In assessing the need for additional assistance for both
utilities and deliverable fuels, the state estimates a
need for an additional $5.6 million, based on the 1999-00
fuel case count plus the 2000-01 crisis case count.
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Washington anticipates serving 25% of the eligible households
this year, which leaves 75% unserved. If the federal appropriation
for FY 2002 is only $1.4 billion, the state will only
be able to serve about 19% of the eligible population.
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West Virginia estimates a current unencumbered LIHEAP
balance of $2.5 million. None of the remaining funds is
earmarked for cooling or arrearage/shut-off avoidance.
However, a supplemental payment to LIHEAP households that
contain a person age 60 or older may be used for heating
arrearages or to offset anticipated cooling costs. A minimum
of $1 million is needed for cooling assistance.
West Virginia utilizes an automated
benefit issuance/eligibility determination system called
RAPIDS. Cost allocations for workers to enter applications
into the system mount up quickly, making it necessary
to keep the LIHEAP season short. No state funds are
used for LIHEAP at this time. Additional funds are needed
to help the state's most vulnerable households.
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Wisconsin has depleted all LIHEAP funds available, in
contrast to last year when there was over $4 million left
to use for summer fills, arrearages, etc. in preparation
for the next heating season. There are no funds available
for cooling assistance this summer, and the state will
only be able to operate a cooling program if supplemental
funds are awarded for this purpose and if there is a heat
emergency declared in the state. Although the state intended
to provide a supplemental allocation to local agencies
for crisis assistance, it has not been able to do so because
of the costs for the basic heating assistance payments.
Based on current federal funding levels (the President's
budget) the state will receive $31 million less for the
next heating season than was received through regular
and supplemental appropriations this year. Even if the
level proposed by the Senate were adopted, Wisconsin would
still receive $11 million less that was awarded this year.
Caseloads for the regular heating assistance program are
up over 30% in numbers of paid households and up 70% in
the dollar amount of heating assistance paid. The amount
of crisis funds available to local agencies has also been
increased by over 200%. For the first time the state provided
$14 million of utility public benefits dollars, which
was used primarily for electric benefits.
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Although Wyoming currently has a remaining LIHEAP balance
of about $1.2 million left, these funds will be used for
additional benefits and administrative costs. There is
no summer cooling assistance program and the crisis portion
of the regular program concluded on May 15th. Although
sufficient funds were available for this year, the need
is increasing rapidly with higher fuel costs, which will
result in higher numbers and amounts of arrearages next
year.
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LIHEAP SURVEY
Date: June 11, 2001
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