Assistance for energy bills uncertain for winter

By Tim Rohwer and Dan Eshelman, Staff Writers
The Nonpareil (Council Bluffs, IA)
August 22, 2002

About 13,000 Iowa households that have used federal money to help pay energy bills may be out in the cold this winter, according to officials who are tracking the issue.

It all depends on how much money will be provided in the next few weeks to the Low Income Home Energy Assistance Program, or LIHEAP, they said. President Bush wants an 18 percent cut from what the Senate is proposing, wich would eliminate LIHEAP benefits to thousands of people here, they said.

“There’s concern over the fate of the program,” said David Fox, communications director for the Campaign for Home Energy Assistance. “This is the greatest threat in the programs 25-year history, and that’s not an exaggeration.”

Marilyn Rodacker, an official of the West Central Development Corp. in Harlan, said, “It’s going to be a hard winter.”

When Congress returns from its August recess, work must be finalized on the massive Labor, Health and Human Services, and Education appropriations bill. LIHEAP is a part of this bill that takes effect Oct. 1.

The Democratic-controlled Senate wants to provide $1.7 million in LIHEAP funds, the same amount as last year.

President Bush proposes $1.4 billion and said he’ll veto any higher amount, Fox said.

Last year, Iowa received $31.1 million from that $1.7 billion pot, and that’s helped serve 75,357 households. If the president’s proposal is approved, Iowa would lose $5.5 million, meaning 13,000 less households would get these funds, Fox said.

“I think this is not an idle veto threat,” he said.

It’s expected the Republican –controlled House will go along with Bush’s plan, Fox said.
The Senate could override a presidential veto if two-thirds of the members voted to do so. If not, a new bill, probably crafted to the president’s liking, would have to be created, he said.
The president’s position is that fuel prices were low last year and the weather was mild, thus there’s less need for federal assistance, Fox said.

Last year’s mild weather and reasonable fuel prices did reduce federal assistance. About $220 was provided to each of the Iowa households that were serviced in the LIHEAP program.

The year before when the winter was harsher, an average of $500 was provided.

Nevertheless, an 18 percent cut from that $220 figure would provide a “miniscule payment,” Fox said.

Will fuel prices remain low this winter? Not if the U.S. goes after Saddam Hussein, Fox said.
“It we go to war against Iraq, there’s a good chance fuel prices will go up,” he said. “We stand to be in deep hurt.”

In the current fiscal year, the West Central Development Corp. has served 6,160 households in a 10-county area and has provided about $1.4 million through the program.

Of the total number of households, 2,220 were in Pottawattamie County.

The average monthly payment through the program has been $220.

“If the amount of money we get is reduced, we would have to cut payments,” Rodacker said. “That would cause a real hardship for a lot of people.”

Households may be eligible for the assistance but, for various reasons, may not be receiving it.

Fox said some individuals are “simply too proud to ask for help. They would rather do without other necessities in order to pay their heating bills.”

Other people “may not know that the program exists,” he said. “We need to do a better job of making those in need aware of this assistance.”

In specific cases, people may try to get program payments “but the agencies have run out of money,” Fox said. “This is especially bad when funds are gone in February but there are still weeks left of winter and high heating bills left.”

He said 88 percent of households helped by the program “are not on welfare.”

By providing assistance through the program, “people are able to stay independent and to have some dignity,” Fox said. “It’s a way for them to achieve a degree of individual security.”

Tom Lawlor, executive director of the West Central Development Corp., said the agency will begin accepting applications from eligible elderly and disabled individuals Oct. 1. Applications from other eligible individuals will be accepted starting Nov. 1.

Eligibility for the program is based on several criteria, including income levels, number of people residing in a home and source of energy for heating.

Lawlor said applicants need to understand that payments under the program “can’t be guaranteed at this time. They are subject to availability depending on how much money is appropriated by Congress.”

Lawlor said it was difficult to establish plans for the program in the area when the exact amount of funding was not known.

“We must have the money in hand before we can make payments to those who need help,” he said. “We can’t pay out funds based on what we might get later.”

Lawlor said his agency has established good relationships with utility companies that have customers who receive assistance through the program.

“We act as an honest broker,” he said. “The utilities have been able to count on bills being paid because of the aid that has been available through the program.”