June 11, 2001
State-by-State Low-Income Home Energy Assistance Program Survey Responses
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
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.
ALASKA
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.
ARIZONA
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.
ARKANSAS
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.
CALIFORNIA
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.
COLORADO
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.
CONNECTICUT
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.
DELAWARE
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.
DISTRICT OF COLUMBIA
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.
FLORIDA
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.
GEORGIA
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.
HAWAII
Hawaii’s program does not begin until June 1.
IDAHO
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.
ILLINOIS
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.
INDIANA
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.
IOWA
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.
KANSAS
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.
KENTUCKY
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.
MAINE
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.
MARYLAND
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.
MASSACHUSETTS
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.
MICHIGAN
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.
MINNESOTA
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.
MONTANA
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.
NEBRASKA
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.
NEVADA
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.
NEW HAMPSHIRE
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).
NEW JERSEY
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.
NEW MEXICO
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.
NEW YORK
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.
NORTH DAKOTA
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.
OHIO
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.
OKLAHOMA
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.
OREGON
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.
RHODE ISLAND
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.
SOUTH CAROLINA
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.
SOUTH DAKOTA
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.
UTAH
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.
VERMONT
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.
VIRGINIA
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.
WASHINGTON
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.
WEST VIRGINIA
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.
WISCONSIN
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.
WYOMING
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.
SURVEYS Date: June 11, 2001