October 06, 2004
October 6, 2004
Families, Seniors, Disabled Expected to be Most Affected by Higher Costs
LANSING – With near-record heating costs expected to place pressure on the heating budgets of families, seniors, and disabled citizens this winter, Governor Jennifer M. Granholm today joined Indiana Governor Joe Kernan and 15 other Governors in sending a letter asking Congress to bolster the federal Low Income Home Energy Assistance Program (LIHEAP) with $600 million in emergency funding.
“We need immediate action in Washington to protect needy households that face utility shutoffs or painful budget choices just to keep warm this winter,” said Granholm. “Our current federal heating assistance is inadequate. Not only has the Bush Administration failed to implement a sound energy policy, but its budget ignores the needs of millions of families whose budgets are strained to the breaking point by unprecedented runaway energy costs.
“Energy costs have skyrocketed more than 50 percent since 2002, yet President Bush’s funding for energy assistance programs grew at a measly 7 percent, barely matching inflation,” Granholm added. “I urge the President to work with Congress so rising energy costs don’t leave more Americans in the cold.”
"With oil and natural gas prices on the rise, the challenge of paying heating bills becomes an even greater problem for some of our most vulnerable citizens," Indiana Gov. Joe Kernan said. "We are hopeful that the federal government will make additional energy assistance available."
Residential heating costs are expected to increase this winter due to energy costs that have increased by more than 50 percent since 2002.
According to the U.S. Department of Energy, residential space-heating expenditures are projected to increase this winter for all fuel types compared to year-ago levels. Increases in heating fuel prices are likely to generate higher expenditures even in regions where demand for fuel is expected to fall. Average residential natural gas prices are expected to be 11 percent higher than they were last winter, and household expenditures are expected to be 15 percent higher. Heating oil prices are expected to average 29 percent higher compared with last winter and household expenditures are expected to be 28 percent higher. Propane prices are expected to average 17 percent above last winter, with 22 percent higher expenditures for propane-heated households.
If emergency funding is approved by Congress and the President, Michigan would gain about $50 million in additional funding to assist families placed at the most risk from escalating winter fuel prices. With the emergency funding, the state could provide an additional $200 toward heating and electric bills for about 52,000 needy families, and could also expand the program to 60,000 new households by raising the income eligibility limits of the program.
Michigan currently receives $96 million in federal funds, providing an average $251 in heating bill assistance to less than one-third of eligible residents. Nationwide, federal funds provide relief to approximately 20 percent of eligible low income households.
According to a survey of the National Energy Assistance Directors’ Association, approximately one of four people served by the LIHEAP program reported that energy bills caused them to miss a mortgage or rent payment or prevented them from buying medicine. At least 30 percent reported using their stove for heating at some point, exposing families to greater risk of harm and death from house fires or carbon monoxide poisoning. The greatly successful LIHEAP program helps predominantly seniors, disabled individuals, and families with small children who would otherwise spend a disproportionate amount of their income on home energy bills.
A bipartisan coalition of nearly 100 Members of Congress has requested the $600 million increase in LIHEAP funding be included in the emergency supplemental funding bill to address Hurricane Charley, Frances, Ivan and other emergency needs prior to Congress adjourning in advance of the elections next month.
