Legislators propose additional fuel aid

    AUGUSTA – State legislative leaders are proposing to release state funds to supplement a federal heating assistance program. The details of the state’s proposal were announced the day after an economic stimulus package failed to pass muster in the U.S. Senate that would have delivered more heating funds to states.     With federal heating assistance having been nearly exhausted and with months of freezing weather still ahead, legislative leaders are taking action by proposing emergency funding for home heating assistance for Mainers. A wide, bipartisan group of legislators have signed on to the legislation that would release up to $5 million in funds from the Budget Stabilization Fund to supplement the federal Low Income Home Energy Assistance Program, commonly known as LIHEAP. 
     “Congressional efforts to secure additional heating aid for states like Maine, failed in the U.S. Senate,” said Speaker of the House Glenn Cummings, the initiative’s primary sponsor. “Time is running out to get these funds into the hands of the Maine people that need them. In this time where we face the pressures of a national economic downturn and rising energy costs, we need to put money in the hands of the people who need it most, and we need to care for our neighbors. This requires immediate action.”
    In December Pres. George W. Bush was in a budget battle with Congress that included a disagreement over whether or not to increase LIHEAP funding this year. With crude oil prices at record highs and home heating oil costing more than a dollar more than last year, Congress prevailed in their efforts to increase funding for the states. The LIHEAP assistance offered by the Maine State Housing Authority is not enough to purchase even one tank of oil for a Mainer in need this winter, even after additional federal funds, due to the increased oil costs. With such reduced benefits, MSHA has already expended nearly 85 percent of the funding needed to last the entire winter. With the additional state funds, legislators hope that the average benefit can be increased to a full 275 gallon tank.
     “While the federal government did provide LIHEAP assistance, it is not enough to help lower-income families meet the challenges of paying their fuel bill, and putting food on the table and keeping up with rent or paying their mortgages, said Sen. Peggy Rotund (D- Androscoggin). “Over the past several years when the economic climate was better, we wisely put funds away in the Budget Stabilization Fund, also known as the ‘rainy day fund.’ It might not be raining today, but it is snowing.”
    As the state tries to balance its budget in the face of reduced federal support for Medicaid, many are seeing the increased support for LIHEAP as a way to spur local economies. A study conducted several years ago by Mark Zandi, chief economist of Moody’s Economy.com, found that the most efficient way for the government to boost the economy  was to increases unemployment benefits, which produced about $1.73 in additional demand for every dollar spent. Next on his list was to provide states with federal support so they don’t have to cut their own programs. Zandi determined this would provides $1.24 in increased spending for each $1 it costs, while a targeted tax cut provides $1.19 boost and reductions in tax rates produced only 59 cents per dollar.
    “All  too often we are here to call on the federal government to fulfill its responsibilities,” said Rep. Jeremy Fischer (D- Presque Isle). “But our collective voices are growing weary. That’s why we must act and why we will act. This issue matters to our constituents across the state and it unites this legislature in a bipartisan manner.”
    Rep. James Campbell (R- Newfield) spoke of the need he sees, especially among the elderly members of his district. 
     “People living on fixed incomes just can’t bear the high cost of oil,” Campbell said. “We’ve all seen the stories in the papers about people dying in fires because they were desperately trying to stay warm. That’s no way to treat our elderly neighbors, not in America.”
     Michelle, a woman who now works at KVCAP answering incoming phone calls from people seeking assistance, formerly received benefits from the LIHEAP program. She spoke about the desperate need she hears from families and the elderly who need the help LIHEAP offers.
     “I get a lot of the calls from our clients who are in desperate need of this extra funding,” she said. “They’re making choices of buying their medication, preparing food for their families or buying their heating oil.”
     Susan McCormick, who helps to administer the LIHEAP program for the Kennebec Valley Community Action Program, spoke of the increased demand she is seeing this year.
    “Every day we’re dealing with families like Ralph and Loraine of Casco,” said McCormick. “Ralph is 88 years old and he’s blind; his wife is 90. They survive solely on Social Security income and cannot fill their heating oil. Last year we served almost 47,000 with LIHEAP assistance and this year we expect 50,000. Of these, half are seniors or children under two.”
     The legislation is currently being circulated for co-sponsorships and could appear on the House Calendar as early as Tuesday.