CAC continues efforts to ensure heating for low-income Hoosiers

The frigid temperatures and heavy snowfalls of the past winter dramatically demonstrated both the shortcomings and the importance of the state's ongoing plan to provide heating assistance to low-income Indiana households. In response to funding and administrative problems at the state and federal levels, CAC and a number of other low-income advocacy organizations joined together beginning in October to improve funding and policy for the 1995-96 winter heating season, and are now working to improve the state's program for future winters.

In October, CAC and a wide range of social service agencies and community organizations came together to discuss a disturbing lack of federal funding for the Low-Income Home Energy Assistance Program (LIHEAP). Federal funding for the program has been steadily decreasing since it was enacted in 1985. Indiana's share of the funding in 1985 was $57 million, compared with $33.8 million in 1995. In response to this threat to the program, the Low-Income Energy Assistance Alliance began to work toward the goal of improving the funding and structure for Indiana's Energy Assistance Program (EAP).

Due to the budget battles going on in Washington last fall, the fate of LIHEAP funding looked bleak. The uncertainty in funding made it difficult for the state to implement contracts with the local community action agencies who actually enroll low-income clients in the program. Largely in response to concerns raised by the Alliance, Governor Bayh announced in November that he would guarantee EAP funding at a level of $25 million.

Although significantly lower than in past years, this funding guarantee (which necessitated dipping into the state's oil overcharge fund) enabled the local community action agencies to begin serving low-income customers. Once enrolled in EAP, low-income customers receive help with their winter heating bills and are covered by the state's moratorium on utility disconnections.

Unfortunately, because of the reduced funding level, the state made the income eligibility levels for the program more stringent, which has resulted in many fixed-income seniors and working poor being ineligible for the program this year.

President Clinton, a strong supporter of the federal energy assistance program, circumvented the budgeting process on a technicality and released significant federal funds for LIHEAP in December, bringing much-needed relief of $14.3 million for Indiana. Smaller federal allocations have followed, bringing the state's total EAP budget to nearly last year's funding levels.

The Alliance has been working with the state to make sure that funding is distributed to needy low-income families in Indiana. The Alliance was instrumental in getting the state to implement a "Post-Moratorium" plan in March that used remaining EAP funds to help pay off the significant utility arrears that many families faced after the bitter winter.

The Alliance is currently working with the state in its planning for next year's heating season to help streamline the state's plan and enable to the state to proceed with EAP even if the federal budgeting process again breaks down.

Regardless of decisions made at the state level, however, the ultimate fate of this energy assistance program lies with Congress. If the trend toward decreasing federal funding for the program continues, Indiana's limited oil overcharge fund simply will not be able to fill the gap much longer.

Write to your Representative and Senators in Washington and urge them to increase funding for a program that spares thousands of Indiana households from the suffering of being without heat.

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