Concerned with the record high prices of home heating oil, U.S. Senators Olympia J. Snowe and Susan Collins have written to Jim Nussle, Director of the President’s Office of Management and Budget, to request that $5.1 billion for the Low-Income Home Energy Assistance Program (LIHEAP) be included in the 2009 budget.
Just this month, the price of heating oil in Maine topped $3.17 a gallon—a record in our state. Experts predict that, on average, Mainers will spend nearly $2,000 to heat their homes this winter which is nearly ten percent higher than last year.
“With the coming winter, we are deeply concerned with the rising price of heating oil. Already, in some parts of Maine, overnight temperatures are below freezing. LIHEAP funding is critically-important for those who would otherwise be forced to sacrifice the necessities of life such as food, rent, and prescription drugs to pay heating costs. Record high energy prices necessitate increased program resources to ensure that no family is forced to suffer through a severe winter without heat. The assistance provided by LIHEAP has and will continue to save lives.”
Each year, more than 48,000 households in Maine, rely on LIHEAP to assist with the costs of heating their homes each year. LIHEAP is a federal block grant program that provides states with annual funding to operate home energy assistance programs for low-income households. In addition to helping to pay energy bills for low-income families and the elderly, LIHEAP helps to fund energy crisis intervention programs, low-cost residential weatherization and other energy-related home repairs.
A text of the letter follows:
Dear Director Nussle:
As you prepare the President’s fiscal year (FY) 2009 budget request, we urge you to support a funding level of $5.1 billion, the full amount in the most recent authorization, for the Low-Income Home Energy Assistance Program (LIHEAP).
Many Americans are struggling under the burden of high energy prices. According to the Energy Information Administration, households can expect to pay between 10 to 22 percent more for heating fuels than during the 2006-2007 winter. LIHEAP protects public health and safety by helping low-income families pay for these high energy costs. In addition, the program helps low-income homeowners weatherize their homes to save energy and lower their energy burden. Weatherization, on average, reduces heating bills by 31 percent and overall energy bills by $200 to $250 per year.
In FY 2007, LIHEAP appropriations totaled $2.2 billion, $1 billion less than the program’s peak funding in FY2006 of $3.2 billion. This decrease meant that many low-income households eligible for LIHEAP did not receive assistance. Earlier this summer, the National Energy Directors Association conducted a national survey of utility arrearages and shutoffs. The survey estimated that at least 1.2 million households were disconnected from electric and natural gas service during March – May of this year. No family in our nation should be forced to choose between paying an energy bill and putting food on the table for themselves and their children. No senior citizen should have to decide between buying life-saving prescriptions and paying utility bills. For individuals and households that may have to face these difficult choices, LIHEAP makes a real difference in their ability to cope with adverse circumstances.
We believe increased LIHEAP funding should be a top priority in the President’s FY 2009 budget. Your support for $5.1 billion in LIHEAP funding in the fiscal year 2009 budget process would help qualified low-income households receive much needed LIHEAP assistance in the coming year.
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