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The problem with cutting LIHEAP has nothing to do with energy prices. It's about NEED.

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Lyric Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 03:29 PM
Original message
The problem with cutting LIHEAP has nothing to do with energy prices. It's about NEED.
We have more people today that NEED that program than we did back in 2008. We might cut the funding level back to what it was in 2008, but we can't cut the NEED level back to what it was in 2008. The need is created by more than just energy prices, and reduced energy prices do not equal reduced need.

A simple analogy. Let's say that I run a soup kitchen that serves 100 people a day, and I get federal funding equivalent to that. When added together with the charitable donations that I receive from private individuals and groups, the total is exactly enough to fill the needs of the people I serve, and no more. Now, let's say that the economy crashes and potato prices skyrocket SO much that the government doubles my funding. Okay, great--I can maintain. Thanks, federal government! But because of the economy crash, more people lose their jobs while fewer people can afford to give me private donations, and I start to see my client base increasing while my resources are slowly decreasing. Well, okay...it's tough, but I manage to cut a few corners and keep things going.

Two years later, potato prices are lower. However, I am now serving 200 people, and private donations are still slowly dwindling. I'm still maintaining though, because I still have that increased level of funding from the government. Unfortunately, the government takes a look at the price of potatoes and says, "Golly gosh! The prices dropped! Time to get rid of that funding increase." And just like that, my federal funding is cut in half.

I am now serving a greater NEED than ever, far more people than I was in 2008, but I will no longer have the funds to meet that need. The end result? I am forced to serve much smaller portions to the people I CAN serve, and to turn other people away completely. The government based its decision on the price of potatoes instead of the actual cost of meeting the ever-increasing NEED for the service I provide.

This, in a nutshell, is why the LIHEAP reduction is so terrible. Energy prices might have gone down, but the program now serves many more people than it did in 2008. That increased level of need is not going to disappear just because the funding does. State welfare agencies will be forced to reduce the amount of help that people get, and to turn away other people completely. People WILL suffer. Heat WILL be cut off for families who have no other way to keep those bills paid. The President has supposedly promised to revisit the decision if energy prices spike again, but that's a hollow promise, because energy prices are not the only important factor. NEED is just as important, and in this case the level of need has skyrocketed because of the economy crash and job losses.

These cuts are scary news for people who desperately need their LIHEAP subsidies to keep their energy bills affordable during the winter months. Trying to pretend like the liberal outrage about this decision is nothing more than a plot by malcontents to hurt Obama is a serious kick in the teeth to those of us who are struggling with poverty right now.
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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 04:28 PM
Response to Original message
1. Is this cut for the actual energy assistance or for weatherization?
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Lyric Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 04:31 PM
Response to Reply #1
3. The actual energy assistance.
LIHEAP basically makes payments to your utility company on your behalf. It usually covers somewhere around 40-50% of the cost.
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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 04:49 PM
Response to Reply #3
4. While I hate to see that cut as I get it there is one thing about that
particular cut. Emergency funding is often instituted when weather is bad or prices rise. So while we cut now we can still have hope they will cover it in the end.
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JVS Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:09 PM
Response to Reply #1
8. Many poor people rent, and thus have very limited options as far as weatherizing is concerned.
I'd love to have better insulation in my apartment, but I really can't make much happen beyond putting plastic on the windows.
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superduperfarleft Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:15 PM
Response to Reply #8
12. :nods as the wind rattles his window around in the pane next to him:
I'm not poor by any means, this dump is just the best house I can afford in this city.
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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-16-11 11:44 AM
Response to Reply #8
22. Yes, it is too bad there was not some provision for fixing up rentals.
However, the owners may not have wanted that as they would have to comply with low-rent rules.
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LoZoccolo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 04:29 PM
Response to Original message
2. "We have more people today that NEED that program than we did back in 2008."
Document or retract.
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Hello_Kitty Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:00 PM
Response to Reply #2
7. Here ya go. Click on states and see the increases.
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hfojvt Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:11 PM
Response to Reply #2
9. well the Census Bureau said this
"In 2009, 43.6 million people were in poverty, up from 39.8 million in 2008 — the third consecutive annual increase in the number of people in poverty."

Another 3.8 million living in poverty from 2008 to 2009.

And the BLS said that 4.7 million jobs were lost in 2009 and only 909,000 gained in 2010.

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Name removed Donating Member (0 posts) Send PM | Profile | Ignore Mon Feb-14-11 05:23 PM
Response to Reply #2
15. Deleted message
Message removed by moderator. Click here to review the message board rules.
 
Bonobo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 09:03 PM
Response to Reply #2
21. Now admit it is true or stop yapping. It was and is obvious.
Edited on Mon Feb-14-11 09:03 PM by Bonobo
Now you have the stats.
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Hello_Kitty Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 04:51 PM
Response to Original message
5. I said the same thing in another thread
Indexing the funding to wholesale fuel prices only makes sense if the number of people using the assistance remains constant. If there's a 20% decrease in fuel but millions more people request assistance then the need is going to be greater regardless of the fuel price.
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Lyric Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 09:00 PM
Response to Reply #5
20. Precisely.
That's why the pretense that all of this outrage is just manufactured to damage Obama is so upsetting. It dismisses the VERY real pain of the people who are suffering the most right now. LIHEAP is one of those programs that does nothing but good. Money isn't handed to people--the payments generally go directly to the utility companies. It literally saves lives. That's the kind of program that should be the LAST thing to be cut during a financial pinch.

We can't afford LIHEAP, but we could afford extravagant tax cuts for millionaires? It makes my stomach turn.
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cali Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 04:53 PM
Response to Original message
6. excellent. recced n/t
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Tierra_y_Libertad Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:12 PM
Response to Original message
10. Here's where Obama sees the "need".
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Shining Jack Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:14 PM
Response to Original message
11. K&R
You're very good at explaining complex issues.
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Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:16 PM
Response to Original message
13. k&r
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bullwinkle428 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:19 PM
Response to Original message
14. K&R. Those of us that spoke out against the tax cut extension for
the rich were roundly derided as "enemies of the unemployed", so the opportunity to turn the tables on that one is long overdue!
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Hello_Kitty Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 06:49 PM
Response to Reply #14
19. Funny, that.
They weren't too worried about the deficit then either. Now they are.
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CrownPrinceBandar Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:27 PM
Response to Original message
16. Kick and rec.
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leftstreet Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Feb-14-11 05:28 PM
Response to Original message
17. K&R
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TriMera Donating Member (885 posts) Send PM | Profile | Ignore Mon Feb-14-11 05:30 PM
Response to Original message
18. k&r. n/t
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