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View Diary: LIHEAP: Obama Hates Poor People (217 comments)

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  •  Your economic ignorance screams volumes (5+ / 0-)

     So, despite your problems, you are going to be “asked” to sacrifice. Your president is planning to cut $2.6 billion from Low Income Home Energy Assistance Program (LIHEAP), which helps people afford keeping their homes warm during the winter, despite the fact that due to the economic downturn the number of poor people needing help has increased significantly.

        As a result of your going without heat next winter, we will be able to afford almost one whole week of fighting the wars in Iraq and Afghanistan, which cost about $468 million a day. Although when you add in the many hidden costs like increased long-term veteran’s health care due to the conflicts, your sacrifice is probably only really going to cover maybe half a week.

    Administration’s Rationale for Severe Cut in Low-Income Home Energy Assistance Is Weak

    The President’s 2012 budget proposes cutting funding for the Low Income Home Energy Assistance Program (LIHEAP) from the $5.1 billion enacted for 2010 to just $2.57 billion, a 50 percent reduction.  The Administration’s rationale is that Congress sharply increased LIHEAP funding for fiscal year 2009 in response to a substantial energy price spike in 2008, and that the proposed cut merely “returns LIHEAP funding to historic levels received for 2008 prior to the energy price spikes.”  As the following analysis shows, however, this rationale is unpersuasive in three respects.

        * Funding for LIHEAP in 2007 and 2008 had fallen behind increases in energy prices, making the 2008 funding level a poor standard for next year’s funding level.  (See Figure 1.)

        * While the Administration correctly notes that home energy prices are lower now than when they peaked in mid-2008, the prices that matter most for LIHEAP are those in the winter heating season.  Department of Energy forecasts show that next winter these prices will be back to their 2007-2008 levels and will be higher than in any other winter heating season in the 2000-2010 period.

        * As a result of the 2007-2009 recession and the sharp increase in poverty and unemployment, the number of low-income households eligible for and needing home energy assistance in 2012 will be much larger than it was in 2008.

    Thus, cutting LIHEAP back to 2008 levels would significantly shrink the already-low percentage of eligible low-income households that the program would be able to help.  Put another way, cutting LIHEAP back to 2008 levels would mean a sharp reduction in LIHEAP’s effectiveness, not a return to “normal.”

    Pro Life??? Conservatives want live babies so they can raise them to be dead soldiers!- George Carlin

    by priceman on Mon Feb 21, 2011 at 11:44:48 PM PST

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