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Unless otherwise indicated, all years referred to in this report are fiscal years. Details in the text and tables of this report may not add to totals because of rounding. |
The rapid increases in energy prices that took place during the last decade greatly increased household expenditures on energy and led the Congress to establish a series of programs to help low-income households cope with high energy costs. This report, prepared at the request of the Senate Budget Committee, examines the current burden of high energy costs on low-income households and analyzes issues and options relating to the design of future energy assistance programs. In keeping with the Congressional Budget Office's mandate to provide objective and impartial analysis, this study offers no recommendations.
Lynn A. Paquette, of the Human Resources and Community Development Division
of CBO, prepared the paper, under the supervision of Martin D. Levine and
Nancy M. Gordon. The author wishes to acknowledge the invaluable contributions
of many persons, including Ken Cahill, Alan Cohen, Everett Ehrlich, Steve
Sheingold, and Reuben Snipper. Numerous people at the Community Services
Administration, the U.S. Department of Energy, and the U.S. Department
of Health and Human Services gave useful technical assistance. Francis
Pierce edited the manuscript. Mary Braxton, Jill Bury, and Andy McDonald-Houck
typed the many drafts. Mary Braxton, with Toni Wright, prepared the final
paper for publication.
Alice M. Rivlin
Director
June 1981
SUMMARY
CHAPTER I. INTRODUCTION
CHAPTER II. DISTRIBUTIONAL EFFECTS OF ENERGY PRICES INCREASES
CHAPTER III. GOALS OF ENERGY ASSISTANCE PROGRAMS
CHAPTER IV. ISSUES AND OPTIONS
APPENDIX. THE FEDERAL GOVERNMENT'S RESPONSE TO THE BURDEN OF HIGH ENERGY PRICES ON LOW-INCOME HOUSEHOLDS
| TABLES | |
| 1. | SUMMARY OF LOW-INCOME ENERGY ASSISTANCE PROGRAMS, FISCAL YEARS 1977-1981 |
| 2. | ESTIMATED AVERAGE ANNUAL HOUSEHOLD EXPENDITURES ON HOME ENERGY AND GASOLINE, BY INCOME CLASS AND REGION, FISCAL YEAR 1981 |
| 3. | ESTIMATED AVERAGE ANNUAL HOUSEHOLD EXPENDITURES ON HOME ENERGY, BY INCOME CLASS AND REGION, FISCAL YEAR 1981 |
| 4. | ESTIMATED AVERAGE ANNUAL HOUSEHOLD HOME ENERGY EXPENDITURES, BY TYPE OF FUEL USED FOR HEATING AND REGION, FISCAL YEAR 1981 |
| 5. | ESTIMATED AVERAGE ANNUAL HOUSEHOLD GASOLINE EXPENDITURES, BY INCOME CLASS AND REGION, FISCAL YEAR 1981 |
| 6. | PROVISIONS OF THE 1981 LOW-INCOME ENERGY ASSISTANCE PROGRAM AND OF SELECTED 1982 ENERGY AND EMERGENCY ASSISTANCE PROPOSALS |
| 7. | NUMBER OF HOUSEHOLDS ELIGIBLE FOR ENERGY ASSISTANCE AND AVERAGE BENEFIT PER ELIGIBLE HOUSEHOLD, UNDER VARIOUS INCOME ELIGIBILITY CRITERIA, IF FUNDING WERE $1.4 BILLION, FISCAL YEAR 1982 |
| 8. | ESTIMATED AVERAGE HOME ENERGY EXPENSES AND ENERGY ASSISTANCE ALLOTMENT FOR HOUSEHOLDS ELIGIBLE FOR LOW-INCOME ENERGY ASSISTANCE, BY REGION, FISCAL YEAR 1981 |
| A-1. | AVERAGE HEATING DEGREE DAYS, AVERAGE HOME ENERGY EXPENSES OF LOW-INCOME HOUSEHOLDS, AND AVERAGE ENERGY ASSISTANCE ALLOTMENT PER LOW-INCOME HOUSEHOLD, BY REGION, FISCAL YEAR 1980 |
| A-2. | HOUSEHOLDS SERVED AND THEIR AVERAGE BENEFITS UNDER THE 1980 LOW-INCOME ENERGY ASSISTANCE PROGRAMS |
Since 1977, the federal government has provided assistance to low-income households to help them deal with high energy prices. Funding for low-income energy assistance has risen from $200 million in that year to $1.85 billion in 1981. A number of proposals now before the Congress would authorize such aid for future years as well. These proposals, like the current program, would provide block grants to states to be used to offset low-income households' high costs for energy to heat (or cool) their homes, and some of them would also help households facing other types of emergency situations. While the proposals differ in several significant respects, all would continue earlier federal commitments to help protect low-income persons from the burden of high energy prices.
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