August 20, 2008 – (RealEstateRama) — Governor M. Jodi Rell today announced new details of the legislation she will offer Friday to provide winter heating assistance to Connecticut residents, especially middle-income homeowners caught between shocking increases in energy prices and the costs of necessities such as staple foods, gasoline and other everyday needs.
The legislation increases funding for financial aid for people with incomes between 151 percent and 200 percent of the federal poverty level, and for people with incomes up to 100 percent of the state median income. The plan also expands funding for programs that serve the elderly, rebates on furnace improvements or replacements, aid to municipalities to heat classrooms and grants to non-profits to help pay their heating costs.
“No one will be immune from the financial burden this winter is bringing,” Governor Rell said. “All over this state, families are sitting down at the kitchen table and looking at the checkbook – especially if they have already received an early heating oil delivery – and asking themselves how they are going to make it. With gasoline still near $4 a gallon and heating oil around $5 a gallon, the directors of social service agencies and bookkeepers in local school districts are asking the very same questions.
“We are crafting an assistance package that is as broad-based as possible,” the Governor said. “The special session scheduled for Friday is critical to the welfare of our entire state. I am confident this bill will get bipartisan support and I look forward to swiftly signing it into law.”
The increases in funding levels are possible because the surplus for the state budget year that ended June 30 is likely to be higher than originally expected. Governor Rell is recommending that unallocated funds from the surplus be placed into a reserve account to be used, if needed, later in the winter heating season.
The Governor’s legislation includes:
– Reduce the minimum delivery of heating oil to 100 gallons. (Many oil companies require cash payments and Governor Rell believes many families may be unable to afford 150 gallons.)
– Modifying the language of the furnace rebate program to allow the prior year’s tax return to be used for income eligibility determination (this will speed the refund process) and confirming that the rebate is not subject to state taxes.
– Appropriating $10 million from the surplus (up from $5 million) to provide funding for Operation Fuel, so it can give heating assistance to people with incomes between 151 percent and 200 percent of the federal poverty level.
– Appropriating $6 million from the surplus (up from $3 million) to provide funding to Operation Fuel, so it can give heating assistance people with income greater than 200 percent of the federal poverty level, up to 100 percent of the state median income – currently $93,821 for a family of four. (This is targeted at middle-income families who earn too much to receive state assistance but may need emergency help during the coming winter.)
– Appropriating $6 million from the surplus (up from $3 million) to the Office of Policy and Management to provide home heating assistance to senior citizens.
– Requiring home heating oil dealers who sell prepaid contracts to purchase futures or similar agreements to cover 80 percent of the oil they are required to provide (current law requires them to cover 75 percent of the oil through these agreements).
– Requiring home heating oil dealers to report on prepaid contracts they have made and the futures or other agreements they have made to guarantee those prepaid contracts to the Department of Consumer Protection (this is to better monitor the fiscal health of oil companies to guard against bankruptcies that could negatively affect consumers).
– Appropriating $7.5 million from the surplus (up from $5 million) to OPM to help municipalities pay to heat classrooms. Grants not to exceed $7,500 per building.
– Appropriating $4 million from the surplus (up from $2 million) to provide heating assistance to non-profit organizations that are human or health services providers.
– Appropriating $3 million from the surplus to OPM to expand the funding for the furnace repair or replacement rebate program.
– Appropriating $2 million from the surplus to the Department of Economic and Community Development expand the funding for the energy conservation loan program.
– Appropriating the remainder of the surplus from Fiscal 2008 to OPM to be deposited in an energy contingency account for use during Fiscal 2009 for future home heating assistance. If funds remain at the end of FY09, they will be transferred to the Rainy Day Fund.
– Modifying state law to provide that 50 percent of abandoned utility deposits and refunds that escheat to the state will be paid to Operation Fuel to be used for administrative expenses related to the increased assistance the agency is providing under this legislation,
– Continuing for two years: tax credits that expired on January 1, 2008, concerning vehicles that run on alternative fuels; the exemption from the motor fuels tax for propane, which expired on July 1, 2008; and the exemption from the gross earnings tax for propane used as a motor fuel, which expired on July 1, 2008.
– Expand the loan program for energy conservation installations to homeowners with incomes up to 200 percent of the area median income.
Contact:
860-524-7313
