Florida program to help low-income families with utilities runs out of funds

A state-run program using federal money to help low-income residents pay utility bills ran out of funding authority. And although state officials are working to solve the issue, operators of the nonprofits who administer the program fear the people they serve will suffer.

“I’m going to have to lay off staff and I can’t provide services to clients,” said Tim Center, CEO of the Capital Area Community Action Agency, a Tallahassee-based group that uses grants to help low-income residents pay bills.

On April 7, Center’s group and 29 others across the state received a letter from Department of Economic Opportunity (DEO) Deputy Secretary for Community Development Benjamin Melnick saying the agency had run out of budget authority for four programs: the Low-Income Home Energy Assistance Program (LIHEAP), the Low-Income Household Water Assistance Program (LIHWAP), the Weatherization Assistance Program and the Community Services Block Grant (CSBG) program.

The programs provide help to low-income families for heating and cooling costs, water costs, upgrades to make homes energy efficient and a variety of anti-poverty services including emergency health, housing and job counseling aid.

The effort usually receives $86.1 million per year, which usually handles all expenses. But this year its funding authority dwindled to $3.5 million by January.

Lawmakers on the Joint Legislative Budget Commission approved a DEO request in February for another $49.6 million in funding authority for the programs in February. But those projections were outpaced by a surge in demand for the program and higher energy costs.

“With an unprecedented demand for services this year due to inflation, Hurricane Ian, wildfires and other disasters, DEO is reaching its limit for available funds in three programs,” DEO spokeswoman Rose Hebert wrote in an email. “We are in no way holding back funding and we continue to work with Community Action Agencies to provide services for Floridians.”

Center estimates his group serves about 1,000 people per month. If he doesn’t receive funds, he can’t provide services until the next fiscal year, which starts July 1.

“I would have to dip into all of our reserves and our line of credit until we were able to recover funds from the state,” Center said. “The reality is I can’t make it that far. I would have to furlough staff.”

But DEO officials and lawmakers say they are working on a way to open up more funding authority for the programs.

“I am happy to help support the effort to ensure that needed services are received by Floridians. I am engaged with DEO and appropriations staff to secure sufficient budget authority to meet the unprecedented demand,” Sen. Corey Simon, a Tallahassee Republican, posted on Twitter on Tuesday.

Last week, Simon sent a letter to Senate budget chief Sen. Doug Broxson, a Gulf Breeze Republican, urging him to expand funding authority for the programs.

Lawmakers can insert more budget authority for DEO into the budget they are currently negotiating. Although the budget year doesn’t begin until July 1, they can approve more funding for the programs in the current fiscal year. But the programs won’t receive the funds until Gov. Ron DeSantis signs the budget, which likely won’t be until mid-May at the earliest and could be as late as mid-June.

Still, lawmakers are confident they’ll get money flowing to the programs soon.

“It’s an important program, it’s something people rely on, so I would hope the Legislature wouldn’t let them hang out to dry,” said Sen. Blaise Ingoglia, a Spring Hill Republican who has also been working to get more funding for the program.