January 16, 2009

Gov. Nixon Provides Additional $8.5 million to Missouri Families to Pay Heating Bills this Winter during Economic Downturn

Jefferson City, Mo. -- Gov. Jay Nixon today provided an additional $8.5 million in funds to Missouri families to help them pay their heating bills this winter during the current economic downturn.

Upon taking office, the Nixon administration reviewed the previous administration’s spending plan for the Low-Income Home Energy Assistance Program (LIHEAP). As a result of the review, Gov. Nixon increased winter crisis funding by an additional $8.5 million, which had previously been held in a caseload adjustment reserve fund that wasn’t benefitting Missouri families. Gov. Nixon’s action coupled with additional LIHEAP contingency funds received from the federal government will eliminate the need for a supplemental appropriation of state funds for this purpose during this legislative session.

“The harsh winter combined with the economic downturn has left many Missouri families unable to pay their heating bills,” Gov. Nixon said. “My administration reviewed the LIHEAP budget carefully and found a way we could provide immediate assistance with no additional cost to the taxpayers. Keeping Missouri families safe and warm during the coldest months of the year will continue to be a top priority for my administration.”

The first payments out of this additional $8.5 million in funding will go toward Community Action Agencies that have already obligated at least 80 percent of their initial Winter Crisis allocation. Those agencies are:

• United Service Community Action Agency in the Kansas City area, which will immediately receive $1.2 million in funding;
• Community Action Agency of St. Louis County, which will immediately receive $900,000; and
• Human Development Corp. of Metropolitan St. Louis, which will immediately receive $1.1 million.

Gov. Nixon has also asked his administration to review and expand the state’s weatherization program that helps Missouri families increase their energy efficiencies and keep their heating bills down. Those recommendations are expected to be completed in the next month.