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On the Road Again. . . Unaffordable Home Energy and Low-Income Mobility

On the Road Again. . . Unaffordable Home Energy and Low-Income Mobility. Roger D. Colton Fisher, Sheehan & Colton National Low-Income Energy Consortium June 2003. Poverty, Mobility and Childhood Education. Disproportionate frequent mobility* Total population: 17% Low-income: 30%

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On the Road Again. . . Unaffordable Home Energy and Low-Income Mobility

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  1. On the Road Again. . .Unaffordable Home Energyand Low-Income Mobility Roger D. Colton Fisher, Sheehan & Colton National Low-Income Energy Consortium June 2003

  2. Poverty, Mobility and Childhood Education Disproportionate frequent mobility* Total population: 17% Low-income: 30% Above $25,000: 10% *Third grader that has changed schools three or more times.

  3. Repeat a grade Behind grade in math Behind grade in reading Drop-out 20% vs. 8% 41% vs. 26% 33% vs. 17% 4x as likely Student Impacts

  4. School Impacts • Difficult to assess education needs of the kids. • Difficult to assess past education experiences (and build on those experiences). • Difficult to identify education gaps. • Difficult to relate new and old curricula. • Difficult to engage in non-instructional tasks.

  5. Economic Impacts • Each annual class of dropouts: $237 billion in lost lifetime earnings. • Lost tax revenues of $70 billion. • Weakens strength of Social Security: • 1950: 17 workers per retiree. • Late 1990s: 3 workers per retiree.

  6. Energy and Mobility:FSC’s Missouri Study • Non-random survey of 813 families: non-urban areas. • All regions of state but far Southeast corner. • Performed through Head Start. • Surveys at time of family interview at entry into Head Start.

  7. Frequent Mobility:The Definition • Moved more than once in previous 24 months. • Moved three or more times in previously 60 months (5 years).

  8. >1 in 24 months: 3 or more in 5 years: Total (36.4%): 37 259 296 Extent of Frequent Mobility

  9. Number of Moves 3 4 5 6 7-9 10+ Total Number of 5-Yr Movers 76 62 39 22 41 19 259 Number of Households by Frequency of Moves

  10. Poverty Level of Frequent Movers • 45% of 5-year frequent movers lived at or below 50% Poverty. • 73% of 5-year frequent movers lived at or below 100% of Poverty.

  11. Frequent Movers: Frequent and Consistent 5-Year Frequent Movers • Only one-quarter reported not having moved within past 24 months. • More than one-third reported expecting to move within next 12 months.

  12. 5-year frequent movers 5-year frequent movers (future) 41.6% “very important.” 10.8% “somewhat important.” 16.7% reported unaffordable energy as cause of move. Causes of Mobility: Unaffordable Home Energy

  13. Insights into “Unaffordable” • Three-fourths of those who listed unaffordable energy bills as “very important” reason for move did not have arrears or disconnect notice. • Nearly half (46%) of those who listed unaffordable energy bills as “very important” did not list “unaffordable rent” or “unaffordable housing” as very important factor.

  14. Frequent mobility: Economic Impacts Concept of the Multiplier Effect Economic activity Increased earnings Supported jobs

  15. 813 x .36 293 x .53 155 Total Frequently mobile Unaffordable home energy Frequent mobility: unaffordable energy

  16. Economic Impacts of Disconnect-induced Mobility • 32 hours devoted to process of relocation. • Valued at average low-wage hourly wage ($8.63/hour). • 80% lack paid leave time.

  17. Economic Impacts of Disconnect-induced Mobility • Assume 1,000 avoided moves. • Impacts from lost wages: • $675,000 economic activity. • $256,000 new wages • 13.4 jobs

  18. Public policy implications • Addressing unaffordable home energy is good, cost-effective education policy. • Set aside school funding issues.

  19. Public Policy Implications • It is appropriate to involve industry in innovative partnerships to promote education and affordable energy. • Consider example of Rochester (NY) landlords.

  20. Public policy implications • Utilities have a role to play in providing leadership as well as money. • Entergy example of IDAs. • NFFN example with EITC.

  21. Public policy implications • Education officials need to take more holistic approach to addressing education needs. • School referrals to fuel funds, LIHEAP, WAP. • Lessons of Belmont school nurses.

  22. For more information: roger@fsconline.com

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