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HomeMy WebLinkAboutAgenda - 12-13-2005-9aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 13, 2005 Action Agenda Item No. 9_Q SUBJECT: Transfer Funds From the Critical Needs Reserve to Social Services for Emergency Energy Assistance for Low-Income Families DEPARTMENT: Social Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Report on Emergency Assistance Programs INFORMATION CONTACT: Nancy Coston, 245-2800 PURPOSE: To consider appropriating $102,865 in additional County funds to help address increased emergency needs of low-income families due to rising energy costs and increased numbers of eligible families. BACKGROUND: The Department of Social Services (DSS), through its emergency assistance programs, provides a safety net for families experiencing crises. A number of factors indicate that the demand for emergency assistance will be high this year and greater than the funds currently available. During the first four months of last fiscal year, DSS spent $74,140 on emergencies, which compares to this fiscal year's spending for the first four months of $95,865. Another area of concern is that the number of families receiving Food Stamps in Orange Ccunty has continued to grow each year including an increase from 2,562 families in October of 2004 to 2,904 families in October 2005, an increase of 13%, The Food Stamp program is usually a goad indicator of the effect of economic conditions on low-income families and often forecasts the level of need for other assistance, Additionally, there are significant increases projected in energy costs, including approximately 50% in natural gas costs. The current number of needy families, the increased spending for the current year, and the increased costs for fuel and electricity are creating concern about the department's ability to meet the needs of the residents of Orange County, particularly as the winter season begins. The County Manager's office and Social Services staff recently held discussions with the various energy providers as well as partner agencies providing assistance to Orange County families. Efforts are underway by all parties to protect the most vulnerable families and to make sure that the agencies and families effectively utilize all available avenues to assure that families can obtain needed services during the coldest months, Even with recent collaborative efforts between the energy providers and the NC Governor's office (affirmed by the Council of State on December 6) that will result in additional funds of $3,4 million to address the needs of low-income families this winter, Social Services still anticipates a need for additional local funds to serve needy families in Orange County. The amount of new funds to be made available to DS5 directly as a result of the Governor's action is not known yet; however, staff estimates $30,000-$40,000 will be provided, Additional funds contributed by the energy providers are disbursed by the state to local partner agencies; i.e., IFC and OCIM for administration. FINANCIAL IMPACT: The chart below provides a summary of current as well as projected increases to the total funds administered by DSS far emergency assistance, including the requested amount of $102, 86,5, as requested in this abstract, ngma i Iona - ewse ource o Account Budget Appropriation Budget Appropriation Crisis Intervention Program $135,035 $23,965 $159,000 State Funds Emergency Assistance(TANF) $110,000 $0 $110,000 ,ounty mica ee s General Assistance $112,000 $102,865 $214,865 Reserve Funds Total: $357,035 $126,830 $483,865 Commissioners appropriated $440,000 to the Critical Needs Reserve far fiscal year 2005-06, To date, the Board has authorized appropriations from the Reserve totaling $128,968, leaving an unallocated balance of $311,032. (If the Board approves the allocation of $19,739 from the Critical Needs Reserve for the C.JPP Grant Acceptance on the Consent agenda for tonight's meeting, the unallocated balance would be $291,293.) With the approval of $102,865 to help address increased emergency needs of low-income families due to rising energy costs and increased numbers of eligible families, $188,428 would remain in the Reserve fund. Should the Board approve this appropriation, budget staff will bring forward a budget amendment at the next BOCC meeting to transfer $102,865 from the Reserve to the Department of Social Services Budget. RECOMMENDATION(S): The Manager recommends that the Board approve the transfer of $102,865 from the Critical Needs Reserve Fund to the Department of Social Services to be used for emergency assistance. Emergeneyy Assistance Programs November 2005 Social Services The following programs are administered by the Department of Social Services: 1. Crisis Intervention Program (CIP) Eligibility criteria are set by the state.. There is an annual maximum household benefit of $.300. These are 100% federal funds and must be used for heating and cooling crises. 2. Emergency Assistance through the Work First Block Grant (TANF-EA). The Social Services Board determines the eligibility criteria and families are limited to $150 in any six-month period. These funds can be used for any type of emergency, Although this particular program only pays a maximum of $150, agency staff work with the families and with various non-profit agencies such as Interfaith Council and Orange Congregations in Mission to meet the particular any crises requiring more than $150.. All recipients are referred for financial counseling and must have met with a financial counselor prior to applying for assistance a second time in a twelve-month period.. .3. County General Assistauce The same rules and limits apply to these funds as apply to the Emergency Assistance through the Work First Block Grant. Work First funds, however, can only be used for families with minor children whereas the County General Assistance funds can be used for all populations. 4. Guarantor Program In 2001, the County established a guarantor program with the utility providers. This allows the County to guarantee payment of deposits if families default rather than paying the deposits to initiate service. The County is released as the guarantor after the family establishes a successfiil payment history with the utility company (usually twelve months), The County has used this approach with Duke Power, Piedmont Electric and PSNC. Budget and Expenditures During Fiscal Year 200:3-2004, a total of $.315,6.30 was used for emergency assistance, During the past year a total of $426,966 was spent for emergencies, For the current fiscal year, Social Services has a total current budget of $357,035. Late in November, the Governor announced that some additional funds would be added to the CIP program. Although the individual county allocations have not been released, it is anticipated that this will result in Orange County having a total budget of approximately $380,000. Many states including North Carolina have requested that the federal govenunent release emergency energy funds but no action has yet been taken by either the administration or Congress. Previous Year Expenditures All of last year's federal CII' funds and about 60% of the Work First and county emergency funds were expended for electricity, natural gas, fuel oil and wood. July 2004-June 2005 Crisis Intervention Program Work First EA County General Assistance Total Clients Exp 1052 $195,498 1112 $115,521 1208 $115,947 3.372* $426,966 Comparison of First Quarter Spending of Current Year to Last Year Social Services has spent 29% in the first quazter of this year compazed to the spending for this time last year. FY 2004 (Jul-Oct) Clients Exp Crisis Intervention Program Work First EA County General Assistance Total 19 $ 2,952 .379 $36,286 38G $.34,902 784* $74,140 FY 2005 (Jul-Oct) Clients Exp 32 $5,616 422 $47,518 394 $42,731 848 $95,865 `These numbers represents incidents and is not an unduplicated count of clients. IIowever, so far ibis year, 90% of the families have received assistance one time only. 5 Information on Utility Providers: Recent contacts between county staff and utility providers indicate rate increases in several areas, particularly in fuel oil and natural gas. PSNC has already increased its rates 48% over last year and Duke Power residential rates haves increased 3% during this time period:. The large utility providers have a longstanding interest in being proactive in helping families handle increased costs and in assuring safety of vulnerable residents. Most have third party notification, medical alert and/or special needs programs and policies that attempt to reach families before any disconnect orders are issued. Many providers also increased the funds provided to assist low-income families during the winter months, Specific information about the options and opportunities available through each utility provider is maintained by the Department of Social Services staff and updated annually. Community Agencies The funds provided by the utility companies are handled directly by the non-profits in the community. Interfaith Council and Orange Congregations in Mission will receive most of these funds and coordinate their efforts with the Department of Social Services. These agencies have also experienced increased demand over last year. Although an increase in funds is expected, these agencies also expect to need additional funds through other charitable sources to meet the lazger demand and costs. Issues Social Services has analyzed prior year data as well as current spending patterns and utility rate increases.. In order to estimate the potential need for this year, the following factors were considered and compared to last year's total spending of approximately $427,000: • Based on the increased number of families needing emergency assistance so far' this year and the Food Stamp increase, DSS estimates an increase of 10% or' $42,700 due to additional eligible families of 10 to 15% over last fiscal year. This would be in addition to any increase created by the cost of utilities. • Since payment of electric bills accounts for 5.3% of total costs and rates have increased 3%, estimate a total increase of $6,789. • Since payment of gas and fuel oil accounts for 25% of total costs, estimate a total increase of $5.3,:375 based on rate increases of 50%. • Since DSS received additional federal funds last year, assume that these will again be available and at least match what was available last yeaz (roughly $40,000). If this does not occur, DSS may need additional funds beyond the current estimates.