on the road again. . . unaffordable home energy and low-income mobility
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On the Road Again. . .Unaffordable Home Energyand Low-Income Mobility
Roger D. ColtonFisher, Sheehan & Colton
National Low-Income Energy Consortium
June 2003
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.
Student Impacts
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
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.
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.
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.
Frequent Mobility:The Definition
Moved more than once in previous 24 months.
Moved three or more times in previously 60 months (5 years).
Number of Households by Frequency of Moves
Number of Moves34567-910+Total
Number of 5-Yr Movers766239224119259
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.
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.
Causes of Mobility: Unaffordable Home Energy
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.
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.
Frequent mobility: Economic Impacts
Concept of the Multiplier Effect
Economic activityIncreased earnings
Supported jobs
Frequent mobility: unaffordable energy
813x .36293x .53155
Total
Frequently mobile
Unaffordable home energy
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.
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
Public policy implications
Addressing unaffordable home energy is good, cost-effective education policy.•Set aside school funding issues.
Public Policy Implications
It is appropriate to involve industry in innovative partnerships to promote education and affordable energy.•Consider example of Rochester
(NY) landlords.
Public policy implications
Utilities have a role to play in providing leadership as well as money.•Entergy example of IDAs.•NFFN example with EITC.
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.
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