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News Published: Sep 12, 2008 - 10:30:06 AM


Governor Rell enlists Congressional delegation in seeking added federal heating aid

By Governor Rell's office


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Governor Also Asks Delegation to Help Resolve Issue between IRS, Operation Fuel

Governor M. Jodi Rell today said she has asked the Connecticut Congressional delegation to make full funding of the federal winter heating aid program its top priority as the House and Senate work toward final action on a variety of issues.

Governor Rell also asked the members to help her work with the Internal Revenue Service to resolve an issue involving Operation Fuel, Inc., that could result in the heating assistance agency paying a $6,000 fine.

“These citizens and many middle-class families across the state are rapidly approaching a tunnel – and they do not see a light at the other end,” the Governor said in a letter to the seven-member delegation sent Thursday. “They know winter is coming. They know heating oil may well cost about $5 a gallon. They also know gasoline – while down from its summer highs – is still closer to $4 a gallon than $3 a gallon. And they know the costs of food, medicine, electricity and other needs have not retreated.

“They know that the national economic downturn persists,” Governor Rell said. “And they know that while Connecticut has so far fared better than most states in the union, the effects of that slump are being felt everywhere, every day, nonetheless. They are looking for a reason to be hopeful.”

The federal Low Income Home Energy Assistance Program (LIHEAP) is the main funding source for the Connecticut Energy Assistance Program (CEAP), which serves low-income, elderly and other vulnerable households.

The Governor asked the delegation to support proposals from the New England-Midwest Coalition in both the House and Senate to increase LIHEAP funding by at least $2.5 billion. She also asked the members to help her urge the White House to release the remaining $125 million in LIHEAP contingency funding that – unless it is disbursed this month – will lapse on September 30.

Governor Rell has proposed a 28 percent increase in CEAP funding for this year, knowing that the high prices of food and energy are placing a tremendous strain on many Connecticut household budgets. The General Assembly recently proposed spending even more on CEAP.

“Whatever the final shape of the state’s CEAP plan, one thing is certain: We need a sizable increase in LIHEAP funding,” the Governor said. “The need for prompt, decisive federal action on LIHEAP could not be clearer.”

In the letter, Governor Rell also outlined a problem facing Operation Fuel, which serves people in Connecticut who need winter heating aid but who do not qualify for CEAP.

Operation Fuel was fined $100 a day for inadvertently filing IRS Form 990 – a required annual statement for non-profits outlining their mission, finances and programs – 60 days late.

“Operation Fuel’s appeal to the IRS has already been rejected,” Governor Rell told the state’s federal lawmakers. “However, I am certain you will agree that the $6,000 fine would be far better used to provide life-giving warmth to a family in need than in paying a penalty for an unintentional oversight. Indeed, I suspect the IRS would agree, were the full facts of the matter conveyed to them. I am asking you to help me in making sure the situation is fully explained and this matter resolved.”

Last month Governor Rell called the General Assembly into special session to pass legislation that provides a wide range of winter heating assistance programs for hard-pressed Connecticut consumers. The plan devoted the small surplus from the state budget year that ended June 30 to programs such as Operation Fuel, rebates and other assistance for homeowners who make energy efficiency improvements and aid to municipalities and non-profit human services agencies dealing with high energy costs.




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