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).

Extent of Frequent Mobility

>1 in 24 months:3 or more in 5 years:Total (36.4%):

37259296

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.

For more information:

roger@fsconline.com