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% Above $25,000: 10% *Third grader that has changed schools three or more times.

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

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

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

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

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

Extent of Frequent Mobility l > 1 in 24 months: l 3 or more in 5 years: l Total (36.4%):

Number of Households by Frequency of Moves Number of Moves Total Number of 5-Yr Movers

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

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

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

Insights into “Unaffordable” l Three-fourths of those who listed unaffordable energy bills as “very important” reason for move did not have arrears or disconnect notice. l 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 activity Increased earnings Supported jobs

Frequent mobility: unaffordable energy 813 x x Total Frequently mobile Unaffordable home energy

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

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

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

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

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

Public policy implications l 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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