Utility Assistance Terminated

From today's Commercial Appeal.

Memphis utility assistance program for poor terminated
City had trouble finding recipients qualified for aid
By Linda Moore

The city of Memphis has terminated after less than three months a utility assistance program touted as a stopgap measure for the city's working poor.

In April, Memphis Mayor Willie Herenton announced that $2.5 million was available to help Memphis residents facing disconnection from Memphis Light, Gas and Water.

"The city cannot afford to not help people in need," Herenton said then.

However, late Friday the mayor's office released a one-paragraph advisory that the program would be halted, effective today, the first day of the fiscal year.

Pulling funding for the program is part of the budgetary adjustments for the new fiscal year, said Toni Holmon-Turner, mayor's office spokeswoman.

"The city does not have any plans to revisit this program at this time," she said.

The utility assistance program received applications from more than 1,300 residents and awarded 653 MLGW customers a total of $326,500 in $500 increments. It received more than 9,000 telephone calls.

Most people who were denied had incomes that were too low, too high or did not live in Memphis.

The remaining $2.17 million will go to the city reserves.

Memphis City Council members were notified late Friday as well that the program was being abandoned. They hope to get a full explanation during today's council meeting, said Councilwoman Wanda Halbert, budget committee chairwoman.

"We've definitely got to ask them why, what drove that decision, especially since we have such tight economic times, not only for our city. People are struggling," Halbert said. "I think that was a bad choice. They could have looked in other areas."

The utility assistance program was managed through the city's Youth Services and Community Affairs Office, headed by Sara Lewis, special assistant to the mayor.

Early on, the program had difficulties finding recipients. By the end of April only about 70 people had been interviewed and 30 had been approved.

They were allowed to receive up to $1,000 a year -- $500 for the heating season and $500 for the cooling season.

Officials in youth services and community affairs said most people who contacted the office did not meet the standard of working poor.

In Memphis the poverty line for a family of two is $14,000 a year. The city's program required a two-person household to have an income between $21,140 and $24,500 to be eligible.

It was speculated the calls of the unqualified blocked those who did qualify from getting through. The intent was to re-evaluate how potential applicants accessed the program, possibly extending the hours for telephone lines or opening phone lines on Saturdays.

That didn't happen, but the program was marketed through customer service at MLGW and community organizations, Holmon-Turner said.