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Fact Sheet on Low Income Energy Assistance Program (LIEAP) and Matrix of Property Tax Relief Programs
Prepared by Don Richards, Senior Research Analyst Prepared on November 29, 2005
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AACCKKGGRROOUUNNDDThe Low Income Energy Assistance Program (LIEAP) is a federally-funded program which has two components: weatherization for residences of income-qualified individuals and assistance to meet home heating costs. Both programs in Wyoming require participants to earn 60 percent or less of the statewide median income, or about $33,600 for a family of four. By federal law, federal funds cannot be used for assistance for those with incomes beyond this
threshold. Three contractors assist with the weatherization program to cover the state by improving the weatherization of the qualified homes. The assistance program provides payments directly to utility vendors for all, or a portion, of a qualified participant's primary heating costs.
Since the addition of state general funds in the amount of $750,000 for the 2004-05 biennium, the state has initiated a state supplement to the federal LIEAP (assistance) program through the appropriation and related footnote. The eligibility threshold for the state supplement program is up to 185 percent of the federal poverty level, or approximately $35,800 for a family of four. State funds are used either exclusively for those who meet this threshold, but do not meet the lower, federal threshold or to supplement energy assistance payments should LIEAP expend the financial resources allocated by the federal government. Currently no funds are being utilized for a state-funded weatherization program. Although not prohibited by statute, the executive branch has interpreted the informal direction of the Legislature to mean that the state General Funds are to be used exclusively for heating assistance.
The LIEAP program (and state supplement to the LIEAP assistance program) are administered at the state level by the Department of Family services. However, the state contracts with NOWCAP, a private non-profit firm for all determinations of eligibility. Applications are currently accepted between October 1st and February 28th of each winter. In the event funds fall short, payments are made to vendors of eligible applicants until funds are no longer available. Under current DFS projections, it is anticipated that the total appropriation will be insufficient to cover direct assistance to eligible applicants. In addition, according to DFS, there currently is a waiting list for weatherization benefits. See Table 1 for snapshot explanation of the LIEAP program.
Table 1. Energy Assistance Programs.
Program (Authorization) Eligibility Criteria Summary of Benefits Fiscal Year 2005 Statistics
Interaction/Exclusion with Other State Programs
Low Income Energy
Assistance Program (LIEAP) – Weatherization program [Authorized by federal law]
60% of median statewide income (See Attachment A, provided by the Department of Family Services.)
Through the use of three contractors around the state (NOWCAP, Wyoming Energy Council, and Council of Community Services), qualified individuals can receive up to $4,000 to improve the weatherization for a residence. The Department of Energy average is $2,744 per household, nationally.
Currently serves approximately 700 households per year.
None identified. (No state rules promulgated.)
Low Income Energy
Assistance Program (LIEAP) – Assistance program
[Authorized by federal law]
60% of median statewide income (See Attachment A.)
Sliding scale of payment (made directly to vendors) for heating bills, back payments, or deposits. Benefits are based upon income, number of
individuals in the household, and heat source. Minimum $58; maximum $1,030, annually. The benefits are considered to be the same under the state and federal LIEAP program, and the program benefits levels are shown in total. The benefits are not duplicated. (See Attachment B.)
For the winter of 2004, LIEAP approved 9,551 households for energy assistance (in state and federal funds.) Statistics for the current heating season are not yet available.
Rules specifically exempt any benefit received under the homestead exemption property tax or sales and use tax refunds from the income of the applicant in the determination of eligibility.
Program (Authorization) Eligibility Criteria Summary of Benefits Fiscal Year 2005 Statistics Interaction/Exclusion with Other State Programs
State Supplement to LIEAP program – Assistance only ['04 Laws, Ch. 95, Sec. 1 (049), footnote #7]
185% of Federal Poverty Level, adjusted by family size (See Attachment A.)
Sliding scale of payment (made directly to vendors) for heating bills, back payments, or deposits. Benefits are based upon income, number of
individuals in the household, and heat source. Minimum $58; maximum $1,030, annually. The benefits are considered to be the same under the state and federal LIEAP program, and the program benefits levels are shown in total. The benefits are not duplicated. (See Attachment B.)
For the winter of 2004, LIEAP approved 9,551 households for energy assistance (in state and federal funds.) The
appropriation for the '05-06 biennium helped LIEAP serve an additional 725 households above 150 percent of the federal poverty level as well as increase benefit levels at the start of the 2004 heating season. Statistics for the current heating season are not yet available.
None identified. (No state rules promulgated for the state supplement to the LIEAP program.)
Source: LSO summary, with information provided by Department of Family Services.
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According to the administrator of the program, from an administrative perspective, the simplest option for the Legislature would be to provide additional funds for the remainder of the winter heating season to meet the needs of currently eligible applicants. All other options would likely require additional administrative resources. For example, additional funds could be combined with an extension of the application season. In the event the Legislature elects to increase the benefit level for existing applicants, this will also require additional administrative funds to ensure proper payment since the contract for
administration by NOWCAP will be depleted by the end of February. Finally, in the event the Legislature desires to increase the income guidelines, and thus expand eligibility, this option appears to be the most administratively complex, may require an extended application season, and definitely would require additional administrative resources in order to ensure that all applicants are re-qualified based upon the new guidelines.
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RROOGGRRAAMMSSIn order to quickly assess the benefits, eligibility, and interaction of the current tax relief programs in Wyoming statute (completely unrelated to LIEAP, discussed above), see Table 2 on the next page two pages.
Table 2. Tax Relief Programs.
Program
(Authorization) Eligibility Criteria Summary of Benefits Recent Statistics
Interaction/Exclusion with Other State Programs
Veteran's
Exemption (W.S. 39-13-105)
Honorably discharged veterans of specified Wars and conflicts or widow of a qualified veteran; Wyoming resident for at least three years
Exemption of up to $2,000 of assessed value, not to exceed $800, over a
lifetime. Disabled veterans are entitled to an additional exemption of $2,000 in assessed value prorated based upon the veteran's percent of disability. The unused portion of the property tax exemption may be applied toward a veteran's motor vehicle registration fee. The maximum lifetime exemption does not apply to widows.
In FY05, exemptions amounted to $768,952 for real and personal property and $133,194 in exempted vehicle registrations. A complete summary report required by '05 Laws, Ch. 74 is reportedly forthcoming.
Per language in the property tax relief program
authorization, the two programs cannot be combined. Property Tax Relief Program (W.S. 39-13-109(c)(iii))
Income less than one-half of the median gross household income for the
applicant's county of residence;
Wyoming resident for at least five years; and meets asset tests such as $20,000 per adult in household (adjusted for
inflation), one vehicle per adult, etc.
One-half of the prior year's property tax, but never more than one-half of the median residential property tax liability
For tax year 2004: 510 applications approved refunding $110,973, or an average of $218 per eligible applicant.
Refund amount is reduced (dollar for dollar) for benefits received under the veteran's, homeowner, or property tax deferral program. Property Tax Deferral Program (W.S. 39-13-107(b)(iii))
Owner has a household income at or below 150% of the federal poverty level (FPL) for a household of four; is over age 62; is handicapped; or purchased the property before December 31, 1987.
The program allows up to one-half of the annual property taxes to remain unpaid until a future point in time.
Two counties currently participate in the program (Sheridan and Teton counties). The total loans outstanding amount to approximately $22,000. Although it is possible counties consolidate loans, it appears there are as few as three loans
outstanding.
Per language in the property tax relief program
authorization, the two programs cannot be combined.
Program (Authorization)
Eligibility Criteria Summary of Benefits Recent Statistics Interaction/Exclusion with
Other State Programs
Homeowner's Tax Credit (W.S. 39-13-109(d)(i))
Homeowners occupying a dwelling of value between $41,052 and $61,579 in market value since the beginning of the calendar year.
Tax credit ranges between $0 and $105, assuming 72 mills are imposed on the assessed value.
Not active. Per language in the property tax relief program
authorization, the two programs cannot be combined.
Tax Refund for the Elderly and Disabled (W.S. 39-11-109(c))
Residents of Wyoming for not less than one year who are over 65 or over 18 and are totally disabled. Income restrictions also apply: singles must have income less than or equal to $10,000 and married couples must have income less than or equal to $14,000 and have assets of less than $4,500, with a combined $100,000 exemption for the residence, one automobile, and household furnishing and personal belongings.
A qualified single person whose actual annual income is less than $10,000 shall receive a $500 refund, reduced by the percentage of his income that exceeds $6,000. A married couple with at least one person qualifying, whose actual income is less than $14,000 shall receive $600, reduced by the percentage that their actual income exceeds $8,000.
For 2004: 3,059 eligible applicants received a total of $1,062,863, or an average of $347 per qualified applicant.
Source: LSO summary.
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Both attachments to this Fact Sheet are products of the Department of Family Services, not the Legislative Service Office. While the information in Attachment B serves to provide additional insight into the LIEAP program, that information is placed in context with certain executive branch perspectives and projections on the program. These statements do not reflect the position or analysis of LSO.
