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Desperately Seeking Stimi: Home Weatherization Why Are Local Dollars Frozen in the Bureaucratic Pipeline?
By Mike Thompson
As part of this year’s federal economic stimulus plan, the Saginaw County Community Action Committee (CAC) received $5,432,665 to weatherize the homes of 793 low-and low-middle income families. This is a three-year grant, which took effect back on April 1 of this year and is scheduled to conclude on March 31, 2012. However, no homes have been weatherized at this point with the stimulus money, described as “Stimi” in Review Magazine during this year’s series of reports. With the economic stimulus just approved in February, no way could CAC reasonably have been expected to gather and approve applicants and place Stimi work crews right on the spot, on April 1. Still, at the time, it seemed that the first qualifying households would begin to receive cash-saving home insulation by the onset of cold weather for this coming winter. Not. At best, Stimi will allow CAC begin to weatherize and insulate the first of those 793 homes early next year. First things first: Saginaw’s CAC already has received more than 500 applications, with only limited publicity. This write-up no doubt will produce more applications, and near the close of the write-up we will state the specific guidelines for families to arrive on the waiting list. But for now: What gives with Stimi? Why so slow? Our conclusion is that the cause isn’t with the Saginaw County Community Action Committee, but with the federal and even the state bureaucracies. This explanation is critical as we still strive not only to seek and see Stimi, but also to understand Stimi. Weatherize homes? This may seem simple enough. However, with the government, there are inevitable rules and regulations. In this case we’re talking the U.S. Department of Energy, the U.S. Department of Labor, and then the State of Michigan Historical Preservation guidelines.
Why Saginaw CAC Is On The Right Track Some of Saginaw’s political insiders may question whether CAC is falling short with this massive weatherization grant. Indeed, there were reasons for previous skepticism. Past CAC Board of Directors actions were dominated by a few old-time insiders. A previous second-level CAC administrator embezzled money from federal Head Start preschool education, of all places, with amounted to an anti-poverty worker tragically stealing money from poor children. Then, the feds took the Head Start contract away from CAC, for reasons that were not even related to the embezzlement. Furthermore, Saginaw city administrators on occasion were critical of CAC’s performance with federal Block Grant contracts. (As though City Hall hasn’t had its own troubles.) However, today’s Saginaw CAC is reformed and improved and on track. This author and journalist can attest to the “new CAC” from personal experience with the agency. Nobody is more frustrated than CAC staff that the federal economic stimulus funds have not already led to home weatherization and insulation. Also, it’s important to keep in mind that the Saginaw CAC is not just another anti-poverty nonprofit. Local community action agencies were established nationwide during the 1960s under President Lyndon Johnson as “lead agencies” to launch the so-called War on Poverty. Administrations under Richard Nixon and Ronald Reagan and both George Bushes reduced funds, but the community action agencies still exist, not only in cities but also in rural areas. President Barack Obama is the first true progressive president on domestic issues since Lyndon Johnson, so it is only natural that the Obama Administration steered some of the economic stimulus monies through community action agencies. The Saginaw CAC was prepared for that $5 million-plus federal grant from Obama’s economic stimulus, but the federal bureaucracy that issued the grant was not. Even progressives should acknowledge that today’s federal government is far more laden in bureaucracy than during the Lyndon Johnson era, much less the Franklin Roosevelt era.
Interlude: Some Stimi Background Before we examine the federal bureaucracy in terms of CAC’s weatherization grant, let’s take a look at the bigger picture. Through this year, Review Magazine repeatedly has reported on “Desperately Seeking Stimi.” In other words, we’re desperately seeking evidence of the $787 billion federal economic stimulus package that Congress approved in February. While banks and AIG got their money within days and weeks, the same isn’t true with the money intended to ‘jump start’ the economy. Yet, there really is some Stimi evidence in what formally is known as the American Recovery and Reinvestment Act, in spite of much criticism. As we’ve noted:
In our neck of the woods, for instance, state representatives Ken Horn (Republican) and Andy Coulouris (Democrat) might disagree a great deal, but both would agree that the feds haven’t done a whole lot of favors for state governments. On the other hand, there remain some reasons why we still are Desperately Seeking Stimi. One example is in small business assistance, which only is receiving 2 percent of stimulus aid. Even Democratic Congressman Dale Kildee, while defending Stimi in a Review Magazine interview, pegged Small Business Administration aid at $13 billion. That’s $13 billion out of $787 billion. Two percent. And, much of that 2 percent is for the vaunted “new technologies” rather than core small businesses. So much for traditional small business as the hopeful driving engine for economic recovery.
Back to Saginaw CAC and Home Weatherization It’s not as though federal aid for home weatherization insulation is a new idea. The Saginaw CAC, with City Council approval, for years has received chunks of federal Block Grant monies for this purpose, albeit in far smaller sums. In fact, this is an area in which CAC consistently has been rated a top performer. When Stimi came into play, it seems that the bureaucracy was revived. The feds took six months to arrive at “wage determinations and prevailing wage scales.” Just when this was resolved, state guidelines for historic structures entered the picture. Veteran City Hall watchers will recall that preservation rules also created delays earlier this decade, when previous city leaders requested permission to use Block Grant money for demolishing eyesores. Even new Mayor Greg Branch, an ardent preservationist, is acknowledging that practical needs should come first. CAC staffers will answer news media questions about the weatherization grant, but they have not actively pursued publicity. Understandably, they do not want to raise false hopes. A recent report on local TV news focused on Genesee County’s weatherization program and merely mentioned Saginaw CAC at the close. Still, the Saginaw office immediately received more than 400 phone calls, email notes and walk-in applicants. CAC still is taking applications (call 753-7741 or email rscott@saginawcac.org) but there’s a major backlog. Applicants should have (1) Proof of income for the past three months, (2) proof of home ownership, or for renters, the landlord’s signature on an agreement form, (3) the most recent utility bill, and (4) photo ID. Income guidelines? Start at a maximum of $21,600 for a single person, $29,140 for two people in the household, $36,620 for three, $44,100 for four, $51,580 for five, $59,000 for six. Obviously, this isn’t a program just for “poor people.” What about renters? They’re also eligible, as long as the landlord signs an agreement. Types of work performed? Insulation, sealing, caulking, weather-stripping, furnace and/or water heater repair or replacement. Utility cost savings? The general average is about $30 per month, but sometimes more. Recipient requirements? Anyone who receives a grant must attend a three-hour workshop on home weatherization. Even then, there’s an extra benefit: A package of insulating materials that would cost more than $60 at a hardware, and a $50 cash discount certificate on the next utility payment to Consumers Energy. Jobs created? CAC has hired two employees and eventually will assemble a core staff of 15. Third-party contractors will hire dozens more. Job applicants should have experience in home repairs or remodeling, or insulation work. Stimi’s advocates in the American Recovery and Renewal Act did not pledge instant results, and indeed they emphasized that the overall $787 billion is for a multi-year approach. Still, the intent was for weatherizing of homes to begin by now. At this point, hundreds of Saginaw County homeowners and tenants who face high utility bills are Desperately Seeking (or Awaiting) Stimi.
Past Review Magazine ‘Stimi’ Reports Here’s a file of Review Magazine’s past economic stimulus coverage: http://review-mag.com/archive/690-699/692/camp_kildee_speak_out.htm http://www.review-mag.com/archive/680-689/689/stimulus.htm http://review-mag.com/archive/680-689/685/how_much_stimi.htm http://review-mag.com/archive/680-689/684/stimulus_money.htm http://review-mag.com/archive/680-689/681/tea_party_america.htm
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