U.S. Senator Lamar Alexander (R-Tenn.) today joined Memphis leaders in asking the Metropolitan Inter-Faith Association (MIFA) how high gas prices are affecting their ability to serve low income Memphians and said that he would work to see that federal dollars are spent in the most effective way possible. Alexander outlined his proposals with Shelby County Mayor A C Wharton, Congressman Steve Cohen (D-Tenn. 9th) and representatives from the Metropolitan Inter-Faith Association (MIFA) which serves more than 60,000 people annually with programs that sustain the independence of seniors, stabilize and transform families in crisis, and equip urban teens for success.
“I think Congress should get back to work on lowering gas prices,” Alexander said. “I’m here with Congressman Cohen and Mayor Wharton to hear from those affected most by these sky high fuel costs and to see that the $92 million for food assistance in the Farm Bill is spent in the most effective way possible. When Congress goes back in session we should immediately take up high gas prices so that people like those here in Memphis can begin to see relief.”
MIFA Meals director, Ridley Anderson, told Senator Alexander, “The prices of fuel and food are having a significant impact on MIFA. Increased costs are causing us to spend more of our budget for basic expenses, and there is a steadily increasing demand for client services. Funding for MIFA has been steady but has not increased. When you are looking at an increase in basic expenses but no increase in funding, you have to make adjustments in other places. Fortunately, MIFA has not had to cut any services yet, but we are constantly analyzing our levels of service.”
Alexander said, “MIFA is an excellent organization and these high costs are squeezing every part of their work. One MIFA volunteer told me, ‘You don’t work at a place like MIFA to have to say no to people, and these costs are forcing us to turn people away.’ The best way to lower gas prices is to increase supply and lower demand.”
During the discussion, representatives from MIFA suggested increasing mileage rates that volunteers who drive use to calculate how much they can deduct from their income taxes. The current tax code provides a mileage rate of 58.5 cents per mile for business purposes, but only 14 cents per mile for charitable purposes. Alexander said that he would work with Congressman Cohen on legislation to eliminate this 44.5-cent gap in mileage rates.
On July 8, Senator Alexander joined his colleagues on the Senate Appropriations Committee in approving the Labor-HHS Appropriations bill for Fiscal Year 2009 that restored $570 million in funding for the Low Income Home Energy Assistance Program (LIHEAP) that the President proposed cutting in his budget. He has encouraged the Senate to include an increase in LIHEAP funding as part of the broader energy debate. As the Ranking Member of the Subcommittee on Children and Families, Senator Alexander will play a lead role in the upcoming reauthorization of the LIHEAP program to ensure that Tennessee, and Memphis, get their fair share of funding and that the program is improved to help more low-income families stay cool in summer and warm in winter.
Alexander continued, “Tennesseans across the state have been feeling the pinch of rising fuel and food costs, and Congress needs to take action immediately to address these concerns. Increased funding for food assistance programs in the Farm Bill is a good first step.”
Alexander said that he will work with both the Governor’s office and Tennessee Department of Agriculture to make sure nutrition programs in Tennessee are getting the support they need. The 2008 Farm Bill, which Alexander supported and which became law in June, included an additional $92 million in annual spending for The Emergency Food Assistance Program (TEFAP), a U.S. Department of Agriculture program that buys and distributes food to states. Alexander said that measures in the Farm Bill would also “reduce the tax credit for corn ethanol and give a more generous tax credit to produce cellulosic ethanol made from ingredients like switchgrass. It shifts the focus from crops that we eat to crops that we don't eat.”
Alexander has joined other senators to introduce the Gas Price Reduction Act (S. 3202) which would support energy production like offshore drilling and nuclear power while promoting less reliance on foreign oil though the development of plug-in vehicles. Specifically, the bill would:
• “Find More” – increasing American oil production by one-third through offshore exploration and western states oil shale (3 million new barrels a day).
• “Use Less” – reducing imported oil by one-third by making it easier for millions of Americans to drive plug-in electric cars and trucks (4 million barrels of oil savings a day). The bill also encourages the government to increase its purchases of electric vehicles.
Alexander also said that the bipartisan energy proposal unveiled last week by the “Gang of 10” was another step in the right direction: "These are the right ideas: plug-in cars and trucks, conservation and producing more American energy,” Alexander said. “The Senate should take up these bipartisan recommendations as soon as we reconvene in September, improve them and make them law. Senator Corker has rendered a real service by his participation in this working group."
Alexander said, “I will continue to take stories like MIFA’s to the Senate floor in Washington as I have been doing each week with some of the hundreds of letters and emails I receive about how high gas prices are hurting Tennesseans.”
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