Kentucky Gets $10 Million

Kentucky Governor Ernie Fletcher on January 31 signed into law House Bill 283, which provides an additional $10 million in state funding for LIHEAP. The bill originally set aside $5 million from the state’s Budget Reserve Trust Fund, also known as the “rainy day” fund. An amendment added an additional $5 million and took the entire $10 million from natural gas severance tax receipts, rather than the rainy day fund.

Community action agencies reported last week that federal funding was expected to be exhausted within three weeks.

The Kentucky Association for Community Action (KACA), which operates the program statewide through a network of 23 community action agencies, said the new funding will allow it to double natural gas and electric benefits and serve about 35,000 additional households. And, according to KACA executive director Kip Bowmar, because the money is coming from the natural gas severance tax fund, it can potentially be pursued again in future years and an important precedent on the issue has been set.

Source: Governor’s office and KACA

Page Last Updated: February 2, 2006