2011 Census figures to be released this fall will show that progress combating poverty has taken a giant leap backwards.
According to the Associated Press, the new numbers will show more Americans living in poverty than at any time since President Lyndon Johnson launched the war on poverty in 1964. Analysts estimate that 47 million Americans, or 1 in 6, were poor last year.
In Arizona, the numbers are already staggering. The state currently holds the dubious distinction of ranking fifth-highest in the nation with 18.6 percent of Arizonans – and a mind-numbing 24.4 percent of children, or 1 in 4 – living in poverty in 2010.
And, we’ve heard all too often of the Annie E. Casey Foundation’s 2012 Kids Count Report which puts Arizona No. 46 for overall well-being for children in education, economic well-being, family and community, and health.
That’s what makes the impact of the current rate-increase proposal by Salt River Project on low-income individuals and families even more difficult to understand.
While we recognize the need for healthy utility companies to provide reliable electric service to keep families safe and comfortable, we simply can’t fathom the company’s unwillingness to let utility rates stay at current levels for low-income individuals and families enrolled in SRP assistance programs.
People like Heidi who is battling cancer with chemotherapy. Even with the current discount, she struggles to pay her bills. “Right now I have a choice of paying my utility bill or buying medication,” Heidi said. “If the rates go up, I have to put one before another and that means medication and transportation come before my utility, which is my biggest bill.”
Even SRP’s consultant, Pacific Economics Group Research, pointed out in its report that “higher fixed charges result in disproportionately large price increases for smaller customers,” charges that are already “quite high” compared with other Arizona utilities.
Both APS and Southwest Gas recently agreed not to raise rates for low-income residents, which assuredly provided significant relief for hard-working families already struggling to decide whether to pay the utility bill or feed their families.
In fact, the 2010 Feeding America Hunger in America Survey showed that more than half of all working-poor households in the U.S. were forced to choose between purchasing food or paying for utilities.
The 2012 poverty level for a family of four is $23,050. Two adults working full time at the Arizona minimum wage of $7.65 would earn $31,824 before taxes.
Experts say that income and assets needed for self-sufficiency should total $60,540, but 24 percent of working people in Arizona are in low-wage jobs with an average net worth of $38,616.
The fact is: Even at 100 percent of the poverty level, the average Arizona family cannot afford to meet their most basic needs.
That’s why utility bill assistance programs are so critical, particularly in today’s difficult economic environment, and certainly during the often-brutal summer months in the desert.
In SRP territory, approximately 670,000 people live at or below 150 percent of the federal poverty level and nearly 33,000 are enrolled in the company’s Economy Price Plan. The largest percentage of these men and women are hard-working Americans, many experiencing poverty for the first time in their lives.
They already sit perilously close to homelessness. The space between where they are now and where they end up could be the difference between what they pay now and what they’ll have to pay if their rates go up.
And that’s a cost none of us can afford.
Cynthia Zwick is Executive Director of the Arizona Community Action Association.
chatmandu002 posted at 11:31 am on Thu, Sep 6, 2012.
Cynthia,
Apply your numbers and cry about the poor. But when the stated goal of the president is to increase the cost of electricity then there is no other choice than to raise the rates. You are calling for larger increases on others to save the poor and those making up to 150% above the poverty level. How many more of the middle class will return to the poverty level with this increase? Wouldn't it be better for the federal energy policies to lower the cost of electricity instead of increasing the costs to pacify a political agenda.
Engaged Voter posted at 1:16 pm on Thu, Sep 6, 2012.
"when the stated goal of the president is to increase the cost of electricity"
Wow. Just...wow.
"Both APS and Southwest Gas recently agreed not to raise rates for low-income residents"
So according to chatmandu, SRP is obeying a top secret order from the president...and APS and SG are ignoring it. Sounds legit. LOL
Arizona Willie posted at 2:59 pm on Thu, Sep 6, 2012.
Well the writer was writing understandable sentences -- until the next to last one.
Then she said " The space between where they are now and where they end up could be the difference between what they pay now and what they’ll have to pay if their rates go up. " and, although I've read it several times, I just don't understand it. What is " the space between where they are now and where they end up "?
I do congratulate her for getting through 15 paragraphs before the Arizona heat got to her. Far far better than many who post here.
Now that I've exited nit picking mode [rolleyes] I have a question.
Ms. Zwick you say that approx 670,000 people in SRP's territory are below a certain level and are poor.
What percentage of SRP's customer base is that?
I'm a lifelong Liberal with a capital L and I sympathize with the poor == but at the same time I acknowledge the problem SRP has.
You complain because the poor can't pay the SRP bill, well SRP has problems paying IT'S bills too.
APS can afford to give poorer customers a break because it has been overcharging them for years ( in my opinion ).
I < personally > believe that SRP has held their rates down as low as they could.The only way they can lower rates, or charge lower rates to the poor == is if they raise the rates on everyone else.
I believe in the progressive rate Income tax and I can go along with progressive rates on utilities too == but that's me == there would be thousands of people screaming for someone's head.
And understandably so. I've heard people complain about electric bills almost $500 and I'm sure there are many over that.Poor people aren't the ONLY one's who have trouble paying their electric bill.
chuckles3 posted at 8:34 am on Fri, Sep 7, 2012.
After 48 years, the War on Poverty is the longest,most expensive war in our history. Apparently we have lost, and the liberal answer-"we just need to spend more" is growing hackneyed.
Perhaps it is time to either: A. Redefine poverty-the thousands of dollars in benefits the poor receive are not counted as income when poverty is defined, B. Maybe, just maybe, re-examine our policies, or both.
And by the way, one of the reasons rates are rising is to pay for "Green" energy subsidies mandated by our Politicians and appointed officials.