ECONOMIC OPPORTUNITY PROGRAMS

By JAY HEDGES, Director
Illinois Department of Commerce and Community Affairs

Having a job, enough to eat, a warm house in the bitter winter months, and being able to read the newspaper are aspects of daily living that most of us take for granted. Yet every year, many of our fellow Illinois residents face the crippling effects of poverty... lack of education, rundown living conditions, limited incomes, gang violence and low self-esteem. Many of the persons are elderly and/or handicapped.

The Department of Commerce and Community Affairs' Division of Economic Opportunity administers three major federally funded grant programs that deal with these problems and other causes and consequences of poverty.

These programs, which collectively provide more than $125 million annually include: the Community Services Block Grant Program — which funds a state network of community action agencies for a wide range of anti-poverty programs; the Illinois Home Energy Assistance Program — which helps low-income households pay their utility bills; and the Illinois Home Weatherization Assistance Program — which provides for the installation of energy saving materials such as insulation and weatherstripping in the homes of low-income families.

Particular attention is given in the operation of these programs to help disadvantaged households, particularly the elderly and handicapped, and minorities. For example, in 1986 the Community Services Block Grant Program network of community action agencies contacted more than 1.7 million clients regarding assistance. Twenty-two percent were elderly and/or handicapped and sixty-six percent were minorities. Of the nearly 350,000 households served under the Energy Assistance program, 34.3 percent were elderly/handicapped and 58.9 percent were minorities. In the weatherization program, more than 15,000 housing units were weatherized. Twenty-six percent were homes of elderly/handicapped and 47.2 percent were minorities. Of the 186 businesses that received loans under the CSBG Fixed Rate Financing Fund program, 19 percent were minority/female owned.

Illinois Home Energy Assistance Program

During 1987, this program provided $75 million in financial assistance to low-income households to help meet the costs of home heating in the winter and medically necessitated cooling during the summer months. Assistance is also provided for energy-related emergencies that arise due to a household's inability to pay heating bills.

The IHEAP program operates its heating assistance component from November 1 to April 30. The medically necessary cooling and the emergency assistance components operate throughout the year. Households receive assistance directly from the Illinois Department of Public Aid and/or by applying at one of the thirty-six locally based administering agencies near their home.

Illinois Home Weatherization Assistance Program

The Weatherization Program is operated with funds provided from the U.S. Department of Energy, the U.S. Department of Health and Human Services, and Oil Overcharge monies appropriated by the Illinois General Assembly. The program has two major components — both aimed at conserving energy and helping to lower utility bills for low-income residents. As in the case of IHEAP, the program is operated by a statewide network of local administering agencies.

The architectural component stresses the importance of reducing the flow of cold air into the home

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during the winter months and the flow of cool air out of the home in the summer. Cracked or broken windows are replaced, doors and windows are weatherstripped, and sidewalls and attics are insulated.

A recently added feature of the Weatherization Program focuses on "mechanical system" weatherization. Information obtained from a number of surveys indicate that many low-income homes have heating units that are very inefficient users of fuel and in some cases, have deteriorated to the point of actually being dangerous. Under this new component, the heating units of homes being weatherized are carefully inspected for efficiency and safety. The inspection may result in the replacement of the ignition unit, burner or other parts of the furnace. In extreme cases, the entire furnace may need to be replaced. All installation work is done by private, certified heating and plumbing contractors. Thus, the two components allow for dealing with the entire energy efficiency of the home.

Community Services Block Grant Program

The CSBG Program allocates its funds to the thirty-six locally based community action agencies serving the state's 102 counties. The agencies operate programs in the areas of economic development, education, emergency assistance, housing, income management, nutrition, health, elderly services, transportation and youth services.

Many community action agencies are using CSBG funds to address very basic needs to help break the cycle of poverty. CEFS Economic Opportunity Corporation in Effingham uses a portion of its CSBG funds to help support its Literacy Volunteer Program. This program utilizes volunteers to help teach people to read or upgrade low reading skills, thereby increasing their employability and adding to the quality of their lives.

The Rockford Human Resources Department uses a portion of its CSBG funds to help fund its Project Self-Sufficiency, which works with public aid recipients to provide them with the skills and community support to get themselves off the welfare rolls. The project was awarded the 1987 National Community Action Achievement Award in September.

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CSBG also funds, through the community action agency network, the CSBG Fixed Rate Financing Fund which provides low-interest loans to businesses. A key feature is that for each $3,000-$5,000 borrowed, one low-income person must be employed. Since September, 1983, a total of $7.4 million CSBG funds have been blended with nearly $46.9 million in private funds, creating over 1,500 new jobs and retaining another 730.

In cooperation with the DCCA administered Job Training Partnership Act program, CSBG also provides funding for an Entrepreneurship Program for Low-Income and Unemployed Individuals. The program provides classes conducted locally that emphasize basic business skills, business plan development and networking with successful business owners. One of the community action agencies, the Community and Economic Development Association of Cook County, Inc., has received national recognition for its business creating efforts. Fifty-five new businesses have begun as a result of this year-old program.

Realizing that education is a good way out of the poverty cycle, CSBG operates the CSBG Scholarship Program. In 1986, 234 scholarships were awarded from a total allocation of $114,000 provided by DCCA/ CSBG and an additional $18,490 allocated by the local community action agencies. The 1987 budget allocated $200,000 of DCCA/CSBG funds and it is expected that local agencies will allocate an additional $35,000-$40,000. As of September 1, 1987, 212 scholarships had been awarded with a total expenditure of $150,000. It is expected that by year's end, over 300 students will be recipients of the CSBC scholarships. In nearly all cases, these scholarships have been the difference in allowing the person to be able to continue his or her education.

Through CSBG, IHEAP and IHWAP, DCCA's Division of Economic Opportunity is helping to not only combat the effects of poverty but to develop solutions, both of which enhance the economic development of the state. With its continued efforts and the efforts of the locally based agencies, Illinois will enjoy continued growth and increased opportunities for all its citizens. •

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