General Overview: CSD & the Recovery Act. How Funds are Distributed
What role will CSD play in the Recovery Act?
How much funding does California typically receive for these federal programs?
How is the federal funding distributed throughout California?
Who is eligible to receive federal funding at the local level?
How can non-profit organizations or for-profit private contractors receive CSBG or DOE WAP funding under the Recovery Act?
Can I get job training under CSD’s Recovery Act programs?
Q&A About the Recovery Act and CSD’s Energy Program
How will the Recovery Act impact CSD’s energy program?
How long has CSD administered the weatherization program?
How much money will the Energy program receive in Recovery Act funds?
What will CSD use that money for?
What is Weatherization?
Where will the money come from?
How will these funds help low-income Californians?
How do I find out if I qualify to have my home weatherized?
Q&A About the Recovery Act and CSD’s CSBG Program
How Will the Recovery Act impact CSD’s CSBG program?
How long has CSD administered the community action program?
What CSBG activities are eligible under stimulus funding?
What is the amount that California will receive?
Is the block grant funding competitive?
Does the 200% of the Poverty Eligibility language apply to the regular 2009-2010 CSBG appropriations in addition to the Recovery Act stimulus money?
Upon receipt of the stimulus funds, will the state be required to conduct a public hearing and modify their state plan?
General Overview: CSD & the Recovery Act. How Fund are Distributed
What role will CSD play in the Recovery Act?
Since President Lyndon Johnson signed the Economic Opportunity Bill of 1964, CSD has been a part of the nation’s “War on Poverty.” Each year, CSD serves more than 2 million low income Californians, delivering programs and services that improve the lives of low-income Californians and help them achieve self-sufficiency. CSD receives its primary funding from the federal Community Services Block Grant (CSBG), the Low Income Home Energy Assistance Program (LIHEAP), and the U.S. Department of Energy Weatherization Assistance Program (DOE WAP). Both the CSBG and the DOE WAP programs have received significant new funding under the Recovery Act, and CSD will play the principal role in California to ensure that the goals of the new funding are not only met, but maximized.
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How much funding does California typically receive for these federal programs?
As with any government program, the federal allocation to the State varies from year to year. CSBG funding to California has been stable in recent years, increasing steadily from $56 million to $58 million over the past five years. The allocation of LIHEAP funding to California has also remained somewhat stable, ranging from $94 million to $249 million over the past five years, depending on the amount of emergency contingency funds released by the White House to supplement regular base funding. DOE WAP funding has remained steady, between $6 - $7 million per year over the same time frame.
How is the federal funding distributed throughout California?
The formula for distribution of CSBG funds to CSBG-eligible entities is spelled out in California Government Code section 12758-12759. The CSBG distribution spreadsheet for federal fiscal year 2007-2008 illustrates how the formula operates in a given year.
The formula for distribution of LIHEAP and DOE WAP funds is distributed to its statewide network of energy providers using a three-factor formula based on low-income population, heating and cooling degree days, and energy costs. The formula is explained in more detail in the LIHEAP State Plan and DOE State Plan. The energy program distribution spreadsheets for the current program year can be viewed here: LIHEAP distribution spreadsheet, DOE distribution spreadsheet.
CSD reserves just five percent of each of these block grants to support the department’s administrative costs. The remainder of the funds is dedicated to local assistance and direct training and technical assistance, as permitted by federal law.
Who is eligible to receive federal funding at the local level?
The federal rules for each program define the “eligible entities” at the local level that can receive funding and deliver services to the low-income community. Generally, each program favors non-profit organizations, or local governments. Once designated by the State to serve a defined service area, those local providers are “grandfathered” into the program in order to create and sustain enduring and effective programs and partnerships to help fight poverty in the communities they know best.
Currently, the CSBG program is delivered through 54 community action agencies, 5 migrant farmworker organizations (three community action agencies also serve migrant seasonal farmworkers), 3 Native American organizations and 4 limited purpose agencies, all of whom have been designated and approved in the CSBG State Plan.
The DOE WAP program is delivered through 40 local service providers, all of whom receive both LIHEAP and DOE WAP funding to strategically leverage the funding and technical resources and specifications that both programs offer. About half of the energy providers also serve as the local community action agency, further leveraging the federal programs. The energy providers have all been designated and approved in the LIHEAP State Plan and the DOE WAP State Plan.
The definitions of eligible entities for can be found here.
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How can non-profit organizations or for-profit private contractors receive CSBG or DOE WAP funding under the Recovery Act?
The federal CSBG Act has a firm definition of eligible entity, which restricts what kinds of organizations the State can contract with to deliver services at the local level. In addition, the Recovery Act eliminates the State’s ability to reserve funding for statewide training and technical assistance. Therefore, the best avenue for CSBG funding under the Recovery Act is as a partner or sub-contractor to a local community action agency. Look here to learn which CSBG-eligible entities in your area might be willing to enter into such a partnership.
For the energy programs, CSD has identified a network of 40 DOE WAP local energy providers as approved in the DOE WAP State Plan. CSD expects to fund those providers according to the state distribution formula, a three-factor formula based on low-income population, heating and cooling degree days, and energy costs.
While each provider has the autonomy to determine its own business model for service delivery, CSD fully supports importance of maximizing the Recovery Act funds to create and sustain jobs and stimulate the local economy. Therefore, CSD is strongly urging its local energy providers to prepare and implement strategic capacity-building plans that include partnerships and subcontracts with the local nonprofit and for-profit business community. Look here to learn which energy providers in your area might be willing to enter into such a partnership.
At this moment, CSD is awaiting further program guidance from the U.S. Department of Energy to determine what additional technical assistance and training, if any, CSD may elect to procure at the state level, for the benefit of the entire network. Please check back periodically to learn whether CSD will be seeking bids for statewide contractors in specific specialties.
Please note that any partnerships or subcontracts under the Recovery Act will be subject to the same levels of accountability and transparency as CSD and its local CSBG and energy providers, and therefore subcontractors will need to demonstrate the highest levels of program and fiscal performance and be willing to have open books.
Can I get job training under CSD’s Recovery Act programs?
Job training has been a principal strategy of the community action and energy programs since their inception. A motto of community action has long been “a job is the best antidote to poverty,” and the earliest community action agencies sought to connect the ranks of the unemployed to jobs that paid a living wage. The energy programs have long been a source of job training and good wages for low-income individuals. Most of the State’s community action agencies are active in the local workforce investment board. The energy providers have strong partnerships with the California Conservation Corps, YouthBuild U.S.A, community colleges and other job development programs.
The Recovery Act funding will expand the ability of the community action agencies and energy providers to provide job training. Look here to learn which local provider may be offering a job training program for you.
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Q&A About the Recovery Act and CSD’s Energy Program
How will the Recovery Act impact CSD’s energy program?
An important part of the Recovery Act involves energy efficiency. The Obama Administration seeks to “weatherize” one million low-income homes each year for the next ten years. In addition, the Recovery Act increases the maximum amount of DOE WAP funds that can be spent on each home, from $2,500 to $6,500. At recent funding levels, CSD’s energy provider network has weatherized approximately 20,000 - 25,000 low-income homes in California each year. CSD anticipates that funds from the Recovery Act will enable its providers to weatherize approximately 100,000 homes next year.
How long has CSD administered the weatherization program?
The first federal weatherization programs were funded in 1975 to assist low-income families who lacked resources to invest in energy efficiency, to reduce energy costs for low-income families, particularly for the elderly, people with disabilities, and children, by improving the energy efficiency of their homes while ensuring their health and safety. The U.S. Department of Energy Weatherization Assistance Program (DOE WAP) was established in 1976.
Congress created the first Low Income Energy Assistance Program in 1980, including both cash assistance and weatherization services. The 1984 reauthorization of that program was named the Low Income Home Energy Assistance Program (LIHEAP), and began to provide more funding to warm-weather states including California.
CSD and its predecessors have administered these energy and weatherization programs in California since their inception.
How much money will the Energy program receive in Recovery Act funds?
$185 million.
What will CSD use that money for?
CSD will use the money to expand its existing weatherization program and weatherize more homes. Visit CSD's Weatherization Program page to learn more about the program.
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What is weatherization?
You’ll find different definitions of the word “weatherization.” When CSD says “Weatherization,” we mean making a series of changes to a house to make it healthier, safer and more energy-efficient for the people who live there. Some common types of weatherization include putting more insulation in an attic, weatherstripping a door, caulking windows and more. Click on the link to learn more about CSDs Weatherization Program.
Where will the money come from?
The additional funding is a result of the Recovery Act and will come from the federal Department of Energy.
How will these funds help low-income Californians?
It’s estimated that these funds will allow CSD to weatherize approximately 100,000 homes. This greatly increased number will result in healthier, safer, more energy-efficient homes. And energy efficiency equals lower utility bills, leaving more money for the household to spend on essentials.
How do I find out if I qualify to have my home weatherized?
Contact the organization that serves your local area. To get this information, visit our local provider directory and search by your county or zip code. Most of these providers offer other services to qualified low-income individuals, so be sure to ask how else they can help you and your family.
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Q&A About the Recovery Act and CSD’s CSBG Program
How Will the Recovery Act impact CSD’s CSBG program?
The Recovery Act dedicates additional funding to the CSBG program to support employment, food, housing and healthcare efforts, and also raises the income eligibility limit to 200 percent of federal poverty guidelines. Funds from the Recovery Act will allow CSD and its providers to serve more low-income Californians suffering under the economic crisis.
How long has CSD administered the community action program?
In 1964, President Lyndon Johnson signed the Economic Opportunities Act which created and funded a network of 1,000 community based organizations known as “community action agencies” to reduce poverty, revitalize low-income communities and empower low-income families to become fully self sufficient. Then as now, each community action agency reflects the uniqueness of its community, and determines its own program priorities based on local needs and public input. The board of directors of each agency is “tripartite” meaning that it includes members from the public sector, the private sector, and the low-income community.
In 1964, Governor Edmund “Pat” Brown created the State Office of Economic Opportunity (SOEO) to coordinate and oversee the implementation of the federal Economic Opportunities Act in California, including the community action program. In 1981, when President Ronald Reagan created the federal block grant programs, the Community Services Block Grant (CSBG) funded the community action network, and the administration of the block grant for California was assigned to SOEO. Eventually, the department now known as CSD was established in 1996 under the Health and Human Services Agency, and continues to administer CSBG and provide assistance to the state community action network to this day.
What CSBG activities are eligible under stimulus funding?
In their press release around the inclusion of CSBG funds in the Recovery Act, the House noted that the funds were meant “to support employment, food, housing and healthcare efforts serving those hardest hit by the recession.” However, no official guidance has been issued on what activities would or would not be allowed under the stimulus funding.
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What is the amount that California will receive?
At this time we don't know.
Is the community services block grant funding competitive?
No. The block grants “grandfather” the existing community action agencies and local energy providers into the funding, in order to create an enduring and effective network of community organizations with deep knowledge of the local low-income community. As long as each designated organization achieves the outcomes and objectives of the program and adheres to the requirements of the state contracts, it will continue to receive funding in subsequent years.
Does the 200% of the Poverty Eligibility language apply to the regular 2009 -2010 CSBG appropriations in addition to the Recovery Act stimulus money?
The Office of Community Services (OCS) is working on an Information Memorandum to respond but has not issued a statement. OCS is still in the process of trying to determine how to change the 125% to 200% and if it applies to the regular CSBG allocation.
Upon receipt of the stimulus funds, will the state be required to conduct a public hearing and modify their state plan?
Per their Dear Colleague email to states from DSA/OCS: “It is expected that States will be required to submit an amendment to their Fiscal Year (FY) 2009 CSBG Application and Plan. The reporting requirements for the Recovery funds will have short turnaround times for the submission of plans and reports. DSA is strongly encouraging CSBG program officials to begin consultation with eligible entities regarding planned activities. States must also ensure all Recovery Act funds are clearly distinguishable from non-Recovery Act funds. CSBG program officials should take the steps necessary to plan for tracking and reporting expenditures of Recovery Act funds separately from their regular CBSG allotments.”
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