The combined spending on energy, transportation and housing in Connecticut households exceeds affordable levels and creates a difficult financial burden on low- and moderate-income residents, according to a study released by the Connecticut Green Bank and Operation Fuel.
“Mapping Household Energy and Transportation Affordability in Connecticut” found the combined energy-transportation-housing costs averaged 49% of household incomes statewide, above the 45% threshold for affordability.
The study found the energy burden was six to seven times higher among Connecticut”™s low-income households while transportation spending averaged 20% of household income statewide, above the 15% affordability threshold.
Furthermore, the study found median housing costs exceeded the 30% affordability threshold in 307 census tracts, and in four census tracts ”“ two in Fairfield County and two in New Haven County ”“ the housing affordability gaps were over $10,000.
The study also determined that existing state resources were inadequate to meet the needs of lower-income households. The Connecticut Energy Assistance Program, which provides direct bill assistance to households earning less than 60% of state median income, has a program budget of approximately $88 million, which can only cover roughly 20% of the 430,825 eligible households in the state.
“We know that Connecticut is among the states with the highest energy costs in the nation,” said Brenda Watson, executive director of Operation Fuel and member of the board of directors of the Green Bank. “When you combine this expense with high transportation and housing costs, it can be crippling for a low-income household.”
