Good afternoon. I am Joe Diamond, MASSCAP Executive Director. On behalf of the members of MASSCAP, I want to thank Senator Joan Menard, Representative Owens-Hicks, and the members of the Committee for this opportunity to provide you with testimony on how the network of CAAs in Massachusetts use resources from the Community Services Block Grant (CSBG), Low-Income Home Energy Assistance Program (LIHEAP -- also known as fuel assistance), the Community Food and Nutrition Program (CFNP) to provide Massachusetts families everyday with basic support, training, and advocacy services.

In this testimony, I will provide an overview of the CAA network in Massachusetts. The testimony is divided into the following sections:

• Basic Information About CAAs;

• Community Services Block Grant;

• Low-Income Home Heating Assistance Program;

• Sample of Services Enabled by CSBG Funds;

• MASSCAP.

Our members look forward to providing you today with specific information on how they use these block grants to meet the needs of the people they serve with programs that are responsive to local conditions.

Basic Information About CAAs

Community action agencies were created in the 1965 by Congress to combat poverty and to help low-income people achieve self-sufficiency.

In the early 1980s when the federal government changed the way social services resources were distributed to the states, each state was required to adjust its state laws to reflect the requirements of the new "block grants." Chapter 24 of the Massachusetts General Laws was amended to include, among other things, a definition of Community Action Agencies and to include a description of the kind of services they should provide:

"...a community action agency....

(i) is designed to provide a range of services and activities having a measurable and potentially major impact on causes of poverty in the community or those areas of the community where poverty is a particularly acute problem;

(ii) has been developed and has organized and combined projects and activities undertaken by the agency in a manner appropriate to carry out all the purposes of this section; and

(iii) includes programs to assist low income participants, including the elderly poor, such as programs to: secure and maintain meaningful employment; attain an adequate education; provide and maintain adequate housing and a suitable living environment; receive energy assistance and weatherization services; obtain emergency assistance through loans or grants to meet immediate and urgent individual and family needs, including the need for health services, nutritious food, housing and employment-related assistance; remove obstacles and solve personal and family problems which block the achievement of self-sufficiency; and achieve greater participation in the affairs of the community."

In Massachusetts, 25 CAAs provide basic support services, education and training services, and advocacy services to low-income people living in virtually every city and town in the Commonwealth. Together, these agencies are represented by MASSCAP.

As a group, we believe that low-income people should be treated with dignity and supported in their efforts to become self-sufficient. We believe in empowering people to take control of their own lives and communities in spite of individual and societal barriers to this end.

It is our role to speak out and to support the low-income community's efforts to integrate more effectively into all aspects of society. We believe in the strength of collaboration, both internally and externally, to enable us to adapt to the changes in society an the emerging needs of the low-income community. Above all, we believe that helping people avoid poverty is as important as helping them when they become poor.

The 25 CAAs are based in rural and urban communities with significant levels of poverty and serve over 250,000 families (600,000 individuals) in every city and town with a wide range of basic support, training, and advocacy services. We work closely with the Department of Housing and Community Development (DHCD) and constitute one of the most effective service and training networks of multi-service non-profit agencies in the state.

The names of agencies – Montachusetts Opportunity Council in Fitchburg, or Action for Boston Community Development in Boston, or North Shore Community Action Program in Peabody, or the Citizens for Citizens in Fall River, or Worcester Community Action Council in Worcester, or Community Action! of the Franklin, Hampshire, and North Quabbin Regions in Northamtpon, or Community Action Agency of Somerville in Somerville, or Quincy Community Action Programs in Quincy, or South Shore Community Action Council in Plymouth, or People Acting in Community Endeavors in New Bedford (just to name a few) -- reflect both their mission and the areas they serve. While the names are different, the core mission of each is the same: to help low-income people gain the support and skills they need to achieve self-sufficiency.

Each CAA is anchored in the community by a tri-partite board of directors made up of low-income people, members of the private sector and the public sector. This mix of board members is established by federal law. The Board of directors sets the goals and policies for the CAA.

Our boards include a broad range of people from all walks of life: teachers, low-income people, mayors, medical professionals, lawyers, veterans, clergy, students, union members, local merchants, homemakers, accountants, and many more. Essentially, our boards are cross sections of the communities we serve.

CAAs are economic engines, providing communities with an annual infusion of over $350 million in total resources. CAAs generate twice that amount by helping clients become self-sufficient and productive. CAAs in Massachusetts:

• serve over 250,000 families;

• serve over 600,000 individuals;

• employ over 4,000 people;

• work with over 3,500 volunteers;

• grant over 6,000 contracts with local vendors totaling more than $50 million.

(Figures should be considered conservative; they are based on information gathered in 1996).

The service continuum we provide starts with programs like fuel assistance which helps low-income families and elders pay to heat their homes in the winter. Families can also access a wide range of early childhood care and education programs such as Head Start, and day care through CAAs. In addition, CAAs provide the following services and more:

• job training and education;

• housing search to prevent homelessness;

• GED to gain a high school diploma;

• health services;

• senior services;

• citizenship education;

• meals and other anti-hunger programs;

• weatherization;

• micro enterprise development;

• English as a Second Language;

• affordable housing creation and rehabilitation services;

• family self-sufficiency;

• transportation services.

In addition, many individual CAAs have unique and cutting edge programs that address specific needs in their communities. Essentially, virtually any challenge you can think of to a family trying to achieve self-sufficiency is addressed by the members of MASSCAP.

For summaries of the services provided by each CAA, please refer to the 2000 Community Action Agency Directory published by DHCD. Our members look forward later today to illustrating in their testimony how we use the block grants to help our clients.

Community Services Block Grant (CSBG)

CAAs are able to provide these services because of the core funding each receives from CSBG. CSBG funds are allocated to DHCD and then distributed to each CAA (attached chart of distribution -- item 2). CSBG is a flexible resource used by CAAs to support a wide variety of programing and to leverage other sources of funds. CSBG allows CAAs to respond innovatively and quickly to local needs. On average CSBG constitutes 10 percent of a CAAs budget. In FY 1999 a total of $11,160,690 was distributed to the 25 CAAs in Massachusetts.

A 1986 Government Accounting Office study titled "Community Services Block Grant Helps Address Local Social Service Needs" describes why CSBG funds are so important: "Because of the flexibility of CSBG funds, CAA officials say these funds are the only source of federal dollars that enable them to effectively administer their agencies’ use of other federal, state, and local grants...Because of its flexibility, CSBG is often used to support CAAs’ administrative operations. Other federal and state programs often do not provide sufficient administrative cost funding to support the management of their individual programs, let alone the operation of the CAA itself."

Low-Income Home Heating Assistance Program

The Low-Income Home Energy Assistance Program (LIHEAP), also known as fuel assistance, provides help with some heating costs for low-income households. Twenty-one CAAs and two non-CAAs administer the program which can be the only thing between some families and the bitter cold of a New England winter.

Over 100,000 households were served this past winter by the program with a benefit of up to $450 for clients using natural gas and $750 for clients using home heating oil. Often fuel assistance resources free families from having to choose between food and heat. The program runs from November through April.

The federal government joined the state legislature in allocating emergency resources to help low-income families cope with a severe rise in home heating oil prices that occurred in January. Those emergency resources were allocated to families earning up to 200 percent of the federal poverty level ($34,000 for a family of four); in July the State Legislature overrode a veto and retained the eligibility level for fuel assistance at 200 percent of poverty.

This coming fuel season could even be worse than the last: heating oil supplies are low; heating oil prices are high; gas prices are predicted to rise over 40 percent; and electricity prices as well may go up significantly. We recommend to the legislature that it allocate $12 million to be combined with federal fuel assistance resources to help low-income, working and elderly families cover their home heating costs this winter.

Community Food and Nutrition Program

Seven CAAs provide a variety of direct nutrition and nutrition education services with CFNP funds. Again, these resources meet a basic need of thousands of low-income families.

Over the years CFNP funds have been used to:

• operate food pantries in Hampshire County

• help victims of domestic violence meet their basic needs in Chelsea

• develop and present budgeting and cooking classes in Gloucester

• develop a food resource guide for WIC families in Haverhill

• increase food bank donations in New Bedford

• provide community education and resource development to prevent hunger and malnutrition in Quincy

CFNP recipients this year include:CAI, Inc. in Haverhill - $18,559. CFC, Inc. in Fall River - $10,000 LEO, Inc. in Lynn - $18,560 QCAP, Inc. in Quincy - $4,200 SMOC, Inc. in Framingham - $9,500 SPCA. Inc. in Springfield - $11,000 TRI-CAP, Inc. in Malden - $5,000 VOC, Inc. in Holyoke - $14,000

Sample of Services Enabled by CSBG Funds

It is part of the mission of Community Action Agencies (CAAs) in Massachusetts to provide opportunities for low income families to become self-sufficient. In order for low income families to work or participate in education and training programs they must have access to quality and affordable child care.

Recognizing the importance of child care, community action agencies have become major providers of child care and early education programs throughout the Commonwealth. A recent survey conducted by MASSCAP, which represents the twenty five CAAs in Massachusetts, concludes that CAAs administer over $142 million in child care funding. This includes:

• Over $50 million in Head Start programming;

• Over $52 million in Child Care Resource and Referral and voucher networks;

• And nearly $40 million in other programming including center based day care, family day care networks, school aged programs and Community Partnerships for Children contracts.

Accessibility And Flexibility Are Attributes Of The CAA Child Care Network

Nearly 12,000 low/moderate income children are enrolled in the Community Action Agencies’ child care system. (This excludes referrals and vouchers issued through the Child Care Resource and Referral Network agencies). One of the unique aspects of the community action network is its ability to offer multiple options to families in need of childcare. All agencies (18) providing Head Start services also reported extended day services and many agencies are integrating their day care and Head Start services thus creating a seamless child care system for families. Fifteen agencies reported providing both Head Start and Day Care services. Community Action agencies have the capacity for providing child care that is accessible and meets the changing needs of families as they face the demands of welfare reform and the work place.

MASSCAP

The members of MASSCAP work together on common issues as an Association, which is a 501c3 entity. Through the combined skills and vision of its members, MASSCAP works to enhance the ability of each member agency to better serve its clients.

We meet on a monthly basis to discuss service, management, and public policy issues and develop strategies to address them when necessary. We also sponsor conferences and training sessions for our staff and board members. We conduct important research on poverty, programs to enhance self-sufficiency, and the best-use of information technology. We recently completed research and a report (Crossing the Digital Divide) on the use of a variety of information technologies (computers, internet, email) and information technology based programing to help us even more effectively pursue our shared mission . In addition, we work with a variety of allied human service associations including the Human Services Coalition, Regional Employment Board Association, and the Citizens Housing and Planning Agency.

Over the years, the Association has developed and supported a variety of public policy proposals designed to help low-income people. These include:

• a program to create a state fund to offset any cut in federal CSBG allocation;

• state forward funding of fuel assistance, a budget measure included in the FY 1997 budget to offset the vagaries of federal funding by requiring the state to "up front" federally reimburseable resources to start the fuel assistance program;

• a program to enhance the community service component of the Transitional Assistance to Families With Dependent Children program by providing job readiness training to the work experience;

• electricity deregulation, gaining the best in the nation protections and benefits for low-income people including significant rate reductions and energy conservation services;

• a proposal which was included in the Senate FY 1999 budget to provide CAAs with resources to perform eligibility intake for families qualifying for the new rate discount mandated under the electricity deregulation law;

• a proposal was included in the Senate FY 2000 budget, sponsored by Rep. Tolman and Senator Panagiotakos, to expand the low-income water and sewer rate relief program to all income-eligible families across the state;

• a bill (H.1749 filled for 1999 legislative session) sponsored by Representative Kevin Fitzgerald to create a pilot case management program to help current welfare recipients and those just reaching their two-year time limit over the hurdles to self-sufficiency.

• a budget proposal which was adopted to increase the eligibility level for federal fuel assistance to 200 percent of the federal poverty level.

Our recent research has focused on poverty in Massachusetts. Our report Running in Place: A Report on Poverty in Massachusetts, uses US Census Bureau data to quantify the prevalence and "face" of poverty across the Commonwealth, with particular emphasis on poverty among working families. We believe the report helps dispel many of the myths of poverty. Findings from the report include:

• Nearly a quarter-million children in Massachusetts are poor, with a poverty rate of 16 percent, which is almost double the rate for adults;

• While most poor children are white, the poverty rates for children of color is far higher than that of whites. Specifically, 10 percent of white children are poor, while 46 percent of black children and 61 percent of Hispanic children are poor;

• Among poor families with children, 45 percent have an adult worker in the home, usually with significant work efforts.

In addition to the statistical findings of the report, MASSCAP also includes a number of policy recommendations intended to reduce poverty in Massachusetts. These recommendations include:

• Increase the state earned income tax credit;

• Increase availability of affordable, quality early childhood day care programs;

• Provide transitional assistance recipients, who satisfy their community service requirement by working in non-profits around the state, with a structured job readiness program to help them compete for jobs when their benefits end after two years;

• Protect low-income families during energy deregulation.

The report underscores the significant need for services provided by these block grants. We strongly support the continued provision of these block grants as they are so critical to our ability to help low-income people achieve self-sufficiency.

In addition, as I alluded to above, we recently completed a report on the information technology needs, capacities, and initiatives of our members we titled Crossing the Digital Divide. It is based on research we conducted early in 1999 on how our members use their computers, computer networks, software, the internet, data collection and reporting techniques, and information technology programming such as community computing centers, to run their agencies more effectively and to help low-income people achieve self-sufficiency.

We discovered during the research that every CAA in Massachusetts has adequate if not state of the art computer equipment. We also found that each was wrestling with the question of how to use IT to its best effect.

In addition, we found that each agency was facing challenges related to the collection and reporting of client data to multiple funding sources. We also found that each agency recognizes the need for significant resources to maintain and improve its IT infrastructure. And, virtually every agency expressed a need for consistent and effective IT training for staff.

The recommendations in Crossing the Digital Divide include:

• information technology access centers designed to provide access for our clients to computers, the internet, software, and training on each;

• working closely with state and federal funders to refine the challenges of client data collection and reporting, and developing strategies to address those challenges;

• working with private funders to access resources for IT maintenance and improvement;

• suggestions for approaches to IT training;

• developing IT policies and procedures.

In the end, a better understanding and mastery of information technology is an absolutely critical step for low-income people. It is in fact a very real form of literacy in today's world. We as organizations that work with and for low-income people must be on the cutting edge of technology. We must help low-income people cross the digital divide.

To that end, DHCD has provided MASSCAP with a $100,000 grant to develop six Information Technology Access Centers at CAAs in Boston (ABCD), Malden (Tri-CAP), Haverhill (CAI), Worcester WCAC), Greenfield (FCAC), and Fitchburg (MOC). See attached summary.

This concludes my testimony. I am sure my colleagues are eager to explain how they use these block grants to meet the unique needs of the communities their agencies serve.

Again, thank you for this opportunity. I am happy to answer any questions you may have.