Anticipating a hard winter for people with low incomes, Republic Bank and Jeno Paulucci, the bank's owner, are leading a drive to encourage people to donate to the Salvation Army Emergency Services Fund.
"It's becoming obvious with the increased cost of fuel in general that senior citizens and people on fixed incomes will have a more difficult time with heating costs this winter," said David Gaddie, president and chief executive officer of Republic Bank.
The Paulucci family has had close connections with the Salvation Army for years, so it made sense to direct donations to that organization, he said.
A full-page ad scheduled for Sunday's News Tribune contains an open letter from Paulucci to the people of Northeastern Minnesota urging them to donate money to the emergency fund. Money from the fund is used for such things as utilities, gas, rent and groceries for people in need.
Nancy Leslie, program coordinator for Salvation Army's emergency services, said other agencies that provide similar assistance are strapped for money, which will place more demands this winter on the Salvation Army's program.
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"It will be a tough winter with everything going sky-high," she said.
St. Louis County's crisis fund, made up of state and federal money and administered by the county, is expected to run out before December, said Shelley Saukko, financial assistance director for St. Louis County.
The fund contained $650,000 this year. It is used to prevent homelessness by such means as paying rental deposits or providing money for back rent or utility bills.
Saukko said it may be possible to shift a limited amount of money to cover the shortfall. Next year she hopes to have about $700,000 in the fund, but added even that might not be enough.
"We're in such a state in the economy that more and more people are coming to us for help," Saukko said. "It will be a difficult year ahead to serve all the people who need our help."
Meanwhile, the Arrowhead Economic Opportunity Agency's heating assistance program for low-income people is waiting for Congress to approve money.
"The program starts Oct. 1 and there are no funds to allocate right now," said Val Strukel, the agency's basic needs program manager.
She said she definitely expects the program will get funding, but she's not sure when it will happen. She hopes the money will come through by November, she added.
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Statewide, about three times as many people applied to the program as at this time last year, she said. She encouraged people to continue to apply for the program, because those who apply first will get help first.
"People are definitely frightened and are applying early," Strukel said. "This could be a record year."
Last heating season, money for the program ran out on April 17, even though the program is supposed to run until May 31. This season, because of the increased demand, she expects money may run out sooner.
LINDA HANSON can be reached at (218) 723-5335 or by e-mail at lhanson@duluthnews.com .
