Friday, May. 16, 2008

Sluggish Economy Impacts Locals

Struggling Residents Facing Hard Times, Get Help from GRACE

By Scott Price

Staff Writer

Area residents and businesses are dealing with rising fuel prices, increased food prices, a sluggish economy brought on by the mortgage and credit crisis, and a dollar that is declining in value.

Michelle Cantrell has lived in Grapevine the last two years in transitional housing with Grapevine Relief and Community Exchange (GRACE), trying to get back on her feet after getting out of an abusive marriage.

About 2 1/2 years ago Cantrell left an abusive husband, and despite having a steady job in Dallas, she found herself living for about six months in a Fort Worth homeless shelter with her son, who is now 3, before getting into the GRACE program.

Cantrell said the GRACE housing program that provided a furnished apartment and a car for free, has put her back on her feet.

GRACE provided Cantrell an older-model Ford Taurus, and she pays about $160 a month for gasoline to drive to work. Cantrell said she was working in a warehouse in Dallas and the company gave her a good promotion. But the increase in pay meant she no longer qualified for CHIPS, the Texas insurance plan for children. This increased her monthly dental and medical insurance payments for her and her son from $140 to $440 a month.

"That hurts me more than the gas," she said.

In addition, Cantrell pays $400 a month for daycare for her son. She said clothes for a growing child are also expensive.

Cantrell moved out of GRACE transitional housing in April, as the program allows a person to stay for two years. She will now be staying in an apartment provided by a Grapevine church. Cantrell will not pay rent, but she will be responsible for all other bills.

In a year, Cantrell said, she hopes to be totally self-sufficient.

"I like this area, and my son will start school soon, so I want to stay ... ," she said. "It is hard, but I think we are going to be OK."

GRACE has seen an increase in people asking for assistance with rent payments and gasoline vouchers.

"We have lots of clients coming in for gas vouchers," said Pat Frosch, GRACE’s director of programs.

The gasoline vouchers are usually given out for people to get to doctor appointments and job interviews. In February, 21 people received gasoline vouchers, Frosch said, while 65 people asked for rent assistance.

Frosch said GRACE, which has recently decreased the rent assistance amount from $250 to $150 to reach more people, helped about two-thirds of the applicants.

GRACE gives food to about 180 families each month, and on Tuesday evening people can get healthcare at the organization’s Outreach to Health Community Clinic.

People must be within 200 percent of the federal poverty level to receive free healthcare. All other GRACE services require people to be within 125 percent.

The 2008 federal poverty guidelines place the poverty level for one person at $10,400 annual income, two people at $14,000, and a family of four at $21,200.

"We have had people losing jobs," Frosch said, "but people’s money is just not going as far."

Frosch said everyone is seeing their buying power go down and prices increase.

"I know when I go to the store milk is $3.50 to $4 a gallon and eggs are almost $2 a dozen when they were 98 cents last year," Frosch said.

"We are all seeing we have to pinch a little bit more."

The rising costs of fuel prices and corn prices have resulted in higher food prices, with items like produce, milk and eggs most affected. The U.S. Department of Agriculture reported that food prices increased about 4 percent in 2007 and are expected to increase another 3 or 4 percent this year. They also reported that there was a 12 percent increase in milk prices in 2007.

Gary Hudleston, a spokesman for Kroger Food Stores, said fuel prices, along with supply and demand, have affected grocery prices.

"We have seen some inflation, primarily with produce," he said. "Much of the produce comes from California, Florida and other places."