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Governor Malloy Signs 2018-19 Budget

Partnership for Strong Communities (PSC)
 

On Tuesday, October 31st Governor Malloy signed into law the bipartisan budget agreement passed by the General Assembly last week. The Governor used his line-item veto to reject a new hospital taxing plan over technical issues. We expect the legislature to reconvene soon in order to address the issue.

The budget agreement establishes a cap on annual spending increases and limits new bonding to $2 billion in each year. You can read about the budget in more detail here and here. To close projected deficits, the $41.3 billion biennial budget includes many difficult cuts to municipal aid and social services. Funding for housing and homelessness services have been preserved.

“Governor Malloy and the General Assembly have enacted a budget that continues Connecticut’s commitment to protect those who need a safe, secure, affordable home. We recognize the difficult choices that were made this year given the tremendous spending constraints the state faces.” said Alicia Woodsby, Executive Director of Partnership for Strong Communities.

Budget Recap

Department of Housing
  • DOH is preserved as a stand-alone agency 
  • Homeless/Housing funding at $74.0 million in FY 2018 and $78.6 million in FY 2019 
  • Homeless Youth Program, funded at $2.3 million each year, is transferred to Department of Housing from Department of Children and Families 
Office of Policy and Management
  • Requires Executive Branch reductions of $42.3 million in FY 2018 and $51.8 million in FY 2019 
  • Requires additional savings of $111.8 million in FY 2018 and $150 million in FY 2019 
  • Requires additional sweeps from non-appropriated accounts of $20 million to be identified at a future date 
Department of Labor
  • Veteran’s Opportunity Pilot funding at $227,606 in each year 
Department of Development Services
  • $350,000 in funding in FY 2019 for supportive housing services for individuals with Intellectual Disabilities or Autism Spectrum Disorder 
Department of Mental Health and Addiction Services
  • Housing Supports/Services is maintained at $23.3 million for each year 
Office of Early Childhood
  • OEC is preserved as a stand-alone agency  
  • Care4Kids is funded $125 million in FY 2018 and $130 million in FY 2019  
  • Transfers Two Generation Initiative from DOL and funds it at $750,000 in each year 
Community Investment Act
  • $5 million each year is swept from Community Investment Act (CIA) fund to General Fund. DOH receives an allocation of 25% of CIA funds. 

Bonding

Department of Housing
  • New bonding for Affordable Housing (FLEX) Fund: $125 million in FY 2018 and $100 million in FY 2019, includes $30 million each year for state sponsored housing portfolio  
  • New bonding for Housing Trust Fund of $30 million in FY 2019  
  • Cancels $5.1 million in funding previously authorized for Homeless Prevention Response Fund which leaves a balance of approximately $20 million  
  • Creates a new $100 million bond fund to assist homeowners with crumbling foundations  
  • New bonding for Healthy Homes lead abatement program at CT Children’s Medical Center at $10 million in each year 
Office of Policy and Management
  • $6 million in FY 2018 and $6 million in FY 2019 in capital funding to support Transit Oriented Development (TOD) activities. 
Department of Economic and Community Development
  • New bonding for brownfield remediation and redevelopment programs at $30 million in FY 2018 and $10 million in FY 2019  

Contact Sean Ghio at sean@pschousing.org for more information.

 
 

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