Connecticut approves hundreds of millions for local projects
Fresh from a recent bump in the state’s bond rating, Gov. Ned Lamont on Friday stepped away from his selfimposed “debt diet,” leading the State Bond Commission in approving $340 million in capital projects, including tens of millions of dollars in affordable housing projects and $55 million to advance the wind-energy project based at the State Pier in New London.
With a lower interest rate of about 1.8 percent, the projects approved during a virtual hour-long meeting hosted by the governor in the State Capitol, included $5 million for harbor dredging and navigational improvements in New Haven, and $4 million to replace the crumbling roof and brick parapets of the historic 1888 criminal courthouse on Golden Hill Street in Bridgeport.
Lamont said previous years of fiscal prudence have allowed the state to loosen up.
“What it means is that we did a lot less over the last couple of years,” Lamont said during a news conference after the meeting. “It’s a pretty unique time. It’s unique in terms of the extraordinary needs we have out there right now, and it’s unique in terms of the ability to borrow money at a real discount.”
Lamont stressed that he wants to see what kind of additional federal pandemic support comes from President Joe Biden’s proposed infrastructure bill, on top of $140 million in capital projects last year supported with federal cash. “That would probably influence what we do between now and the rest of the year,” Lamont said of the president’s $1.9-trillion proposal, which is stalled in Congress.
The state’s budget year starts on July 1 and Lamont said he anticipates at least one more meeting of the State Bond Commission, which he leads, before the end of June.
“Obviously, if we can borrow at lower costs, then it allows us to stretch our budgeted debt-service dollars further,” said Melissa McCaw, who as secretary of the Office of Policy and Management is the governor’s budget chief. “Basically it allows for more investment because of the lower cost of those bonds.”
State Treasure Shawn Wooden, a member of the bond panel, said at the end of the meeting that the upgrade from Moody’s Investor Services was the first of its kind for Connecticut in more than 20 years. “By contrast, as recently as 2017 we were being downgraded,” Wooden recalled. “This is great news for our state’s smart fiscal policies and practices during the past few years. In fact, Moody’s cited the state’s strong governance, a record-high budget-reserve fund and strong cash position in their upgrade.”
Lamont kicked off the meeting of the commission, comprised of 10 members including two Republican and two Democratic members of the General Assembly; McCaw; Department of Administrative Services Commissioner Josh Geballe; and top elected leaders including Attorney General William Tong - by touting that the rating increase is a sign to the nation that “Connecticut is getting its fiscal house in order.”
The governor described the last two years as one of “scrupulous” borrowing, but because of needs and low interest rates, this months agenda was more aggressive. Coming into Friday’s action, the state had bonded about $840 million in projects since last July 1.
The commission approved more than $100 million in state Department of Transportation projects; $76 million in municipal grants; and $49 million for affordable housing upgrades throughout the state including the Richard Street Apartments, the MLK/ Tyler Street Housing and the Hill Central development in New Haven, as well as the Lascana Home in Orange and Lawnhill Terrace in Stamford.
Also approved was $29 million in information technology upgrades in several state agencies; $17 million for brownfield remediation in cities that were historic manufacturing centers with decades of environmental contamination; and about $3 million for improvements to small harbors, including $164,000 for a new West Beach boat ramp in Stamford, the $1.2 million dredging of Westcott Cove in Stamford and $184,000 for a study of a new boat ramp in West Haven. More than $540,000 of $2.5 million for the state Department of Energy and Environmental Protection will be used to rehabilitate a bridge heading to Sherwood Island State Park.