Bond panel OKs $550 million for capital projects

The State Bond Commission approved nearly $550 million in financing for school construction, transportation and other capital projects Tuesday.

But while Gov. Ned Lamont hailed the funding as a vital infusion into Connecticut’s economy, a House Republican leader again charged the state with overspending despite eroding revenues and dangerously high unemployment.

“This is a really good time to be doing upgrades and rebuilding” said Lamont, who chairs the 10-member bond commission, adding “it’s not something you can pull back upon” just because of the coronavirus pandemic.

About 80 percent of the financing approved Tuesday — about $420 million out of $550 million — is focused on education and transportation projects, two major priorities, the Democratic governor said. And with the pandemic curtailing highway and rail travel, transportation projects are progressing with particular efficiency at this time, Lamont added.

Rep. Christopher Davis of Ellington, one of just two Republicans on the bond commission, countered that the state’s borrowing program is more at risk than administration officials want to acknowledge.

Projects approved by the commission include:

⏩ $3 million for the city of New Haven to build supporting infrastructure for a scientific

About 80 percent of the financing approved Tuesday — about $420 million out of $550 million — is focused on education and transportation projects, two major priorities, Gov. Ned Lamont said. And with the pandemic curtailing highway and rail travel, transportation projects are progressing with particular efficiency at this time, Lamont added.

office building at 101 College Street, part of $8 million te state is expected to give the city for that project. Elected officials hailed the backing for the $100 million effort by Winstanley Enterprises.

⏩ $551,110 for Stamford “to assist with renovations and improvements to science classrooms, parking and creation of courtyard instructional space at Stamford High School.”

⏩ $925,925 to Canidae LLC. in Stamford, “for the retention of 10 jobs and the creation of 77 new full-time jobs with an average annual wage of $135,500. Funds will be provided in seven annual installments, with no single year to exceed $148,225.”

Connecticut spends billions of dollars annually on capital projects by selling bonds on Wall Street. When tax receipts and other revenues shrink, so does the amount of borrowing on new capital projects the legislature can authorize.

Though required by law to approve a new revenue schedule annually before July 1, the legislature didn’t do so this year, ending business in mid-March because of the coronavirus. Since then, analysts warned, revenues for this new fiscal year are likely to be down about $2 billion.

Davis pointed to a worsening fiscal crisis, as more than 700,000 unemployment claims have been filed with the state Department of Labor since mid-March and about 250,000 people are still collecting benefits.

Lamont insisted that when legislators set a new revenue schedule, his administration is prepared to help identify new projects that could be deferred.

Lamont’s deputy budget director, Kosta Diamantis, noted that the current administration has allocated borrowed dollars to capital projects equal to just 60 percent of the amount spent between 2011 and 2018 during Gov. Dannel P. Malloy’s administration.