More Than $500M In Borrowing Approved

Some Concerns Over Hitting Cap

HARTFORD — Gov. Dannel P. Malloy and the State Bond Commission approved more than $500 million in borrowing Thursday, pushing the state toward its maximum bonding cap for the year.

The money was allocated for a wide variety of programs, including constructing schools, fixing roadways and helping companies such as Aer Lingus, which flies out of Bradley International Airport to Dublin, Ireland.

State Rep. Christopher Davis, a Republican who opposed the Aer Lingus deal and other requests, said officials have been spending too much money at a time when state law prevents the bond commission from borrowing more than $2.036 billion during the 2018 calendar year. So far, he said, the commission has approved $1.97 billion in borrowing.

“We’re getting very close to the cap,’’ Davis said.

During the meeting, Davis said he was concerned about the state poten-

tially blowing through its mandatory limit.

“The legislature passed a bond cap,’’ Malloy responded. “That cap will not be exceeded.’’

The commission also approved a wide variety of projects in multiple communities, including $10 million to renovate the historic Odd Fellows Hall in Waterbury and $100,000 for fixing handball courts in Manchester.

Republicans were concerned about $575,000 for upgrades to Little League fields in New Haven and $217,000 to construct a playground and splash pad at DeGale Field in the Elm City.

With the state close to the bonding cap, Malloy said that he does not anticipate holding another bond commission meeting before Election Day. But he added that there will likely be another meeting before he leaves office on Jan. 9.

Malloy said the commission’s items went beyond the state Department of Economic and Community Development’s program to provide grants and low-interest loans to attract jobs to the Nutmeg State.

“It’s about housing,’’ Malloy said. “It’s about transportation. It’s about education and many other strengths that make Connecticut a great place, and rebuilding our cities has been at the core of our efforts to achieve long-term improvement of our state’s economy and quality of life. We have made the critical investments in those areas since day one, and we did it once again today.’’

The commission approved multiple projects for Hartford, including a loan of $8.5 million to help develop a new grocery store at the corner of Albany Avenue and Main Street. The state is also helping to develop about 200 apartments near Dunkin’ Donuts Park.

“Let’s be very clear. Eight years ago, it would have been unimaginable to see private investments on this scale at these locations’’ in Hartford, Malloy said of $100 million in private-sector investments in the capital city.

On a vote of 9-1 with Davis dissenting, the commission approved a 10year, low-interest loan for $5 million at 1.75 percent for Gartner, Inc. to expand its headquarters in Malloy’s hometown of Stamford. The deal will retain 1,385 jobs and create 400 more, he said.

“To put the Gartner agreement in context, in 2018 alone, we have assisted 109 companies with $209 million in assistance,’’ Malloy told reporters. “In exchange, they have promised to retain 22,912 jobs and add 9,530 new jobs.’’

Every item on the agenda was approved by Malloy and the Democratic majority on the 10-member commission. Davis voted against multiple items, and he was joined by a fellow Republican, Sen. L. Scott Frantz of Greenwich, in opposing five projects in Hartford that included the grocery store and apartments near the ballpark.

While Democrats hailed the approvals, Republican Sue Hatfield, who is running for attorney general against Democrat William Tong, said it set the wrong tone.

“In this time, when we’re in a financial crisis, it isn’t the appropriate time to be spending this much money that we don’t have right now,’’ Hatfield told The Courant. “My concern overall is the reckless spending overall that is going forward. … This is a time when the municipalities should be looking to their own resources and raising money through other local sources, as opposed to turning to the state, especially in New Haven, where we just allocated money to a splash pad when the city just gave raises to city employees.’’

New Haven Mayor Toni Harp has defended the raises for 36 nonunion employees as “commensurate’’ with similar raises awarded to union members.