Source: Lamont’s budget chief out of office Friday

Gov. Ned Lamont will announce Friday afternoon that Melissa McCaw, his budget chief as secretary of the state Office of Policy and Management, will exit that role immediately, according to a source familiar with the plans.

It was unclear Thursday night whether Lamont was firing McCaw over her involvement in school construction contracting issues that are now under federal criminal investigation; or whether McCaw was resigning.

Reached by cellphone Thursday evening, McCaw declined to comment. Lamont spokesman Max Reiss had no comment.

The state Office of School Construction Grants and Review was under

McCaw’s OPM from November, 2019 until Oct. 28, 2021, when the director of that office, Konstantinos “Kosta” Diamantis, retired rather than accept a suspension ordered by Lamont. Lamont that day also fired Diamantis from his appointed role as McCaw’s top deputy.

A federal investigation into allegations about contracting issues in that office was announced on Feb. 2, with the release of a state investigation report, ordered by Lamont, into possible nepotism in the hiring of Diamantis’ daughter by Chief State’s Attorney Richard Colangelo.

McCaw was not implicated in that report and there have been no public allegations that she acted improperly in the school contracting issues.

Lamont has stood by McCaw, saying on Feb. 16, immediately before he traveled to Israel for a week, that he had confidence in her ability to lead the state budget and policy office. Lamont returned from Israel Thursday morning and had no public appearances.

Pressure has been rising politically, as state House Republicans on Thursday called for an investigation by the General Assembly — a move Lamont said would be fine with him.

Separately, the state Department of Administrative Services continues to investigate and reform the school contract office, which moved from DAS to OPM at McCaw’s insistence in 2019, and back to DAS the day after Diamantis retired.