Gov. Ned Lamont has issued a proposal to legislative leaders describing how he believes the nearly $6.3 billion that the state is due to receive from the American Rescue Plan Act should be spent.
The plan makes investments in five key areas:
- Defeating Covid-19
- Investing in the future
- Creating a more affordable Connecticut
- Economic growth that works for all
- Modernizing state government
The proposal was developed in keeping with Special Act 21-1, which requires the governor to provide the Connecticut General Assembly with a plan for investing the funds. That law also requires the legislature”™s Appropriations Committee to create its own proposal by May 16, and then the two plans will be subject to final negotiations between the legislature and the governor.
Lamont said that the federal funds “represent an incredible opportunity for this state to make transformative investments to emerge healthier and stronger. Our proposal places a special emphasis on equity, investments in children and families and making our state even more prepared in the event of another public health emergency or crisis.
“This is a unique moment for Connecticut,” he continued, “and by maximizing the utility of these resources, we can continue putting our state on an upward trajectory for the remainder of the pandemic, the recovery, and into the future.”
Secretary of the Office of Policy and Management presented the plan yesterday, noting that final approval will take place more or less simultaneously with the two-year, $46 billion legislative budget that passed last week.
Included in the governor”™s proposal:
- Nearly $57 million to support broad economic development throughout the state.
- $50 million in fiscal year 2022 to support the Unemployment Insurance Trust Fund.
- $39.5 million to expand broadband internet in underserved communities, which will be coupled with funding identified in the Economic Development Action Plan made up of $315 million in bond funds, $164 million in tax credits/grants, $100 million in State Small Business Credit Initiative funds and $938 million in private funding.
- $20 million to improve nursing home infrastructure.
- $15 million during FY 2022 for free admission for Connecticut residents age 18 and younger to Connecticut museums, arts and educational venues from July 1 through Labor Day; venues cited include Trumbull”™s Beardsley Zoo and the Maritime Aquarium at Norwalk.
- $3.5 million to fund scholarships to sports and specialty camps for children at or below 50% of the state median income.
- $4 million over the biennium ($2 million each year) through the Office of Workforce Strategy within the Department of Economic and Community Development to fund services to prepare justice-involved youth and adults to contribute to employers”™ workforce needs amid the pandemic.
In a statement, Senate Republican Leader Kevin Kelly (R-Stratford) said: “I look forward to fully reviewing the details of the governor’s proposal and continued conversations. Connecticut must be cautious not to create an overreliance on federal aid, but rather use it as a springboard to create a brighter future for working- and middle-class families.
“Connecticut has an opportunity to use this historic federal investment to transform our state, to heal and to set a new course for growing jobs and giving people opportunity,” Kelly said. “We must make health care more affordable, accessible and equitable. We must focus on education and workforce development. And we must make our state a place where job growth and income growth is possible so all people can have a ladder out of poverty.
“We must not squander this opportunity with policies or programs that are not sustainable or that will create a cliff for people in the future,” he said.
