From Paddi's Desk
by Paddi LeShane
When it rains, it pours.
Just as CT was about to reopen, the state's government network was hit with a virus too. Though state officials are referring to it as a bug, it shutdown email access for all and created several other undisclosed "malfunctions" across the network. Reports say that the incident disconnected 1,700 virtual servers from storage and made it impossible to access to documents, reports and information. It's believed that no data was lost, so that's a big sigh of relief. There is no known cause of the snafu as this newsletter goes to press, but many are assuring all it wasn't a cyberattack or intentionally caused.
Late Tuesday, many of the emails caught in limbo started to appear at about midnight. By Wednesday afternoon, it appeared that all was back to normal, except knowing why it happened. The mystery continues.
In other not so good news, the highly celebrated partnership between the Dalio Foundation and the State of Connecticut has ended abruptly. What started out as a rumor turned into a case of "who done it," complete with finger pointing everywhere. After the leaked announcement that the newly tapped CEO was being asked to resign or be fired was reported by the evening and morning news, elected officials and "good government" folks began to once again raise the concerns over the lack of transparency and accountability for the partnership.
Over the next five years, the partnership's goal was to match dollar for dollar on the $100 million pledged to CT to not only help but develop a possible solution for the not so secret educational disparities within our urban and rural areas and the suburbs. With $60 million in recent computer purchases for those targeted zip codes, there was great anticipation of an innovative and creative initiative lead by the partnership and the newly minted leadership of the State Department of Education.
Yesterday, it all ended. The Governor
announced the end to his nationally celebrated public-private partnership, and the legislature will now have to decide how to allocate the $25 million of state dollars remaining as a budget item to partner in developing a solution to this educational dilemma.
You could hear the disappointment in Governor Lamont's voice when it all came crashing down. Despite everyone's position on whether the partnership was working or was set up correctly, it was heartbreaking to hear the announcement from a Governor who cared so much about resolving this age-long discrepancy in education. And during this uncertain time, a double whammy.
Managing through a crisis is a lot about what
WAS, what
IS and what
WILL BE.
Coming up on week 12, which seems like a lifetime to many, we can all see the state start to pivot the global public health crisis away from what was/what is to what will be. For the first two to three weeks, the world, our nation and our state were trying to get their heads around what
WAS the normal life we were all part of. The anticipation of spring, the start of the baseball season and the joy of college and high school celebrations and a few family weddings tossed in to the mix seemed to be what we were all looking forward towards.
WHAT WAS the first of March depended on relative stability and predictability, but as the weeks of March rolled by and April appeared, we learned
WHAT WAS would not be reality. Many folks were stuck in the wrong location, yearning to get back home or they were in a panic as to what would happen to their parents, grandparents or elderly neighbors who were "targets" of this unknown and hidden health hazard. Parents were concerned about how their children would learn, or more troublesome, complete their hard earned degrees. Sheltering at home, social distancing and self-isolation became
WHAT IS. As the next several weeks came and went, businesses ended up closing their doors sending employees home, laying off valued workers and furloughing others.
Not until two weeks ago did CT see some light at the end of tunnel as it began to think about what
WILL BE. It's been a tough road for the many employees, employers, students, parents and other residents. But now the unknown is being replaced with the new reality of what is. Social distancing is still going to be here for a long time. There will be smaller groups of social gatherings and businesses gatherings including weddings and celebrations of all kinds; the good ones like celebrating earning a degree, holding a baby shower or recognizing the good in people as well as those sad ones of saying goodbyes to those who retire, those who leave their job involuntarily, those who decide to leave CT or even those that depart this earth no matter the reason.
Nutmeggers have a long history of adapting, taking on challenges, fighting and creating a life of happiness and optimism. We will do it again and we will be ready to take on the last phase of what
WILL BE with determination, innovation and a sense of community. I have no doubts.
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CT Agency Corner
A Deficit With "Conflicting Statutes" Seen With a High Level of "Absurdity"
by Michael Johnson
An opinion rendered by the state's Attorney General in 2018 on a legislative "bond covenant" which the State Treasurer uses when selling CT bonds on Wall St. has now revealed something that many of us knew would painfully come up in time. However, most didn't think it would come as quickly as two years.
That painful budgetary reality comes into play when factoring in a few things.
First, OPM Secretary McCaw issued yesterday her monthly report to the State Comptroller to outline the state's current financial position. In short, the estimated rainy day fund balance at the start of FY 2020 is $2.5 billion, or about 13.0% of net General Fund appropriations, and OPM cites that this balance is more than adequate to offset the $619M deficit for the fiscal year ending on June 30
th.
That being said, that deficit number will grow to at least $1.5B a year (in conservative estimates) for the next two fiscal years, and the state will need to decide how to offset that red ink.
Well, since there will be $2.2B in rainy day funds available (according to OPM) can't the state utilize some or even all of that balance to help? Here in lies the inherent conflict.
In 2018, the legislature passed a law that says every time CT sells a bond, attached to it is a pledge that states that Connecticut will "address its long-term liabilities, rein in spending and borrowing, and rebuild its Budget Reserve Fund."
This on its face, it looks like a worthwhile measure to convince credit rating agencies to give CT a higher bond rating and help control long-term deficits. However, what it does is conflict with every other statute the state has on the capabilities for utilizing other unspent funding to help with increased spending where needed.
This conflict was made apparent by the State Treasurer's office when former State Treasurer Denise Nappier sought the opinion of the Attorney General's office to help decide what laws take priority when there's such an inherent overlapping conflict. The answer was clear, but painful:
"There are various mechanisms that can be employed in an attempt to persuade a court to give effect to the intent of the General Assembly concerning the intersection of these statutes.
The mechanism with the greatest chance of success is to illustrate both the impossibility of the literal application of the conflicting statutes at the same time and the absurdity of the result obtained when the application of one statute essentially eviscerates the intent of the legislature in passing the other. In such circumstances, a court would be obligated to construe the statutes in a manner that would avoid the conflict, and, while we cannot opine with certainty how a court would rule on these issues, we believe that can be accomplished through interpretation of the "taking effect" language in the covenant statute in a manner that reflects the intent of the legislature."
In summary, what the opinion points out is the intent of the legislature is clearly conflicted but what's most tangible in all of this is the agreement CT entered into with bond buyers. The agreement to limit their abilities in addressing deficits is one that now has financial obligations between now and the next three years.
Clearly, when the law passed, the "bond covenant" was capped at being in place for five years, and there was a feeling that the economy for those five years was deeply improving.
At the time, it seemed like a relatively good gamble to take given the goal of improving CT's credit rating. Now that th
e gamble on "black" has landed on "red" and, the state will need to find the chips to pay.
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2020 Candidate Corner
by Chelsea Neelon
As we begin to get closer to summer, the 2020 election cycle will start to make it's way into the forefront.
Both new and incumbent candidates will need to come up with creative ways to reach voters. This week, we wanted to highlight one
of those new candidates running for office in an open seat in the 143rd District (
Norwalk, Westport, Wilton),
as Representative Gail Lavielle (R) will not be seeking another term.
Patrizia Zucaro (R) is seeking to fill the 143rd district's seat,. Learn more about her below!
What motivated you to run for office?
I was motivated to run because of the many issues Connecticut is facing right now. Specifically, the need to support small businesses, improve transportation, and address Connecticut's structural fiscal weaknesses: high taxes and debt, runaway spending, and massive unfunded retirement obligations.
What are some of your legislative priorities?
I think initially my priority will be addressing health and safety concerns related to COVID-19. Additionally, I will look to address Connecticut's spending problem while focusing on the issues and concerns expressed by my constituents.
What are you looking forward to doing after this crisis?
I am looking forward to eating out again. I am a bit of a foodie who loves taking in the atmosphere in a restaurant; so, I am really looking forward to getting out again.
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Municipal
Roundup
by Ryan Bingham
Budgets budgets, budgets. In the municipal world, May and June are typically spent zeroed in on finalizing budget plans, local referendum planning and getting ready for a July 1st budget start. In these difficult to navigate times for local governments, there are new curve balls being thrown at local leaders both on the town and board of education side of the ledger. The coronavirus is driving a steep and unprecedented increase in classroom costs that's going to sweep through the nation's school system as early as this summer.
In total, the U.S. will need to spend $41 billion, or 5% more next year to roll out remote learning, expand food services for a growing number of low-income students and extend the school year to make up for lost days according to a recent analysis by Michael Griffith, a senior school finance researcher/policy analyst for the Learning Policy Institute. This could be bad for local tax payers who are all feeling the crunch during these trying times. Many communities are having to make tough decisions on passing local budgets with so much uncertainty. Will schools be open in September? Tough to say, but either way local decision makers have to pass a budget soon.
In Bristol, they're having to think differently about routine municipal business. "Most of our employees have been very resilient, they've pivoted," Bristol Mayor Ellen Zoppo-Sassu said. "The majority are understanding that if we don't do the Draconian measures right, we could possibly be doing them all summer, which nobody wants to do."
The vast majority of Connecticut municipalities closed their town or city halls to the public in mid-March, advising taxpayers to conduct day-to-day business by email or phone. Police started taking minor complaints by phone instead of in-person, and firehouses did away with public tours and open houses.
In the weeks since then, department supervisors have looked for ways to further reduce the risk of employees getting infected on the job. The big threat, a whole department's staff getting sick at once, has led to a series of new schedules and working conditions. "All of our departments are operating differently," Zoppo-Sassu said. "At the Building Department, everyone comes in every day, but some for the morning, some for the afternoon. And they've started to be creative about using Zoom and cellphones; contractors can go into a building and take video, and inspectors can review that."
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Election HQ
by Chelsea Neelon
With Memorial Day weekend coming up, even during these turbulent times, it's starting to feel a bit like summer. For candidates running for office, summer is usually spent trying to connect with voters by door knocking, setting up fundraisers and meet and greet events or even standing outside the local grocery store shaking hands. Not this year.
Wrapping up the month of May comes with local town parties nominating their candidates for both State House and Senate. While most incumbents running on the 2020 ballot were endorsed by their respective parties, there might be some trouble in paradise for others. One area that looks to be seeking a change in down in the 22
nd Senate District which covers Bridgeport, Monroe and Trumbull, currently represented by Senator Marilyn Moore. At the local party nominating convention, Moore was defeated by Marcus Brown, a two-term Bridgeport city Councilman who won 43 of the 53 votes cast (virtually), including all of the delegates from Bridgeport. Moore did gather enough support to have her name on the August ballot, so that primary will surely be a hot focus come August.
Speaking of hot focuses, with ¾ of legislative leaders not seeking reelection, the makeup and logistics of the General Assembly will be very different come January. Two seats to focus on are those that are currently held by Senate Minority leader Len Fasano and House Republican leader Themis Klarides. In the 34
th Senate District (Durham, East Haven, North Haven, Wallingford), Paul Circarella (R) and April Capone (D) are seeking to fill the seat. Circarella has received Sen. Fasano's endorsement, while April Capone recently received her party's endorsement. Capone is a former Mayor of East Haven while Circarella is a North Haven resident and local small business owner. A lot of eyes will be on this race come August.
In the 114
th House District (Woodbridge, Orange, Derby), Daniel DeBarba (R) and Mary Welander (D) are looking to fill Rep. Klarides' seat. DeBarba, a lifelong CT resident, serves as CFO of a large health care system in NY and is the former president of Norwalk Hospital and Danbury Hospital. Welander is heavily involved in local politics in Orange, serving on the town's Board of Education as well as a handful of other town boards. Both will have to get creative in terms of how to each voters in these socially distant times.
We will be sure to keep you updated on CT's election happenings through the summer as we get closer to our August primary.
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Did You Know?
This Week in CT History
May 21st, 1901
First Speed Limit Law in the U.S.
In 1901, Connecticut became the first state in America to pass a law governing the speed of automobiles.
According to the new law, cars were not to exceed 12 miles per hour within city limits and 15 miles per hour on rural or suburban roads, and were required to slow down whenever they approached an intersection.
Technically, there had been speed limit laws passed earlier in American history - in colonial Boston and New York, magistrates passed laws that forbade riding horses at a gallop through city streets. Connecticut's "Act Regulating the Speed of Motor Vehicles," however, was the first speed limit law for automobiles.
Even though the parts of the law governing speed proved difficult to enforce, given the lack of accurate speed-measuring devices in 1901, the maximum penalty for breaking the law served as a sufficient deterrent. Violators could be fined up to $200 - which translates to nearly $6,000 in today's dollars.
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