Achievement First/ConnCAN, Charter Schools, ConnCAN, Connecticut State Department of Education, Erick Clemons, Ethics, Malloy, State Board of Education Achievement First Inc., ConnCAN, Corporate Education Reform Industry, Erik Clemons, Ethics, Malloy, State Board of Education
Thanks to ten courageous Democratic members of the Connecticut House of Representatives, Governor Dannel Malloy’s ethically challenged nominee for the State Board of Education, Erik Clemons, was on the verge of being rejected by the General Assembly earlier this afternoon.
It would have been a huge victory for honesty and ethics in government, as well as for those who believe in public education.
However, Governor Malloy won this stunning battle – an issue that received no media coverage except here at Wait, What? – thanks to ten Republican legislators who crossed over to vote with the majority of Democrats and in favor of Malloy’s choice to serve on the state board that sets education policy in Connecticut.
As has been repeated reported on this blog, Erik Clemons is the charter school advocate whose company is benefiting from a lucrative, no-bid contract that is funded through, and monitored by, the very government entity that Malloy has appointed him to serve on.
As reported yesterday, the House vote on Erik Clemons’ and the ethical issues that should have prevented him from serving on the State Board of Education were scheduled for a vote today. (See How will CT legislators vote on Malloy’s ethically challenged State Board of Education appointee?)
When the vote was taken, ten Democratic Members of the Connecticut House of Representatives put ethics, honesty and Connecticut’s children, students, parents and public schools above Malloy’s political agenda. The Democratic legislators voting no were;
And Representative and Deputy Speaker of the House Godfrey
However, Malloy’s victory came thanks to the following Republicans who voted to disregard the serious ethics issues and in favor of Malloy’s nominee and their anti-public education agenda. Republican legislators voting to put Erik Clemons on the State Board of Education were;
Had the Republicans stood together on this critically important issue of principle and refused to allow an individual to sit on the State Board of Education when that person and their company benefits from funding that is overseen and approved by the State Board of Education, Clemons nomination would have lost by a vote of 68 in favor of Malloy’s choice and 72 opposed.
More on this breaking story as it becomes available.
For the full vote go to: https://www.cga.ct.gov/2016/VOTE/h/2016HV-00014-R00HJ00027-HV.htm
Fellow public education advocate Wendy Lecker and I have written extensively about Clemons’ conflict of interest and Malloy’s attempt to, once again, throw ethics aside. Here are links to those articles:
Malloy turns to charter school industry for names to appoint to the CT State Board of Education (Wait, What? 3-5-16)
CT legislature’s nomination committee votes 10 to 4 today to confirm Erik Clemons to State Board of Education. (Wait, What? 2-18-16)
It’s a CONFLICT OF INTEREST to serve on the State Board of Education while collecting hundreds of thousands of dollars a year via the State Department of Education (Wait, What? 2-17-16)
Company run by Malloy appointee to the State Board of Education collects $517,128 in funds allocated by the State Board of Education. (Wait, What? 2-16-16)
New State Board of Education member collects multi-million dollar contract via State Board of Education (Wait, What? 1-5-16)
Malloy gives Charter School Industry another seat on the CT State Board of Education (Wait, What? 12-23-15)
Achievement First/ConnCAN, Charter Schools, Connecticut State Department of Education, Erik Clemons, Ethics, Malloy, State Board of Education Achievement First Inc., Charter Schools, Conflict of Interest, Erik Clemons, Ethics, Malloy, State Board, State Department of Education
Last November, Governor Dannel Malloy appointed Erik Clemons of New Haven, along with two other individuals, to the State Board of Education. See: Gov. Malloy Appoints Three to Serve on the State Board of Education.
As interim appointees, the three immediately became voting members of the State Board of Education, although they must now be confirmed by the Connecticut General Assembly. The legislature’s Executive and Legislative Nominations Committee will be holding a hearing, followed by an immediate vote, on Mr. Clemons and Malloy’s other appointees to the State Board of Education this Thursday, February 18, 2016.
When making the announcement, Governor Malloy and his press operation conveniently failed to reveal Erik Clemons’ close association with Connecticut’s charter school industry.
Clemons served on the Board of Directors’ of Achievement First Elm City Charter School until 2015. Following his departure from Achievement First Inc., his company’s Director of Programs at CONNCAT, Genevive Walker, was appointed to serve on that same Achievement First Board.
Clemons is also a founding member and continues to serve on the Board of Directors of the Elm City Montessori Charter School, a charter school that opened last fall after receiving approval from the State Board of Education.
Both of these privately owned, but state funded, charter schools receive their operating money through the State Board of Education and the State Board is responsible for overseeing and regulating these and Connecticut’s other charter schools.
Of even greater concern, however, is that when Malloy appointed Erik Clemons to the State Board of Education, the Governor failed to report that Erik Clemons is the president of a nonprofit corporation that is collecting in excess of $500,000 in state funds as a result of a lucrative no-bid contract funded through the State Department of Education.
The incredible story dates back to May 7, 2014 when Governor Malloy’s political appointees to the Connecticut State Board of Education voted to adopt a “Turnaround Plan for the Lincoln-Bassett Elementary School in New Haven.
The plan REQUIRED that the New Haven School System contract with Erik Clemons’ Connecticut Center for Arts and Technology (ConnCAT). As head of ConnCAT, Clemons’ compensation package is well over one hundred thousand dollars a year.
The Turnaround Plan read;
“While Boost! Will continue to deliver community resources to students at Lincoln-Bassestt, the Connecticut Center for Arts and Technology (ConnCAT) shall serve as the schools’s anchor partner for afterschool programing.”
The Turnaround Plan required that the New Haven Public Schools “initiate a performance-based contract with ConnCAT by May 27, 2014.”
As a result of the State Board of Education’s action, the New Haven Board of Education approved Agreement 649-14 with Clemons’ Connecticut Center for Arts and Technology (ConnCAT) to “provide after-school programming, family and community engagement programs and school environment transformation at Lincoln-Bassett School from July 1, 2014 to June 30, 2015. The funds to pay for the $302,197.50 contract came from the State Department of Education’s “School Turnaround Program.”
A second contract (Agreement 478-13) between the New Haven Board of Education and ConnCAT, again using State Turnaround Program funds, authorized an additional $214,930.50 to pay for ConnCAT activities form July 1, 2015 to June 30, 2016.
This annual contract is expected to be extended, yet again, in the summer of 2016.
In addition, using the state’s Lincoln-Bassett turnaround funds, the New Haven Board of Education also hired a New Haven architectural firm for $42,224 for “ConnCAT Project Design Services.”
Unfortunately, the only coverage of these issues has been here at Wait, What? in an article co-written with public education advocate Wendy Lecker, Malloy gives Charter School Industry another seat on the CT State Board of Education.
With the General Assembly’s Legislative and Executive Nominations Committee about to decide whether or not to confirm Mr. Clemons to serve on the State Board of Education, one would hope that other media outlets or legislators would step up and investigate the extremely serious conflicts of interest that should be keeping Mr. Clemons from serving on Connecticut’s Board of Education.
Achievement First/ConnCAN, Andrea Comer, Charter Schools, Connecticut Interscholastic Athletic Conference, Erik Clemons, Ethics, Malloy, State Board of Education Achievement First Inc., Andrea Comer, Charter Schools, Erik Clemons, Ethics, Malloy, State Board of Education, State Department of Education
Ethics for public officials? Not so much.
One of Governor Dannel Malloy’s recent appointees to the Connecticut State Board of Education is not only a representative of the charter school industry but his company is collecting a multi-million dollar contract that is funded and managed by the State Department of Education and the very board he has been appointed to.
Although this article was first published at Wait, What? on December 23, 2015, the Malloy administration has refused to comment.
Malloy gives Charter School Industry another seat on the CT State Board of Education
A News Update from Jonathan Pelto and Wendy Lecker
While Connecticut’s public schools continue to suffer from inadequate state funding and Governor Dannel Malloy and his administration strive to undermine, dismiss and destroy the CCJEF school funding lawsuit that would finally ensure that Connecticut meets its State Constitutional obligation to provide all students with a quality education, Malloy’s corporate education reform initiative has fueled an unprecedented growth of charter schools in Connecticut. The Charter School Industry now collects in excess of $100 million a year from Connecticut taxpayers.
Privately owned and operated, but funded with taxpayer dollars, Connecticut’s Charter Schools have consistently failed to educate their fair share of students that require special education services and English Language Learners who aren’t fluent in the English Language.
Achievement First, Inc., the large charter school chain with schools in New York, Connecticut and Rhode Island, earned national notoriety when news broke about the shocking number of kindergarten and first graders suspended at their schools. The charter school company’s failure to provide special education students with appropriate services has generated investigations in both Connecticut and New York.
The truth is that while the Connecticut State Board of Education is legally obligated to regulate charter schools, they have had a very shoddy track record when it comes to fulfilling those duties.
After taking office, Malloy’s Commissioner of Education Stefan Pryor (a co-founder of Achievement First, Inc.) and the Governor’s political appointees to the State Board handed approximately $50 million to charter school operator Michael Sharpe and his Jumoke/FUSE’s charter school chain without bothering to uncover that fact that “Dr.” Sharpe didn’t actually have the advanced academic degree he claimed or that he had spent time in federal prison for embezzlement of public funds.
The State Board of Education even bestowed upon “Mr.” Sharpe control of Hartford’s Milner school which, under their not-so-watchful eyes, he ran into the ground.
In addition to “overlooking” state requirements that charters serve a requisite number or special education and English Language Learners, and that charters are not supposed to be over-concentrated in a limited number of municipalities, the State Board has rubber-stamped charter renewals, even when they fail to meet the standards set forth in their charter authorization.
The State Board of Education has done such an abysmal job overseeing charters that the legislature was forced to pass a law tightening charter oversight rules last session and added a layer of legislative oversight to the Department of Education’s charter authorization process.
But SURPRISE – thanks to Governor Dannel Malloy’s recent action, Achievement First, Inc. and Connecticut’s Charter School owners, operators and advocates are celebrating the fact that one of their own has quietly been appointed to Connecticut’s State Board of Education, the very state entity that remains responsible for overseeing and regulating charter schools.
Although the potential conflict of interest is obvious, this isn’t the first time Governor Malloy has used his appointing authority to put a charter school person on the State Board of Education.
His last such appointee, Andrea Comer, the COO of the Jumoke/FUSE charter school chain, resigned from the State Board of Education and her job as the FBI and state investigators closed in on allegations of wrongdoing by “Jumoke/FUSE’s CEO, “Dr.” Sharpe.
This time the appointment of a charter school insider to the State Board of Education occurred when Malloy appointed three new members to Connecticut’s State Board of Education last month.
While the legislature will eventually have an opportunity to vote on the nominations, as interim appointees, the individuals have already taken their seats on the Board and will serve until confirmed or rejected by the General Assembly.
Media coverage of the appointments was minimal and limited to what was contained in the press release that was issued by Malloy’s Office in November. Gov. Malloy Appoints Three to Serve on the State Board of Education began,
Governor Dannel P. Malloy today announced that he is appointing Erik Clemons of New Haven, William Davenport of Litchfield, and Malia Sieve of Norwich to serve as members on the Connecticut State Board of Education.
“We are making significant progress as we raise the bar like never before. Connecticut’s State Board of Education plays a critical role in ensuring that our students receive a world class education that prepares them for careers in the 21st century,” Governor Malloy said. “Erik, Bill, and Malia are the right candidates for these roles, and I look forward to having them contribute their experiences and expertise as members of the board. We are going to continue moving our schools forward.”
The Press Release added;
Clemons is the founding CEO and President of Connecticut Center for Arts and Technology, Inc. (ConnCAT), a nonprofit career training institution that aims to prepare youth and adults for educational and career advancement through after-school arts and job training programming.
But there is much more to the story;
Knowing that Malloy and his administration have the propensity to duck the truth, it will not be surprising to many people that Malloy failed to inform the media, the public or the legislature that the State Board of Education’s newest member, Erik Clemons, has an extensive and long-standing relationship with the charter school industry and is the President and CEO of a company that directly benefits from a large state contract that is funded through the State Department of Education.
- Erik Clemons served as a member of Achievement First Inc.’s Elm City Charter School Board of Directors from 2013-2015.
- Erik Clemons is also a founding member of the Elm City Montessori Charter School, a charter school that opened earlier this fall after receiving approval from the State Board of Education.
- Erik Clemons is the President of a non-profit corporation that received a lucrative contract last year that is paid with taxpayer funds through the State Department of Education.
Malloy’s new appointees to the State Board of Education replace out-going members who resigned or didn’t seek re-appointment, including former State Board of Education member Andrea Comer.
As noted, Comer, the former Chief Operating Officer of the disgraced Jumoke/FUSE charter school chain,t quit both her job and her position on the State Board of Education when the charter school company became the target of the investigation into financial wrongdoing. When Malloy appointed Comer, Wendy Lecker and I raised alarms about the potential conflict of interest that comes with having a charter school executive on the state committee that regulates that charter school industry. (See Pelto and Lecker’s March 15, 2013 commentary piece, Malloy nominates charter school corporate officer to Connecticut State Board of Education.)
At the time, both the Hartford Courant and Stamford Advocate followed up with editorials. In an editorial entitled, Conflict on state school board, the Stamford Advocate wrote;
Andrea Comer is a successful executive in the state charter school business. She has worked for the charter management company Achievement First, and in October was appointed chief operating officer of Family Urban Schools of Excellence, a management/expansion company created by Hartford’s Jumoke Academy charter school.
And she is poised to add another title to her substantial resume: member of the state Board of Education.
Gov. Dannel P. Malloy has appointed Comer to the board — raising eyebrows and questions about a conflict of interest. The board has direct oversight of the charter school industry, decides whether to reauthorize charters and votes on funding and the creation of new charter schools.
As former state legislator Jonathan Pelto and Hearst Connecticut Newspapers columnist Wendy Lecker wrote in a blog post regarding Comer’s appointment: “The conflict is obvious!”
Yet the state Ethics Commission somehow sees it another way. It ruled that Comer’s professional position would not pose a conflict on the state school board. Apparently, the position of COO does not rank high enough for a conflict to exist.
Comer as recently as last month lobbied the General Assembly for greater charter school funding. To put her on a body that helps determine that funding, well, as Pelto and Lecker said:
Now it is up to the members of the Connecticut General Assembly to stand up and be counted on this vital issue. As a corporate officer in a charter school company, Comer has a significant and clear conflict of interest. Legislature has a duty to reject her appointment to the State Board of Education.
Although one would have hoped that Governor Malloy had learned his lesson about keeping the charter school industry off the board that regulates them, Malloy failed to heed those warnings.
The Facts speak for themselves;
Malloy failed to reveal Erik Clemons connection with Achievement First, Inc.
As the minutes of the November 25, 2013 meeting of the Achievement First, Elm City College Preparatory Charter School Board of Directors note;
NOW THEREFORE BE IT RESOLVED THAT, the Board of Elm City College Preparatory elects Mr. Erik Clemons to an initial term as a Class II Director expiring on 6/30/2014, eligible for reelection for a subsequent 3-year term.
Carolyn Greenspan moved to elect Erik Clemons to the Board, and Laura Saverin seconded. The Board voted unanimously to approve Erik Clemons as a Director.
According to Achievement First records, it appears Erik Clemons remained on the Achievement First Elm City Directors until the charter school’s meeting on 1/21/15 meeting.
Malloy failed to reveal Erik Clemons is a founding board member of the Elm City Montessori Charter School.
From the New Haven Independent, State OKs “Pioneering” Local Charter
The approval came Monday at a meeting of the state Board of Education in the Legislative Office Building. The board unanimously approved a proposal to create a new pre-K to 8 charter school called the Elm City Montessori School, starting with 51 New Haven kids ages 3 to 5 in the fall of 2014 (Later changed to fall 2015).
The state will kick in an extra $3,000 per pupil, as well as an undetermined amount of start-up money, in return for extra scrutiny: The school’s existence will depend on the state renewing its charter every five years.
State Education Commissioner Stefan Pryor, who sits on the state school board, said state law has allowed for “local charters” in prior years, but no proposals ever got off the ground. The state’s education reform law of 2012 revised the “local charter” distinction to require staffing flexibility and to add the $3,000-per-pupil incentive, he said. Pryor commended the New Haven group for an “outstanding application.”
“We are very pleased to see the pioneering effort that you have organized taking shape,” said Pryor, a former New Haven alderman and founding member of New Haven’s Amistad Academy charter school.
The new investment in charters comes under a new education commissioner, Pryor, with a record of charter support: In 1999 he helped found Amistad Academy, which later grew into the state’s largest charter network…
And while Malloy noted that Erik Clemons is founding CEO and President of Connecticut Center for Arts and Technology, Inc. (ConnCAT), the Governor failed to explain that the company has a major contract funded through the Department of Education.
From the New Haven Register;
Lincoln-Bassett was added this year to the state Commissioner’s Network for underperforming schools, joining the city’s High School in the Community and Wilbur Cross High School. The network seeks to significantly improve struggling schools through collaboration between local stakeholders and the state Department of Education.
The school received $1.4 million in operating and capital improvement grants and secured partnership with ConnCAT to facilitate the before- and after-school programs.
“It was really important that Mayor Toni Harp, and Superintendent of Schools Garth Harries were aligned on this idea that families and children can rise through the advent of provided services,” said ConnCAT CEO Erik Clemons.
Finally, Malloy failed to mention that Erik Clemons is affiliated with Billionaire Steven Mandell’s Zoom Foundation, the organization that played a key, behind-the-scenes role in persuading the Malloy administration to illegally take over the Bridgeport Public School System.
Mandell is not only a major Malloy campaign donor, but is a leading financial funder of the charter school industry. Mandell’s pro-“education reform” activities include paying for an education “policy staff” person housed in Malloy’s Hartford Office and another one who was stationed in former Bridgeport Mayor Bill Finch’s Bridgeport Office. (See Wait, What? NEWS FLASH: Hedge fund founder buys leadership ‘pipeline’ in Malloy’s office2/3/14)
In Erik Clemons case, we learn from the Zoom Foundation – The ZOOM Foundation’s new Prize for Parent Organizing supports nonprofit organizations inspired by the potential of parent power to contribute to the achievement of educational equity in Connecticut. The Program Selection Committee for The ZOOM Foundation’s Prize for Parent Organizing includes:
Erik Clemons: Erik is CEO and President of ConnCAT, an organization he established in New Haven in 2011. The Connecticut Center for Arts and Technology, ConnCAT, is a post-secondary career training hub committed to connecting a world-class facility and resources to local need. Currently ConnCAT provides market-relevant job training and placement services to under and unemployed adults and multimedia arts education to 6 under-achieving youth from low-income families…
Also on the Zoom Foundation’s Program Selection Committee…
None other than Andrea Comer;
Andrea Comer is Executive Director of The Connecticut Business & Industry Association’s Education Foundation. In this role, Andrea stewards the efforts of CBIA’s nonprofit affiliate, which is responsible for promoting the development of Connecticut’s workforce through education and training, particularly as it relates to the manufacturing and energy sectors.
A former member of the Hartford and State Boards of Education, Andrea has spent the past two decades working to improve the lives of children and strengthen communities. Prior to joining CBIA, Andrea served as Chief Development Officer for an education management organization, where she oversaw communications, strategic planning and development. (Apparently the Zoom Foundation couldn’t even bring themselves to reveal that the “education management organization” they highlight is the disgraced Jumoke/FUSE organization.
The bottom line is that when Dannel Malloy had the opportunity to set a proper course for the State Board of Education, one in which conflicts of interest were not allowed, he instead chose Erik Clemmons.
And so as Paul Harvey was fond of saying, “Now you know the rest of the story.”
Ethics, Hartford, Hartford Baseball Stadium, Luke Bronin Ethics, Hartford, Hartford Baseball Stadium, Luke Bronin, Sara Bronin
The Wait, What? post on Saturday, October 31, 2015 was entitled – Stadium Developers give big to Luke Bronin – Sarah Bronin responsible for approving big changes that Stadium Developers want.
In recent weeks Hartford mayoral candidate Luke Bronin has taken tens of thousands of dollars from the developers of the Dunkin Donut Baseball Stadium despite that fact that Luke Bronin’s wife, Sara Bronin, is the chairperson of the Hartford Planning and Zoning Commission and the developers are seeking approval to make major changes to the scope of the Stadium and DONO project.
With a Special Meeting of the Hartford Planning and Zoning Commissioner scheduled for Wednesday, November 4, 2015 -the day after Election Day – to approve the changes the developer is seeking, the immediate question is whether City Officials will act on the Bronin’s conflict of interest and remove Sara Bronin from her position as Chair of the Hartford PZC?
The following is the repost of the Wait, What? article on the Bronins’ and the Stadium.
Stadium Developers give big to Luke Bronin – Sarah Bronin responsible for approving big changes that Stadium Developers want
The City of Hartford Planning and Zoning Commission will hold a special meeting on Wednesday, November 4, 2015 at 260 Constitution Plaza, Plaza Level Conference Room, Hartford, CT 06103 at 6:00 p.m. on the developers plan to modify the DoNo Hartford Development Project.
Sara Bronin, wife of Harford mayoral candidate Luke Bronin, is the Chair of the Hartford Planning and Zoning Commission.
The contact between the City of Hartford and the developers of the Dunkin Donut Baseball Stadium and the entire DONO Downtown North Development Project required that construction on Phase II (Parcel E), which includes the desperately needed north-end grocery store, was to begin no later than November 1, 2015.
However, the developers failed to fulfill that responsibility and now want permission from the City of Hartford to delay and modify the construction plan related to Phase II (Parcel E).
The conflict of interest that Sara (and Luke) Bronin face is obvious.
As reported in a Wait, What? post on Wednesday, October 28, 2015 entitled, Bronin reports another $174,000 collected with seven days to go until Election Day, the Greenwich native who moved to Hartford and now wants to be Hartford’s next mayor revealed in his latest campaign finance report that he had raised another $11,750 from the developers of Hartford’s new Dunkin Donuts Yard Goats Baseball Stadium and the DONO Project.
The latest bundle of stadium money comes in addition to the thousands of dollars Bronin had already collected from those whose who are directly benefiting financially from the stadium contract. (See: And now Luke Bronin is collecting big bucks from developers of the Hartford Dunkin’ Donuts Stadium)
Having sharply criticized the stadium project earlier in the campaign, Bronin waited until after the reporting deadline for the September 16, 2015 Democratic primary to start collecting a large amount of campaign money from the contractors hired to build the DONO project including the new baseball stadium.
In recent weeks, Luke Bronin has raised tens of thousands of dollars from a number of the DONO contractors including Centerplan Development, Centerplan Construction Company, JCJ Architecture, Freeman Companies, BETA, McDowell Jewett and Greenskies Renewable Energy.
Four of the leading companies involved in the DONO Development Project are owned by lead developer Bob Landino who is a former member of the Connecticut House of Representatives. The developers are represented before the City of Hartford by the law firm that is led by Tom Ritter, the former Speaker of the Connecticut House of Representatives.
While Luke Bronin’s flip-flop on the stadium issues is newsworthy on its own, the immediate and more incredible news development may very well be that the developers of the Hartford Stadium donated to Luke Bronin at the exact same time that the stadium developers are seeking to modify the project after having failed to break ground, as required, on Phase II of the DONO project.
With no construction taking place on the grocery store, housing and other elements of Phase II (Parcel E), Luke Bronin’s wife will be convening a Special Meeting of the Hartford Planning and Zoning Commission on Wednesday – the day after Election Day – to approve changes that release the Stadium Developers from their commitment to begin Phase II and to make significant changes to the scope of Phase II.
While the developers have sought to trivialize their change in plans, their failure to follow through on their commitments concerning Phase II has a profound impact on the project and the credibility of those behind the entire Hartford Downtown North Development scheme.
The Hartford Courant reported on importance of Phase II this past summer in an article entitled, Developers To Break Ground On Downtown North Grocery Store In October,
City officials and developers of the Downtown North project, which includes retail, housing and a baseball stadium, said Wednesday that they will break ground on a parcel that includes a grocery store by late October.
Yves-Georges A. Joseph II, vice president of development for Centerplan, said the developers don’t yet have a supermarket operator on board, but they are in conversations with operators.
Joseph, who attended a forum on the Downtown North project Wednesday at the city’s public library, said the deadline to begin construction is Nov. 1.
The area, known as Parcel E, is the first phase of housing and retail in the project. The parcel, which would include 328 apartments, a grocery store, a fitness center, other shops and parking, would be located across Main Street from a 9,000-capacity minor league baseball stadium.
Joseph said Wednesday that if developers don’t reach a deal with a supermarket operator, “we as an organization will own or operate a supermarket.”
The Hartford Courant’s June 2015 story ended with,
Panelists at Wednesday’s forum, sponsored by Hartford 2000, expressed skepticism about the developer’s ability to bring in a supermarket.
Denise Best, a North End activist, said many promises have been made and broken by city leadership.
So now October has come and gone and there is no sign of any construction related to the grocery store, or the associated housing, fitness center, shops and parking.
What has occurred over the last few weeks is that the developers have become a major source of campaign donations for Luke Bronin’s campaign for Mayor and, the day after Election Day, Bronin’s wife will be chairing the Commission that is supposed to hold the developers accountable for their failure to produce as promised.
Campaign Finance, Democratic State Central Committee, Ethics, Malloy Campaign Finance Reform, Democratic State Central Committee, Lobbyists, Malloy
Connecticut state law prohibits registered lobbyists from contributing more than $100 to any candidate participating in the state’s Citizens’ Election Program. A gubernatorial candidate who violates that law would be prohibited from getting the $6.5 million grant in public funds that comes with Connecticut’s “Clean Election program.”
However, tomorrow – January 7, 2015 – when Governor Dannel Malloy is sworn into office for a second term, there will be nearly sixty registered lobbyists in the Capitol beaming with pride that they were able to funnel more than $95,000 to help fund Malloy’s re-election effort.
The fact is that some of these lobbyists donated well over $5,000, even $10,000, to help cover some of the governor’s recent campaign expenses.
How did Malloy and the lobbyists do it?
In the closing weeks of the 2014 gubernatorial campaign, the Malloy campaign sent out a series of direct mail pieces that were aimed at winning back the support of Democratic households.
Like any candidate mailing, the pieces featured pictures and quotes from the candidate, including lines like, “DEMOCRATIC GOVERNOR DAN MALLOY HAS PUT US ON A PATH OF PROGRESS,” and “On November 4th, Vote for Progress, Dan Malloy for Governor.”
But the pieces weren’t paid for by Dan Malloy’s campaign committee, even though they featured Malloy and included his campaign website, Facebook and Twitter Account.
The money for the mailings came out of the Democratic State Central Committee’s “Federal Account.”
Last summer, Malloy and his campaign committee collected and cashed the $6.5 million check they received from the State Elections Enforcement Commission for agreeing to participate and abide by Connecticut’s public financing system. The campaign committee used those funds to pay for television ads and a variety of other campaign expenses.
During the last two years, however, Malloy’s fundraising operation also collected just over $5.1 million for the Connecticut Democratic State Central Committee’s “Federal Account.”
Under Federal law, the Democratic Party is allowed two accounts.
A “State Account” that is used to pay for state and local level campaign activities and the other, called the “Federal Account,” which is supposed to be used to support candidates who are running for federal offices and for other “party building activities.”
Of the $5.1 million raised into the “Federal Account” during 2013-2014, a significant portion came from Connecticut lobbyists, state contractors, political action committees and large donors who had directly benefited from Malloy’s corporate welfare program.
By depositing the funds into the Democratic Party’s “Federal Account,” the Malloy campaign claimed that it could legally circumvent the state law that clearly prohibits large contributions from lobbyists and those who do business with the state.
Whether the maneuver was illegal has yet to be determined.
The repercussions from the Malloy campaign’s antics will be play out as the State Elections Enforcement Commission and the Federal Elections Commission investigate the issues and potentially take action against the abuses.
But one thing is certain.
When Malloy was facing possible defeat and public opinion polls indicated that a majority of Connecticut residents didn’t like the governor or approve of the way he was doing his job, a group of generous lobbyists and state contractors came through with the money Malloy needed to fund various political operations including a series of campaign mailings aimed at persuading Democrats to cast their vote for Malloy.
The sad reality is that the political landscape has changed significantly since Connecticut adopted its landmark 2005 campaign finance reform legislation.
The original concept, which passed following the first conviction of Governor John Rowland in 2005, was that in return for a multi-million dollar grant in public funds, gubernatorial candidates would agree to forgo private funds raised from state contractors, lobbyists, political action committees, the wealthy and other special interests.
When the legislation passed, Speaker of the House Chris Donovan wrote,
“Almost 230 years ago, the founding fathers took a huge risk when they signed the Declaration of Independence and set the wheels in motion for the world’s greatest democracy. Today, this historic campaign finance reform legislation reaffirms that this is a government for the people, not special interests. This campaign finance reform bill is our declaration of independence. We can look our constituents in the eye and say we created the strongest campaign laws in the United States.”
At the same time, State Senator Don Williams changed his official biography to read,
“Since his election as Senate President, Senator Williams has been a leading advocate for cleaning up government. He authored legislation to reform the State Ethics Commission and supported sweeping changes to the campaign finance system and the state contracting process. With the creation of a publicly funded campaign finance system in 2005, Connecticut now has the strongest reform laws in the nation.”
Even Governor Malloy claimed allegiance to Connecticut’s campaign finance law, telling Connecticut Magazine in 2011, “Quite frankly, anyone who is not willing to participate [in Connecticut’s campaign finance program] is really just attacking the system.”
When writing about Malloy’s first year in office, The American Prospect magazine observed,
“[T]he secret behind the Democrats’ success was sweeping campaign-finance reform enacted six years earlier. Reeling from the embarrassment of a corruption scandal that landed a governor in federal prison, Connecticut legislators grabbed the national spotlight in 2005 by stopping the flow of millions of special-interest dollars, banning lobbyist contributions, and instituting a public-financing system that record-setting numbers of candidates have embraced.”
But all that was before Malloy and the Democrats in the Connecticut General Assembly torpedoed many of the most important elements of the law over the past three years.
So, while Malloy swore off special interest money in his 2010 campaign, he embraced the tainted funds in 2014.
The final campaign finance reports have yet to be filed, but according to the reports that are available, at least 58 Connecticut lobbyists or their spouses donated a total of more than $95,000 to the Connecticut Democrats “Federal Account” during the 2014 campaign cycle.
At least four lobbyists donated in excess of $5,000 including Craig LeRoy and Tom Ritter, and about a dozen more helped Malloy’s campaign by donating at least $2,000 to the Democrats’ “Federal Account”.
Even lobbyist David O’Leary, who served as disgraced Governor John Rowland’s former chief of staff, kicked in $250 to the effort.
As disturbing as the lobbyist money is, just wait till you see what political action committees, state contractors and those who have benefited from Malloy’s corporate welfare program kicked into Malloy’s campaign operation.
Connecticut General Assembly, Ethics, Malloy, State Budget Connecticut General Assembly, Ethics, Malloy, State Budget
Define fiscal irresponsibility….
While most Connecticut residents feel a growing unease about the Malloy administration’s irresponsible and underhanded approach to state budgeting, I’m often asked to give specific examples of how Governor Dannel “Dan” Malloy has handled the Connecticut budget during his term in office.
Long-time readers may remember this one, but here is a prime example for readers who are newer to Wait, What?
In January 2010 there was a tragic school bus accident on Route 84 in Hartford that killed a young Rocky Hill student who was attending one of the CREC magnet schools.
As politicians are wont to do, state legislators kicked into action, and on May 1, 2010 the Connecticut General Assembly passed Public Act 10-83. The new law created a special protected trust account called the Connecticut School Bus Seat Belt Account and required the Department of Motor Vehicles to administer a program to use the funds to help Connecticut school districts pay for the cost of equipping school buses with lap/shoulder (3-point) seat belts.
To pay for the program, the legislature increased the cost associated with restoring a suspended driver’s license from $125 to $ 175 and directed that $50 of each license restoration payment be deposited into the Connecticut School Bus Seat Belt Account. The Office of Fiscal Analysis estimated the higher fee would raise about $2.1 million a year.
Now fast forward two and a half years…
Governor Malloy had been in office for two years and none of the $4.7 million collected for school seat belts had been spent.
And then, rather than using the money for its intended purpose…
We witnessed the following;
As part of the December 2012 “deficit mitigation bill” Governor Malloy and the legislature included language that overrode the existing law and quietly transferred $4,700,000 from the School Bus Seat Belt Account into the General Fund to help eliminate the projected FY 2013 $415 million deficit.
Gone was the money for school seat belts.
For more go to: http://jonathanpelto.com/2014/05/31/define-fiscal-irresponsibility/
Does it really only cost $30,000 to get Governor Malloy to veto a good bill?
Over the past few months Governor Malloy and his political operatives have raised more than $30,000 from major insurance companies and their corporate executives. The funds were deposited into the special Democratic State Central Committee account that will be used to augment the $6.2 million that Malloy will be getting from the State’s public financing system.
Then late last week Governor Dannel “Dan” Malloy stunned healthcare advocates when he vetoed an important bill that would have required insurance companies to provide data about how much substance abuse coverage and related mental health care they were actually providing Connecticut residents.
The legislation was a product of a major study conducted the Connecticut General Assembly’s bi-partisan Program Review and Investigation Committee, a committee I chaired in 1993 during the last year I served in the Connecticut House of Representatives.
The Program Review and Investigation is the only committee charged with fully investigating major public policy issues and developing comprehensive solutions.
In this case, the committee produced a comprehensive report entitled, “Access to Substance Use Treatment for Privately and Publicly Insured Youth.” Phase I of the report, and its corresponding legislative initiatives, was adopted on December 18, 2012. Phase II of the report was adopted on June 7, 2013.
This past legislative session, one of the legislative proposals arising out of the report, was introduced in the form of House Bill 5373, An Act Concerning the Reporting of Certain Data by Managed Care Organizations and Health Insurance Companies to the Insurance Department.
The bill was a common sense, first step toward ensuring insurance companies actually pay the bills they are supposed to be paying.
More at: http://jonathanpelto.com/2014/06/01/really-cost-30000-get-governor-malloy-veto-good-bill/
And then this one…Will the Working Families Party stand up for working families in this year’s election
Bridgeport, Corporate Welfare, Ethics, Malloy, Mayor Bill Finch, Sarah Darer Littman Bridgeport, Connecticut Politics, Corporate Welfare, Ethics, Mayor Bill Finch, Sarah Darer Littman
As measured by the number of college graduates Connecticut is among the most educated states in the nation. As measured by per capital income Connecticut is wealthiest state in country, and if we were our own country we’d be one of the wealthiest and best educated countries in the world.
And yet there is a sickness that is increasingly evident in Connecticut politics. It takes the form of elected and appointed officials who display a level of arrogance, greed, entitlement, and what appears to be an growing level of outright corruption…in both political parties.
In Sarah Darer Littman’s latest MUST READ column entitled “The Environmental Racism of Bridgeport’s Carnival of Corruption” in this weekend’s CT Newsjunkie, Sarah Darer Littman shines the bright light of truth on a complex deal in which Bridgeport ’s political and corporate leaders are conspiring to move Bridgeport’s Harding High School on to a severely polluted superfund site in order to make room for Bridgeport Hospital’s expansion plans.
The political wheeling and dealing stretches from Bridgeport to Hartford and back again.
By the time their effort is over, the cost to Connecticut taxpayers will exceed $100 million or more, and that doesn’t even begin to count the cost to Bridgeport’s public school students, teachers and parents who are but pawns in the deceit that has become the hallmark of Connecticut’s political environment.
Sarah Darer Littman introduces her piece with the following,
If the window of government transparency in Connecticut has become foggy lately, in Bridgeport it’s turned into a funhouse mirror.
The latest to come from Mayor Bill Finch’s Carnival of Corruption was a vote Thursday evening to proceed with phase one of a deal to build a new Harding High School on 17.2 acres of a 78-acre brownfield site on Boston Avenue, currently owned by General Electric. This would enable Finch and his allies to sell the current Harding High site to Bridgeport Hospital.
According to federal law, a brownfield site refers to “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence of a hazardous substance, pollutant, or contaminant.”
The aforementioned brownfield site is, according to a piece in the CT Post, “contaminated with lead, arsenic, petroleum hydrocarbons and volatile compounds.”
The U.S. Environmental Protection Agency offers helpful information about School Siting Guidelines, and why they are so important:
“Children, particularly younger children, are uniquely at risk from environmental hazards. They eat, drink and breathe more in proportion to their body size than adults. In addition, environmental contaminants may affect children disproportionately because their immune, respiratory and other systems are not fully developed, and their growing organs are more easily harmed. This means they are more at risk for exposure to harmful chemicals found outside where they play and in the environment where they spend most of their time — school and home.”
As might be expected, parents and those representing the community have concerns — especially since most of the process for this deal (like so much of what goes on in Bridgeport) has taken place behind closed doors. Indeed, in the minutes from the Bridgeport School Building Committee meeting on January 3, 2013, Finch Deputy Chief of Staff Ruben Felipe reports that GE asked the administration to keep their conversations confidential. Thus both the sunlight and the community were kept out. Helping to keep things under wraps was the fact that the School Building Committee failed to file their statutory notices with the town clerk’s office until February 2014, evidenced by this email from Frances Ortiz, assistant City Clerk.
There’s been some gob smacking chicanery involved, because, let’s face it, this wouldn’t be Bridgeport if there weren’t.
A petition to the City of Bridgeport Planning and Zoning Commission was filed in the name of the City of Bridgeport Board of Education (File 13-74). It was signed on Dec. 3, 2013, by John Eberle of Stantec Consulting Services and on Dec. 18, 2013, by Marian Whiteman, executive counsel for Transactions & Brownfields at General Electric.
On Jan. 13, 2014, Sauda Baraka, chair of the Bridgeport Board of Education (in whose name the Planning Petition was apparently being made) wrote to Melville T. Riley, Jr, the acting chair of the Planning and Zoning Commission, asking that the item not go forward with a public hearing for the application because the education board hadn’t voted to approve a site plan nor a special permit concerning that property. In what is a reflection of the incredibly sad state of affairs in Mayor Bill Finch’s Bridgeport, she was forced to ask the Planning Commission for copies of any application filed on the behalf of the Board of Education. How ridiculous is it that an elected Board of Education should have to ask another city body for copies of planning applications being filed in its name?
Probably as a result of Baraka’s letter, the planning application was withdrawn from the Jan. 13 meeting.
But by Jan. 16, the Finch administration was able to work magic with fairy dust — or White Out — and Lo! The exact same application with the exact same signatures (on the original you can see the correction fluid) and now guess what? It reads “City of Bridgeport School Building Committee”! Suggested new campaign slogan for Bill Finch: “If you can’t beat ‘em, erase them!”
And Sarah Darer Littman’s column goes on from there with some of the most disturbing elements of the story yet to come.
You can read her whole column at via the following link,
As you read the piece ask yourself, is this Connecticut our citizens deserve?
Alliance Districts, Connecticut Council for Education Reform (CCER), Ethics, Malloy, Stefan Pryor Alliance Districts, Connecticut Council for Education Reform, Malloy, Office of State Ethics, Stefan Pryor
As Commissioner of Education, Stefan Pryor and his agency must adhere to the Connecticut ethics laws that apply to public officials and public agencies.
The Connecticut Council for Education Reform (CCER) is a corporate funded lobbying and advocacy group that is working to support Governor Malloy’s education reform initiatives. As a lobbying group, CCER must adhere to the ethics laws that apply to lobbying organizations.
But when it comes to the relationship between the Connecticut Council for Education Reform and Pryor’s state agency, something is significantly amiss.
CCER was part of the $6 million record-breaking lobbying effort that led to the passage of Governor Malloy’s corporate education reform industry initiative in 2012.
The Connecticut Council for Education Reform’s Board of Directors includes the retired Chairman and CEO of The Hartford Insurance Company, the President and COO of the Travelers Companies, the President and CEO of Yale New Haven Hospital, a Managing Director at First Niagara Bank, the Lead Director at Webster Bank, the Chair of Nestle Waters North America, former gubernatorial candidate Ned Lamont and others.
The Executive Director of CCER is a registered lobbyist and the organization retains one of the state’s better known lobbying companies.
When it comes to their rhetoric and propaganda, CCER stays true to the corporate education reform industry’s agenda. Recently CCER put out a press release stating,
“We will oppose any delay in implementation of the Common Core State Standards.”
But as reported earlier this year on Wait, What? this education reform lobbying group has been playing an increasingly significant role in the internal functioning of the State Department of Education.
At last month’s State Department of Education’s quarterly Alliance District Convening meeting, the Executive Director of the Connecticut Council for Education Reform, Jeffrey Villar, was a lead presenter at a session entitled, “District Strategic Planning.”
The meeting agenda read:
“CCER will share best practices and tools for district-wide, long-term strategic planning. This will include strategies to establish Board of Education goals, develop district indicators of success, and design a process to monitor implementation. Districts will also learn about how the CCER can help districts workshop their Year 3 Alliance and Priority School District consolidated applications.”
Katie Roy, the Connecticut Council for Education Reform’s Chief Operating Officer also presented to the group of local school administrators, teachers and parents.
This means that at an official meeting between the State Department of Education and officials from Connecticut’s 30 Alliance Districts, participants were told that the lobbying group known as CCER “can help districts workshop their Year 3 Alliance and Priority School District consolidated applications.”
A lobbying organization can “help districts workshop their Year 3 Alliance and Priority School District consolidated applications”?
That is more than a bit odd…
First off, CCER is a corporate funded lobbying group and has no expertise with Alliance Districts, the State Department of Education or the Alliance District and Priority District funding grants. Their expertise is trying to persuade legislators to support Governor Malloy’s education reform efforts.
Second, what makes the whole situation even stranger is that as a result of a series of Freedom of Information requests filed with the appropriate state agencies, it turns out that there is NO CONTRACT between the State Department of Education and the Connecticut Council for Education Reform (CCER).
So how did CCER get the job of “helping” Alliance Districts and who is picking up the tab for these “services.”
The State of Connecticut isn’t paying CCER, but if the lobbying group is “donating” the services to school districts then that raises a slew of ethics and legal issues.
And to make matters even more suspicious, the lobbying reports that the Connecticut Council for Education Reform (CCER) has submitted to the Office of State Ethics doesn’t come close to showing the time and costs CCER has already devoted to the task of “helping” Alliance Districts.
Stefan Pryor’s State Department of Education has instructed Alliance Districts that a lobbying group with no expertise is available to help them prepare grant applications that will then be approved or rejected by Pryor and the State Department of Education.
In the real world we call that a conflict of interest.
It is time for the Malloy administration and the Connecticut Council for Education Reform (CCER) to come clean on exactly what role CCER is playing at the State Department of Education and whether Commissioner Pryor or CCER are violating any Connecticut laws in the process.
Campaign Finance, Democratic Party, Ethics, Gubernatorial Election 2014, Malloy Campaign Finance, Democratic Party, Gubernatorial Election 2014, Malloy
Last April, Governor Malloy attended the “the star-studded White House Correspondent’s Dinner.”
His ticket and travel expenses were picked up by People Magazine.
The trip sparked a lot controversy including blog posts here at Wait, What? (Dannel’s Spring Break 2013 – The White House Correspondent’s Dinner April, 27 2013 and Wait, What? Malloy Reimburses People Magazine…)
At the time of the trip, Malloy’s office released a statement saying, “Instead of shifting the cost to the taxpayers, the Governor is personally paying the cost.”
Actually Malloy told Channel 8 news, “I could do it with state dollars, or I could do it with someone else’s dollars. I thought doing it with somebody else’s dollars made a lot of sense,”
But six months later, the Governor’s Office finally responded to a Freedom of Information request about the trip.
The documents that were released to NBC news revealed that while Malloy did “pay his own way” to the White House Gala, taxpayers picked up the $4,808.58 bill for his security detail.
When confronted about the conflict with the earlier statement, Malloy’s spokesperson explained that the Governor never said he was paying for all the costs associated with the trip to the Correspondent’s Dinner.
Instead the spokesman explained, “What we said was the Governor, rather than saddling taxpayers with the cost for his travel expenses, he paid for it himself.”
It campaign speak it is called “political spin.” In the real world it’s called never quite telling the whole truth.
Now questions are raging about Malloy’ recent California fundraising trip.
Both the governor’s office and the Connecticut Democratic State Party have refused to reveal details about the trip that Malloy took last Friday and Saturday.
According to the media reports, the Connecticut Democratic State Central Committee paid for Malloy’s trip…but that excludes the costs incurred by the state troopers who went with the governor.
So despite what the Governor and his operation said about the Democratic Party picking up the tab, the cost to Connecticut taxpayers for Malloy’s trip ran into the tens of thousands of dollars.
Furthermore, as the Hartford Courant reported, the governor’s fundraising trip apparently including a stop to raise money from a California Democrat whose company has had “lucrative state contracts.”
But Malloy’s office and the state Democratic Party also refused to provide answers about the possible solicitation of a state contractor.
The Courant explained, “According to press reports, while on his fundraising trip, the governor was a guest of Lenny Mendonca, a prominent Northern California Democrat who co-founded the public sector practice at McKinsey & Company,” which has had contracts with UConn totaling $4 million over the past two years.
The Courant quoted Republican State Senator John McKinney as saying, “The revelation that the governor met with a state contractor while on a fundraising trip for the Democratic Party raises a number of questions. If the governor was soliciting a state contractor, or his employees for political contributions, then he clearly violated the spirit of Connecticut’s campaign finance laws, if not the laws themselves.”
The Courant added,
“There was no response from the governor’s office. Malloy’s director of communications, Andrew Doba, referred questions to the state Democratic Party. The party’s spokesman, James Hallinan, had this to say: ‘The governor always follows all rules and regulations.’
But did Malloy meet with Mendonca, as Peterson’s tweet suggested?
Hallinan would not answer that question. Instead, he said: ‘Again, we don’t comment about [Democratic Party] finance issues. That’s just our protocol. The governor always follows all rules and regulations.’”
At a press conference yesterday, reporters asked Malloy, once again, about the California trip and whether he met with the state contractor.
About the trip, Malloy said “talk to the party.”
About raising money from Mendonca, Malloy said, “I think I did have contact with such a person but not in connection with raising — to the best of my knowledge — money for Democratic causes.”
Such a person?
To the best of my knowledge?
Whether you call it political spin or not telling the whole truth it is a sad commentary about Governor Malloy’s “commitment” to transparency, open government and telling the whole truth and nothing but the truth.
Corporate Welfare, Economic Development, Ethics, Malloy, Prosperity for Connecticut PAC Corporate Welfare, Economic Development, Ethics, Malloy, Prosperity for Connecticut PAC
Thanks to Governor Malloy’s corporate welfare program, Connecticut’s taxpayers provided a Connecticut company with a $100,000 loan and another $26,320 grant to pay for their move from Bloomfield to Hartford.
Malloy said the grant would help Connecticut’s jobless problem by retaining 11 jobs.
In a press release as the time, Governor Malloy explained, “Hybrid Insurance Agency LLC is a full-service, underwriting management and wholesale insurance brokerage firm. This is a fast-growing insurance group, beginning operations in March of 2010 in Windsor, a year later opening a satellite office in Columbus, Ohio, and a service operation in Kathmandu, Nepal. They currently have 11 employees in their headquarters and approximately 650 retail agents and brokers. A $100,000 loan and a $26,320 matching grant will go toward the relocation of the headquarters to Hartford. The project will retain 11 employees.”
Now the owner of Hybrid Insurance Agency reportedly works from home, most of the employees are apparently no longer employed and the company has defaulted on the loan that it received from Malloy’s economic development operation.
Hybrid Insurance is also is under investigation for allegedly failing to pass along $670,000 in premiums to two of the City of Hartford’s insurance carriers.
According to a story written by Hartford Courant columnist and blogger, Kevin Rennie, the Hartford Internal Audit Commission has been asked to investigate Adam Cloud, Hartford’s City Treasurer, “for what they called a possible conflict of interest involving Hybrid, which is at 30 Lewis St. — a building owned by Cloud, his brother Christopher and their father, Sanford “Sandy” Cloud Jr.”
Rennie reports that “Paula Altieri, the city school system’s chief financial officer, stated in a memorandum that Cloud’s office “moved” an insurance policy from one broker to Hybrid around February 2012 “without the need to compete.”
Meanwhile, Hybrid Insurance made an appearance earlier this year in a Wait, What? post when it was noted that the lobbyists for Hybrid Insurance were among those that attended the Prosperity for Connecticut Political Action Committee fundraiser in Hartford.
Prosperity for Connecticut is the PAC affiliated with Governor Malloy and that raised over $235,000 thanks to 15 fundraisers held over an 18 month period. Governor Malloy apparently attended all 15 fundraisers, with three held in Washington D.C., three in New York City and the rest in Connecticut.
Lt. Governor Nancy Wyman joined Malloy at the Hartford event which was targeted to raise donations from Connecticut lobbyists.
Hybrid Insurance has worked with the lobby firm of Camilliere, Cloud and Kennedy for the past two years, paying the lobbyists a total of $26,900. Christopher Cloud, Adam Cloud’s twin brother, is one of the partners and the lobby firm’s offices are located in the same building that “houses” Hybrid Insurance and is owned by the Cloud brothers and their father.
Today Hartford City Treasurer Adam Cloud had a letter to the editor in the Hartford Courant clarifying his role in the whole affair. Adam Cloud wrote;
“I would like to clarify some points made in recent articles about the Hartford treasurer’s office and Hybrid Insurance Group [Oct. 11, news, “Officials Call For Audit Of Treasurer”; Oct. 10, Kevin Rennie column, courantopinion.com, “Who’s Got Hartford’s Missing $669,997?”].
There are two insurance policies being discussed. First, the smaller pension fund policy was recommended by an insurance agency that had solicited a reduced-cost proposal from Hybrid. The bid was approved by the office of the corporation counsel and the pension commission, not our office.
As for the insurance coverage for the city and the schools, the selection of the insurance was made by an independent committee that neither I nor anyone in my staff was a member of. My office did not approve any business relationship between the city and Hybrid.
It is the finance department, which does not report to the treasurer’s office, that processes payments to vendors. When our office was notified that the carrier had not been paid by Hybrid, and the city could be in danger of an insurance coverage lapse, I engaged the finance department. In consultation with former city Finance Director Julio Molleda, we transferred the funds.
This is not an uncommon occurrence in managing the finances of a large city. It was my intent to protect the city from any potential financial dangers with no insurance.
The fact that Hybrid has an office in a building in which my family and I have an ownership interest had no bearing on this decision. Upon becoming treasurer, I relinquished any management responsibilities of this building.
Finally, it is important to note that in accordance with state law, at no time was the city uninsured. The city does not have to recoup the payment or make any additional payments; this is the carrier’s responsibility.
I strongly support the state Department of Insurance investigation of Hybrid and the city’s internal audit department’s review.
Adam Cloud, Hartford City Treasurer.
And lest it falls through the cracks, the only person who raised concerns about Malloy’s gift to Hybrid Insurance in the first place was Bloomfield’s State Representative who asked why state funds were being used to persuade a company to move from his district into Hartford.
At the time Baram said, “The loan program should primarily focus on growing small businesses in the local community where they are located… “I will be conveying my disappointment to the governor’s office, urging the Department of Economic and Community Development to award future loans and grants that will allow companies to remain local.”