Achievement First/ConnCAN, Budget Cuts, Charter Schools, Malloy, State Budget, Wyman Budget cuts, Charter Schools, Malloy, State Budget, Wyman
Hidden by the holidays, Governor Dannel Malloy and Lt. Governor Nancy Wyman trotted out their budget chief, Ben Barnes, last week to quietly announce another $93 million in state budget cuts, many of which were targeted at the most critical services and vulnerable citizens in Connecticut.
As CT Newsjunkie reported in Malloy Administration Identifies Savings, But Not Everyone Is Pleased, the Malloy/Wyman administration’s latest cuts target municipal aid, mental health care, services for the developmentally and intellectually disabled, and healthcare services.
The most despicable cut may very well be Malloy’s expanded effort to refuse group home placements for citizens and their families who are in crisis.
However, while vital programs are cut, the companies that own Connecticut’s twenty-three (23) charter schools will be given more than $100 million in scarce public funds this year even though these privately owned, but publicly funded, schools refuse to educate their fair share of students who require special education services and students who need additional help with the English Language. Furthermore, the “no-excuses” discipline strategies used by Achievement First, Inc. and other charter schools are nothing short of child abuse.
If a Connecticut public school consistently abused children or discriminated against Latinos and other English Language Learners or students with special needs, investigations would be conducted, people would lose their jobs and local boards of education would be sued. But that simply isn’t the case when it comes to the charter school industry – thanks to their special relationship with the Malloy/Wyman administration.
While Governor Dannel Malloy receives accolades for his “Second Chance” initiative, the truth about his administration’s discriminatory policies speak louder than its rhetoric.
Sarah Darer Littman, an education advocate and CT Newsjunkie columnist, examined the issue in a recent piece entitled, Second Chance’ Malloy Should Revisit First Term Malloy’s Policies.
Sarah Darer Littman wrote;
“The disconnect with second-term Malloy’s Second Chance Society is that he spent his first term pushing for costly legislation that contradicts the research on keeping young people out of the juvenile justice system in the first place.
A study by the Civil Rights Project at UCLA found that one out of every four black K-12 students with disabilities was suspended out of school at least one time in 2009-10. This high risk for suspension is a full 16 percentage points higher than the risk for white students with disabilities.
According to a report by the National Center on Disability, 85 percent of incarcerated youth have learning and/or emotional disabilities, yet only 37 percent of these young people received special education in school. Most were either undiagnosed or didn’t receive adequate support in school.
Tell me about it. Bridgeport has had two complaints filed with the state Department of Education in the last two years alleging failures to provide special education services. Regarding the first complaint, state investigators found that under then-Superintendent Paul Vallas, Bridgeport “systematically violated” its IDEA Child Find mandate.
Meanwhile in Hartford, “no-excuses” Achievement First Hartford Academy settled a lawsuit alleging that it had failed to provide special education services and had punished students for behaviors relating to their disability. They promised to “do better,” yet in November a lawsuit was filed in New York citing similar issues at a Brooklyn AF school. Achievement First also topped the chart for elementary school suspensions in 2013.
At that time co-CEOs Dacia Toll and Doug McCurry wrote they’d received a wakeup call: “We recognize that our suspension numbers are simply too high, and we are committed to significantly reducing the numbers.”
The state Board of Education renewed Achievement First Hartford Academy’s charter for 3 years despite these concerns. On Oct. 4, the Courant reported that “only one student has been suspended so far at the Achievement First Hartford Academy Elementary School.”
Yet according to a recent Connecticut Department of Education Report, Achievement First schools still occupy four out of the five top elementary school slots in elementary school suspensions and expulsions and three of the top five in the middle and high school categories. Hartford Academy Elementary School is number two in the state.
Overall, according to the state Department of Education report:
- the suspension rate in the elementary grades in the Public Charter Schools (14 percent) is almost twice that in the 10 Ed-Reform districts (7.3 percent), both of which are substantially greater than the state average (3 percent).
- the suspension rates in the middle grades in the 10 Ed-Reform districts (22.3 percent), the Public Charter Schools (26.3 percent), the Endowed Academies (18.5 percent), and the State School Districts (24.3 percent) are substantially greater than the state average (10.1 percent).
- the suspension rates in the high secondary grades in the Public Charter Schools (29.9 percent) and in the 10 Ed-Reform districts (25.6 percent) are substantially greater than the state average (12.3 percent).
Given this data, and the fact that AF Hartford Academy’s charter is up for renewal this spring, it’s particularly troubling that Gov. Malloy appointed Erik Clemons, a board member of an Achievement First school in New Haven, to the state Board of Education. We trust he will recuse himself on AF’s charter renewal votes based on his conflict of interest.
Sarah Darer Littman goes on to explain more about Malloy’s “two-faced” approach when it comes to the issue of “education reform” and “social justice reform.”
Read her full piece at: http://www.ctnewsjunkie.com/archives/entry/op-ed_second_chance_malloy_should_revisit_first_term_malloys_policies/
Budget Cuts, Charter Schools, Malloy, State Budget Budget cuts, Charter Schools, Malloy, State Budget
When Democratic Governor Dannel Malloy addressed a joint session of the Connecticut General Assembly ninety days ago to present his proposed state budget, he called for record cuts to Connecticut’s public schools while demanding the legislature increase funding for charter schools by more than 25 percent.
While he proposed cutting money for public schools and shifting even more of the costs of public education onto the backs of middle income property taxpayers, Malloy wanted the legislature to give him even more money so that his corporate education reform industry associates could open up two more charter schools in Connecticut.
The Democrats on the Appropriations Committee rejected Malloy’s plan.
Although they did increase funding for charters, they shifted most of the money over to help fill some of the cuts the Governor had made to Connecticut’s public schools.
But in typical fashion, the thin-skinned governor condemned the Democrats and today joined the corporate funded charter school advocates in blasting the legislators who had the courage to try and reduce the magnitude of Malloy’s cuts to Connecticut’s public schools.
Rather than recognizing the effort that members of his own party took to help their districts and Connecticut’s public school students, Malloy went after them saying, “Let me be very clear, we also have to understand that we are going to have charter schools in Connecticut.”
Typical … In Malloy’s world – it is Dannel’s way or no way…
Even if it means hurting Connecticut’s students, parents, teachers, public schools and taxpayers.
Ken Dixon of the Connecticut Post wrote about today’s charter school industry rally noting, “Malloy stars in charter schools rally at Capitol.”
Following up on the articles posted here at Wait, What? both the Hartford Courant and the CT Mirror took note of the massive amount of corporate funds that are pouring into the charter school lobbying effort. The Hartford Courant’s story is entitled Unprecedented Charter School Lobbying Effort Prompts Some To Ask: Where Is The Money Coming From?, while the CT Mirror’s story is titled, “Aggressive charter school campaign descends on the Capitol.”
Budget Cuts, Malloy, Sarah Darer Littman, State Budget, Taxes Budget cuts, Malloy, Sarah Darer Littman, State Budget, Taxes
As we know, Democratic Governor Dannel Malloy promised that he would not propose or accept any tax increase if he was elected to a second term and then went ahead and proposed over $900 million in revenue “enhancements” in his budget address this week.
Malloy also used his re-election campaign to promise that he would maintain funding for local cities and towns and would not cut vital services.
On budget day, in the same document he proposed flat funding Connecticut’s Education Cost Sharing education funding formula; he cut about $70 million from a variety of important public education programs that assist local schools as they seek to serve some of Connecticut’s most vulnerable children.
And as if all of that wasn’t revolting enough, Malloy reserved his most drastic and draconian cuts for some of the state’s most important social service programs.
In a powerful and MUST READ commentary piece, Sarah Darer Littman lays out the truth about Malloy’s devastating budget plan in her commentary piece at the CTNewsjunkie;
Governor’s Budget Ignores Evidence, Hits Vulnerable (By Sarah Darer Littman)
Last week, after two years of hearing testimony, the Sandy Hook Advisory Commission issued its draft report.
One hundred and thirty pages of the 198-page report relate to mental health issues, and the importance of building “systems of care that actively foster healthy individuals, families and communities,” particularly in light of research showing that “approximately half of young people qualify for some behavioral health diagnosis by the time they reach 18.”
Yet less than a week later, when Gov. Malloy revealed his biennial budget for 2016-2017, it was as if the Commission had produced an expensive paperweight, for all the attention it received from the administration.
According to an analysis by CT Voices for Children, the “Children’s Budget” – state government spending that directly benefits young people – makes up only a third of the overall state budget, yet over half (54 percent) of the governor’s proposed cuts come from programs affecting children and families.
That’s before we even get to health care and education.
The Sandy Hook report specifically mentioned the importance making it easier for families to obtain mental health services for young people. Yet the budget reduces funding for the Young Adult Services program by $2.7 million (3.3 percent) and reduces funding for school based health centers by $1 million (8.5 percent).
In the Department of Education, the governor plans to eliminate funding for “lower priority or non-statewide programs” by $ 6.2 million. Here we’re talking about programs such as Leadership, Education, Athletics in Partnership (LEAP); Connecticut PreEngineering Program; Connecticut Writing Project; neighborhood youth centers; Parent Trust; science program for Educational Reform Districts; wrap-around services; Parent Universities; school health coordinator pilot; technical assistance – Regional Cooperation; Bridges to Success; Alternative High School and Adult Reading; and School to Work Opportunities. Not only that,he’s cutting $6.49 million annually for Extended School Building Hours and Summer School components of the Priority School District Grant (i.e. grant program for districts with greatest academic need).
Wrap-around services, longer school days, and enrichment for students, particularly in the more disadvantaged districts, were something Malloy touted when he was selling his education reform package back in 2012. “It’s not as if we don’t know what works,” Malloy said in an article in the New Britain Herald: “wrap-around services, longer school days and longer school years, Saturday enrichment options.”
On top of what Malloy said, there’s over 100 years worth of research on summer learning loss. It disproportionately affects lower-income students whose parents can’t afford to send them to pricey summer camps or other enrichment activities. What’s more, the effects are cumulative, contributing to the achievement gap.
Take the time to read Sarah Darer Littman’s entire commentary piece.
You can find it at: http://www.ctnewsjunkie.com/archives/entry/op-ed_governors_budget_ignores_evidence_hits_vulnerable/
Budget Cuts, Malloy, State Budget, State Deficit Budget cuts, Malloy, State Budget, State Deficit
On Thursday, Governor Malloy’s budget director announced a series of significant budget cuts to existing state programs. The problem is not only the damage the cuts will do but that they solve only a portion of this year’s growing state budget deficit which is now projected at about $100 million. However, the magnitude of the budget deficit is closer to twice that number, a fact that Malloy can’t keep secret for more than another month or two.
Still Malloy’s initial cuts fly in the face of his repeated promises that Connecticut’s fiscal health is good and that we do not need to cut vital services if the voters of Connecticut granted him a second term in office.
But his actions tell a very different story.
Topping his list of budget cuts was, as expected, Connecticut’s public colleges and universities, along with critically important human services.
CT Mirror has the details at “Malloy’s emergency budget cuts fall on social services, education,” CTNewsJunkie at “Malloy Makes Cuts To DCF, Higher Ed,” and the Courant at “Malloy Makes $47.8M In Budget Cuts To Ease Deficit.”
The most revolting of Malloy’s budget cuts are aimed at Connecticut most vulnerable citizens, children facing severe challenges and those with developmental disabilities.
Malloy cut $9.2 million from the Department of Children and Families and $5.5 million from the Department of Developmental Disabilities. Since there are only seven months left in the fiscal year, these cuts will hit key programs especially hard.
As reported by CT Mirror and others, Malloy has been limiting access to DCF’s residential treatment programs (group homes for extremely troubled children). His latest cut will effectively close the door on new placements and lead the closure of even more DCF group homes.
While a Malloy official explained away the problem to the CT Mirror by saying that DCF was, “committed to maintaining youth in their communities in the least restrictive settings that can meet their needs,” the reality of the situation is that there are many parents and children that desperately need residential options. In far too many cases, the failure to provide a residential placement puts the family and child in danger.
However, in what only can be described as an immoral move, the Malloy administration turns its back on these Connecticut families and children. If Malloy’s action is not illegal, it should be.
In an equally inappropriate blow, Malloy is cutting the Department of Developmental Services including day services and employment programs for those with developmental disabilities. Sad and ironic that Malloy reduces residential treatment options and then reduces options for those who need day treatment and employment services.
Malloy’s human service cuts also include $3.2 million cut from the Department of Mental Health and Addiction Services. The cuts to that agency will mean vitally important positions will go unfilled, leaving remaining employees unable to meet the present demand for services.
At the same time the governor is going after human services, he is also cutting an additional $6.5 from Connecticut’s public colleges and universities, this despite the fact that Malloy has already made the deepest cuts in state history to Connecticut’s system of public higher education.
Rather than speak out against these dramatic cuts, the spokespeople for the universities and colleges rolled over in appeasement, thereby assuring that Connecticut students and their parents will be paying even more and getting even less from UConn, CSU and the community colleges.
As Malloy pretends to claim that he is adhering to his “no new taxes” pledge, Connecticut college students and their parents will be paying higher tuition – which is nothing more than a user tax.
But perhaps the most offensive move of all is Malloy’s failure to come clean about the magnitude of the budget problem, even though the election is safely behind him.
While the present budget deficit is officially pegged at about $100 million, Malloy’s budget office is holding back evidence of additional budget problems. The reality of the situation is that this round of cuts solves less than half of the documented budget deficit and more like 25 percent of the real budget problem facing the state.
Even in victory Malloy remains unable or unwilling to tell the people of Connecticut the truth.
Budget Cuts, Healthcare, Hospitals, Layoffs, Malloy, State Budget, Taxes Budget cuts, Healthcare, Hospitals, layoffs, Malloy, State Budget, Taxes
When Governor Malloy proposed his bait and switch “provider tax” strategy he promised hospitals that they would be “held harmless.” The goal he said was simply to maximize federal reimbursement rates.
But two years later, the impact of Malloy’s decision to renege on that promise is leading to massive layoffs and undermining many of Connecticut’s hospitals.
The news headlines have been shocking;
“The state’s 30 acute care hospitals have shed 1,400 jobs in the past year”
“Hartford HealthCare is eliminating 350 jobs”
“Nearly 70 positions at The William W. Backus and Windham hospitals will be eliminated”
“List shows 176 Connecticut layoff notices so far (Norwalk Hour)”
“116 positions will be eliminated as a result of state budget cuts (Danbury News-Times)”
St. Francis Hospital and Medical Center is reducing the staff at its pediatric and adolescent clinic
“The layoffs announced Monday are the second round in the last seven months. In November, Hartford HealthCare laid off 179 employees, including 10 each at Backus and Windham.”
So why are people being thrown out of their jobs when access to quality healthcare is more important than ever?
Malloy’s “provider tax” budget gimmick is a major factor.
When Malloy proposed his $1.5 billion tax increase in 2011, the plan also included an additional $350 million “provider tax” on hospitals. Malloy claimed it wasn’t really a tax because the hospitals would get all the money back and the federal government would reimburse the state for a portion of that money.
Of course, to the self-pay patient, it was a tax.
And to the health insurance company it was yet another cost to be passed on to the people who pay for health insurance.
But the General Assembly approved Malloy’s plan anyway.
As part of his state budget coverage, CT Mirror’s Keith Phaneuf wrote last year,
“And then there’s really bad news: Gov. Dannel P. Malloy would cut their state funding by one-fifth over the next two years.
Put it all together, hospitals say, and at best, they will cut jobs and services. At worst, some will shut their doors. And facilities in the state’s poor northeastern corner say they are particularly at risk.”
The fact is that while the Malloy administration did pay the hospitals back the first year, his budget REDUCED the amount Connecticut hospitals received by about $27 million in the second year, $134 million the third year and $269 million in this year’s budget.
Overall, as a result of Governor Malloy’s budget strategies, while hospitals are being paid for additional Medicaid services, the State of Connecticut has reduced funding for its 32 chronic care hospitals by about $400 million dollars in the last two years alone.
The massive number of layoffs are proof that the “chickens are coming home to roost.”
And, none of this is a surprise to Malloy and the legislature.
As the Vice President of the Connecticut Hospital Association said,
“In short, what started 18 months ago as a scheme to help balance the state budget … has been converted to an unadulterated tax on hospitals…It’s one thing not to help hospitals, it’s something completely different when you harm hospitals. “Taking patient care revenue to balance the state budget is just plain wrong.”
The state cuts to hospitals garnered some notoriety last spring when Malloy lost his temper on the WNPR radio show, “Where We Live,”
The CT Mirror reported at the time,
When Malloy appeared on May 6 on WNPR’s public affairs show “Where We Live,” he responded quickly when host John Dankosky asked about the hospital funding reductions the governor’s own budget staff wrote about in his budget.
“Let me stop you right there,” Malloy told Dankosky about four minutes into the program. “There aren’t cuts to hospitals.”
The administration insists that while the hospitals lose $400 million in tax reimbursements, they will make it back. But to do so, hospitals will have to treat thousands more poor patients covered through Medicaid.
“It is time for people to trim their sails, to find ways to deliver great service at less expense,” the governor said, adding that all hospital-related state spending should be $1.7 billion next fiscal year, just as it is this year. “We’re not cutting, we’re funding.”
What Malloy forgot was the evidence of the cuts was part of his own budget documents.
Again quoting the CT Mirror,
When the administration unveiled its latest budget plan in February, it initially referred to those changes in hospital reimbursements as spending cuts.
“The decision to reduce hospital funding was not an easy one,” the governor’s budget introduction states.
While the overall policy is rather complex, the impact has been pretty simple. The way Malloy has handled the state budget is a primary factor behind the hospital layoffs that are taking place across the state.
The families that are being devastated by these hospital layoffs and the communities being impacted by reduced levels of services should tell Governor Malloy that at the very least, he must take responsibility for the actions he took that are now leading to many healthcare workers losing their jobs.
You can read the CT Mirror’s coverage of this issue here: http://ctmirror.org/hospitals-warn-budget-cuts-will-cut-jobs-and-services-maybe-close-doors/ and here http://ctmirror.org/semantics-malloys-no-tax-pledge/
Budget Cuts, Education Reform, Malloy, State Board of Education, State Budget, Stefan Pryor Budget cuts, Education Reform, Malloy, State Board of Education, State Budget, Stefan Pryor
Last Friday, Governor Malloy’s Commissioner of Education quietly ended what has widely been recognized as one of the State Department of Education’s most important and successful programs.
For years, a variety of Connecticut school districts have been receiving vital technical assistance from a group of retired superintendents and senior school administrators through a program housed at the State Department of Education.
The program has functioned thanks to a grant through EASTCONN, the Regional Education Service Center. The program has funded four State Department “Leaders in Residence,” along with three retired school superintendents. Together these people have been giving school districts across the state with critically important helpg on a wide variety of projects.
Together, former superintendents Mike Wasta (Bristol), Patrick Proctor (Windham), Jim Mitchel (Groton) and Leaders in Residence, Rosanne Daigneault, Warren Logee, Robert Pitocco and Salvatore Randazzo have more than 250 years of combined expertise on the cutting edge of making schools succeed. Their expertise ranges from Special Education, to improving teaching to financial management. Some have Ph.Ds. while others have Education Doctorates. All have spent their lives here in Connecticut helping improve our schools.
And now, as a result of Pryor’s most recent decision, towns will be losing the very help and expertise they so desperately need.
What is particularly disturbing is that Malloy and Pryor have repeatedly claimed their goal is to help school districts, especially the poorest school districts, succeed.
The hallmark of Malloy’s education reform law, Public Act 12-116, was the creation of so-called “Alliance Districts.” According to Malloy’s bill, the Alliance District program was developed to focus support and funds on the 30 districts with the “lowest district performance index scores statewide.”
These are the districts that have the highest rates of poverty, the largest number of students who come to school with English language challenges and the communities that have the greatest number of children with special education needs.
And these very districts were among those that benefited the most from the state’s technical assistance programs.
But in a complete reverse of priorities, one of Commissioner Pryor’s top aides at the State Department of Education called these experts together last Friday to inform them, that despite the extraordinary success of their program, the Commissioner was putting an end to their contracts. More
Budget Cuts, Corporate Welfare, Economic Development, ESPN, Malloy Budget cuts, Corporate Welfare, Economic Development, ESPN, Malloy
The Urban Dictionary defines “jive” as a “colorful form of speaking” that is “sometimes hard to follow.”
In the real world here is how it works;
On August 2, 2011 Governor Dannel P. Malloy announced that, in return for creating 200 new jobs over the next five years, the taxpayers of Connecticut would give ESPN $17.5 million toward the construction of a new building and at least $300,000 to train the new workers. Malloy explained, “ESPN’s needs are not going to be ignored.”
That corporate welfare package brought the total Connecticut taxpayer support for ESPN to over $100 million in state tax breaks and grants over the past twelve years.
Then yesterday, May 20, 2013, The Wall Street Journal reported that ESPN, “was in the process of laying off a few hundred workers… a sign that the hugely profitable sports cable-TV powerhouse is responding to the rising fees it pays to air games as well as other changes in the media industry…ESPN said some of the job cuts are coming through attrition, or unfilled open positions, and didn’t disclose the precise number or types of workers who are being let go.”
Associated Press added, “ESPN is cutting its workforce, the latest Disney division to reduce staff…’We are implementing changes across the company to enhance our continued growth while smartly managing costs,’ the sports media giant said in a statement Tuesday. ‘While difficult, we are confident that it will make us more competitive, innovative and productive.’”
The AP explained that the ESPN layoffs follow 300 layoffs that occurred at LucasArts and LucasFilms after Disney acquired the companies for $4.1 billion.
As AP noted, “Still, Disney has been on a roll financially, beating or matching earnings per share estimates for the last eight quarters. After it reported a 32 percent gain in net income for its fiscal second-quarter earnings two weeks ago, more than a dozen Wall Street analysts raised their price targets on Disney stock to an average of nearly $72.”
So in essence, despite being an extraordinarily financially successful subsidiarity of an extraordinarily, financially successful company that is doing extraordinarily financially well in this extraordinarily financially successful Wall Street market, ESPN accepted almost $20 million in scarce taxpayer funds and promised to create 200 jobs but is now intentionally keeping vacancies open and laying off Connecticut residents, so that it can appear even more extraordinarily financially successful.
Despite this development, according to the Hartford Courant, when asked about it, a spokesman for the Malloy administration said that ESPN will not be forced out of the First Five program as a result of its layoff plan because it is still intending to add at least 200 jobs during the period starting in August, 2011 when the Governor gave them the public funds.
Meanwhile, the Connecticut General Assembly continues to consider major cuts to some of the most significant and vital human and healthcare services.
Now if that jive is not a “colorful form of speaking” that is “sometimes hard to follow,” I don’t know what is.
Budget Cuts, Connecticut General Assembly, Malloy, Retired Teachers, State Budget Budget cuts, Malloy, Retired Teachers
Last month, in a post entitled, Define fiscally and morally irresponsible? Malloy’s plan for older, retired teachers. Wait, What? readers had a chance to learn about Governor Malloy’s budget proposal to eliminate the state’s contribution to the retired teacher’s health insurance fund.
The fund pays a portion of the health insurance premiums of retired teachers. The bulk of the cost still rests on the individual teachers.
The Legislature’s Appropriations Committee will be holding a public hearing on Malloy’s proposal tomorrow.
Malloy’s plan would force the Connecticut Teacher Retirement Board to spend the existing fund down to almost zero over the next two years.
According to an article in yesterday’s CTMirror, while Malloy’s plan would “save the state” $70.7 million in the upcoming FY14-FY15 biannual budget, but it would “put the plan’s funding at a ‘dangerous level in two years.”
Why take such a fiscally irresponsible action you ask?
Because eliminating the contribution would make the state budget look more balanced during the next gubernatorial election cycle, although the “rob Peter to pay Paul” approach would require a massive boost in the state contribution to the teacher’s retirement fund in FY 16, the year after the next election. More
Ben Barnes (OPM Secretary), Budget Cuts, Corporate Welfare, Economic Development, Healthcare, Human Services, Malloy, Mental Health Services, State Budget, State Deficit Budget cuts, Economic Development, Malloy, State Budget, State Deficit
Pick up any newspaper and you are bound to see at least one story about the impact of budget cuts and another about how state governments are giving money away to private companies in an attempt to convince them to create or retain jobs.
It is quite a commentary about our times. A lack of adequate funding means people who work for schools, hospitals and nonprofit providers of human services are or will be losing their jobs, while taxpayer continue to provide the money that is being used to try and persuade businesses to pledge that they will create or keep private sector jobs.
True, it may not be the notoriety that we want, but you certainly can’t say that Connecticut hasn’t become the epitome of this paradox.
For example, earlier this week, Wait What? readers were provided an opportunity to read two posts, one entitled Has it come to this…? and another entitled And while cutting essential services, Malloy gives $100,000 to a Stamford Brewery.
The first post reported on a recent Hartford Courant commentary piece by a father lamenting Governor Malloy’s cut to essential programs that help Connecticut’s developmentally disabled residents while the second was about the Governor’s visit to a brew pub in Stamford to celebrate a $100,000 taxpayer-funded grant that the Malloy Administration was giving to help the brew pub expand.
The two stories served to enlighten readers about the reality of our times or the juxtaposition between an era where we are cutting vital services while providing private companies with what some would call economic development incentives and what others would refer to as corporate welfare.
What I failed to report was that, in addition to the brew pub, Governor Malloy and his Commissioner of the Department of Economic and Community Development (DECD), Catherine Smith, were actually visiting three other companies around the state that day. All four of the companies were receiving funds thanks to the State’s Small Business Express Program (EXP).
Over the past eighteen months, the Small Business Express Program has given out more than $80 million. According to state officials, the program has helped “create and retain more than 7,600 jobs.” The Legislature will soon be voting to give the Governor an additional $60 million for this program.
In addition to Stamford’s Half Full Brewery, Malloy was visiting Atlantic Canvas and Awning (a company that received a loan of $50,000 and a matching grant of $10,000); Automotive Core Recycling (a company that recycles and sells catalytic converters and other auto parts and received a $250,000 loan) and Katalina’s (a cup cake bakery that received a loan of $30,000 to add equipment and furnishings to their new retail shop).
According to the Department of Economic and Community Development, the $50,000 loan and $10,000 grant “support the creation of three new jobs and retained four,” the $250,000 loan translated into one new position and retained 8 jobs, while the $30,000 loan to the bakery “created one full time job and retained two full time and two part time jobs.”
The Governor’s press release that day announced that the Small Business Express Program has already created or retained more than 1400 jobs in 2013.
Meanwhile that distraught and frustrated father, along with the others who care for Connecticut’s developmentally disabled, try to cope with Governor Malloy’s $6 million cut to employment and day service programs.
Actually, that $6 million cut was part of a much bigger list of cuts Governor Malloy ordered last November 28, 2012. That day, back in November, Governor Malloy announced $170 million in budget rescissions.
The press release didn’t actually quote Governor Malloy. Instead the task of explaining the cuts was left to Ben Barnes, Malloy’s budget director. Barnes wrote, “Many of these cuts are very difficult to make, especially now when so many residents continue to struggle in a tough economy, But as painful as they are, cuts are necessary to keep this year’s budget in balance. State government needs to live within its means.”
The November list included a wide variety of reductions including a $53,000 cut to the Division of Criminal Justice’s Shooting Task Force; a $200,000 cut to the Jobs First Employment Service Program, a $488,000 cut to the state’s Environmental Quality Program; a $335,000 cut to the Department of Health’s Community Health Services Program and $41,000 cut to their Genetic Diseases Program; a $433,000 cut to the state’s Community Mental Health Centers, a $2.3 million cut to home care services that keep people out of more expensive nursing homes and hospitals and the list goes on and on.
More recently, the state budget plan that Governor Malloy proposed a month ago continued those cuts. In fact, his new budget makes even deeper cuts to a variety of vital and essential services.
So how is it possible that a Governor would be instituting record budget cuts while giving away record amounts of taxpayer funds to private businesses?
Truth be told, it is the difference between how the State operating budget works compared to the way the State Capital or Bond budget functions.
Even in the desperate times, the Capital budget continues to pump out cash.
The State’s operating budget is paid for with tax dollars. The State’s Capital Budget is funded via the state’s credit card.
Because we are borrowing the money and then paying the amount (plus interest) back over twenty years, the argument is that cutting the Capital Budget won’t help to balance this year’s operating budget. This year’s operating budget is still facing a $135 million plus deficit despite the terrible cuts instituted by the Governor and the additional cuts approved by the General Assembly.
Although Connecticut already has the highest per capita debt burden in the nation, since the word “deficit” applies to the operating budget and not the Capital Budget, we end up with a situation in which vital services are cut at the same time money is being handed out.
In fact, if Governor Malloy gets his way, we’ll see more cuts to essential services and more layoffs of hospital and human service workers in the coming months, and at the same time, the General Assembly will be allocating even more money for the Governor to hand out to the private sector.
Budget Cuts, Corporate Welfare, Malloy Budget cuts, Corporate Welfare, Malloy
In a tribute to modern American politics, while Sunday’s newspaper featured the article by the father of the 28-year-old intellectually disabled daughter who wrote, “Amid Stark State Cuts, A Father’s Plea: Who Will Care for Katie?”; the Monday paper featured a photo-op of Governor Dannel Malloy in his hometown of Stamford celebrating a grant for $100,000 to the Half Full Brewery.
Thanks to Malloy’s $100 million Small Business Express Program, in which the state borrowed $100 million to give away operating grants to various businesses, the Stamford beer pub got a helping hand from Connecticut’s taxpayers.
Billed as a way to provide “working capital” to small business, the program effectively picks winners and losers, all funded at taxpayer expense.
While supporting small business is probably a better economic development strategy then giving away tens of millions to corporate giants, the actual benefit of many of the grants remains doubtful.
With the legislation approved in October 2011, the Malloy administration has funded 598 applications to the tune of about $80 million.
Despite the record budget cuts included in his new budget, the Governor is proposing to borrow another $60 million for the corporate welfare program. While the Stamford brew pub is undoubtedly appreciative of the $100,000 gift, there was no word from the state’s other small beer manufactures (23 of them) or the state’s hard cider manufactures (8 of them) or the state’s apple brandy manufacturers (3 of them) or the state’s liquor manufactures (12 of them).
You can catch the story and a picture of Malloy at the beer tasting at: http://stamford.dailyvoice.com/business/gov-dannel-malloy-gets-taste-stamford-brewery