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As Bond Bill Passes, CT FY17 Budget Finalized with Significant Reductions in State Spending

State of Connecticut

Working to close an alarming $900+ million gap in the state’s Fiscal Year 2017 (FY17) budget, the Connecticut General Assembly passed a budget bill during a special session on May 12-13, 2016. Last week, the circle was closed as the CT House of Representatives met for a special session on June 2nd to pass the bonding bill for FY17; the bonding package had already been passed by the Senate on May 12th. Both the FY17 budget and bonding package offer significant reductions to a wide range of programs. While housing and homelessness programs will see reduced funding, significant cuts were also made to programs that have an ancillary impact on those experiencing housing instability and mental and/or physical health issues.

The budget bill - Senate Bill (SB) 501, now Public Act No. 16-2 ("An Act Adjusting the State Budget for the Biennium Ending June 30, 2017") - passed primarily along party lines, with a majority of Democrats in the House and Senate voting for the bill and all Republican members voting against it. Governor Malloy signed the budget bill and its related implementer, SB 502, on June 2nd.

The bonding package – SB 503, “An Act Authorizing and Adjusting Bonds of the State for Capital Improvements, Transportation and Other Purposes and Authorizing State Grant Commitments for School Building Projects” – passed by wider margins with the Senate voting 34-2 in favor on May 12th and the House voting for it unanimously (15 members were absent) on June 2nd.

The budget bill, Public Act 16-2, includes the following reductions to housing/homelessness programs (numbers rounded):

Department of Housing (DOH)

  • Housing/Homeless Services: -$8.2 million
  • Elderly Rental Registry and Counselors: -$150,000 

Department of Mental Health and Addiction Services (DMHAS)

  • Housing Supports and Services: -$232,000
  • Grants for Mental Health Services: - $7 million

Department of Children and Families (DCF)

  • Homeless Youth: -$187,000 
  • Supportive Housing: -$1.5 million

Department   of Labor (DOL)

  • Veterans Opportunity Pilot: -$156,000
  • Second Chance: - $94,000
  • 2Gen-TANF: - $238,000

Department of Corrections (DOC)

  • Community Support Services: -$6.6 million

Community Investment Act (CIA)

  • Transfers $1 million in Community Investment Act funding to the General Fund. This transfer is in addition to the 50% of CIA funds already being diverted to the General Fund as laid out in the biennial budget passed in 2015. (25% of CIA funds are directed to DOH for affordable housing initiatives, and has funded support for Coordinated Access Networks, rapid re-housing programs, and affordable housing development gap financing).

Office of Policy and Management (OPM)

  • The budget also requires the OPM Secretary to identify additional savings in the amount of $94.5 million in FY17 (particular line items cannot be reduced by more than 1%).  
  • The OPM Secretary is also charged with achieving a targeted savings lapse of $69 million. 

While we do not currently know where these additional savings will come from, a list of these reductions or “holdbacks” is expected to be released by OPM soon. 

The bonding package, SB 503, includes the following changes:


  • Homeless Prevention Response Fund: FY17 authorization reduced by $4 million to $11 million
  • Affordable Housing Program (“Flex”): authorization reduced to $120 million from $135 million
  • Main Street Program: authorization reduced to $3 million from $5 million
  • Shoreline Resiliency Fund: authorization reduced to $8 million from $25 million
  • Emergency Mortgage Assistance Payment Program: authorization reduced to $38 million from $40 million, funds to be transferred to CHFA to administer program  


  • Transit-oriented development and predevelopment activities: additional authorization of $8 million
  • Urban Act: authorization increased by $25 million to $75 million

Click here to find more information on SB 501.

Click here to access the text of Public Act 16-2.

Click here to find more information on SB 503.

Click here to read more about the Fiscal Year 2016 deficit mitigation package passed in March 2016.



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