Governor Lamont's Fiscal Year 2022-2023 Budget Expands and Preserves Resources for Critical Homeless and Affordable Housing Programs
The Governor's proposed FY 22-23 budget authorizes significant new resources to create affordable housing and preserves existing resources for critical homeless and affordable housing programs.
Governor Lamont identified five goals with the release of the budget: 1) defeat COVID-19; 2) make Connecticut affordable; 3) invest in our future; 4) modernize state government; and 5) create an economy that works for all.
"We are pleased to see that Governor Lamont's budget maintains basic key resources for people experiencing homelessness at 2019 levels and proposes $305 million in bonding for affordable housing. However, we are in a new world, where service providers, property managers, landlords, tenants, and vulnerable homeowners face a new and dangerous economic reality. This is particularly true for communities of color in Connecticut who have been disproportionately affected by the pandemic on multiple fronts," said Kiley Gosselin, Executive Director of the Partnership for Strong Communities.
"In order to maintain health and security for our most vulnerable families in the years ahead and build stronger communities in the future, we must invest more in homelessness prevention and housing supports and commit to activating bond funding for affordable housing."
The Governor's FY 22 budget totals $20.5 billion and FY 23 budget totals $21.1 billion, representing a 2% increase in FY 22 and a 3.5% increase in FY 23. The Budget Reserve Fund (Rainy Day Fund) is expected to close FY 21 at $3.5 billion. This budget preserves the DOH line items for Housing/Homeless and Homeless Youth and DHMAS Housing Supports and Services.
The Governor's budget plans to use a combination of the budget reserve fund and federal resources to balance the budget and addresses the projected deficit of $1.4 billion in each year of the biennium, using federal stimulus and/or the Rainy Day Fund for a projected $775 million in FY 22 and $975 million in FY 23.
Affordable housing has remained a priority of Governor Lamont, with a total of $305 million over the biennium in new bond authorizations for affordable housing development for the state Housing Trust Fund and the Affordable Housing Flex Fund. Total new bond authorizations for all agencies are $1.4 billion in each year, with $154 million in cancellations of existing bond authorizations.
Budget and Bonding Proposals Include:
Department of Housing
- Funding for the Housing/Homeless Services line at $81.9 million in each year of the biennium, representing a decrease reflecting current expenditure levels in Money Follows the Person (MFP) and Connecticut Housing Engagement and Supportive Services (CHESS) Programs.
- Homeless Youth Program funding at $2.6 million in FY 22 and $2.9 million in FY 23, representing a $351,975 increase from FY 21 in FY 22 and a $641,975 increase in FY 23. This new funding is transferred from the Housing/Homeless Services line to fund the Youth Homeless Demonstration Grant match.
- Transfers to DMHAS $352,500 in FY 22 and $352,000 in FY 23 for wrap-around services for 47 individuals expected to receive HUD mainstream vouchers.
- New bond authorizations for the Housing Trust Fund are funded at $55 million in FY 22 and $50 million in FY 23.
- New Bond authorizations for the Affordable Housing Flex Fund are funded at $100 million for each year of the biennium, which includes $30 million each year for the State Sponsored Housing Portfolio.
Department of Mental Health and Addiction Services
- Housing Supports/Services funded at $23.4 million in each year of the biennium, representing an increase from FY 21 of $391,297 in FY 22 and $437,422 in FY 23.
- Discharge and Diversion Services line is funded at $28.9 million in FY 22 and $30.3 million in FY 23, representing an increase from FY 21 of $4.7 million in FY 22 and $6 million in FY 23. This funds 30 new Money Follows the Person (MFP) placements for individuals discharged from Connecticut Valley Hospital and reallocates $352,500 for services from DOH each year to 47 MFP individuals expected to receive HUD mainstream vouchers.
- Young Adults Services line is funded at $78.3 million in FY 22 and $79.4 million in FY 23, representing an increase from FY 21 of $351,876 in FY 22 and $1.4 million in FY 23.
- Grants for Mental Health Services funded at $66.5 million in FY 22 and $66.6 million in FY 23, representing an increase from FY 21 of $150,704 in FY 22 and $329,855 in FY 23.
- Provides new bond authorizations to design the replacement for Whiting Forensic Hospital at $3 million in FY 22 and $0 in FY 23.
- Provides new bond authorizations for grants to nonprofits for community-based residential and outpatient facilities at $1 million in each year of the biennium.
Department of Social Services
- Allocates $13.9 million in FY 22 and $26.9 million in FY 23 to provide new residential support to 90 individuals in FY 22 and 69 individuals in FY 23 aging out of DCF programs, and for 30 MFP placements in both years.
- Establishes an asset test for the Medicare Savings Program resulting in a savings of $26.6 million in FY 23.
- Eliminates Cost-of-Living Adjustments for public assistance recipients, a reduction of $770,500 in FY 22 and $2.1 million in FY 23.
- Eliminates funding for individuals impacted by Hurricane Maria due to anticipated lapse, through the deduction of $504,000 each year.
- Medicaid expenditures are reduced by $128.6 million in FY22 due to COVID-19 emergency/reimbursement from the federal government.
- Behavioral Health Partnership - plans to seek a Substance Use Disorder demonstration waiver (CMS) - allow for federal reimbursement for individuals residing in mental health facilities.
Department of Children and Families
- Maintains Supportive Housing funding at $19.9 million in both years.
Department of Labor
- Second Chance Initiative is flat funded at $311,829 in FY 22 and $312,381 in FY 23.
- Veterans Opportunity Pilot is flat funded at $245,047 in FY 22 and $253,773 in FY 23.
Department of Corrections
- Community Support Services is maintained from FY 21 at $34.2 million in FY 22 and increased to $34.6 million in FY 23.
- Reductions to reflect savings due to closure of units and facilities of $15.4 million in FY 22 and $41.5 million in FY 23.
- Provides new bond authorizations to renovate existing buildings for inmate housing and support facilities at $30 million in FY 22 and $10 million in FY 23.
Office of Early Childhood
- Care4Kids continues to be funded at $59.5 million in each year of the biennium.
- Early Head Start - Child Care Partnership is restored at $1.4 million in each year.
Department of Economic and Community Development
- Provides new bond authorizations for the Brownfield Remediation and Revitalization Program at $25 million in each year of the biennium.
Office of Policy and Management
- Provides new bond authorizations for Urban Act at $50 million in each year of the biennium.
- Provides new bond authorizations for Small Town Economic Assistance Program (STEAP) at $0 for FY 22 and $15 million in FY 23.
Department of Education
- Funds a new Open Choice pilot program for 50 seats in Norwalk and 50 in Danbury at $275,000 in FY 22 and $900,000 in FY 23.
Department of Energy and Environmental Protection
- Provides new bond authorizations for the remediation of industrial sites in urban areas at $10.5 million in each year.
The Governor's Budget also caps credits claimed against the Public Utilities Tax at 50.01% of liability, which may adversely affect the state Housing Tax Credit Contribution program (HTCC).
We will continue to keep you informed as more information becomes available.