Governor Lamont's Fiscal Year 2023 Proposed Budget Adjustments and New ARPA Allocations Expand and Preserve Resources for Affordable Housing and Homeless Programs 

 

February 11, 2022 
 
The Governor's midterm budget proposal for FY23 preserves previous allocations for critical existing homeless and affordable housing programs. In addition, the Governor recommended new American Rescue Plan Act (ARPA) allocations to create new affordable housing and expand supportive housing services. Both proposed budget adjustments and new ARPA allocations significantly expand behavioral health funding.  

 

Governor Lamont identified a dozen key focuses with the release of the budget including investing in safe and affordable housing.   

 

"We commend Governor Lamont for his commitment to ensuring that Connecticut residents have access to safe and affordable housing. We are pleased to see the Governor's proposals use $50 million in Coronavirus State Fiscal Recovery Funds (CSFRF) to support and invest in the creation of 350 units of additional affordable housing and $2.8 million to fund wrap-around services for 150 supportive housing units," said Kiley Gosselin, Executive Director of the Partnership for Strong Communities. 

 

"As Connecticut works toward a transformative, equitable, and healthy future, access to safe and stable housing for its most vulnerable residents must remain a top priority. Low-income, Black, Indigenous, and Latinx Connecticut households face disproportionate impacts from the pandemic, and are particularly vulnerable to housing insecurity as a result of systematic exclusion from housing and economic opportunities. While we still have a long way to go to ensure all residents have a safe, stable home, these investments are a step in the right direction."

 

The budget proposal preserves critical line items at the Department of Housing, including the Housing/Homeless Services line, and Homeless Youth Line. It also preserves the Department of Mental Health and Addiction Services Housing Supports and Services line. The proposed capital budget preserves Department of Housing's FY23 authorizations of both $100 million for the Affordable Housing FLEX Fund and $50 million for the state Housing Trust Fund. 

 

The Governor's budget proposal does not address the underfunding of community nonprofits, including homeless and housing service organizations. It also does not include the necessary investment in expanding rental assistance and eviction prevention.  

 

The budget proposal totals $24.2 billion, representing growth of 2.4% over the adopted budget for FY23. The recommended budget is $5.6 million below the spending cap for FY23 and leaves a projected $296.4 million operating surplus. The Budget Reserve Fund (Rainy Day Fund) is expected to close FY22 at $4.5 billion.   

 

Overall, the proposed budget includes $556 million in new spending for affordable and supportive housing initiatives, behavioral health services, community investments and crime prevention programs, among others. The Governor also includes $336 million in tax relief proposals. 

 

The proposed budget uses $810 million of CSFRF which is part of ARPA. Those funds had been previously set aside to address the FY22/FY23 deficits. The proposed budget leaves no remaining balance in these federal funds. 

 

Budget, Bonding, and ARPA Proposed Adjustments Include: 

 

Department of Housing

Budget 

• Housing and Homeless Services line- preserves FY23 allocation of $85,323,311 
• Municipal Housing and Homeless Services line- preserves FY23 allocation of $637,088 
• Homeless Youth line- preserves FY23 allocation of $2,934,904 
• Personal Services line- $100,000 FY23 expansion for administration of the agency's bond programs  

Bonding 

• Affordable Housing FLEX Fund- preserves FY23 authorization of $100 million 
• Housing Trust Fund- preserves FY23 authorization of $50 million 

ARPA 

• Affordable Housing-$50 million expansion in FY23 to support and invest in the creation of 350 units of deep income targeted affordable housing (serving households between 30% and 50% of the area median income) 

Department of Mental Health and Addiction Services

Budget 

• Housing Supports and Services line- preserves FY23 allocation of $23,403,595 
• Diversion and Discharge Services line- $2.5 million expansion in FY23 for 26 additional discharges from Connecticut Valley and Whiting Forensic hospitals 
• Young Adult Services line- preserves FY23 allocation of $84,319,278 
• Grants for Mental Health Services line- preserves FY23 allocation of $18,242,099 
• Grants for Substance Abuse Services line- $11.7 million FY23 expansion 

ARPA 

• Supportive Housing- $2.8 million expansion ($1.1m FY23; $1.1m FY24; $562,000 FY25) for wrap-around services for 150 units of supportive housing to accompany new federal housing vouchers administered by the Department of Housing  
• Peer Supports- $2.4 million expansion ($1.2m FY23; $1.2m FY24) to replicate peer support model in hospital emergency departments 
• Mobile Crisis Services- $3.2 million expansion ($1.6m FY23; $1.6m FY24) to support expand availability of mobile crisis services and case management 
• Mobile Crisis Services- $6.0 million expansion ($3m FY23; $3m FY24) to support enhanced mobile crisis services including 24/7 coverage 
• Electronic Health Records- $16 million expansion ($10m FY23; $6m FY24) braided with bond funds to implement a new electronic health records system 
• Home and Community-Based Services- $1.2 million adjustment FY23 to support ARPA Home and Community-based Services Reinvestment Plan 

Department of Social Services

Budget 

• Substance Use Disorder Demonstration Waiver- $25.5 million expansion in FY23 (shared across DSS, DMHAS, DCF, DOC, and the Judicial Branch) 

ARPA 

• Domestic Violence- $2.9 million expansion in FY23 to provide additional supports including housing for victims of domestic violence 

Department of Children and Families

Budget 

• Supportive Housing line- preserves FY23 allocation of $19,886,064 

ARPA 

• Outcomes for Youth- $2.0 million expansion in FY23 to expand Youth Service Bureaus and Juvenile Review Boards to all municipalities in the state, quality assurance practice, training, data collection and reporting 
• Urgent Crisis Centers- $21 million expansion in FY23 to establish three additional urgent crisis centers and stabilization units 
• Mobile Crisis Intervention- $17.2 million expansion ($8.6M FY23; $8.6M FY24) to expand pediatric mobile crisis intervention services to statewide 24/7 coverage  

 

Department of Public Health 

ARPA 

• Healthy and Lead Safe Homes- $70 million expansion ($50m FY23; $20m FY24) to support lead remediation/abatement and other health and safety improvements in housing  

 

Department of Labor

Budget 

• Second Chance Initiative line- preserves FY23 allocation of $312,381 
• Veterans Opportunity Pilot line- preserves FY23 allocation of $253,773 

.

Department of Corrections

Budget 

• Community Support Services line- preserves FY23 allocation of $34,625,233 

Bonding

• Facility Improvements- preserves FY23 authorization of $10 million and adds new authorization of $60 million in FY23 for improvements to state prisons and address deferred maintenance projects 

Office of Early Childhood

Budget 

• Care4Kids TANF/CCDF line- preserves FY23 allocation of $59,527,096 
• Early Head Start line- preserves FY23 allocation of $1,400,000 

Department of Economic and Community Development

Bonding 

• Brownfield Remediation and Revitalization program- preserves FY23 authorization of $25 million 

ARPA 

• Revitalization of Downtowns and Main Streets- $20 million expansion in FY23 to fund transformational, placemaking projects in major urban areas or regional economic centers 

Office of Policy and Management

Bonding 

• Urban Development Projects- preserves FY23 authorization of $40 million 
• Small Town Economic Assistance Program- preserves FY23 authorization of $15 million 

Judicial Department 

ARPA 

• Housing Opportunities- $5.8 million expansion ($2.9m FY23; $2.9m FY24) to expand bail services to assist individuals in the criminal justice system to find appropriate housing and residential treatment  
• Foreclosure Mediation Program- $6.9 million expansion ($3.4m FY23; $3.4m FY24) to reduce the backlog of foreclosure/eviction cases by continuing to fund foreclosure and eviction mediation staff 

Department of Energy and Environmental Protection

Bonding 

• Industrial Sites in Urban Areas- preserves FY23 authorization of $10.5 million  

ARPA 

• Broadband Infrastructure- $4 million expansion in FY23 to buildout broadband infrastructure in low-income and multi-family homes, and businesses 
• Broadband Infrastructure- $14.4 million expansion in FY23 to provide grants for broadband infrastructure in underserved areas 

 

Department of Revenue Services 

ARPA 

• Earned Income Tax Credit Payments- $42.3 million expansion in FY23 for one-time payment to eligible households 

Office of Legislative Management 

ARPA 

• Invest in Communities- $15 million expansion in FY23 for the Community Investment Fund to support community projects 

The next step for the proposed budget is scrutiny by both the Appropriations Committee and Finance, Revenue, and Bonding Committee. We will continue to share public hearing announcements and details on the budget as they become available.