Skip to main content
Affordable Housing , Announcements , Community Development , Homelessness , State News , Supportive Housing

Governor Malloy’s Budget Proposal Preserves Critical Housing Programs

10 February 2017
Office of Governor Dannel P. Malloy

Governor Malloy's proposed 2018-2019 budget preserves critical programs that prevent and end homelessness and create affordable housing.

“Governor Malloy’s budget has remained true to his commitment to protect those who need a safe, secure, affordable home and is especially noteworthy in light of the tremendous spending restraints he faces. Governor Malloy and our legislative leaders have long understood and supported the importance of ending homelessness in our state in both fiscal and human terms.” said Alicia Woodsby, Executive Director of Partnership for Strong Communities. 

The budget seeks to close a projected FY 18 $1.7 billion deficit with significant spending reductions. It continues to support vital services and supports for individuals experiencing or facing homelessness and the state’s crucial need for more affordable homes.

Budget Proposals Include:

Department of Housing

  • Homeless/Housing funding is maintained at $73.3 million in FY 2018 and $78.3 million in FY 2019.
  • Homeless Youth Program, funded at $2.3 million each year, is transferred to Department of Housing from Department of Children and Families. 
  • Money Follows the Person Rental Assistance Placements funded at $2 million in each year.
  • Caseload growth for Money Follows the Person Transitions funded at $1.8 million in FY 2018 and $5.2 million in FY 2019.
  • $340 million in new capital authority (bonding) for the Housing Trust Fund, Affordable Housing (FLEX) Fund and Supportive Housing for those with Intellectual Disabilities.
  • $10 million in capital funding is provided for Supportive Housing for person’s with autism or intellectual disabilities.
  • TANF, SSBG, and CCDF are reallocated into child care funding.

Office of Policy and Management

  • $8 million in FY 2018 and $8 million in FY 2019 in capital funding to support Transit Oriented Development (TOD) activities. 

Department of Labor

  • Funding for the 2-Generation pilot is eliminated. 
  • Veteran’s Opportunity Pilot funding is reduced by $58,000 each year.

Department of Development Services

  • Funding in FY 2019 for supportive housing services for 70 individuals with Intellectual Disabilities or Autism Spectrum Disorder. 

Department of Mental Health and Addiction Services

  • Housing Supports/Services is maintained at $23.3 million for each year. 

Department of Social Services

  • Removes the Cost of Living Adjustment for Public Assistance Recipients.
  • Eliminates the pass through of Social Security Increases under the State Supplement Program.
  • Requires individuals dually eligible for Medicaid and Medicare to cover all Medicare Part D co-payments.
  • Reduces the income eligibility level for HUSKY A to 138% of the federal poverty level.

Office of Early Childhood

  • Care4Kids closes any new applications for priority groups 2 (former TFA recipients), 3 (parents between ages 18-21) and 4 (parents who earn less than 50% of the state median income). 

Department of Transportation

  • Two new planning analyst positions are proposed in Department of Transportation to support TOD initiatives. 

Department of Economic and Community Development

  • Brownfield remediation and redevelopment programs funded at $20 million each year.

Community Investment Act

  • Community Investment Act funding is preserved.

Earned Income Tax Credit (EITC)

  • The state EITC lowered from 27.5% of the federal EITC to 25%.

In addition, the Governor is proposing to reduce spending by $1.4 billion in FY 2018 and $1.9 billion in FY 2019 through a combination of collective bargaining savings, agency reductions and municipal contributions to the teacher’s retirements.

The changes to the general fund revenue over the biennium equal a net total of an additional $608 million dollars. This budget anticipates $5.7 billion in federal revenue.

View the Governor's Proposed FY 18-19 Budget