Amid a federal probe into millions of grant dollars, Gov. Ned Lamont and others are calling for greater oversight for nonprofits that collectively receive millions of dollars in state funding.
On a bipartisan basis, Lamont is being joined by Republicans who have pushed repeatedly for greater scrutiny of money allocated by the legislature through direct grants, which are known as earmarks.
The General Assembly’s new Government Oversight Committee is examining a four-page bill by Lamont that requires stronger guidelines and scrutiny before any money is awarded. The problem, Republicans say, is that too many organizations have received funding because they are ideologically aligned with the Democrats who control both the state House of Representatives and the state Senate.
The two-year state budget that was passed last year had 289 separate lines that simply listed the groups that received the money and the amount received.
Republicans complained that some organizations had been listed twice in the mammoth, 693-page budget bill and others had incorrect names. When lawmakers tried to find further information about some of the groups, they said that either little or nothing could be found in their searches on the internet.
Lamont’s bill calls for the legislature to pass a measure that “identifies the entity with reasonable particularity, including by specifying the entity’s legal name, the actual name the entity is doing business under or the entity’s principal office address [and] describes the purposes for which the specific entity will use the appropriation.”
In addition, the legislation further states that “if the legislatively directed funds are intended to be sub-awarded or subcontracted to a specific entity, the public or special act provides the same information” with the details of the subcontractor.
Beyond the legislation, Lamont is also calling for cutting the amount of legislatively directed funds by 20%.
Republicans are concerned that additional earmarks could be approved in an emergency certified bill as soon as Wednesday in the Senate and Thursday in the state House of Representatives.
Part of the impetus for the scrutiny is the federal grand jury investigation into tens of millions of dollars that have been distributed among Hartford nonprofits, including some in the city’s economically distressed North End. The investigation became public last July in a grand jury probe that involved issuing subpoenas to several nonprofits and the state Department of Economic and Community Development, which is heavily involved in awarding funding.
Investigators are also probing the role of state Sen. Doug McCrory, a longtime lawmaker since 2005 who currently co-chairs the legislature’s education committee. McCrory has strongly advocated for the North End nonprofits, including the Blue Hills Civic Association. Investigators are looking into the actions of McCrory’s friend, Sonserae Cicero-Hamlin, who runs a nonprofit known as SHEBA that received more than $1 million from the Blue Hills group.
A forensic audit was ordered last year after state officials were stunned when the Blue Hills Civic Association reported that $300,000 in state money had gone missing in a fraudulent bank transfer.
As McCrory has stated flatly that he has “engaged in no wrongdoing,” he has retained his role as co-chairman of the education committee.
The audit stated, “Available documentation and email correspondence indicate that funding allocations were largely determined by Senator McCrory, with BHCA executing disbursements without consistent adherence to required procedures such as obtaining signed MOUs or projected budgets prior to payment.”
Sen. Doug McCrory, the current co-chairman of the education committee, speaks at a news conference in Hartford in 2023 about legislative priorities concerning education. He was joined by Senator Julie Kushner, a Danbury Democrat.
Sen. Rob Sampson, one of the most outspoken legislators on earmarks, submitted written testimony in support of Lamont’s bill.
“For as long as I can remember, and as recently as last week, my Republican colleagues and I have been calling attention to serious problems in state government: weak oversight, questionable spending practices, shadowy earmarks, and a pattern of behavior that has eroded public trust. We were often dismissed for raising those concerns,” Sampson wrote. “It is notable that the administration is now proposing reforms that acknowledge those very issues.”
Sampson and other Republicans have called for more vetting, such as the level done for the State Bond Commission, before any nonprofits can receive money from the state budget.
The plan says that any group receiving funds must “submit a written request to the appropriations committee” that includes the amount of funds requested, the intended use of the funds, and a “clear description of the public purpose” of the funds.
Budget bill
The amounts included in Public Act No. 25-168 included some groups that are not well known to the general public statewide, including a line item that simply said, “Sports Academy.”
At the same time, the bill included funding for many better-known groups, including the New London Little League, Dr. Martin Luther King, Jr. Scholarship Trust Fund, Boys and Girls Club of New Britain and the Danbury Youth Soccer Club.
Republicans say they have no problem with funding for established nonprofit groups that are known in the community. The problem, they say, is that some less-known groups have not been properly vetted.
State Comptroller Sean Scanlon, a Lamont ally, is supporting the governor’s bill.
“Requiring legislation to outline the intent and objectives of earmarks will provide organizations and state agencies responsible for oversight guidance on how to administer the funds and give the General Assembly and the public an ability to grade outcomes,” Scanlon said in written testimony. “Furthermore, providing funds solely on a reimbursable basis and requiring recipients receive written permission before providing sub-awards to other organizations will improve controls and transparency into how state funds are spent.”
Senate Republican leader Stephen Harding of Brookfield said the state needs “to close the candy store” and provide better details about the hundreds of groups receiving money.
“They have no problem handing out $5,000 to Jeep Enthusiasts of America,” Harding said previously, referring to a line in the budget. “They have no problem handing out a quarter-million dollars to organizations that aren’t even registered with the state of Connecticut. This is taxpayer money. This is hard-earned money of the people of this state. Someone has to get a grip on this.”
Christopher Keating can be reached at [email protected]