A multibillion-dollar bonding bill that cleared the General Assembly last week contains $100 million in state bonding for crumbling foundations, as well as several other potential allocations for various area projects.
The bill, which calls for about $1.9 billion in bonding in fiscal year 2022 and about $1.8 billion the following year, awaits the signature of Gov. Ned Lamont, who also would ultimately decide which items are placed on the agendas for State Bond Commission meetings.
It overwhelmingly cleared both chambers of the General Assembly, following a 133-5 vote in the House and a 34-2 vote in the Senate.
Rep. Tami Zawistoski, R-Suffield, and Sen. Daniel Champagne, R-Vernon, both voted against the bonding package.
Champagne did not speak on the floor of the Senate during the debate nor did he return calls seeking comment.
Under the proposal, the Connecticut Foundation Solutions Indemnity Co., known as CFSIC, would receive $100 million in four $25 million installments from fiscal year 2023 through fiscal year 2026.
That would be in addition to the final $20 million tranche from the $100 million in bonding approved in 2018, as well as roughly $10.6 million through 2030 in $12 surcharges from certain homeowner insurance policies.
“We’re continuing to help people put their lives back together, and we’re addressing an issue that has been a tremendous drag on various communities when it comes to their taxes,” Rep. Thomas Delnicki, R-South Windsor, said. “A lot of lives are going to be put back together. A lot of homes are going to be put back together.”
Delnicki said he and Rep. Geoffrey Luxenberg, D-Manchester, quietly pushed for the $100 million provision as members of the Crumbling Foundation Caucus.
CFSIC Superintendent Michael Maglaras said the funding would be able to put hundreds of families with pending claims into line to get their homes fixed, adding that the additional $100 million would mean a generation of homeowners likely won’t have to worry about the safety or structural integrity of their homes.
“We’re going to put this crisis to rest, we think, for the next 15 to 20 years,” he said, assuming Lamont signs the bill into law.
Now with the experience of fixing homes, Maglaras said he and his team are confident the crisis is not nearly as widespread as thought years ago. Rather than tens of thousands of affected homes, he estimates the actual number is between 3,000 and 5,000.
“That’s still a major financial and humanitarian crisis,” he said, but an additional $100 million would “take care of this crisis for a generation.”
“We have done a great job, but the job is not finished yet,” Sen. M. Saud Anwar, D-South Windsor, said. “This bonding bill is further commitment of our state and all the legislators to make sure that all the communities and individuals will be protected.”
Maglaras noted that the cost of replacing foundations has reduced over the years due to better technology and competition, and that a $175,000 study to determine the extent of the crisis in nonresidential structures could lead to federal funding.
He added that the staff at CFSIC is “enormously pleased” with the bipartisan support the captive insurance company has received.
“It’s a tremendous vote of confidence,” Maglaras said.
Rep. Timothy Ackert, R-Coventry, noted that more funding for the captive would keep contractors employed in the region, as well as fix peoples’ homes.
“We consider this a priority,” he said.
Rep. John Piscopo, R-Thomaston, said there are projects throughout the state that lured support for the overall bonding package, emphasizing issues such as crumbling foundations that are limited to northeastern and north-central Connecticut.
“That’s a worthy project and that should be bonded,” he said. “It’s a legitimate reason that we bond, and I’m in full support of that in here and we’re all willing to step up and help those people that through no fault of their own bought the American dream and this is where they’re going to raise their family — a huge decision — and all of a sudden their house is rotting out from under them. It’s a very, very worthy cause.”
Likewise, Anwar said each part of the state faces various issues, and he trusts his colleagues when they seek requests.
“We work together as a partnership,” he said.
Meanwhile, grants for local improvements in the full bonding package include potential allocations for the Tolland Fire Department, a regional public safety complex in Enfield, and $22 million for the Pleasant Valley Elementary School in South Windsor.
The bonding bill also would establish the Connecticut Baby Bond Trust program, which would run from fiscal year 2023 through fiscal year 2034 and be administered by the treasurer.
It would be funded with up to $600 million for children born on or after July 1, whose births were covered under Husky. A deposit of $3,200 would go into each designated beneficiary’s account at birth, and once they reach the age of 18 they would be able to receive their funds, including any interest earned.
Eligible expenses would generally include education, home buying, business investments, and personal financial investments.
“This is part of the package bringing hope to our children,” Sen. Marilyn Moore, D-Bridgeport, said.
The comprehensive bonding package also would establish a “community investment fund,” which would get up to $875 million over five years to fund qualifying projects and grants to distressed municipalities.
It would establish a 21-member board to make funding recommendations, and an additional $1.25 billion would be available between fiscal years 2028 and 2032 if there were an agreement between the governor, board, and legislature.
The package calls for an overall increase of $191 million next fiscal year and $237 million in 2023 for municipalities, as well as increased state aid under a new tiered Payment in Lieu of Taxes program and the continued phased-in Education Cost Sharing grant program.
