The University of Connecticut Health Center is back to square one on proposed massive renovations and improvements at the Farmington complex after being denied $100 million in federal aid, The Associated Press reports.
The federal Health Resources and Services Administration announced Wednesday that Ohio State University would instead receive the funds for its health care facility.
The federal grant was considered a financial lynchpin for a massive, $352 million plan to overhaul the UConn Health Center complex, including the 35-year-old John Dempsey Hospital, and help put the center on firm financial footing, boost the reputation of the UConn medical and dental schools and create thousands of jobs.
Earlier this year, the General Assembly authorized $237 million in borrowing for the project, including about $25 million that will be shifted from bonds originally earmarked for other UConn projects.
The news came as a surprise to state leaders because U.S. Sen. Chris Dodd, Connecticut’s retiring senior senator, last year added the $100 million competitive grant to the Senate version of the health care reform bill. The item was criticized at the time for being an example of earmarks, changes legislators make to bills to help their districts.
“I am terribly disappointed in this decision by the Obama Administration. While this was a competitive grant that attracted numerous applicants, Connecticut made a very strong case that I am surprised did not match or exceed the applications by other states,” Dodd said in a statement.
Both Gov. M. Jodi Rell and Gov.-elect Dan Malloy expressed disappointment in the federal government’s decision, but said it doesn’t necessarily mean the project is dead. Malloy said he is “not at all willing to say it’s the end of the road” for the health center overhaul.
“A renovated, expanded UConn Health Center is something I think is critical to the economic revival of central Connecticut and it would clearly benefit the state from a public health standpoint and from an education standpoint,” Malloy said. “It’s the type of investment we need to fight for.”
Malloy, who takes office on Jan. 5, said he has asked his staff to come up with “innovative and alternative ways” to move the project forward.
“This is a disappointment and a setback, but we cannot allow it to be an insurmountable obstacle to our state’s future success and competitiveness,” he added.
U.S. Reps. John Larson and Rosa DeLauro issued statements saying they will continue working with state and federal officials on the project. DeLauro specifically said she will look for other potential funding sources.
