The Honorable Lawrence Cafero, Jr.
House Minority Leader
Legislative Office Building
Hartford, CT 06106

Dear Representative Cafero:

A few weeks ago CCM wrote to you and the Governor because the lack of agreement on a state bond package has created a problem for towns and cities that are not receiving school construction progress payments.

According to the state Department of Education, approximately $38 million in school construction progress payments to municipalities were not made in August because bond funding was not available. The Department estimates that unless bonding is done in September, another $60-$70 million in progress payments will not be made next month – for a total of $98 million - $108 million.

We understand there is continuing disagreement about the bond package overall, but there seems to be no disagreement concerning school construction bonding. We urge all parties to agree to separate the bond funding for school construction from the overall package – to make sure that the progress payments can be made regardless of whether there is agreement on a broader package.

Such action would save money for the affected towns and cities. Municipalities have contractual responsibilities to make payments for ongoing school projects – but if state progress payments are not forthcoming, local governments will be forced to make arrangements for short-term financing, thereby increasing the overall cost of these projects.

A list of the 45 affected municipalities and school districts, and the 102 projects is attached.

We understand the frustrations of both sides in the debate over the bond package, but we ask that you not let municipalities, their property taxpayers and schoolchildren pay the price for inaction. I would be glad to discuss this important matter in person if that would be helpful.

If you have any questions, please have your staff call me or Gian-Carl Casa at (203) 498-3000.

Thank you.

Sincerely,

James J. Finley, Jr.
Executive Director and CEO

Enclosure