As the impasse over state bonding continues, the Connecticut Conference of Municipalities (CCM) today (Friday, September 2$) released (1) its initial survey responses detailing the impacts on the top ten municipalities most affected by the delay in school construction progress payments (see Attachment 1); and (2) updated town-by-town dollar figures on school construction progress payments past due in August, September and due in October (see Attachment 2).

Connecticut's largest cities have been hard hit. New Haven has been forced to tap a line of credit for $29 million, at a borrowing cost of $256,000 to keep its school projects going. Hartford has had to borrow upwards of $12 million and is losing interest income of up to $100,000 each month. Bridgeport has been forced to borrow $14 million and has already lost $130,000 in interest income.

Smaller communities are also suffering. The Town of Groton is drawing down its municipal fund balance in the face of not receiving $6.9 million in scheduled school construction payments, and has lost nearly $14,000 in interest income. Thompson is still awaiting a scheduled payment of $5.6 million and as a result has lost more than $20,000 in interest income, after being forced to use surplus funds. And Plainville will be pressed to use bond anticipation notes if school construction reimbursement delays continue any longer.

CCM hopes that a bipartisan agreement can be reached quickly on a state bond package. CCM has requested meetings with the Governor, the Senate President, and Speaker of the House to advance a resolution that includes reimbursing municipalities for the cost of the delay. Local leaders not only have concerns with the impasse in bonding authorizations regarding school construction funding (with a total of $153 million coming past due in October, affecting 129 projects in 60 towns and cities), but also other critical aspects of the bond package that affect towns ands cities, including aid for infrastructure repairs, clean water needs, economic development assistance, and other important municipal needs (see Attachment 3).

Attachments:

• Initial survey responses detailing the impacts on the top ten municipalities most affected by the delay in school construction progress payments
• Updated town-by-town dollar figures on school construction progress payments past due in August, September and due in October
• Critical aspects of the bond package that affect towns ands cities, including aid for infrastructure repairs, clean water needs, economic development assistance, and other important municipal needs

These attachments are in .PDF format. A free Adobe Acrobat viewer is available from Adobe here.