Governor Rell has vetoed the state bond package that had been passed by the General Assembly two weeks ago, and the stalemate between her and legislative leadership remains.

As a result, towns and cities will still have to wait for bond funding for school construction progress payments and projects, Clean Water Fund grants, LoCIP, Urban Act, STEAP and other important bond-funded programs.

It appears unlikely that the General Assembly's Democratic leaders will attempt to override the Governor's veto. House Democrats hold a 107-44 edge, 6 votes over the 101 votes needed to override, while Senate Democrats hold a 24-12 edge, just enough to over- ride. Democratic Senator Joan Hartley (D-Waterbury) has said she would not support an override because of concerns over bonding for the state university system. It appears the Democratic leadership in the House would have enough for an override, but without the Senate that is moot. Rather than continuing attempts to convince Hartley, Senate President Pro Tem Donald Williams has restarted negotiations with the Governor's office and legislative minority leaders. House Speaker Jim Amann is not participating directly in the talks.

In the meantime, Governor Rell has released details of her initial counter proposal to the package she vetoed. Her proposal would maintain funding at the same levels as the vetoed bill for school construction projects, LoCIP, and Open Space grants but would re- duce the amounts in the vetoed bill for Clean Water, Urban Act, STEAP, municipal plans of C&D and responsible growth incen- tives. A comparison of the proposals to date affecting municipalities is attached. (download below)

While CCM considers the advisability of filing a civil suit to compel the State to meet its legal and contractual responsibilities to make school progress payments, it is unclear what will come next as talks continue.

Support Grows for CCM Idea to Reimburse Municipalities

In a letter to CCM on Friday of last week (October 5, see over), Governor Rell committed "once an agreement is reached, [to] help- ing cities and towns recover costs that they have incurred for borrowing money in the interim." Speaker Amann early this week ex- pressed support for reimbursing municipalities for costs incurred through November.

Yesterday the Governor wrote to legislative leaders asking them to pass emergency legislation to draw $140 million from the State's "Common Cash Account" to make state reimbursements for school construction project payments missed from August through Oc- tober due to the continuing stalemate. Speaker Amann said that his office is researching whether the Governor can make those pay- ments without the need for legislation.

CCM will keep members apprised as things develop.

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