Funds in Place to
Design Vets’ Home Renovations
Last month, I was pleased to report how state funding to underwrite design work for renovations at the Connecticut Veterans’ Home in Rocky Hill will qualify for federal matching funds. The State Bond Commission approved $489,000 for architectural and engineering fees to start the project; the U.S. Department of Veterans’ Affairs will provide 65 percent of the estimated $10.3 million total construction cost.
The project qualifies for funding through the American Recovery and Reinvestment Act, a cornerstone of President Obama’s economic stimulus package.
 There’s no question that the sacrifice made by Connecticut veterans ought to be met with our commitment to provide suitable quarters for them in retirement; I’m pleased to report the first step toward these planned renovations has been achieved. And this project is precisely the type of economic stimulus we need because it will improve vitally important infrastructure and generate jobs.
This project will replace the roof of the commissary building as well as that of the East and West Domicile buildings, it will provide for improvements to the ventilation system and allow upgrades to the firefighting sprinkler system.
Economic Stimulus Coming to Rocky Hill
Last month we also received welcomed news that the State Bond Commission gave final approval to provide a loan to the Henkel Corporation to help it relocate its corporate offices from Pennsylvania to Rocky Hill. The company — which already employs about 350 people in its Rocky Hill manufacturing operation — will employ up to 80 more people.
The plan is to provide bonding support for up to $825,000; that figure represents half the estimated total cost of the relocation.
In this volatile economic climate it’s imperative for our state to provide incentives where possible to help companies provide jobs for Connecticut residents. In this instance, the Henkel Corporation wins because it will achieve savings through streamlining and consolidating its operation in Rocky Hill, and Connecticut wins because a more-profitable company will provide jobs and job security for residents who work there.
The program for which the Henkel Corporation was approved is straightforward. A ten-year loan with a 2.5 percent interest rate requires interest-only payments for the first two years. If and when 80 jobs are created, the company can apply for loan forgiveness, in which case the company earns an outright grant and the state gains at least 80 new, permanent jobs.
Budget Talks Ongoing
At this writing, negotiations continue between leaders of the legislature’s budget committees and Governor Rell’s staff on a state spending plan for the next two years. Figures received May 1 confirm the legislature’s deficit projections; the budget proposal offered by the governor underestimated expected revenue shortfalls by almost $3 billion.
 The challenge is to streamline government and trim state spending without sacrificing essential programs and services upon which people rely — especially during difficult economic times. At the same time, in something of an ironic twist, we must be sure to maintain adequate spending levels so that we meet federal guidelines to maximize our eligibility for stimulus funding.
The impetus to reduce spending is self-evident: there aren’t sufficient revenues to support government-as-usual. Likewise, it is counterintuitive to simply plug the revenue gap with new or additional revenue at a time when Connecticut families are struggling to keep their household budgets in balance. Suffice it to say, negotiators have a great deal of work ahead of them.
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