Republican Leader Skeptical Of UConn Expansion
by Christine Stuart | Feb 1, 2013 6:30am
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Posted to: Economics, Education, Town News, Mansfield-Storrs, Labor
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House Minority Leader Lawrence Cafero
Gov. Dannel P. Malloy wants the state to invest $1.8 billion in the University of Connecticut and expand enrollment by 30 percent over the next 10 years
Malloy made the announcement Thursday at Pratt & Whitney in East Hartford. The investment would require state spending to increase $286 million a year to pay for 259 new faculty members — most of whom would be focused on science and technology.
“By targeting state resources to our flagship university we ensure that our young people have the skills they need to fill the jobs we are so aggressively pursuing,” Malloy said in a press release. “Make no mistake, we are making Connecticut competitive again.”
But with the state facing a $2.2 billion deficit over the next two years, and with the current year budget still hemorrhaging red ink, the investment is going to be a tough sell to the legislature.
House Minority Leader Lawrence Cafero, a University of Connecticut graduate, isn’t sold on the idea, which includes $1.54 billion in bonding to construct new facilities, build out teaching and research labs, upgrade information technology, and renovate and build additional housing and parking.
He said the deficit may not be as big as it was two years ago, but “I would argue the state is in worse financial shape because the tool box — the things in which we can address that deficit — is depleted.”
Cafero was referring to the deal the governor inked with state labor unions that offers them layoff protection for another two years.
The budget situation gets even worse when you consider the state’s high unemployment rate and the fact that one of the three Wall Street credit rating agencies just frowned upon Connecticut’s decision to purchase a line of credit because it was running low on cash.
“What are we thinking? How are we going to pay for this?” Cafero said Thursday during an interview in the Capitol press room.
Malloy spokesman Andrew Doba said the two biggest drivers of the current deficit is the debt being paid on the 2009 economic recovery notes that the legislature used to close that year’s budget deficit and the Medicaid program for low-income adults.
When Cafero first criticized the project Thursday, he had been under the impression that the entire $1.8 billion investment was going to be funded with borrowing.
“With all due respect to Mr. Cafero, he got his facts wrong on that one,” Doba said.
Doba said when Malloy releases his budget next week it will be balanced. But Cafero is just going to have to wait along with the rest of Connecticut to find out how the administration plans to do it.
Even though the bonding request for the university is about $1.54 billion, Cafero said many of the other proposals Malloy’s administration has leaked in advance of the budget also rely heavily upon borrowing.
Earlier this week, Malloy unveiled plans to borrow to pay for about $10 million in bond funds to transition nursing home patients back to their homes, and another $20 million to help nonprofit community providers make capital improvements.
“I still think he doesn’t have a way to pay for it,” Cafero said of the $286 million Malloy wants to use to help fund 259 new teaching positions at the university.
Cafero expressed concern that most of the proposals Malloy’s administration has leaked about the budget rely heavily on state bonding, which could be viewed as a gimmick in order to avoid spending cuts.
According to the university the investment in curricular expansion and focus on science, technology, engineering, and math is expected to attract $270 million in research dollars and $527 million in business activity. The proposal will create 30,000 construction jobs and support 4,050 permanent jobs over the next 10 years.
“This initiative will create and support the very jobs we need to be an economically vibrant and successful state in the future,” UConn President Susan Herbst said in a press release. “In this era, more than ever, states must rely on their public research universities to be the backbone and the driver of economic success — and that is exactly what this proposal would accomplish.”
The state’s annual appropriation for the university’s campuses and its health center was cut from about $355 million in 2011 to about $318 million in 2012, and then remained flat at $318 million for 2013. The state appropriated $351 million for UConn in 2010, $344 million in 2009, and $331 million in 2008.
UConn’s overall budget increased from $1.835 billion in 2011 to $1.866 billion in 2012 and has remained flat at $1.866 billion for 2013.
Tags: University of Connecticut, budget deficit, bonding, investment, Lawrence Cafero, Andrew Doba, Susan Herbst, dh
(5) Comments
posted by: Noteworthy | February 1, 2013 9:59am
I’m skeptical about this new and massive spending. Across the last decade, we have spent billions on UCONN. In all that building, the braintrust there has steered construction and instruction to meet the changing needs of the state and openings for careers? What they have done is spend lots of money on perks and benefits; pay and budget overruns. Parents have also paid higher and higher tuition and they have paid higher and higher taxes. Given deficits, I’m confused how all this is going to be balanced, really balanced, not fake balanced with rosey projections, magic suggestion boxes and faux cuts to other programs.
posted by: ocoandasoc | February 1, 2013 4:42pm
This is insane. The State is already in the RED. The Governor’s job-buying program is not working. The number of UConn grads choosing to leave the State and pursue their careers elsewhere is rising every year. Another 1.8 billion of debt used to add more high paid employees to the payroll when the State’s huge pension liability is 60% unfunded makes no sense. (Unless it’s another payoff to two groups that strongly support the Democratic oligarchy—State employees and construction workers.)
posted by: lkulmann | February 2, 2013 3:09pm
It seems like Governor Malloy is investing in CT’s future. All I keep seeing is how are we going to pay for this, he keeps spending money! Are there any other options besides do nothing and complain about the past. His vision and his goals and his methods to achieve these goals are crystal clear to me. Spending money is one thing. Investing is another.
posted by: JAM | February 3, 2013 3:30pm
Isn’t this the ultimate in Supply Side Economics - the bane of all Democrats?
Malloy will spend a ton of money. Train lots of engineers and scientists. And employers will flock into Connecticut to employ them!
Most likely, however, is that these people will go to where the jobs are - which won’t be Connecticut unless its fiscal situation is radically reversed, and the business climate is significantly improved.
