Governor Dannel P. Malloy today announced that the biennial budget he will unveil on February 6 will establish a new state bond pool specifically designated for nonprofit community-based providers that provide health and human services through contracts with state agencies. The $20 million pool will enhance opportunities for nonprofit providers by allowing them to invest in projects that will achieve new efficiencies, so they can lower administrative costs and improve the delivery of services.
"Nonprofit community-based providers are essential partners with the state in providing health and human services," Governor Malloy said. "They are the safety net, the people who support individuals with disabilities and other significant challenges. Remaining committed to them means we that we remain committed to helping our most vulnerable. By helping these organizations reduce overhead costs, we can help ensure that their funding can go towards assisting those residents who are most in need of their services."
The new funding will allow providers to better serve consumers by establishing greater flexibility and increasing the timeliness of the bonding process. It will include a rolling application process and simplified administration, comparable to the state's Small Town Economic Assistance Program (STEAP) municipal bonding process.
"Our state's future depends on having a quality, comprehensive support structure for all of our children and families, and the network of nonprofit providers is a vital part of that system," Lt. Governor Nancy Wyman said. "I am confident that this new funding source will reinforce the great work being done by that network and will help keep the foundation of our communities strong."
Under the proposal, the Secretary of the Office of Policy & Management will be charged with developing guidelines for the administration of the nonprofit bond pool in consultation with the Governor's Cabinet on Nonprofit Health and Human Services. Such guidelines will include a plan for administration of the nonprofit bond pool, eligibility criteria for participation by nonprofit organizations and for the expenditure of bond funds and priorities for awarding of bond allocations.
This bond pool would allow for small and large infrastructure projects. Some examples of how organizations could utilize the funding include investing in technology that will improve the delivery of services; upgrading energy systems, such as converting to less expansive natural gas to lower administrative costs; and helping with the consolidation of disparate rental properties into one new building to save on maintenance and rental costs.
Priority will be given to proposals under $1 million within each bonding cycle to assure that funds are available to the broad array of nonprofit community-based provider organizations.