Budget Update: Impact on Housing

June 29, 2017

We are writing to update you on the status of the state budget.

On Monday, Governor Malloy released a “Resource Allocation Plan,” an executive order that outlines operating expenses for Fiscal Year 2018.  Since the legislature did not vote on a state budget by the end of session and legislative leadership at this point is unlikely to vote on a budget, the Resource Allocation plan will go into effect on Saturday, July 1. This means that the state will operate off of FY 2017 budget figures.

Operating the state through executive order does not allow the Governor to consider any new sources of revenue, and revenue projections fall short of FY 2017 expenditures. In addition, required increases in pension contributions for retired teachers and debt service, along with caseload growth in health and human services agencies, exceed projected resources. Operating the state through executive order will require deep cuts to important programs.

There are a number of proposed cuts in the Resource Allocation Plan that will impact our collective efforts to end homelessness.

The plan reduces the DOH Housing and Homelessness line item by $4.5 million resulting in drastic cuts to the Rental Assistance Program (RAP) which is essential to help those who have fallen into homelessness and move them quickly to permanent housing.

The plan cuts DMHAS Housing Supports and Services line item by $5.4 million which provides supportive services for people who enter permanent supportive housing. These services are a critical component of keeping high-need individuals housed and stable.

It reduces the Homeless Youth line item at DCF, cutting youth outreach services, crisis housing for youth, and permanent housing options which are essential services to transition youth from crisis to stability.

Over the next few weeks and potentially months, we will begin to feel the impact of these cuts on services for the people experiencing homelessness.

It is unlikely the General Assembly will vote on a budget this week. In the coming weeks, we will continue to keep you informed of any new developments in efforts to adopt a budget.

Sincerely,

Alicia Woodsby Executive Director Alicia@pschousing.org	Lisa Tepper Bates Executive Director LTBates@cceh.org