(Watch) House & Senate GOP Call for Transparency in CT Nonprofit Earmark Funding

As Fed Investigations Continue, House & Senate Republicans
Call for Transparency in CT Nonprofit Earmark Funding

(Watch the press conference here.)

With a federal corruption trial now underway in Bridgeport and as the federal government investigates ties between lawmakers, state agencies, and community organizations, Senate and House Republicans on Tuesday introduced proposals aimed at rooting out what they call a culture of corruption in state government.

House and Senate Republican Leaders Vincent Candelora (R-North Branford) and Stephen Harding (R-Brookfield) were joined by Sen. Rob Sampson (R-Wolcott) in highlighting what they described as an ongoing lack of respect for Connecticut taxpayers’ money. The lawmakers said checks and balances are necessary in order to increase transparency in nonprofit earmark funding and prevent abuse of taxpayer dollars.

“It’s a pattern,” Candelora and Harding said in a joint statement. “From the State Pier debacle to the CSCU Chancellor scandal to this week’s Diamantis trial, the disrespect for taxpayers’ money is widespread in Connecticut state government. Mismanagement. A lack of oversight and accountability. Money wasted. We now see that lack of respect with regard to taxpayer-funded grants for nonprofits. Earmarks are divvied out with minimal vetting and little to no transparency. It’s a ‘candy store’ mentality in Connecticut government under one-party rule. That is disrespectful to taxpayers, and that must change.”

Sampson, the Senate’s Ranking Member on the Government Oversight Committee, said, “Connecticut’s government has become less of a democracy and more like a rigged casino with high stakes, shady deals and political insiders always having the upper hand. While families struggle with electric bills and rising costs, one-party Democrat rule is busy enriching their own supporters and covering up their corruption.

“This isn’t partisan bluster. It’s not about Democrat voters—I know plenty who are just as disgusted as we are. The problem is the Democratic machine in Hartford: entrenched, arrogant, and protected by years of unchecked power. The people of Connecticut deserve better—honest leadership, real oversight, and a government that doesn’t treat your paycheck like a personal slush fund.”

Republicans are proposing the following legislative reforms which would apply to all grant recipients receiving a grant-in-aid earmarked from a state appropriation or bond allocation from the state. They include:

Transparency of Purpose

As a condition of receiving funds, grant recipients must:

• Submit a written request to the Appropriations Committee which shall include the following information:
  • The amount of funds requested
  • The necessity for and intended use of such funds;
  • A clear description of the public purpose furthered by the granting of such funds; and
  • The legislator/requestor who made the initial request for funds, including a certification that they, their family members, or any business with which they are associated, have no financial interest in and will receive no financial benefit from the grant of funds.
  • Such information shall be publicly posted online.
  • Grant recipients must participate in a public hearing conducted by the Appropriations Committee, which shall also include the agency of cognizance (DECD, DSS, etc), to give the committee an opportunity to gather additional information and solicit public input.
  • Grant recipients must disclose any convictions of its officers or board members of any financial related crimes and any cases where an officer or board member was the defendant in a lawsuit related the handling of funds or the discharge of fiduciary duty.
  • Grant recipients must submit to random state audits and financial reconciliations to verify that the funds are being used as intended.
  • If a third-party/subsequent recipient receives funds, such third-party must enter into a contract with the state containing the provisions which are identical or substantially similar to the contract provisions of the granting grant recipient.

Transparency in Reporting

Prior to receiving an initial grant and annually thereafter, no later than 60 days before the end of the fiscal year in which the funds were received, the grant recipient must submit to the Appropriations committee a certified, detailed accounting of the recipient’s budget for the previous fiscal year that includes:

• Each amount spent on administrative costs
• Each amount spent on lobbying, political and advocacy activities, including but not limited to, funds paid to any tax-exempt organization recognized under IRS Code 501(c)(4)
• A detailed reporting of all sources of income, in addition to the state funds
• A detailed accounting of all disbursements
• If applicable, a detailed accounting of how third-party and subsequent grant recipients expended the funds they received
• A list of all current Board Members

The lawmakers supplied a list of unvetted and vague earmarks that are included in the current state budget. (click here to view)

The budget bill which passed this year included $13.3 million in Fiscal Year 26 and $5.6 million in Fiscal Year 27 for legislatively directed appropriations under the Youth Services Prevention and Youth Violence Initiative lines.

There are 289 separate lines which list only the organizations’ names and amount appropriated to each.

There are multiple organizations listed twice. Some organizations are either misspelled or have incorrect names. Some of the organizations have little to no information available online.

Examples of the grantees include:

• “Sports Academy” is receiving $250,000. It is unclear what “Sports Academy” is, or does. The only organization with an exact match of this name that registered with the state was dissolved in 2021.(Watch) House & Senate GOP Call for Transparency in CT Nonprofit Earmark Funding
• Blue Hills Civic Association, Inc. is receiving $20,000. This organization has been under FBI investigation since December of 2024. The organization has received $14.42 million from the state since 2016 with a vast majority coming in the past four years.
  The lawmakers also highlighted a Special Act which passed this year that directs state funds to a long list of nonprofit groups. (click here to view)

“We hope these common sense reforms receive bipartisan support,” Candelora and Harding said. “And if we are called into Special Session this month, we urge Democrats to add these good government solutions to the list of action items to vote on. We urge Democrats to work with us in bipartisan fashion on these ideas. We should be spending taxpayer money as prudently and as transparently as possible. The candy store Connecticut government giveaways must end.”