Testimony 2008 - The Alliance: The Voice of Community ... · Testimony Before the Human Services Committee Regarding Senate Bill 562, An Act Concerning Increased Access to the

Testimony 2008 March 2008 03/24/2008 Testimony Before the Finance, Revenue and Bonding Committee Regarding

House Bill 5937, An Act Concerning The Neighborhood Assistance Act. CT Nonprofits. By Ron Cretaro, Executive Director, Connecticut Association of Nonprofits

03/24/2008 Testimony Before the Finance, Revenue and Bonding Committee Regarding House Bill 5937, An Act Concerning the Neighborhood Assistance Act. MEM. By Robert J. Fishman, Executive Director, Jewish Federation Association of Connecticut (JFACT)

03/24/2008 Testimony Before the Finance, Revenue and Bonding Committee Regarding House Bill 5937, An Act Concerning the Neighborhood Assistance Act. MEM. By Albert May, Director of Development, Christian Community Action, Inc.

03/24/2008 Written Testimony Before the Finance, Revenue and Bonding Committee Regarding House Bill 5937, An Act Concering the Neighborhood Assistance Act. By Douglas A. Joseph, CPA, Blum Shapiro & Co.

03/24/2008 Testimony Before the Finance, Revenue and Bonding Committee Regarding House Bill 5937, An Act Concerning the Neighborhood Assistance Act. By Edward A. Zelinksy, Morris and Annie Trachman Professor of Law, Benjamin N. Cardozo School of Law, Yeshiva University

03/12/2008 Testimony Before the Government Administration and Elections Committee Regarding Senate Bill 678, An Act Establishing a Community-Based Health and Human Services Strategy Board. MEM. By Cathy Zeiner, Executive Director, Women's Center of Southeastern Connecticut; and President, Board of Directors of Connecticut Association of Nonprofits

03/12/2008 Written Testimony Before the Appropriations Committee Regarding House Bill 5020, An Act Implementing the Governor's Budget Recommendations Regarding the Tobacco and Health Trust Fund. CT Nonprofits. By Liza Andrews, Public Policy Specialist, Connecticut Association of Nonprofits

03/12/2008 Written Testimony Before the Government Administration and Elections Committee Regarding House Bill 5887, An Act Concering Payment of Personal Service Contracts. CT Nonprofits. By Liza Andrews, Public Policy Specialist, Connecticut Association of Nonprofits

03/12/2008 Testimony Before the Government Administration and Elections Committee Regarding House Bill 5887, An Act Concering Payment of Personal Service Contracts. CAB. By Liza Andrews, Project Director, Connecticut Nonprofit Human Services Cabinet

03/12/2008 Testimony Before the Government Administration and Elections Committee Regarding Senate Bill 678, An Act Establishing a Community-Based Health and Human Services Strategy Board. CAB. By Liza Andrews, Project Director, Connecticut Nonprofit Human Services Cabinet

03/07/2008 Testimony Before the Labor and Public Employees Committee Regarding House Bill 5536, An Act Establishing the Connecticut Healthcare Partnership. CT Nonprofits. By Ron Cretaro, Executive Director, Connecticut Association of Nonprofits

03/07/2008 Testimony Before the Labor and Public Employees Committee Regarding House

Bill 5536, An Act Establishing the Connecticut Healthcare Partnership. MEM. By Brian T. Baker, Assistant Director, South Park Inn, Inc.

03/07/2008 Testimony Before the Labor and Public Employees Committee Regarding House Bill 5536, An Act Establishing the Connecticut Healthcare Partnership. CAB. By Liza Andrews, Project Director, Connecticut Nonprofit Human Services Cabinet

03/05/2008 Written Testimony Before the Appropriations and Public Health Committees Regarding Tobacco and Health Trust Fund Board of Trustees 2008 Report. CT Nonprofits. By Liza Andrews, Public Policy Specialist, Connecticut Association of Nonprofits

03/04/2008 Testimony Before the Human Services Committee Regarding Senate Bill 562, An Act Concerning Increased Access to the Medicaid Program for the Medically Needy Elderly and Disabled; Senate Bill 564, An Act Concerning Services for Persons with Mental Health Needs; House Bill 5792, An Act Concerning the Asset Test Used to Determine Eligibility for the State-Administered General Assistance Program. CT Nonprofits. By Liza Andrews, Public Policy Specialist, Connecticut Association of Nonprofits

February 2008

02/26/2008 Testimony Before the Appropriations Committee Regarding Senate Bill 513, An Act Establishing a Community Provider Rescue Fund Account and Community-Based Services Commission; and Senate Bill 34, An Act Implementing the Governor's Budget Recommendations with Respect to Social Service Programs. CT Nonprofits. By Julila Wilcox, Policy Specialist, Connecticut Association of Nonprofits

02/26/2008 Testimony Before the Human Services Committee Regarding Senate Bill 34, An Act Implementing the Governor's Budget Recommendations with Respect to Social Services Programs. MEM. By James Morrison, Senior Vice President, MARC: Community Resources

02/26/2008 Testimony Before the Human Services Committee Regarding Senate Bill 413, An Act Establishing a Community Provider Rescue Fund Account and Community-Based Services Commission. MEM. By Ronald Fleming, President and Chief Executive Officer, Alcohol & Drug Recovery Centers, Inc.

02/26/2008 Testimony Before the Select Committee on Children Regarding Senate Bill 304, An Act Concerning Children of Incarcerated Parents. MEM. By Susan Quinlan, Executive Director, Families in Crisis, Inc.

02/26/2008 Written Testimony Before the Insurance & Real Estate Committee: In Opposition of Senate Bill 309, An Act Concerning Health Insurance Mandates. CT Nonprofits. By Liza Andrews, Public Policy Specialist, Connecticut Association of Nonprofits

02/25/2008 Testimony Before the Planning and Development Committee Regarding House Bill 5293, An Act Concerning Payments in Lieu of Taxes for Property of Nonprofit Organizations. CT Nonprofits. By Ron Cretaro, Executive Director, Connecticut Association of Nonprofits

02/21/2008 Written Testimony Before the Human Services Committee: In Suport of Senate Bill 163, An Act Concerning a State Earned Income Tax Credit. CT Nonprofits. By Liza Andrews, Public Policy Specialist, Connecticut Association of Nonprofits

02/15/2008 Testimony Before the Appropriations Committee Regarding the Cost of Living Adjustment for Nonprofit Organizations. MEM. By Cathy Zeiner, Executive Director, Women's Center of Southeastern Connecticut; and President, Board of Directors of Connecticut Association of Nonprofits

02/15/2008 Testimony Submitted to the Appropriations Committee: The Governor's

Proposed Midterm Budget Adjustments SFY09 - DSS Budget: Repeal of the Spending Cap Placed on Residential Funding. MEM. By Pam Fields, Executive Director, Arc of Meriden-Wallingford, Inc.

02/15/2008 Testimony Before the Appropriations Committee: The Governor's Proposed Midterm Budget Adjustments SFY09 - DSS Budget: Repeal of the 2% Spending Cap on Room and Board Rates for Licensesd Community Living Arrangements (CLAs). MEM. By Frank Popkiewicz, Executive Director, Residential Management Services (RMS)

02/15/2008 Testimony Before the Appropriations Committee: The Governor's Proposed Midterm Budget Adjustments SFY09 - DSS Budget: Repeal of the 2% Spending Cap on Room and Board Rates for Licensesd Community Living Arrangements (CLAs). MEM. By Katie Banzhaf, Executive Director, STAR, Inc., Lighting the Way

02/15/2008 Testimony Before the Appropriations Committee: The Governor's Proposed Midterm Budget Adjustments SFY09 & a Cost-of-Living Adjustment for Nonprofits. MEM. By Brian T. Baker, Assistant Director, South Park Inn, Inc.

02/15/2008 Testimony Before the Appropriations Committee: The Governor's Proposed Midterm Budget Adjustments SFY09 - DSS Budget: Repeal of the 2% Spending Cap on Licensed Community Living Arrangements (CLAs) and Rate Freeze for Immediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs). CT Nonprofits. By Julia Wilcox, Policy Specialist, Connecticut Association of Nonprofits

02/14/2008 Testimony Before the Appropriations Committee: The Governor's Proposed Midterm Budget Adjustments SFY09 - DOC & CSSD Budgets. MEM. By David Stevenson, President, FHM Services, Inc.

02/13/2008 Testimony Before the Appropriations Committee: The Governor's Proposed Midterm Budget Adjustments SFY09. MEM. By Chris McNaboe, Executive Director, Camp Horizons Programs

02/13/2008 Testimony Before the Appropriations Committee: The Governor's Proposed Midterm Budget Adjustments SFY09. MEM. By Denis Geary, Executive Director, Jewish Association for Community Living

January 2008

01/17/2008 Testimony at the Department of Economic and Community Development Information Forum on Connecticut's Economic Strategic Plan. By Patrick J. Johnson Jr., President, Oak Hill

Nov/Dec 2007

12/04/2007 Testimony at the Department of Economic and Community Development Information Forum on Connecticut's Economic Strategic Plan. CT Nonprofits. By Ron Cretaro, Executive Director, Connecticut Association of Nonprofits

11/26/2007 Testimony Before the Governor's Sentencing and Parole Review Task Force. CT Nonprofits. By Julia Wilcox, Policy Specialist, Connecticut Association of Nonprofits

Susan Quinlan, Executive Director Families in Crisis, Inc. Testimony to the Select Committee on Children An Act Concerning Children of Prisoners Bill # 304 Good morning Senator Meyer, Representative McMahan and Members of the Committee: My name is Susan Quinlan and I am the Executive Director of a private not for profit agency, Families in Crisis, Inc., that provides an array of services for family members of offenders. The Agency was founded in 1979 and I have been the Director for the last 20 years. We provide services –statewide- from offices located in Hartford, Waterbury and New Haven Connecticut. I am here today to ask your support for Senate Bill # 304 – An Act Concerning Children of Incarcerated Parents. Before I begin, I want to acknowledge and commend Commissioner of Correction Theresa Lantz and her staff for their foresight and commitment to family matters in corrections. Commissioner Lantz recognizes the need for and benefits of family intervention services. The professional literature agrees with her. Recent studies now show its importance for successful rehabilitation, re-entry and prevention. For example, last week the Department hosted a very special event – family night at York Correctional Institution which is the facility for women in Connecticut. Over 60 children were there to visit 20 moms in an open setting that included dinner. As I am sure you know, this is an unusual event for a prison. Under Commissioner Lantz’s leadership Warden Martin solicited several partners that donated their time and expertise to make the special visit possible, including the Niantic Children’s Museum. When that gate swung open, and those children rushed into the arms of their mothers, there wasn’t a dry eye in the room. Later, as the families were seated and eating a simple meal – I asked one mom how long it had been since she and her children had eaten dinner together – she told me it had been 2 yrs - but that she was happy because she was getting out in June and they would all be together again – yet, I couldn’t share in their joy because I saw all the mountains that awaited them – reentry issues they would likely face- with little or no support. What happens to families, especially the children, when a parent goes to prison is one of the unintended consequences of incarceration. Regardless of how we may feel about men or women offenders, their children are innocent. Yet they will face additional hardships because of how the adults in their lives behaved. In Connecticut, we estimate, based on national statistics, that over 17,000 children have a mother or father behind bars. The majority of these children are disproportionally minority, economically disadvantaged, come from single parent female headed households. They have generational histories of poverty, addiction and violence.

The escalating number of these affected children (because of higher incarceration rates) and results from recent studies has led toward an increased recognition that children of prisoners are a special at-risk population with distinct needs. Children of incarcerated parents are one of the most vulnerable populations and are at risk for neglect, behavioral health problems, and school failure. Most alarmingly research also indicates that children of prisoners are more likely to become delinquent than their peers. And that’s where similarities end. For instance, children whose mother goes to prison face different issues than when fathers do. Their mothers were more likely to be their primary caregivers at the time of their arrest –so they may have to move, live with another adult or go to a different school. The problems for children when dads go to jail are all over the map. 50 % have a tenuous relationship at best with their father when he was on the street. Some kids actually report, that their best relationship with there fathers occurs when he’s in prison. For all children, you love no one and no one loves you like your parent. Most of these kids exhibit what we call, magical thinking. Somehow some way when that parent goes to prison something magical will change – and that mom or dad will come home and be the parent they had or wished they had and all will live happily together again. But nothing magical happens for these children or their parents because of prison. Historically, children of prisoners received little attention from professionals or the general public. In fact, no public agency in the criminal justice system, health, education or child welfare field has declared an “ownership” interest in prisoners’ children even though many of these agencies may touch their lives, often at the same time. Right now, in Connecticut, there are no systemic, standardized policies or practices to address the needs of children when a parent is arrested and/or imprisoned. Children of prisoners are often considered “invisible” and difficult to identify. However, there are times when their presence is more than evident (if we look) – for instance at the time of their parent’s arrest, while visiting (such as the York event) or involved in DCF care. That is why I ask for your support for bill # 304. This legislation would allow the Department of Correction to coordinate a collaborative response to ensure the children of prisoners are identified (as they touch their institutions) and their needs addressed. This bill will create the platform to lay a responsive foundation that can identify these children and direct them to a statewide system of service delivery. Which is important because they all need something different based on their circumstances. We need to avoid a cookie cutter approach and provide a range of services – such as counseling, mentoring, transportation, respite care and educational support that can meet each child and family where they are at and coordinate what they need. We need to do this because it is one way to break the cycle of crime, but more, importantly because it is the right thing to do.

90 Brainard Road Hartford, CT 06114 Tel: 860.525.5080 Fax: 860.525.5088 www.ctnonprofits.org

Testimony Submitted to the Human Services Committee

In Support of:

Raised S.B. 413: AN ACT ESTABLISHING A COMMUNITY PROVIDER RESCUE FUND

ACCOUNT AND COMMUNITY-BASED SERVICES COMMISSION

Concerns & Recommendations Regarding:

S.B. No. 34: AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET RECOMMENDATIONS WITH RESPECT TO SOCIAL SERVICES PROGRAMS.

Submitted By: Julia Wilcox, Policy Specialist, CT Nonprofits

Public Hearing Date: February 26, 2008

To Senator Harris, Representative Villano and members of the Human Services Committee, I appreciate the opportunity to provide testimony this afternoon. My name is Julia Wilcox, Policy Specialist, Connecticut Association of Nonprofits (CT Nonprofits). CT Nonprofits is a membership association that represents more than 500 nonprofit organizations. Approximately 300 of CT Nonprofits’ member agencies contract with State government for a variety of human and social services. Support of Raised S.B. 413: AN ACT ESTABLISHING A COMMUNITY PROVIDER RESCUE FUND ACCOUNT AND COMMUNITY-BASED SERVICES COMMISSION. Under separate cover, you will have received my extended testimony, as well as testimony from a great number of our member agencies, in support of Raised S.B. 413. As you are aware, the Governor’s midterm budget does not include any cost-of-living-adjustment (COLA) funding for FY09. The 3% COLA received in SFY08 would not have occurred without the generous support and continued efforts of members of the Human Services Committee. Your consideration of a 9% COLA in FY09, and development of long range solutions moving forward, are greatly appreciated. Concerns & Recommendations Regarding: S.B. No. 34: AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET RECOMMENDATIONS WITH RESPECT TO SOCIAL SERVICES PROGRAMS.

We urge you to repeal the 2% Rate Cap on Residential Care Homes and Community Living Arrangements, and to repeal the Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs)

There are many aspects of the DSS Budget that will have a positive impact upon the provision of services within the nonprofit sector. However, I am writing to draw your attention to an area of grave concern for providers of residential services who are presently funded by the DSS and the Department of Developmental Services (DDS.)

Specifically, we respectfully urge you to reconsider, and repeal the 2% Rate Cap on Residential Care Homes, as indicated in the following section 3 of S.B. No. 34. S.B. No. 34: Sec. 3. (Regarding Residential Care Homes) For the fiscal year ending June 30, 2009, no facility shall receive a rate that is more than two per cent greater than the rate in effect for the facility on June 30, 2008, except for any facility that would have been issued a lower rate effective July 1, 2008, due to interim rate status or agreement with the department shall be issued such lower rate effective July 1, 2008. 1 of 3

CT Nonprofits Testimony HS Committee COLA & DSS Rate Caps 2 26 08

90 Brainard Road ♦ Hartford, CT 06114 ♦ Tel: 860.525.5080 ♦ Fax: 860.525.5088 ♦ www.ctnonprofits.org

We submit that it would be misguided to impose this Cap on the Residential Care Home system, as it has been onerous and damaging to Community Living Arrangements (CLAs) to cap their rates for SFY 08. For this reason, we also urge you to repeal both the 2% Rate Cap on Community Living Arrangements, and to repeal the Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs) which receive Room & Board funding through DSS. There are 600 CLAs within the private sector of the DDS system. The following may be helpful, in terms of understanding this system of care:

Community Living Arrangements (CLAs)

Licensed by the Department of Developmental Services Group Homes with six or fewer residents Over 600 across the state operated by private nonprofits (DDS/DMR also operates its own) Funded by both DDS (program services) & DSS (room & board) Room & Board includes the following items:

o Property Costs – e.g. mortgage interest, taxes, fair rental value, etc. o Repairs & Maintenance o Utilities – heat; electricity, gas, telephone o Appliances, equipment & Furniture o Food o Laundry & housekeeping

Funded in DSS budget through a retrospective rate reimbursement system begun in 1983 modeled after nursing home financial/rate system

Costs incurred in current fiscal year will not be reimbursed until rate is set for SFY 09 – there is a 12-18 month lag time.

2% Cap was instituted in DSS implementer bill (P.A. 07-02/HB 8002) effective for both SFY 08 & SFY 09 If allowed to rise without cap, room & board rate portion would have likely increased around 4.5% in SFY

08. Organizations which made repairs or maintenance on their buildings prior to SFY 08 will only get

reimbursed up to an increase of 2% - Otherwise their budgets result in lost dollars they have already had to expend.

Neither OFA nor DSS has been able to give us exact cost impact – estimated to be between $2 and $4 million.

Members of the nonprofit provider network, greatly appreciate the support that members of the Human Services Committee have demonstrated in the past. In closing, I would encourage you to contact providers within your local communities. The ability of the state of Connecticut to adequately meet the needs of its residents is greatly dependent upon the ability of the nonprofit provider community to sustain a vibrant network, which will continue to serve as the ultimate safety net for Connecticut’s most vulnerable citizens. Your consideration is greatly appreciated. As always, please do not hesitate to contact me at any time, with any questions, or for additional information: Julia Wilcox, Policy Specialist [email protected] or 860.525.5080 ext. 25

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CT Nonprofits Testimony HS Committee COLA & DSS Rate Caps 2 26 08


We urge you to repeal the 2% Rate Cap on Residential Care Homes and Community Living Arrangements, and to repeal the Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs)

Excerpt from: S.B. No. 34:

‘AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET RECOMMENDATIONS WITH RESPECT TO SOCIAL SERVICES PROGRAMS.’

Related to Residential Care Homes:

Sec. 3.: For the fiscal year ending June 30, 2009, no facility shall receive a rate that is more than two per cent greater than the rate in effect for the facility on June 30, 2008, except for any facility that would have been issued a lower rate effective July 1, 2008, due to interim rate status or agreement with the department shall be issued such lower rate effective July 1, 2008.

Excerpts from: House Bill No. 8002 - June Special Session, Public Act No. 07-2

‘AN ACT IMPLEMENTING THE PROVISIONS OF THE BUDGET CONCERNING HUMAN SERVICES AND PUBLIC HEALTH.’

Related to CLAs:

Sec. 13. Subsection (a) of section 17b-244 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

For the fiscal year ending June 30, 2008, no facility shall receive a rate that is more than two per cent greater than the rate in effect for the facility on June 30, 2007, except any facility that would have been issued a lower rate effective July 1, 2007, due to interim rate status or agreement with the department, shall be issued such lower rate effective July 1, 2007. For the fiscal year ending June 30, 2009, no facility shall receive a rate that is more than two per cent greater than the rate in effect for the facility on June 30, 2008, except any facility that would have been issued a lower rate effective July 1, 2008, due to interim rate status or agreement with the department, shall be issued such lower rate effective July 1, 2008.

Related to ICF/MR Facilities:

Sec. 12. Subsection (g) of section 17b-340 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(g). For the fiscal year ending June 30, 2008, each facility shall receive a rate that is two and nine-tenths per cent greater than the rate in effect for the period ending June 30, 2007, except any facility that would have been issued a lower rate effective July 1, 2007, than for the rate period ending June 30, 2007, due to interim rate status, or agreement with the department, shall be issued such lower rate effective July 1, 2007. For the fiscal year ending June 30, 2009, rates in effect for the period ending June 30, 2008, shall remain in effect until June 30, 2009, except any facility that would have been issued a lower rate for the fiscal year ending June 30, 2009, due to interim rate status or agreement with the department, shall be issued such lower rate.

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TESTIMONY OF ALBERT MAY DIRECTOR OF DEVELOPMENT

CHRISTIAN COMMUNITY ACTION, INC. NEW HAVEN, CT

203-777-7848 x 112 [email protected]

March 24, 2008

BEFORE THE FINANCE, REVENUE AND BONDING COMMITTEE

RAISED BILL NUMBER 5937 AN ACT CONCERNING THE NEIGHBORHOOD ASSISTANCE ACT

My name is Albert May and I am the director of development at Christian Community Action, a 41-year-old not-for-profit ecumenical social services agency based in New Haven. The mission of Christian Community Action is to provide emergency and transitional housing, food and other support to families that are homeless and people who are poor, to encourage them in their own efforts to attain self sufficiency and to work to change systems that perpetuate poverty and social change. I am also the founder and immediate past chairperson of the Not-for-Profit Resource Council of the Greater New Haven Chamber of Commerce, an organization composed of more than 80 nonprofit organizations operating in greater New Haven I am here today to testify in support of Raised Bill 5937, “An Act Concerning The Neighborhood Assistance Act.” I believe passage of this bill will help my organization and all other nonprofit organizations in the state in our efforts to gain financial support from businesses in our communities. My organization, Christian Community Action, is a relatively small agency. We operate a three-building / 17 apartment short-term emergency family shelter program, and a single-site / 18 apartment transitional housing program where families can stay for up to two years while they are working on the issues that caused them to be homeless. With respect to this latter program, called Stepping Stone, we are proud that a total of 78 percent of those who complete the program move onto permanent housing, compared to the national average of 61.5 percent for such programs We also operate a food pantry that serves 750 families and individuals a month (up 50 percent in the last year alone) and an effort we call Program for Internships, Vocational Opportunities and Training or PIVOT that prepares and places persons of low income in work internships and permanent jobs.

Finally, though our Advocacy and Education Project, we offer leadership training, public policy education and other programs designed to help persons of low income to “find their voices” as it were and be able to participate in and contribute to the shaping of the public policies that affect their lives at the local, state and national level. We do all this on an annual budget of $1.4 million and a staff of 22 full-and-part time persons. Two thirds of our funding comes from governmental or private foundation grants, but we also receive substantial support from individuals; churches, synagogues and other religious organizations, and civic organizations. We also receive support from area businesses, including a few who have donations to us under the provisions of the Neighborhood Assistance Act. What we have seen since 2001, however, is a substantial decline in the number of businesses making donations to us under this Act. This trend has occurred despite our increased efforts to reach out to more businesses and to educate them about the Act. Repeatedly, what we have been told, when we approach businesses, is that, as a result of their corporate structure, they pay no state corporate businesses taxes and thus the Act has no relevance or value for them. In every instance, these businesses are limited liability corporations, limited liability partnerships or sub s corporations. Based on conversations I have had with colleagues about this matter, their experience is identical to ours. I believe Raised Bill 5937 would remedy this situation by making LLCs, LLPs and sub S corporations eligible for the tax credits and allowing these credits to pass through to the owners, partners and / or shareholders of these companies. I would note that the bill would not change the total amount of tax credits available to eligible businesses under the Act, that is, the $5 million cap. It would also not change the process by which tax credits would be prorated, should requests for credits exceed the $5 million cap. All it would do is widen the playing field, as it were, in terms of the number of businesses nonprofits such as mine might approach for donations under the Act. Raised Bill 5937 would, in my opinion create a win-win-win situation for nonprofits, for businesses and for the state. It would accomplish this by generating additional business gifts to the nonprofits, reward the owners, partners and / or shareholders of these businesses for their generosity and reduce the need for the nonprofits to seek financial aid from other sources, including state government. Thank you for your consideration of my testimony. I will be glad to answer any questions you may have.


Testimony Before the Government Administration & Elections Committee

SB 678 An Act Establishing A Community-Based Health and Human Services Strategy

Board

By Cathy Zeiner, Executive Director, Women’s Center of Southeastern Connecticut

March 12, 2008 Senator Slossberg, Rep. Caruso and members of the Government Administration & Elections Committee, I am Cathy Zeiner, Executive Director of the Southeastern Connecticut Women’s Center. I also serve as the President of the Board of Directors of the Connecticut Association of Nonprofits. CT Nonprofits is a statewide association with over 300 of our more than 500 members contracting for provision of health and human services with Connecticut State government. Our member organizations appreciate the Committee’s initiative in raising the Strategy Board concept as a method of addressing the on-going and long term situation of the nonprofit sector doing business via state contracting. Things that we have established:

• State of Connecticut increasing relies on the nonprofit sector to help meet its mission of delivering health and human services to its citizens

• State of Connecticut does not pay actual cost of care or service for what it purchases • State employees performing comparable work are compensated at an hourly wage rate

45-50% greater or beyond what private nonprofits pay. There is also a substantial gap in benefits.

• Annual Cost-of-living adjustments have not been sufficient for contractors to keep up with the standard indexes for inflation and, more importantly, the cost of operating programs & services.

• There is zero COLA proposed in the SFY 09 budget Our members keep asking how can we get off the merry-go-round of year in & year-out having to keep asking for cost of living increases from the Governor & Legislature. Also, how can we pay our staff a more livable wage while at the same time continue to ensure quality care and service? We come back to you yearly asking that you help make our contracts more fair and that we be acknowledged as business entities that must meet a bottom line like any other business to stay sustainable. Our mission dictates that we also have another bottom line of meeting community needs. We must remain viable if we are to accomplish this. While we fundraise to compensate for the insufficient dollars paid through our contracts, we continue to provide services and programs but with potential future adverse consequences. In good times, our communities turn to us. In bad economic times, our communities need us even more. Many of us feel it will require an initiative and priority of the Executive & Legislative Branches together if we are to realize long-term change. We are hoping that SB 678 will be a vehicle to a long term solution, at least a door or a window for us to access.


Testimony to the Insurance & Real Estate Committee

2/26/08 Public Hearing – written record only

In opposition of: Raised SB 309, AAC Certain Health Insurance Mandates

BY LIZA ANDREWS, PUBLIC POLICY SPECIALIST

The Connecticut Association of Nonprofits represents over 500 nonprofit organizations in CT, approximately 300 of which are state funded. We are opposed to SB 309, AAC Certain Health Insurance Mandates. Many of our members provide mental health services to some of the state’s most vulnerable residents. Often, our members will exclusively use Licensed Clinical Social Workers (LCSWs) to provide these services to their clients, many of whom utilize private insurance. SB 309 will remove LCSWs as reimbursable providers of mental health services under private health insurance policies. This will have a detrimental effect on several of our members and the services that they provide to Connecticut residents. The statement of purpose of this bill is to reduce the cost of health insurance by removing certain mandates. In actuality, services provided by a licensed physician cost significantly more than comparable mental health services provided by an LCSW. In Connecticut, 80% of all mental health services are provided by LCSWs, marital & family therapists, professional counselors and alcohol & drug counselors. If this group of providers is no longer an option for treatment, all mental health services will have to be provided by licensed physicians at a higher cost. Inevitably, health insurance costs would rise dramatically as the covered services cost significantly more. Should SB 309 pass, the reimbursement rates for services provided by many nonprofit providers using LCSWs will severely decrease and jeopardize their ability to provide mental health services. They will be left to either utilize licensed physicians at a greater cost to their agency or discontinue services. Simply put, this legislation will have unintended consequences while most likely not resulting in its intended goal and ultimately the residents in your district will suffer. I respectfully urge you to oppose this harmful legislation. Please feel free to contact me with any questions or to be put in touch with a nonprofit organization in your community that can provide additional details. Thank you.

TO: Sen. Prague and Rep. Ryan and members of the Labor and Public Employee Committee CONCERNING: HB 5536, an Act Establishing the Connecticut Health Care Partnership FROM: Brian Baker, Assistant Director, South Park Inn, Inc. DATE: Friday, March 7, 2008 It is with great pleasure that I have the opportunity to speak before this committee concerning HB 5536. As the Assistant Director of the South Park Inn shelter and an employee of a small non-profit homeless shelter in Hartford I welcome an opportunity for my agency to participate in the State Employee Health Plan. Our agency has sheltered over 37,000 homeless men, women and children and have moved countless individuals into permanent housing since we opened in 1984. By any measure we have responded with great conviction to the needs of our most vulnerable citizens. We currently run an 85 bed shelter for singles and families, a 33 bed transitional living program for men and a 35 bed permanent supportive housing program for chronically homeless men and women. Frankly, agencies like ours have struggled to make ends meet and continue to do more with fewer resources. We have been virtually flat funded by the Department of Social Services for the last twenty years with an average cost of living increase of 1.4% off set by a staggering increase in fuel, food and insurance costs. We are forced to try to provide the best health care coverage for our employees at the best cost for our agency. This is worsened by the fact that our agency can not pay the comparable wages of many other similar public and private employers. Our current Connecticare plan has an 18 year worker paying a bi-weekly premium of $100 or $2600 annually. He pays out of pocket over $500 in heart medication monthly and makes an after insurance premium hourly rate of $16.34. An employee of less than a year and single mom earns $22,880 annually. Her bi-weekly share of the premium is $75.00. Her after insurance premium hourly rate is $10.06. Our agency also has a $30/45 co-pay vs. State $10/15 co-pay for office visits. We also have a much hire cost for hospitalization and out patient services. Many employees are out sick longer because they can not afford the co-pay and or medication. This disrupts the agencies work flow and leads to higher costs in over time. If we have the opportunity to participate in the State Employee Health Plan our agency would save 25% of premium costs and we would be able to affordably buy into the plan. We would not be facing the premium increase of 15.38% of 2007 and we would not be passing on the costs to our employees. All this at no extra cost to our State.

Testimony Submitted to the Human Services Committee:

Concerns & Recommendations Regarding:

S.B. No. 34: AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET RECOMMENDATIONS WITH RESPECT TO SOCIAL SERVICES PROGRAMS.

Submitted By: James Morrison, Senior Vice President

MARC: Community Resources

Public Hearing Date: February 26, 2008 Repeal the 2% Rate Cap on Residential Care Homes and Community Living Arrangements,

and Repeal of the Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs)

To Senator Harris, Representative Villano and members of the Human Services Committee, I appreciate the opportunity to provide testimony regarding these important issues. My name is James Morrison, Senior Vice President MARC: Community Resources. We are a non-profit agency providing services to individuals under contract with DDS in the greater Middletown area. We currently operate several licensed CLA’s, support individuals living in their own homes, and provide a full array of vocational and leisure services. We are among the 500+ member agencies of the Connecticut Association of Nonprofits (CT Nonprofits.)

There are many aspects of the DSS Budget that will have a positive impact upon the provision of services within the nonprofit sector. However, I am writing to draw your attention to an area of grave concern for providers of residential services who are presently funded by the Department of Developmental Services (DDS.) We respectfully urge you to reconsider, and repeal the 2% Rate Cap on Residential Care Homes, as indicated in the following section 3 of S.B. No. 34:

S.B. No. 34: Sec. 3. (Regarding Residential Care Homes) For the fiscal year ending June 30, 2009, no facility shall receive a rate that is more than two per cent greater than the rate in effect for the facility on June 30, 2008, except for any facility that would have been issued a lower rate effective July 1, 2008, due to interim rate status or agreement with the department shall be issued such lower rate effective July 1, 2008.

We submit that it would be misguided to impose this Cap on the Residential Care Home system, as it has been onerous and damaging to Community Living Arrangements (CLA’s) to cap their rates for SFY 08. For this reason, we also urge you to repeal both the 2% Rate Cap on Community Living Arrangements, and to repeal the Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MR’s) which receive Room & Board funding through DSS.

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As an agency we stand to lose thousands of dollars per each of our CLA’s when the room and board rates for FY ’09 are established for the purchases, repairs and maintenance that have already been paid for out of pocket. For example in just one of our homes this past year we have had to replace the water heater, the heating system humidifier, the clothes washer and clothes dryer, in addition to the increased costs of utilities, yard care, snow removal etc. These expenses, which again have already been paid for, will certainly exceed the 2% cap and we will have no viable alternative for any other reimbursement. The options left available get down to slashing the costs of the basics of life, food and shelter, and as an agency we refuse to compromise on those basics for the individuals we serve. The cap is totally arbitrary and capricious and for whatever relative minor savings it affords the state it will be significantly detrimental to the quality of life provided to those individuals living in our homes.

In closing, once again, I urge you to:

Repeal the 2% Rate Cap on Residential Care Homes and Community Living Arrangements (CLAs),

and Repeal the Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs)

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Arc of Meriden-Wallingford, Inc.

200 Research Parkway, Meriden. Connecticut 06450

Telephone: (203) 237-9975 • Fax: (203) 639-0946 E-mail: [email protected]

Founded 1952

Pamela Fields Barry Sheftel Executive Director President

Testimony submitted to the Appropriations Committee:

The Governor’s Proposed Midterm Budget Adjustments SFY09 - DSS Budget Public Hearing Date: February 15, 2008

Senator Harp, Representative Merrill and members of the Appropriations Committee, I am the Executive Director of the Arc of Meriden Wallingford, Inc. Our Agency operates 4 residential homes for 17 individuals with developmental disabilities. Part of the funding for these homes come from DSS. DSS reimburses on an actual cost basis for food and kitchen supplies, laundry, housekeeping supplies, maintenance, utilities (heat, light, etc.), equipment under $2,500, mortgage interest and rent, and capital improvements. Unfortunately there has been a 2% Cap placed on residential funding through DSS. This cap does not allow for the recovery of funds that have been expended for the upkeep of these homes if it exceeds 2%. The system requires that agencies expense funding prior to reimbursement for capital repairs on these homes. It is important to note that these repairs are pre-approved through DDS and DMR. If this 2% cap is not removed our Agency stands to loose thousands of dollars, and in fact our Agency will loose $7,211 in 2008 alone. Community Providers are continually dealing with increased expenses and loss of revenue. I do not think this cap was intended to penalize agencies for expenses approved for necessary repairs and upkeep. Please remove this 2% cap or change its applications so that agencies are not penalized. Thank you for your assistance in this area. Pam Fields Executive Director Arc of Meriden-Wallingford, Inc. 200 Research Parkway Meriden, CT. 06450 203-237-9975 [email protected]


Testimony before the Governor’s Sentencing and Parole Review Task Force

Presented by: Julia Wilcox, Policy Specialist, Connecticut Association of Nonprofits (CT Nonprofits)

Public Hearing Date: November 26, 2007 Good morning, Chairperson Galvin, Chairperson Holden, Judge West, and esteemed members of the Governor’s Task Force. My name is Julia Wilcox, and I am a Policy Specialist for the Connecticut Association of Nonprofits. CT Nonprofits is a membership association of over 500 nonprofit organizations. Approximately 300 of our member agencies contract with the State of Connecticut for a variety of health and human services. This morning, I am proud to represent the member agencies of the Community Justice Division of the Association. We commend the Governor on the establishment of the Task Force, and the broad spectrum of expertise represented before us. We are extremely proud and pleased that the task force includes representatives from CT Nonprofits:

Co-Chair Lisa Holden, Executive Director of the Connecticut Coalition Against Domestic Violence Maureen Price-Boreland, Executive Director, Community Partners in Action Eric Crawford, Intervention Specialist, Capitol Region Education Council

In addition, the Governor’s Task Force includes representatives from many of the State Agencies with whom our members partner in an ongoing capacity, to serve the communities of Connecticut, and we are grateful for their commitment and participation. These are extremely challenging times for those involved in the provision of Community Justice Services. However, along with these challenges, come many opportunities for positive changes to the Criminal Justice System for the State, and for the individuals, families and communities who will be impacted by the impending revisions to the statewide system. Any situation that provides a closer study and in turn, underscores the significance of the Re-entry system of services is a positive move toward a better world for those involved in this complicated process. Nonprofit Community Justice Providers afford the State of Connecticut with a broad scope of extremely high quality services, at an ongoing, cost-savings to the state. With relation specifically to the Criminal Justice System, programs include both residential and nonresidential services, Alternatives to Incarceration, Halfway House Programs, Substance Abuse and Behavioral Health Treatment Programs, assistance in the areas of Domestic Violence, adult education and vocation – to name just a few. In addition, and of critical importance, programs also exist to provide assistance to the children and families of individuals involved in this complicated cycle. Our member agencies create opportunities for positive change by promoting and supporting the full potential of individuals, the strength of families, and the well being of the communities of Connecticut.

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CT Nonprofits Testimony 11 26 07 J Wilcox


The Community Justice Providers of CT Nonprofits respectfully request your consideration of the following areas of concern, moving forward: 1. Coordinate efforts to assure the stability of the nonprofit provider network, as we partner with the State

to address the critical issues at hand, and develop a strengthened system of services and supports. 2. With all due respect to victims of crime in attendance - develop ways to address the misconceptions of

the general population, with regard to Public Safety as it relates to the Criminal Justice System. Develop an understanding of the demonstrated/verified correlation between provision of intensive, quality community supervision, (effective reentry strategies) and an overarching reduction in recidivism.

3. Increase communication and information sharing among all stakeholders – and assure the support

necessary to implement such systems moving forward. Certainly, DOC and CSSD are focused in this area as well.

4. Finally – In an effort to build upon the efforts of the Governor’s Taskforce - Explore the development of

a Statewide Commission on Reentry – to include all stakeholders, with the capacity to make recommendations, link agencies within and across the public, private, and nonprofit sectors and implement change.

The recent development of the many state-wide committees, sub-committees and research related projects, have certainly yielded numerous opportunities to discuss evidence based reports related to the significant impact of the community- based services provided by the nonprofit network. Within my written testimony, I have provided links to several of the many reports which you have no doubt reviewed in this process. From the Criminal Justice Policy & Planning Division of the Office of Policy Management (OPM) & the Connecticut Statistical Analysis Center, to the Department of Correction (DOC) to the Court Support Services Division (CSSD) – there are overriding trends and statistics that speak to the critical connection between the provision of intensive, quality community supervision, and an overarching reduction in recidivism. Individuals with far greater expertise than I have presented these findings – from both a statewide and national perspective. Much worthwhile information has been reported in numerous areas for your consideration. While the Office of Fiscal Analysis (OFA) and others have provided critically important information related to the ‘Fiscal Impact of Eliminating Parole and Transitional Supervision’ (9/08/07), there is an additional impact in very ‘human’ terms, that must be included in the equation. First: There are any number of unintended consequences to some of the changes that have recently occurred – and those under consideration. Processes that may at once appear to be a ‘privilege’ that may simply be revoked, may, in fact, provide an extremely critical tool in the development of an incentive - based system, where consequences and accountability are a primary focus. Second: Beyond the expectations surrounding the ex-offender, it is necessary for there to be an equally supported expectation for the welfare of the families of those involved - both the victims, and innocent family members. The needs of these children and families in crisis, must be addressed – a focus placed upon the stability of the family unit, and to promoting positive change.

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CT Nonprofits Testimony 11 26 07 J Wilcox


To this end, it is critical for the Communities of Connecticut to understand that supervised reentry into their communities – and NOT a system of extended incarceration, is critical to increasing public safety, by ending the cycle of recidivism and strengthening and healing of these families in crisis. In closing, I would encourage you to utilize the capacity and the willingness of the Private Provider network, and to contact providers within your local communities. I would be pleased to schedule these tours, or to assist in any way moving forward. The ability of the state of CT to adequately meet the needs of its residents is greatly dependent upon the ability of the Private Provider Community to sustain a vibrant network, which will continue to serve as the ultimate safety net for Connecticut’s citizens at risk. I thank you for your time and consideration of these critically important issues. I would be pleased to answer any questions at this time.

For additional information, Please do not hesitate to contact Julia Wilcox, Policy Specialist, CT Nonprofits:

[email protected] or 860.525.5080 ext 25

Related Information of Interest:

For information related to Private Provider Programs available within your community: Directory of Contracted Community Programs: Connecticut Department of Correction - Parole and Community Services, Theresa C. Lantz, Commissioner, Randy Braren, Director of Parole and Community Services, Lawrence P. Mayer, Director of Programs and Services (June 2007) http://www.ct.gov/doc/lib/doc/pdf/contractedcommprogdirectory.pdf

Recidivism Study: Annual Report: State of Connecticut, Office of Policy & Management, Criminal

Justice Policy and Planning Division, Connecticut Statistical Analysis Center, Central Connecticut State University (March 1, 2007) http://www.ct.gov/opm/LIB/opm/CJPPD/CjResearch/RecidivismStudy/RecidivismStudy2007.pdf

A Study of Reconviction Rates of Discharged Inmates from the Connecticut Department of Correction,

Stephen M. Cox, Ph.D., Associate Professor, Department of Criminology and Criminal Justice, Central Connecticut State University (April 2006) http://www.ct.gov/opm/LIB/opm/CJPPD/CjResearch/RecidivismStudy/RecidivismStudy2006.pdf

‘Connecticut Department of Correction 2006 Annual Report: http://www.ct.gov/doc/lib/doc/PDF/PDFReport/annualreport2006.pdf

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Testimony before the Appropriations Committee: 2/15/08

The Governor’s Proposed Midterm Budget Adjustments SFY09 - DSS Budget

Julia Wilcox, Policy Specialist, CT Nonprofits

We urge you to repeal the 2% Rate Cap on licensed Community Living Arrangements (CLAs) and Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs)

We greatly appreciate the opportunity to provide input, related to the Governor’s Proposed Midterm Budget Adjustments SFY09. My name is Julia Wilcox, Policy Specialist, Connecticut Association of Nonprofits (CT Nonprofits). CT Nonprofits is a membership association that represents more than 500 nonprofit organizations. Approximately 300 of CT Nonprofits’ member agencies contract with State government for a variety of human and social services. The following comments and concerns are specifically related to the Department of Social Services (DSS) Budget.

There are many aspects of the DSS Budget that will have a positive impact upon the provision of services within the nonprofit sector. However, I am writing to draw your attention to an area of grave concern for providers of residential services who are presently funded by the Department of Developmental Services (DDS.) Specifically, I respectfully urge you to reconsider, and repeal the 2% Rate Cap on licensed Community Living Arrangements (CLAs) and Rate Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs) which receive Room & Board funding through DSS. There are 600 CLAs within the private sector of the DDS system. The following may be helpful, in terms of understanding this system of care:

Community Living Arrangements (CLAs)

Licensed by the Department of Developmental Services Group Homes with six or fewer residents Over 600 across the state operated by private nonprofits (DDS/DMR also operates its own) Funded by both DDS (program services) & DSS (room & board) Room & Board includes the following items

o Property Costs – e.g. mortgage interest, taxes, fair rental value, etc. o Repairs & Maintenance o Utilities – heat; electricity, gas, telephone o Appliances, equipment & Furniture o Food o Laundry & housekeeping

Funded in DSS budget through a retrospective rate reimbursement system begun in 1983 modeled after nursing home financial/rate system

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Costs incurred in current fiscal year will not be reimbursed until rate is set for SFY 09 – there is a 12-18 month lag time.

2% Cap was instituted in DSS implementer bill (P.A. 07-02/HB 8002) effective for both SFY 08 & SFY 09

If allowed to rise without cap, room & board rate portion would have likely increased around 4.5% in SFY 08.

Organizations which made repairs or maintenance on their buildings prior to SFY 08 will only get reimbursed up to an increase of 2% - Otherwise their budgets result in lost dollars they have already had to expend.

Neither OFA nor DSS has been able to give us exact cost impact – estimated to be between $2 and $4 million.

Members of the nonprofit provider network, greatly appreciate the support that members of the Appropriations Committee have demonstrated in the past. In closing, I would encourage you to contact providers within your local communities. The ability of the state of Connecticut to adequately meet the needs of its residents is greatly dependent upon the ability of the nonprofit provider community to sustain a vibrant network, which will continue to serve as the ultimate safety net for Connecticut’s most vulnerable citizens. Your consideration is greatly appreciated. As always, please do not hesitate to contact me at any time, with any questions, or for additional information: Julia Wilcox, Policy Specialist [email protected] 860.525.5080 ext. 25

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We urge you to repeal the 2% Rate Cap on licensed Community Living Arrangements (CLAs) and Rate

Freeze for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/MRs)

February 15, 2008

Excerpts from: House Bill No. 8002 - June Special Session, Public Act No. 07-2

‘AN ACT IMPLEMENTING THE PROVISIONS OF THE BUDGET CONCERNING

HUMAN SERVICES AND PUBLIC HEALTH.’

Related to CLAs:

Sec. 13. Subsection (a) of section 17b-244 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

For the fiscal year ending June 30, 2008, no facility shall receive a rate that is more than two per cent greater than the rate in effect for the facility on June 30, 2007, except any facility that would have been issued a lower rate effective July 1, 2007, due to interim rate status or agreement with the department, shall be issued such lower rate effective July 1, 2007. For the fiscal year ending June 30, 2009, no facility shall receive a rate that is more than two per cent greater than the rate in effect for the facility on June 30, 2008, except any facility that would have been issued a lower rate effective July 1, 2008, due to interim rate status or agreement with the department, shall be issued such lower rate effective July 1, 2008.

Related to ICF/MR Facilities:

Sec. 12. Subsection (g) of section 17b-340 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(g). For the fiscal year ending June 30, 2008, each facility shall receive a rate that is two and nine-tenths per cent greater than the rate in effect for the period ending June 30, 2007, except any facility that would have been issued a lower rate effective July 1, 2007, than for the rate period ending June 30, 2007, due to interim rate status, or agreement with the department, shall be issued such lower rate effective July 1, 2007. For the fiscal year ending June 30, 2009, rates in effect for the period ending June 30, 2008, shall remain in effect until June 30, 2009, except any facility that would have been issued a lower rate for the fiscal year ending June 30, 2009, due to interim rate status or agreement with the department, shall be issued such lower rate.


TESTIMONY BEFORE THE FINANCE REVENUE & BONDING COMMITTEE

Raised Bill 5937 An Act Concerning The Neighborhood Assistance Act

Presented by: Ron Cretaro, Executive Director, Connecticut Association of Nonprofits

Public Hearing Date: March 24, 2008

Senator Daly, Rep. Staples and members of the Finance Committee, I am Ron Cretaro, the Executive Director of the Connecticut Association of Nonprofits, representing more than 520 nonprofit organizations statewide. I am testifying today in support of Raised Bill 5937 which modifies the current Neighborhood Assistance Act to once again permit the participation of “S” Corporations, and extend participation to limited liability companies and limited liability partnerships. Since the removal of taxes on “S” corporations, gradually the level of utilization of Neighborhood Assistance Tax Credits has declined. Also, in the current legal and tax environment, family and closely-held businesses are no longer “C” corporations and exist as “S” corporations. Under current law, up to $5 million in credits are available only to “C” corporation businesses in support of local nonprofit organizations. This legislation attempts to modernize the legislation that was originally enacted when limited liability companies and limited liability partnership did not exist. It will afford S corporations, limited liability companies and limited liability partnerships to contribute to community nonprofit programs and facilities in the way now limited to C corporations as long as less than twenty percent (20%) of its gross income comes from dividends, interest, annuities and royalties. The Neighborhood Assistance Tax Credit program was begun as a bipartisan initiative of this General Assembly over two decades ago. It is our hope that this modernization and update will enjoy the same bipartisan support as elicited at its inception.


Testimony before the Appropriations and Public Health Committees 3/5/08 Public Hearing – written record only

Tobacco and Health Trust Fund Board of Trustees 2008 Report


The Connecticut Association of Nonprofits represents over 500 nonprofit organizations in CT, approximately 300 of which are state funded. We support the Board of Trustees’ recommendation to disburse $800,000 for smoking cessation programming targeting pregnant women and women of child bearing age. Many of our members receive state funding to provide addiction services to a variety of populations, including pregnant women and women of child bearing years who would benefit from smoking cessation programs. As the Board of Trustees points out in their report, in Connecticut low income women are much more likely to smoke during pregnancy. This can have devastating effects on their pregnancy, including low birth weight, stillbirth, and infant death. The American College of Obstetricians and Gynecologists notes that smoking is the most modifiable risk factor for poor birth outcomes, as well as the fact that pregnant women are more likely to quit smoking during their pregnancy than any other point in their life. It is important for the state to recognize these factors and make funding available to assist pregnant women and women who may become pregnant in reaching the best possible health outcomes for their newborns. We urge you to support the disbursement of $800,000 from the Tobacco and Health Trust Fund for smoking cessation programs for pregnant women and women of child bearing age. We further respectfully request that additional funds for smoking cessation be transferred to community and school-based substance abuse and mental health programs. Please feel free to contact me with any questions or to be put in touch with a nonprofit organization in your community that can provide additional details. Thank you.


Testimony before the Appropriations Committee:

The Governor’s Proposed Midterm Budget Adjustments SFY09- DSS Budget

Presented by: Katie Banzhaf, Executive Director, STAR, Inc., Lighting the Way


Repeal of the 2% Spending Cap on Room and Board Rates for Licensed CLAs

Good evening, distinguished members of the Appropriations Committee. I appreciate the opportunity to speak before you today. My name is Katie Banzhaf. I am the Executive Director of STAR, Inc., Lighting the Way, a non-profit agency providing supports and services to over 500 individuals with developmental disabilities in the Greater Norwalk area. Fifty-three adults with developmental disabilities receive residential supports from STAR through licensed CLA’s, which receive Room & Board funding through DSS. Historically, DSS reimburses on a actual cost basis for food and kitchen supplies, laundry, housekeeping supplies, maintenance, utilities (heat, light, etc.), equipment under $2,500, mortgage interest and rent, and capital improvements. This past year, STAR like other agencies built our budget using the DSS Calculated Rate for such allowable expenses. However, this year the DSS rate increases were capped at 2%. The impact on STAR Inc. was a loss of $35,431. This loss is real in that the expenses have already been incurred and deemed allowable by DSS. STAR has no means to recover this loss from any other source, although we have tried. I have approached United Way for the replacement of a boiler in one of our homes (that will exceed the cap next year) and the best they could provide was a “Recoverable Grant” of $4,000, which must be paid back. I have attached my work sheet for calculating the loss of $35,431 and the source data from DDS that was used in the work sheet. It should be noted that this loss was experience over seven STAR homes. Four additional homes recorded actual expenses that came in under the rate cap. In order for all homes to come in under the rate cap of 2%, STAR is forced to cut areas that will have a negative and lasting impact. As the utility bills increase the only areas for cuts are in food, maintenance and capital improvements, leaving our homes and residents vulnerable to health and safety issues. We can turn down the heat and limit food intake but at what cost to the health of our residents. We can curtail maintenance and delay capital improvements but at what risk to the safety of the residents and the deterioration of the infrastructure of our homes? These are risks that STAR is not willing to take nor are they risks that I believe the General Assembly wants to be responsible for when the crisis in our homes occurs. I urge you to remove the 2% spending cap on room and board rates for licensed CLA’s.

TO: Sen. Harp and Rep. Merrill and Members of the Appropriation Committee Members FROM: Brian T. Baker, Assistant Director,

South Park Inn, Inc. 75 Main Street Hartford, CT 06106 (860) 724-0071 (860) 724-1692 Fax

DATE: Friday, February 15, 2008 As you know the DSS and DPH funded programs have no COLA in this year’s budget. You may also know that agencies like the South Park Inn are under-funded and until this last year have been virtually flat funded for many years. As a small non-profit we are faced with rising costs in fuel, food and insurance that our agency must absorb. We continue to function as a 24 hour program and serve the needs of over 1600 homeless people a year. As one of the networks of DSS funded shelters and emergency services we are meeting the needs of a swelling under-class with ever increasing limited funds. In order to have a continuity of services we must meet the needs of our non-profits. A 9% cost of living increase is essential for us to continue to provide our current level of services and increase services that our needed for the ones we serve. With the shelters remaining full every night, our overflow shelters (meaning to act as our safety net) also are turning up full. The 9% COLA will help the non-profit emergency shelters fulfill the mission of shelter and provide a safe place to lay a persons head, meals and means to meet their daily needs. As you may suspect most of the shelter providers have inherited century old buildings that are far from efficient and this is only compounded by the need to operate on 24 hour clock never allowing us to turn down the heat. Not only do we continue to shelter the homeless but with the help of our many volunteers we are providing new services that are addressing the needs of our clients. Our homeless outreach is now a weekly and sometimes daily effort that has brought many people in and out of the cold. We are going under the bridges and abandoned buildings to reach out to our vulnerable citizens and offer them a safe haven of hope and a place that welcome them. Many people are now inside and out of the cold due to these efforts. Our homeless veterans now have a new weekly drop-in-center at South Park Inn thanks to efforts of the shelter and several veterans’ advocate groups. The Commissioner of Veterans Affairs acting on orders from the Governor to find and help the homeless veterans are now working with South Park Inn to staff this weekly drop-in-center for our homeless and needy veterans. Next week flyers will be going out to all the area shelters, soups kitchen and food banks seeking out our homeless veterans in need and advertise South Park Inn’s opened door policy for the vets. Several of these veterans groups have agreed to help vets that come in with applications to Rocky Hill Veterans Home and VA benefits. We as an organization are thrilled to help provide such services. With not a significant COLA of 9% our shelter and similar non-profits will not be able to continue to meet our daily needs and surely we will not be able to start new programs and address the current needs of our homeless. Thank you for your time.


Testimony to the Human Services Committee 2/21/08 Public Hearing – written record only

In support of:

Raised SB 163, AAC a State Earned Income Tax Credit


The Connecticut Association of Nonprofits represents over 500 nonprofit organizations in CT, approximately 300 of which are state funded. Many of our members are supportive of a State Earned Income Tax Credit (EITC) that would provide tax relief to low-wage working families. The State EITC would help many struggling families make ends meet. A State EITC would:

• Reward Hard Work – the credit will only go to low-wage earners – many of whom work multiple jobs and struggle to make ends meet.

• Assist Low-Wage Earners – only those earning on the low end can take advantage

of the credit. That means a family of four earning no more than $40,000 would receive up to 20% of their federal EITC credit, or a maximum of $943.

• Stimulate the Local Economy – EITC filers spend the refund in their local

communities on basic household necessities.

• Reduce Poverty – a major goal of the nonprofit sector and the General Assembly. The federal EITC reduces child poverty by nearly 25% and a state EITC can only build on those benefits.

• Make the State Tax System More Equitable – Connecticut workers earning less

than $21,000 pay on average more than twice the rate on combined sales, property, excise, and income taxes than the wealthiest 1% of state residents who earn more than $500,000.

I urge you to support this important measure. Please feel free to contact me with any questions or to be put in touch with a nonprofit organization in your community that can provide additional details. Thank you.

TESTIMONY DECD Hearing January 17, 2008 Good evening! My name is Patrick J. Johnson Jr. I am President of Oak Hill, which is a nonprofit community provider of services and solutions for people with severe developmental disabilities. We have 110 sites in 59 towns here in Connecticut and a workforce of over 1,400 employees. We are a service provider, a major employer, and a critical part of the infrastructure of the Connecticut economy. I am also Vice Chairman of CCPA, one of our vital trade associations representing the interests of those served by private providers. It is all too easy to discount the importance of nonprofit organizations providing essential services and enhancing the quality of live. Stop and think for a moment what the Connecticut landscape would look like if suddenly nonprofit organizations disappeared. If you have not read Claire Gaudiani’s book The Greater Good; How Philanthropy Drives the American Economy and Can Save Capitalism, I urge you to do so. Claire was President of Connecticut College for several years. Imagine for a moment that all the private nonprofit organizations disappeared from the landscape. What would our cities and towns look like? Hospitals, Universities, Colleges, private schools, performing arts, theaters, churches, museums, libraries, mental health services, group homes, nursing homes, homeless shelters, and I could go on, all gone. In many of our major cities these employers and institutions are the heart of the community, without which the community could not survive. Economically, resources are the lives blood that pumps through this heart of the community. Hospitals and allied health organizations such as my own Oak Hill and other critical care nonprofit private providers are increasingly being deprived of adequate resources by our own communities as represented by our public policy makers and the administration. Community based private providers like Oak Hill are a vital part of this economy and a family with a child who is autistic or mentally retarded who is considering where to work often has their child’s welfare as their top priority. When Connecticut chronically under funds its own state contracts it deprives private agencies of their lifeblood. 1.4% per year for 20 years is what the state has provided on average to fund our essential services. Our tax paying employees are paying the price since most nonprofit agencies cannot afford to keep wages at or above inflation. An economic caste system is developing in Connecticut with government employees doing the same work getting paid often 50% more than someone in the private sector. That gap grows significantly wider each year and needs to be addressed. This is a major symptom of an eroding economy where wealth accumulates and people decay. Increasingly our staffs cannot afford to live in the communities in which they work because their wages are too low and the housing is too expensive.

How can Connecticut expect businesses, major employers, like Oak Hill to survive and thrive in this economy when the state itself does not deal in reality and seems not to want to respond until a major crisis occurs. In the past five years my gasoline bill in my agency jumped 123% from $379,807 to $848,895. At the same time Electricity jumped from $454,572 to $793,896. (74%) Heating Oil jumped from $336,767 to $516,400. (53%) Health care is up 34% and this year will cost Oak Hill $6,900,000. In 2003 it was $5,000,000. We have been cutting costs and reducing benefits and giving our employees raises lower than inflation. This year our 800 union employees received 1.75% wage increase. The state of Connecticut needs to set the standard with strong visionary leadership, economic priorities, increased efficiencies, and address economic injustice in how it does business. Civil society, even in ancient Athens, supported people with disabilities. Our streets are again seeing the homeless and mentally ill begging on the street and for those who are so disabled that they cannot beg, private nonprofit community providers have become the surrogate beggars. Philanthropy can not supplant state responsibility and Connecticut is assuming it can. This economy and this civil society needs to consider carefully all the ingredients that attract employees and business to a geographic location and the perceived quality of life that is essentially represented by private nonprofit agencies is a critical factor in their judgment. A very real crisis is looming; and we are urging the state to support the private provider rescue fund. People’s lives literally depend on it. We are clearly a cost effective and cost efficient option through which the state carries out its statutory and moral responsibility. We are also asking in this venue that you give serious consideration to the critical and vital role nonprofit organizations play in this economy as businesses, employers, service providers, and magnets for the workforce and businesses in the future. Thank you for your consideration! Patrick J. Johnson Jr. President of Oak Hill Vice-Chairperson of CCPA


Testimony before the Appropriations Committees 3/12/08 Public Hearing – written record only

In Support of:

HB 5020, AA Implementing the Governor’s Budget Recommendations Regarding the Tobacco and Health Trust Fund


The Connecticut Association of Nonprofits represents over 500 nonprofit organizations in CT, approximately 300 of which are state funded. We support HB, 5020, AA Implementing the Governor’s Budget Recommendations Regarding the Tobacco and Health Trust Fund. Many of our members receive state funding to provide addiction services to a variety of populations, including persons seeking smoking cessation services. Smoking is a significant problem within our state that requires significant funding to combat. As the Board of Trustees points out in their 2008 report, to date the Board has only been able to allocate $2.2 million since the inception of the Trust Fund in 2000. Currently, the Board is only permitted to authorize for disbursement the net earnings from the principal of the trust fund. In addition to this, HB 5020 would allow the Board to allocate up to one-half of the annual disbursement from the Tobacco Settlement Fund, or approximately $6 million. This funding would help make significant strides not just in supporting cessation programs, but also in supporting the Quit Line, various counter marketing strategies, and prevention programs. We urge you to pass HB 5020 and allow the Tobacco and Health Trust Fund to allocate increased funding for tobacco prevention, cessation and control in Connecticut. It is vital that the state recognize the devastating effect smoking has on our state’s public health and allocate the funding necessary to combat it. Please feel free to contact me with any questions or to be put in touch with a nonprofit organization in your community that can provide additional details. Thank you.


Department of Economic and Community Development

Information Forum on Connecticut’s Economic Strategic Plan 4 December 2007, Middletown

By Ron Cretaro, Executive Director I am Ron Cretaro, the Executive Director of the Connecticut Association of Nonprofits. CT Nonprofits is a statewide association of more than 500 nonprofit organizations. On behalf of our Public Policy Council, I would like to contribute the following input towards the development of the State of Connecticut’s Economic Strategic Plan. According to 2007 National Center for Charitable Statistics data, Connecticut has nearly 20,000 nonprofit organizations. A 25% increase from ten years ago. Close to 14,000 nonprofits are classified as 501 (c) (3) organizations or charities established for educational, charitable or philanthropic purposes. Of those 14,000, approximately 7,000 file form 990 signifying they have annual revenue of $25,000 or greater. According to Form 990 (the annual fiscal report submitted to the IRS) from the year 2004, the revenue and assets of those 7,000 nonprofits are reported at $26 billion and $74 billion respectively. Again, this is only the revenue and assets of 7,000 nonprofits of a total 20,000 nonprofits. It bears repeating: CT has 7,000 nonprofit organizations with revenues of revenues of $26 billion and assets of $74 billion. Further, Connecticut’s nonprofit sector employed 165,000 individuals representing close to 12% of the State’s workforce according to 2004 State Department of Labor data. I would venture to say once more current data is available that percentage will have increased. Needless to say, nonprofit organizations in Connecticut are an economic force – one that is rarely acknowledged. It is important to also point out that nonprofit organizations are businesses. Do not confuse our tax classification with the need to maintain a positive bottom line or surplus. The difference is what nonprofits do with their profits, something much different from what for-profit businesses do with theirs. I wish to focus a major portion of my remarks on nonprofit organizations that are funded, inspired and fostered by State legislative action. These are nonprofit organizations which the State of Connecticut has turned to and relied upon to help the State fulfill its mission and commitments to its citizens. These are organizations which rely on state contracts and funding primarily for health and human services, but also education, arts and culture. Nonprofit organizations are often commended for their contribution as a “safety net” which provides valuable services to the State’s residents, but rarely are these organizations cited for the economic contributions they make to the State’s overall economic vitality and success.

R. Cretaro Testimony on DECD forum on the Connecticut Economic Strategic Plan

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The direct and indirect effects of nonprofits on the economy are substantial. Nonprofits pay wages and benefits to employees who in turn fuel our economy through spending on property, food, housing, transportation, child care, clothing, furniture, dry cleaners, recreation, travel, insurance, healthcare and conferences, etc. Nonprofit organizations themselves spend on vendors for all the things that businesses need to function and on specialty items related to health and human services. While a lot of this may be obvious, some is less so. For instance, where construction is involved, the involvement of contractors, suppliers and other vendors is tremendous. Nonprofits also contract for plumbers, electricians, landscaping services, legal and accounting services among others. In addition, nonprofits pay taxes. While some nonprofits are exempt from property taxes and in some cases sales tax, many nonprofits pay local property taxes and sales taxes. Also, nonprofit employees pay taxes – federal and state income, social security and directly or indirectly (through mortgage or rent) local property taxes. Finally, charitable nonprofits benefit Connecticut citizens in ways that cannot be easily quantified. They are tools for building community, fostering civil society, strengthening our social fabric and are essential to improving the quality of life in our state. Citizens of Connecticut have and will continue to place their trust in the responsiveness, creativity, performance and quality of services provided by nonprofits. Although I am lacking in specific data, I contend that more jobs in Connecticut have been created directly in the nonprofit sector by Legislative action in the last five years than any other sector of the State’s economy except perhaps construction due to the state bonding package.. Please consider the following State budget initiatives by both the Executive and Legislature The following is not an exhaustive list: Day care services (DSS) Early childhood education - School Readiness (DOEd) Charter Schools (DOEd) Halfway Houses and Alternatives to Incarceration (DOC) Juvenile Justice Services and Alternatives To Incarceration (Judicial – CSSD) Waiting List Services Consent Decree (DMR/DDS) High School Graduates day & residential services (DMR/DDS) Age Out Day & Residential Services (DMR/DDS) Autism Services (DMR/DDS) HIV/AIDS prevention and housing (DSS) DPH) Adult Mental Health & Substance Abuse services (DMHAS)

• Mental Health Strategy Board • Transformation Grant & Other Recovery Oriented Services

Supported Housing Support Services (DMHAS) (DCF) After School Services (DCF) Group Homes for Adolescents (DCF) Community Services Consent Decree (DCF) Human Infrastructure Initiative (DSS) Home Care & Assisted Living Alternatives to Nursing Homes (DSS) Community Forensic Services (DMHAS) Brain Injury Services Consent Decree (DMHAS)


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Foster Care Services (DCF) Community & Prevention Services (Children’s Trust Fund) Personal Care Attendants (DSS) Workforce Investment Act (DOL) If you search the state budgets of the last five years, it is astounding the number of jobs which have resulted in the nonprofit sector from the millions upon millions of dollars appropriated. Just as one example, each of the 40 DCF funded adolescent group homes opened/in the process of opening by nonprofit organizations 20 individuals. That is 800 jobs alone. While it would appear that in creating jobs in both the public (state jobs) and private nonprofit sectors, the State of Connecticut itself is part of the economic solution. However, part of my story today also includes that the State of Connecticut is also part of the problem. The problem being that while many of the jobs being created in the nonprofit sector as a result of state funding and initiatives are lower wage jobs which fail to meet most any self-sufficiency standard that is applied. State policy leaders have heralded an emphasis on 21st Century Jobs in Connecticut. Nonprofit jobs, or the overwhelming number of jobs the Legislature itself has created, are not viewed with that framework. A nonprofit health or human services job created through a state Purchase of Service contract is not considered the “poster child” job of the 21st Century. How does this manifest itself, in particular in direct care line staff:

• Employees of nonprofit organizations with state funding must hold more than one job to pay for the basics of life – food, clothing, housing, child care, etc.

• Employees of nonprofit organizations earn wages which are often not sufficient to support a family.

• Employees of nonprofit organizations often cannot afford to live in the communities in which they work, especially in the towns and cities of Fairfield County.

• Employees of nonprofit organizations find themselves qualifying for state insurance programs such as HUSKY.

• Ironically, employees of nonprofit organizations are not able to achieve the “American Dream” or to enter the middle-class while the programmatic goals for clients of their nonprofit employer is often to achieve that same goal.

In order to secure a better future, The State of Connecticut must increase real wages and benefits through its funded contracts. I would hasten to add it must pay fairer rates and reimbursements for the services it purchases and contracts for with nonprofit organizations. Many of the day care and direct service human service jobs created by the State budget programs result in contracting nonprofits paying between $10-12 per hour. While higher than minimum wage, it fails to place an individual employee of a nonprofit anywhere near a middle class threshold, no matter how “middle class” is defined. The State of Connecticut tacitly permits organizations with whom it contracts to pay wages which are on average 50% less than what the State pays its employees for comparable work. This does not include an additional large disparity in benefits received by State employees compared to nonprofit employees in the health and human services arena.


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Connecticut has begun making major investments into critical infrastructure issues such as early childhood education with the aim of developing a competitive and quality workforce for the future; higher education towards keeping more of our graduating Connecticut students in-state and providing a highly skilled workforce; housing – both supported and; smart growth and land use initiatives in order to protect and insure an excellent quality of life; economic development in our urban areas to create jobs and spur growth; transportation to enable economic growth; and health care by increasing Medicaid rates and gradually beginning to address those without insurance. More is required, however, and it still has matters waiting to be addressed. Among the greatest needs are the growing income inequality, providing health care to all uninsured both aimed at building the middle class and moving people out of poverty.


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Connecticut Leads the Nation in Multiple Measures of Income Inequality

Douglas Hall, Ph.D., Joachim Hero, M.P.H., and Taby Ali

Courtesy of Voices For Children

According to data from the U.S. Census Bureau, Connecticut and New York lead the nation in household income inequality, followed by Louisiana, Texas, Alabama, and Mississippi. This fact sheet categorizes states by their degree of income inequality, based on a well-accepted index known as the Gini Coefficient.

Using this measure, in 2006 Connecticut had the second most unequal income distribution in the nation and the greatest growth in income inequality in the country over the past few decades. Out of 250 Metropolitan Statistical Areas (MSAs) throughout the nation, Connecticut MSAs occupied four out of the top five spots for increased income inequality. Stamford-Norwalk, Bridgeport, Waterbury, and Danbury ranked 1st, 3rd, 4th, and 5th, respectively for the highest growth of income inequality. (October 2007)


Testimony before the Appropriations Committee: The Governor’s Proposed Midterm Budget Adjustments SFY09

Presented by: Chris McNaboe, Executive Director, Camp Horizons


Good evening, esteemed members of the Appropriations Committee. I appreciate the opportunity to appear before you today. My name is Chris McNaboe. I am the Executive Director of Camp Horizons - a human service agency dedicated to providing residential, recreational and vocational programs and supports for people who are developmentally disabled or who have other challenging social and emotional needs. I am speaking today on behalf of Connecticut Association of Nonprofits (CT Nonprofits). CT Nonprofits is a membership association that represents more than 500 nonprofit organizations. Approximately 300 of CT Nonprofits’ member agencies contract with State government for a variety of human and social services.

I’d like to tell you about an investment you made 21 years ago and how it has paid off.

Henry is a 46 year-old man who is non-verbal and has autism. In 1987, he began at Camp Horizons’ Supported Employment. Every day he would come to work and lock himself in the bathroom, wrap his arms and legs around the toilet which required 3-4 staff to remove him. . Henry was extremely aggressive, destroyed property, attempted to run away and had extensive periods of intense, loud screaming, often drawing the police to investigate. He was unable to work during those times. He had no conventional communication skills and arrived at work in a caged vehicle, driven by his two State employees. But, we kept working with him. By 1990, Henry began to go into the community to rake leaves and pick up brush. The challenges continued and we kept working with him. In 1993, Henry learned to use rakes, shovels, a leaf blower and wheelbarrow - a far cry from barricading himself in the bathroom. He worked more than before and although he still had challenging behaviors; he was part of a crew. In 1994, he got a job at Prides Corner Farm as a crew member and was on their payroll. His outbursts decreased to a weekly, not daily, and the group home now only needed one staff member to drive him. In 1997, Henry obtained a job at SDR Enterprises, you know, the place that sells flowers on the roadside out of people’s vehicles? Henry was the guy that washed all those buckets the flowers were in – about 750 per week! He was happy. He still screamed and had aggressive times but nonetheless was still able to work. He was paid by SDR and could now go to a store, select what he wanted and pay for it – with his own money. Over the next ten years, he made many gains: he learned some sign language, no longer rode in a caged vehicle, AND began to sing! His supports went from 3:1 to 1:1 and he costs less to support.

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CT Nonprofits Testimony 2 13 08 C. McNaboe


Non-profit providers do this with thousands of “Henry(s)” every day. The staff at Camp Horizons who work with Henry start at $11.50 per hour. In contrast, Henry’s group home staff starts at $16.50 per hour. The non-profit sector employs 165,000 people in Connecticut. These 165,000 individuals must pay for annual rate increases in every area of their living expenses - electric rates, insurance, medical costs, food and gasoline. However, they must do so in the absence of any type of COLA – as their nonprofit employers are in essence, held hostage by a budget that will not allow them to do the right thing and honor the fine work done by their staff! Providers must receive a 9% COLA to simply ‘keep up’ – and for that $11.50 per hour staff, this equals $1.03 per hour more – still not enough, but a start. At Camp Horizons, we have decided we cannot afford to take on any more “Henrys.” The Compounded Consumer Price Index has grown over 90% since we started working with Henry in 1987 while the increases to the non profit providers COLA has grown only 30% since 1987. You do the math. In closing, I would encourage you to contact providers within your local communities. The ability of the state of CT to adequately meet the needs of its residents is greatly dependent upon the ability of the Private Provider Community to sustain a vibrant network, which will continue to serve as the ultimate safety net for Connecticut’s citizens at risk. I thank you for your time and consideration of these critically important issues. I would be pleased to answer any questions at this time. (Please refer to attachments, for additional information.)

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Statement of Professor Edward A. Zelinsky Morris and Annie Trachman Professor of Law

Benjamin N. Cardozo School of Law, Yeshiva University1 As a Connecticut resident and taxpayer and as someone who has devoted his professional career to issues of tax policy, I strongly support House Bill 5937. HB 5937 would broaden eligibility for neighborhood assistance tax credits to pass-through entities which conduct active businesses, namely, S corporations, limited liability corporations, and limited liability partnerships. Under current law, only C corporations can take neighborhood assistance tax credits against their Connecticut tax liabilities. Restricting these tax credits to C corporations was sensible when the original neighborhood assistance legislation was adopted. At that time, S corporations were not as common as they are today and limited liability companies and limited liability partnerships did not then exist. In today’s legal environment, it is no longer appropriate to limit neighborhood assistance tax credits to C corporations when most closely-held and family businesses are now S corporations, limited liability companies, and limited liability partnerships. Hence, HB 5937 would authorize these pass-through entities to claim neighborhood assistance tax credits for their qualifying charitable grants and to pass those credits through to their respective shareholders, members and partners. These shareholders, members and partners would then use these credits against their personal state income tax obligations. HB 5937 would thereby modernize neighborhood assistance tax credits by making such credits available to S corporations, limited liability companies and limited liability partnerships which conduct active businesses. Such modernization will make the neighborhood assistance tax credits more equitable and effective by restoring the credits to family and closely-held businesses which used to be conducted as C corporations but today operate as S corporations, limited liability companies and limited liability partnerships.

1 For purposes of identification only. The views expressed in this statement are the personal views of Professor Zelinsky and do not constitute the views of the Benjamin N. Cardozo School of Law or of Yeshiva University.



The Governor’s Proposed Midterm Budget Adjustments SFY09- DOC & CSSD Budgets

Julia Wilcox, Policy Specialist, Connecticut Association of Nonprofits (CT Nonprofits)

Presented by: David Stevenson, President / CEO, FHM Services, Inc.


Good evening, distinguished members of the Appropriations Committee. I appreciate the opportunity to speak before you today. My name is David Stevenson, and I am the President / CEO of FHM Services, Inc. FHM is based in the New London/Groton area, and has contracted with the Department of Correction (DOC) since 1990, to operate two programs: Fellowship House, and Project Transition. We provide residential support and case management services to 61 men, and aftercare support to hundreds of program graduates. We offer community release, parole and transitional supervision beds. I am speaking today on behalf of Connecticut Association of Nonprofits. CT Nonprofits is a membership organization that represents more than 500 nonprofit agencies. Approximately 300 of their member agencies contract with State government for a variety of human and social services. This evening, I am proud to represent the Community Justice Division of DOC & CSSD Funded Providers.

The Governor is to be commended for several areas of the budget that reflect the many positive aspects of the recent reforms to the Criminal Justice System, as determined by SB 1700: AN ACT CONCERNING CRIMINAL JUSTICE REFORM. The extensive efforts of the Judiciary Committee and the Governor’s Sentencing and Parole Review Taskforce, are to be commended as well, for the passage of legislation that address such incredibly significant - and complicated issues, which essentially, affect every CT resident. Within the DOC & CSSD portions of the Governor’s Midterm Budget, the following areas reflect significant progress in the system of delivery for reentry services. We ask for your continued support of the following:

Reentry Beds: Provide Funding for Additional Reentry Beds Funding is provided for 80 reentry beds for a full year and an additional 28 beds beginning November 15, 2008. SFY09 = 2,735,000 (DOC)

Fund Re-Entry and Diversionary Services in the Bridgeport Area Funding is provided for Community

Support Services in the Bridgeport area in accordance with Senate Bill 1700 of the January 2008 Special Session. SFY09 = 725,000 (DOC)

State ID System: Provide Funding to Issue State ID's to Inmates Upon Release SFY09 = 107,000

(DOC)

Substance Abuse Treatment: Pick-up Expiring Federal Funding for Substance Abuse Treatment Positions SFY09 = 369,206 (DOC)

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CT Nonprofits Testimony Approps.DOC & CSSD 2 14 08 J Wilcox


Expand Re-Entry and Diversionary Programs: Funding to contract with nonprofit organizations consistent with the Criminal Justice Reform bill. SFY09 = 1,000,000 (CSSD)

Pretrial Supervision: Provide Funding for Intensive Pretrial Supervision Program for Defendants with

Psychiatric Disabilities Half year funding for 8 positions and programming to reduce the number of defendants with psychiatric disabilities incarcerated by expanding pretrial release options. SFY09 = 835,676 (CSSD)

Expand Alternatives to Incarceration in CSSD: Funding to phase-in diversionary beds consistent with the Criminal Justice Reform bill. SFY09 = 2,735,000 (CSSD)

In addition, there are several areas outside of the DOC or CSSD Budget that are extremely encouraging, and important to Community Justice Providers of Reentry Services, which we support as well:

(DMHAS) Expand Offender Re-Entry Programs $566,000 and 5 positions will expand the very successful Connecticut Offender Re-Entry Program (CORP) to five additional sites: Waterbury, New Britain, Stamford, Bridgeport and Norwich/New London as was recommended by the Governor's Sentencing and Parole Review Task Force. Funding will allow services to be provided up to 12 months prior to discharge from prison for an additional 180 individuals per year and will augment post-release services for an additional 58 individuals per year. SFY09 = 566,346

(DSS): Expand Re-Entry Services by Expediting Eligibility for State Administered General Assistance

One position is funded to provide expedited eligibility for SAGA for individuals leaving prison, permitting immediate access to medications through DSS' pharmacy network, as well as access to DMHAS' mental health and substance abuse treatment services. This initiative is also responsive to a recommendation by the Governor's Hospital System Strategic Task Force. SFY09 = 50,000

(DMHAS) Programs for Individuals with Co-Occurring Psychiatric and Substance Abuse Disorders

$2.0 million is being recommended to purchase three 15-bed high intensity programs for individuals with cooccurring psychiatric and substance abuse disorders, targeted to high users of hospital emergency departments or inpatient beds who also have criminal justice involvement as was recommended by the Governor's Hospital Task Force. SFY09 = 2,000,000

(DMHAS) Develop Medium Security Forensic Step Down Beds 18 positions and $1.3 million are

recommended to develop 10 medium-security step-down beds to address severe overcrowding at DMHAS's Whiting Forensic Division. SFY09 = 1,335,915

(DOIT): Reallocate Funds for IT Costs of Parole Reform and Public Safety Initiative: Based on revised

projections of funding required for the Internet and E-mail Services account, funding in the amount of $1,550,000 is available for transfer to a new Criminal Justice IT Costs account to be used for associated IT costs of Governor Rell's Parole Reform and Public Safety Initiative. SFY09 = 0

(DOIT): Provide Funding for IT Staff for Parole Reform and Public Safety Initiative: Funding is

provided for five positions and related expenses for staffing needs related to Governor Rell's Parole Reform and Public Safety Initiative. SFY09 = 293,577

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Again –we ask for your continued support of these initiatives. With that being said, there are also vastly under-funded areas of concern to which we wish to draw your attention.

Overarching Concerns: DOC & CSSD

As State Departments move forward to implement recently approved revisions to the

Criminal Justice System, the demands, responsibilities, and liabilities of the nonprofit providers of re-entry services will increase substantially.

The nonprofit network – in partnership with the state, MUST receive appropriate support

(both financially and systemically) to achieve the success that is necessary and expected from The Legislature and the citizens of Connecticut!

We are encouraged by the expansion to reentry services that has been proposed. However, a

methodical, strategic plan for transition – that includes clear input from the nonprofit provider community, is essential to achieve the goals as intended by passage of the legislation.

⇒ ZERO INCREASE IN THE PRIVATE PROVIDER COLA FOR FY 09:

This fiscal year’s budget (FY08) included a 3% Cost of Living Adjustment (COLA). While we appreciate the 3% increase allocated by the General Assembly during the 2007 legislatives session, it still is insufficient to allow nonprofit providers to begin to meet the significantly increasing costs of maintaining the quality services Connecticut residents need and deserve. To make matters worse, the Legislature in the 2007 legislative session approved a biennial budget that called for a ZERO INCREASE IN THE PRIVATE PROVIDER COLA FOR FY 09. The Governor’s proposed adjustments to the FY09 budget failed to address that lack of funding for the state fiscal year beginning July 1. She has proposed no additional funds for Connecticut’s nonprofit providers, even though nonprofits continue to face ever-increasing costs of providing existing services, let alone address the growing demand for the support of Connecticut’s citizens at risk!

⇒ Increased demands, responsibilities and liabilities: With recent revisions to the criminal justice system,

the demands placed upon providers have dramatically increased in many areas, including: additional requirements related to supervision & movement within the community, documentation, staff time to coordinate successful transitions, etc. However, there is no anticipated source for the additional resources that would be necessary, OR any plans for a mechanism to reimburse Providers for additional expenses incurred during this ‘ramped-up’ phase of implementation. Given the additional responsibilities placed on an already ‘stretched’ nonprofit network, providers are looking to assure both the program integrity and fiscal stability of the agencies involved.

⇒ Changes to Regulations related to Furloughs: In particular, changes to regulations around furloughs have had a significant impact upon the reentry system in many ways, including:

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o Impact upon the Offender Population: Clearly an unintended consequence – This processes which may at once appear to be a ‘privilege’ that may simply be revoked, provides an extremely critical tool in the development of an incentive - based system, where consequences and accountability are a

primary focus. In addition to the loss of incentive, the additional pressures of a residential facility

o Financial impact upon the Provider: Residential budgets are developed with the anticipation of

offenders maintaining contact with their families / communities, as a critical component to their rehabilitation process. The absence of furloughs, strains these budgets in every capacity – food, household supplies, etc.

⇒ Ever increasing costs related to services – medical: While providers commend UCHC/CMHC, for the

fine work that they do to support the welfare of the offender population, providers are nonetheless accepting offenders into their programs with increasingly significant medical needs, which reach beyond the realm of assistance currently in place. One example: Policies and Procedures related to Physical Examinations of Ex-Offenders, entering community programs in the Private Sector.

________________________________________________________ It is critical for the Communities of Connecticut to understand that supervised reentry into their communities – and NOT a system of extended incarceration, is critical to increasing public safety, by ending the cycle of recidivism and strengthening and healing of these families in crisis. Many aspects of the proposed budget reflect this shift in perception. We ask for your assistance to support areas as listed above, which do not!! In closing, I would encourage you to utilize the capacity and the willingness of the Private Provider network, and to contact providers within your local communities. The ability of the state of CT to adequately meet the needs of its residents is greatly dependent upon the ability of the Private Provider Community to sustain a vibrant network, which will continue to serve as the ultimate safety net for Connecticut’s citizens at risk. I thank you for your time and consideration of these critically important issues. I would be pleased to answer any questions at this time.

For additional information, Please do not hesitate to contact: [email protected] or 860.525.5080

Related Information of Interest:

For information related to Private Provider Programs available within your community: Directory of Contracted Community Programs: Connecticut Department of Correction - Parole and Community Services, Theresa C. Lantz, Commissioner, Randy Braren, Director of Parole and Community Services, Lawrence P. Mayer, Director of Programs and Services (June 2007) http://www.ct.gov/doc/lib/doc/pdf/contractedcommprogdirectory.pdf

Recidivism Study: Annual Report: State of Connecticut, Office of Policy & Management, Criminal

Justice Policy and Planning Division, Connecticut Statistical Analysis Center, Central Connecticut State University (March 1, 2007) http://www.ct.gov/opm/LIB/opm/CJPPD/CjResearch/RecidivismStudy/RecidivismStudy2007.pdf

A Study of Reconviction Rates of Discharged Inmates from the Connecticut Department of Correction,

Stephen M. Cox, Ph.D., Associate Professor, Department of Criminology and Criminal Justice, Central Connecticut State University (April 2006) http://www.ct.gov/opm/LIB/opm/CJPPD/CjResearch/RecidivismStudy/RecidivismStudy2006.pdf

Government Administration and Elections Committee Public Hearing March 12, 2008

SB 678: AA Establishing a Community-Based Health and

Human Services Strategy Board

Hello Senator Slossberg, Representative Caruso and members of the Committee, thank you for the opportunity to testify today. My name is Shawn Lang and I am the Director of Public Policy at CT AIDS Resource Coalition (CARC), a member of the CT Nonprofit Human Services Cabinet. The Cabinet is a statewide coalition representing approximately 1,000 nonprofit human service providers. Its mission is to advance a strong and unified nonprofit human services system to most effectively meet community needs. The Cabinet and CARC support SB 678, An Act Establishing a Community-Based Health and Human Services Strategy Board. This bill is a much needed step towards finding a long-term funding solution for our state’s health and human service providers. As I am sure you are aware, there is no cost-of-living-adjustment (COLA) funding in the FY09 budget. One of the Cabinet’s top priorities every year is across the board COLA funding for all state-funded purchase of service contracts. Year after year we come to the Capitol to ask both legislators and the Governor for increased funding. It takes up a great deal of our time and yours. With an average COLA increase of 1.4% over the past 20 years, there is little time to direct our attention elsewhere. A long-term solution is desperately needed to get away from a year-to-year band-aid approach. There are currently 24 AIDS housing programs that are members of CARC, all with staff who provide a vast array of supportive services to the people with HIV/AIDS whom they house. These services can range from basic case management to intensive supportive services for people who not only have HIV/AIDS, but have substance use and mental health histories, and Hepatitis C. People living with HIV/AIDS, despite public opinion that it’s just another chronic manageable illness, often experience periods of extremely poor health. Sustainability of our health and human services system, including AIDS housing and service providers is becoming increasingly difficult. If enacted, SB 678 will bring together a diverse group of stakeholders tasked with developing a state-wide strategic plan for stable funding for community-based health and human services. We ask that the Cabinet be included in these discussions. We urge you to pass SB 678 and take this important step towards developing a long-term funding solution for our state’s health and human service providers. Your attention to this complex and challenging problem is greatly appreciated. Please feel free to contact me with any questions or concerns. Thank you. Shawn Lang 860.761.6699 [email protected]

Connecticut AIDS Resource Coalition

Connecticut Association for Community Action

Connecticut Association of Area Agencies on Aging

Connecticut Association of Nonprofits

Connecticut Coalition Against Domestic Violence

Connecticut Community Providers Association

Connecticut Consortium of Legal Services

Connecticut Council of Family Services Agencies

Connecticut Sexual Assault Crisis Services

Connecticut Women’s Consortium

Easter Seals Connecticut

End Hunger Connecticut!

Human Services Council

Oak Hill

Planned Parenthood of Connecticut

The Connection, Inc.

The Arc of Connecticut

Wheeler Clinic

Connecticut Nonprofit Human Services Cabinet

90 Brainard Road • Hartford, CT 06114 • (860) 525-5080 • (860) 525-5088 (fax) • [email protected]



The Governor’s Proposed Midterm Budget Adjustments SFY09

By: Denis Geary, Executive Director, Jewish Association for Community Living (JCL)

Public Hearing Date: February 13, 2008 Senator Harp, Representative Merrill and members of the Appropriations Committee. Thank you for the opportunity to appear before you. My name is Denis Geary. I am the Executive Director of the Jewish Association for Community Living, a DDS funded nonprofit agency providing residential and day services to persons with developmental disabilities including mental retardation and autism. I am speaking on behalf of my agency, my colleagues in the nonprofit human service world, and the Connecticut Association of Nonprofits. My plea is a familiar one. Today I ask that you consider a long term solution to the historical problem concerning the way nonprofits are funded. Without one, we will continue to whither on the vine as we struggle to find more and more ways to keep up with increases in non-discretionary expenses while we balance our budgets on the backs of our underpaid employees and, potentially, our un-served or underserved clients. According to figures released from the Comptrollers office, the average per diem cost of a DDS funded group home in FY 07 was $851. In one region alone, the per diem cost increased $198 – or 29% -from FY 06 to FY 07. It went from $700 per day to $898. That one year difference alone is more than the total cost of one of JCL’s three group homes ($189 per day) and only a handful of dollars less then our two more expensive group homes, which average $258 each. My most expensive group homes cost only about 30% of the cost of these DDS group homes and my least expensive home about 22% of the state run programs. In good conscience, how can this be allowed to continue? What possible explanation could there be that justifies such inequity? The real victims of this are not the nonprofits. The real victims are those we will turn away because we can barely sustain those people we are already obligated to serve. Last year the biennium budget included long overdue increases in Medicaid rates of 30% for hospitals, 50% for physicians, and 40% for outpatient clinics. These increases reflect years of neglect. This year we seek the remainder of the 12% COLA we asked for last year – or 9%. This is the short term fix. The long term solution is to avoid a rerun of the Medicaid situation and agree to fund human service nonprofits with meaningful COLAs tied to a reputable index that reflects real costs. Thank you. Prepared and presented by: Denis Geary, Executive Director Jewish Association for Community Living 900 Asylum Avenue Hartford, CT 06105 860.522.5225, ext. 2233 [email protected]

Testimony by Alcohol & Drug Recovery Centers, Inc. February 26, 2008 – Page 1 Re: S.B. 413 Community Provider Rescue Fund

LEGISLATORS: STATE OF CONNECTICUT Senator Harris, Representative Villano, and Members of the Human

Services Committee I appreciate the opportunity to provide testimony regarding

this important legislative initiative. My name is Ronald Fleming [Ph.D., LCSW]. I

am the President and CEO of Alcohol and Drug Recovery Centers, Inc. [ADRC,

Inc.], in Hartford, Connecticut. Today I am here speaking as a member of the

Connecticut Association of Substance Abuse Agencies (CASAA) and on behalf of

ADRC, Inc.

ADRC, Inc. serves approximately 3,000 different persons each year in over

5,000 episodes of care provided through the operation of 150 residential beds and

two outpatient counseling centers. We employ a diverse workforce of 135 fulltime

persons and an additional 65 part-time persons in one of the poorest communities

in the state.

My Agency operates services from six [6] different buildings located in the

greater Hartford area. Providing services to drug and alcohol addicted persons

requires safe, secure, and supportive settings which can meet the requirements of

health departments, fire departments, accrediting bodies, and funding agencies

[such as DMHAS].

Passage of the Community Provider Rescue legislation would work to

resolve some long-standing issues within the non-profit provider community.

Without this legislation the quality and scope of services will suffer – if not the very

viability of some agencies.


Salary & Benefits: My colleagues and I have come to the legislature year

after year trying to impress upon you the tremendous disparity that exists between

private non-profit provider salary rates and that of their peers working for State

agencies. The COLA provided last year was welcome support but does not

address the fundamental disparities that continue to exist. In addition, due to the

inconsistent availability of COLA support most agencies have not been able to

keep up with the escalation in their payroll costs. At my Agency our most recent

health insurance cost increases were the equivalent of 62% of last years COLA .

While our Agency did provide a 3% COLA to our employees this pay increase was

covered only in small part by last year’s COLA.

Physical plant – Maintenance & Repair: A related and comparably serious

problem for most agencies is the cost of maintaining and repairing the

infrastructure of their service structure. Buildings, computer systems, and vehicles

constitute critical aspects of most agencies and yet are not adequately supported

by existing funding arrangements with the State of Connecticut. Grants typically

do not allow agencies to make “capital expenditures” [costs of $5,000 or more].

Even in cases where agencies attempt – through budget controls – to save $5,000

to $10,000 for a major infrastructure expense these expenditures are typically not

allowed under existing funding rules.

Substance abuse providers deliver services on a fee-for-service basis.

They also receive grant funds from DMHAS in order to provide uncompensated

care or specialty care that is critical but not reimbursable by SAGA, Medicaid,


Medicare, or other third party entities. These grant dollars come from both the

federal budget and the state general fund.

When the legislature grants a cost of living adjustment to DMHAS providers,

it is based on only the state grant portion of our budgets [there are occasions that

DMHAS will provide COLA funds based on some portion of federal funds received

by the Agency]. At ADRC, our total DMHAS grant dollars represent 40% of our

budget. We deliver hundreds of thousands of dollars of uncompensated care

each year persons lacking eligibility for health care service support [while DMHAS

provides some support for such services our Agency provides thousands of

dollars worth of care beyond that which DMHAS supports - $755,000 FY08 YTD,

calculated at posted costs of services]. What does all of this mean? If the

Legislature grants a 3% COLA the Agency realizes an approximately 1 ¼ %

COLA based upon Agency revenues and expenses [FY 2008].

Rate relief, along with additional COLA funds in Fiscal Year 2009, is

fundamentally critical to our sustaining the ability to care for our neediest citizens

and to provide a living wage to the persons who provide their care – our staff.

Rate relief is a critical aspect of the funding and viability cycle of issues for

private non-profit agencies. Our Detoxification Center has received 19.2% in rate

increases since 1997 – an annual rate of approximately 1.6%. Inflation alone rose

nearly 33% in the same time period [a 14% disparity]. Many rates do not reflect

the actual cost of providing the service. For example, rates for outpatient visits

with a doctor [to evaluate and monitor medication] run $5 to $40 less than the


actual cost of paying the doctor to provide the care [other related costs not

included] – yet these services are critical to many clients.

-One final point, in the last several years Agencies such as ADRC, Inc. and

others in CASAA have also struggled with spiraling costs of health insurance,

utility bills, and trying to maintaining an aging infrastructure of facilities.

Infrastructure issues are particularly difficult in that these expenses, while critical

to program operation, can rarely, if ever, be directly supported by grant funds

[61% of our grant funds can not be used for capital expenditures]. Connecticut

citizens are well served by the efforts of hundreds of non-profit agencies, such as

ADRC, Inc. and those in CASAA. I believe that the Legislature and your

constituents would find every dollar invested in the non-profit agencies that serve

Connecticut would be a dollar well spent.

S.B. 413, if passed, will help agencies throughout he state remain viable

and to provide a more consistent level and quality of care. The bill will rectify some

short term funding disparities but, more importantly in my view, will work towards a

more stable solution to the funding the role played by non-profit providers in the

system of human services in the State of Connecticut.

See attached Tables:

1. Reimbursement Rate Changes 2003-2008 2. Medication Management Costs & Reimbursement Rates.

Contact: Ronald Fleming, Ph.D., LCSW 860-714-3701


1. Reimbursement Rate Changes 2003-2008

Reimbursement Rate

2003 2008

Total Rate Change2

%

Annual Rate Change

% Intensive Outpatient Service [group care] $83.00 $89.76 8.1 1.35 Medication Management1

[up to 20 minutes] $25.93 $29.38 13.3 2.5

Medication Management1 [up to 45 minutes] $50.62 $57.35 13.3 2.5 Detoxification Rate [daily rate]

$248.00 $268.21 8.1 1.6 Outpatient Group Treatment [90 minute session]

$16.87 $19.12 13.3 2.5 Clayton [daily rate] $65.00 $80.34 23.6 4.3 Intensive [daily rate] $150.00 $152.48 1.65 0.35 Intermediate [daily rate] $105.00 $108.15 3.0 0.6 Coventry [daily rate] $85.00 $80.34 -5.4 -1.0

1 See Medication Management Information in Table 2 – below.

2 Rate of Inflation for 2003 to 2008 = 16.17%; - the average rate change was approximately one half the rate of inflation.

2. Medication Management Costs & Reimbursement Rates.

Reimbursement Rate Medication Management Service 2003 2008

Actual Physician Cost – 20083

Financial Loss per visit3

Medication Evaluation [up to 45 minutes $50.62 $57.35 $97.00 $39.65

Medication Evaluation [up to 20 minutes] $34.09 $38.63 $43.00 $4.64

Medication Management [up to 20 minutes] $25.93 $29.38 $43.00 $4.64

3 Physician cost and loss figures per visit do not include any related costs.

****END OF TESTIMONY****


Testimony before the Human Services Committee 3/4/08 Public Hearing – written record only

In support of:

Raised SB 562, AAC Increased Access to the Medicaid Program for the Medically Needy Elderly and Disabled

Raised SB 564, AAC Services for Persons with Mental Health Needs Raised HB 5792, AAC the Asset Test Used to Determine Eligibility for the State-

Administered General Assistance Program


The Connecticut Association of Nonprofits represents over 500 nonprofit organizations in CT, approximately 300 of which are state funded. Many of our members provide services to some of the state’s most vulnerable residents. Our members and their clients would benefit from the provisions of these three important bills and we urge your support. Raised SB 562, AAC Increased Access to the Medicaid Program for the Medically Needy Elderly and Disabled This bill will increase the income eligibility of the aged, blind and disabled needed to qualify for Medicaid, bringing it up to 185% of the federal poverty level. This is equal to the income requirements for adults on HUSKY A. Simply put, the state is currently requiring the aged, blind and disabled to be significantly more impoverished than other residents seeking Medicaid benefits. This seems counterproductive given the need for health and human services among this population. Currently, the “spend down” required for the aged, blind and disabled is equal to approximately 60-70% of the federal poverty level. This means that in a given six month period members of this population must incur enough medical bills to “spend down” their monthly income to around $500 in order to be eligible for Medicaid. In the same six month period an adult on HUSKY A, whose income can be at 185% of the federal poverty level to receive the same Medicaid benefits, can have an income of approximately $1,600. Unfortunately, what this means is that many aged, blind and disabled will simply give up trying to get onto Medicaid and ultimately forgo receiving basic preventative care because they lack insurance coverage. Their health quickly deteriorates and they end up receiving treatment for an exacerbated illness in the emergency room, costing the state and taxpayers even more money. There is no justification for having different income standards for different populations. We urge you to equalize income eligibility requirements for the aged, blind and disabled with others eligible for Medicaid.

CT Nonprofits Page 2 Raised SB 564, AAC Services for Persons with Mental Health Needs This bill will allow the Department of Social Services (DSS) to establish a program to provide grants to providers to increase acute care services available to patients with severe and persistent psychiatric disabilities. Furthermore, it requires that the Departments of Mental Health and Addiction Services (DMHAS), Children and Families (DCF) and Social Services work in conjunction to increase the availability of intermediate care services and programs in the state for children and adults with mental health needs, including prevention, early intervention, treatment and rehabilitative services. This measure will assist many nonprofit providers already struggling to help so many of the state’s residents who have mental health needs. We encourage increasing the availability of prevention and early intervention programs as this will save the state money in the long run. Raised HB 5792, AAC the Asset Test Used to Determine Eligibility for the State-Administered General Assistance Program This bill will increase the asset limit to be eligible for SAGA cash assistance benefits from $250 to $1,000. Many of our members serve clients who are in need of cash assistance through SAGA. However, it is difficult for many of them to meet the asset limit requirement simply because they own a car. Unfortunately, owning a car does not mean that they have the ability to pay their bills at the end of the month. When people are receiving treatment for various reasons (i.e.: mental health needs, substance abuse, etc.), the stability of their life is always directly proportional to the success of their treatment. If they are unable to pay their rent or their utilities and subsequently become homeless, it is all the more difficult for providers to successfully treat them as they move from shelter to shelter. Helping these men and women maintain a stable life so that they may receive and be invested in the proper treatment will ultimately facilitate their ability to no longer need state assistance. Again, we respectfully urge you to support these important pieces of legislation. Please feel free to contact me with any questions or to be put in touch with a nonprofit organization in your community that can provide additional details. Thank you.

The Jewish Federation Association of Connecticut (JFACT) is a statewide Association serving as a legislative representative for the nine Connecticut Jewish Federations and their associated agencies, an advocate for the Jewish Community, a public affairs spokesperson and coordinator on statewide programs on issues of mutual interest and concern in the state of Connecticut and Israel

David A. Baram President Martin C. Shapiro Chair Eric Albert Vice President Bert Boyson Vice President Arlene M. Elovich Vice President David Zieff Treasurer Robert D. Lesser Secretary Robert J. Fishman Executive Director Constituent Jewish Federations: Greater Danbury Eastern Connecticut Eastern Fairfield Greenwich Greater Hartford Greater New Haven Greater Stamford- New Canaan- Darien Western Connecticut Westport-Weston- Wilton-Norwalk

J F A C T Jewish Federation Association of Connecticut 40 Woodland Street Hartford, CT 06105 Phone: (860) 727-5701 Fax: (860) 727-5767 email: [email protected] www.jfact.org

Testimony of Robert J. Fishman

Executive Director Jewish Federation Association of Connecticut (JFACT)

In support of House Bill 5937 An Act concerning the Neighborhood Assistance Act

March 24, 2008 My name is Robert J. Fishman and I am the Executive Director of the Jewish Federation Association of Connecticut (JFACT) which serves as the government affairs office of the nine Connecticut Jewish Federations, three Jewish Nursing Homes, five Jewish Community Centers and eight Jewish Family Service agencies. We thank the committee and particularly co-chair Staples for raising House Bill 5937 "An Act Concerning the Neighborhood Assistance Act."

The R.E. Van Norstrand NAA named for its founder, the late House Speaker Norstrand, is a true partnership between state government, the nonprofit sector and the business community. My colleagues and I in both the social service and religious sponsored community have seen a drastic fall off in business participation in this program which the state has capped at $5,000,000. Ever since 2001 which was the last year subchapter s corporations paid taxes to the state, about 150 companies no longer are eligible and as businesses committed to their communities and Connecticut have no vehicle to make significant contributions which are sorely needed by the nonprofits.

This bill would return the subchapter s and (LLC's and LLP's) to claim NAA tax credits as pass-through entities . The bill is not asking this committee to add more funding or raise the $5,000,000 cap, rather it addresses a solution to permit more local businesses to contribute generously to nonprofit 501C3 organizations.

The Connecticut Association of Nonprofits, the United Way, the YMCA and YWCA and many other nonprofits are supportive of this bill.

In my research, I have found six states: Indiana, Maryland, Missouri, Nebraska, Virginia and West Virginia which have legislation that permits subchapter S corporations to participate in their Neighborhood Assistance programs through a business owner's personal income tax.

I have included in my written testimony a chart detailing the cities and towns participation in the NAA program from 2005-2007 with the total spent of $3.643,316 in 2005 to the 2007 total of only $2,327,431. I am also enclosing a statement by New Haven attorney Edward Zelinsky who is a professor at Cardozo School of Law and a separate written testimony by Douglas Joseph of the Blum Shapiro Accounting firm in West Hartford. Unfortunately, both were unable to be present at this hearing.

Thank you for listening and I will be pleased to respond to any questions.


Testimony before the Government Administration and Elections Committee 3/12/08 Public Hearing – written record only

In support of:

HB 5887: AAC Payment of Personal Service Contracts


Hello Senator Slossberg, Representative Caruso and members of the Committee, thank you for the opportunity to submit testimony. The Connecticut Association of Nonprofits represents over 500 nonprofit organizations in CT, approximately 300 of which are state funded. CT Nonprofits supports HB 5887, An Act Concerning Payment of Personal Service Contracts. We respectfully request that purchase of service (POS) contracts be included in this measure, which would thereby include many of the state’s nonprofit health and human service providers. Over 300 of our members contract with the state through purchase of service agreements to provide health and human services to some of the state’s most vulnerable residents. They are often confronted with delays in payments after providing these services. Nonprofits continue to be asked to provide more services with less funding and continue to rise to the challenge. As sustainability of our health and human services system becomes increasingly difficult, the additional burden of delayed payments only makes it harder for nonprofits to do what the state has asked them to do. Nonprofits provide these services at a great savings to the state and should not have to wait to be paid. If enacted, HB 5887 will require state agencies to pay personal service contracts not later than thirty days after receiving a written request for payment from the contractor. Again, we respectfully requests that POS contracts be included in this bill, as this is how most nonprofits contract with the state for the provision of health and human services. We urge you to pass HB 5887, with the inclusion of POS contracts, and help ensure that our state’s nonprofits receive timely payments for the many services that they provide. Your attention to this complex and challenging problem is greatly appreciated. Please feel free to contact me with any questions or to be put in touch with a nonprofit organization in your community that can provide additional details. Thank you.

Government Administration and Elections Committee Public Hearing March 12, 2008

In Support of:

HB 5887: AAC Payment of Personal Service Contracts

Submitted by Liza Andrews, Project Director

Hello Senator Slossberg, Representative Caruso and members of the Committee, thank you for the opportunity to submit testimony. The CT Nonprofit Human Services Cabinet is a statewide coalition representing approximately 1,000 nonprofit human service providers. Its mission is to advance a strong and unified nonprofit human services system to most effectively meet community needs. The Cabinet supports HB 5887, An Act Concerning Payment of Personal Service Contracts. The Cabinet respectfully requests that purchase of service (POS) contracts be included in this measure, which would thereby include many of the state’s nonprofit health and human service providers. Many of Connecticut’s nonprofit providers contract with the state through purchase of service agreements to provide health and human services to some of the state’s most vulnerable residents. Providers often find themselves faced with delays in payments from various state agencies. This makes doing business increasingly difficult as nonprofits struggle to come up with other sources of money to pay the bills as they await payment from the state. Sustainability of our health and human services system is becoming increasingly difficult. Nonprofits provide these services at a great savings to the state and should not have to wait to be paid. If enacted, HB 5887 will require state agencies to pay personal service contracts not later than thirty days after receiving a written request for payment from the contractor. Again, the Cabinet respectfully requests that POS contracts be included in this bill, as this is how most nonprofits contract with the state for the provision of health and human services. We urge you to pass HB 5887, with the inclusion of POS contracts, and help ensure that our state’s nonprofits receive timely payments for the many services that they provide. Your attention to this complex and challenging problem is greatly appreciated. Please feel free to contact me with any questions or concerns. Thank you.














Oak Hill




Wheeler Clinic




Testimony Before the Joint Committee on Appropriations Re: Cost of Living Adjustment for Nonprofits

By Cathy Zeiner, Executive Director,

Women’s Center of Southeastern Connecticut Friday, February 15, 2007

Members of the Appropriations Committee I am Cathy Zeiner, Executive Director of the Women’s Center of Southeastern Connecticut. I also serve as the Board President of the Connecticut Association of Nonprofits. CT Nonprofits is a statewide association of more than 500 members of which more than 300 contract with Connecticut state government to provide health and human services. Those organizations like ours to end domestic abuse and others who operate programs funded by the Department of Social Services wish to thank this Legislature. It was only several years ago that our organizations were never included in any annual cost adjustments approved by the Legislature. This included programs and services for HIV/AIDS, homeless, traumatic brain injury, meals on wheels, home health care, child and adult day care, nutrition & anti-hunger, senior centers, energy assistance and weatherization, early childhood education, youth development, employment & training, family centers, vocational rehabilitation, and more - so much of our social safety net. We genuinely appreciate your recognition of our contribution to Connecticut’s citizens as well. While my organization only receives a small amount of state funding, other contracting organizations are more dependent on the business we provide to state government. All of us value the cost of living increases although we struggle to keep up with increasing costs just like many of Connecticut’s families. The annual cost increment allows us to recognize the sacrifice our staff make to our clients/consumers by giving wage increases and it permits us to meet some, but not all, of our financial obligations. The attached document I have provided offers two examples of organizations confronting the increasing cost of providing service to clients in our communities. You can see that while the COLA is of help it does not begin to match the increases provider organizations have faced in the past few years. Keeping up has been difficult. Nonprofit organizations are businesses. While we fundraise to compensate for the insufficient dollars paid through our contracts, we continue to provide services and programs but with potential future adverse consequences. We come back to you yearly asking that you help make our contracts more fair and that we be acknowledged as business entities that must meet a bottom line like any other business to stay sustainable. Our mission dictates that we also have another bottom line of meeting community needs. We must remain viable if we are to accomplish this. You know why we come before you again this year. In good times, our communities turn to us. In bad economic times, our communities need us even more. We ask that you provide the cost of living adjustment that the SFY 09 budget does not currently

Testimony before the Labor and Public Employees Committee March 7, 2008

HB 5536: AA Establishing the Connecticut Healthcare Partnership

Submitted by Liza Andrews, Project Director

Senator Prague, Representative Ryan and members of the Committee, thank you for the opportunity to submit testimony. The Connecticut Nonprofits Human Services Cabinet is a statewide coalition representing approximately 1,000 nonprofit human service providers. Its mission is to advance a strong and unified nonprofit human services system to most effectively meet community needs. The Cabinet supports HB 5536, An Act Establishing the Connecticut Healthcare Partnership. HB 5536 proposes to open the State employee health insurance plan to nonprofit employees on a voluntary basis. The creation of the CT Healthcare Partnership would offer nonprofits an option for ensuring that their employees have adequate healthcare coverage while combating the continually rising costs of that coverage. Nonprofits across the state continue to make it a priority to offer quality healthcare coverage to their employees at affordable rates. It has not been easy as the cost of doing business continues to rise, but they do it because it is the right thing to do. Double digit annual increases in healthcare coverage and skyrocketing energy prices often absorb any cost-of-living adjustments received from the state. Providing an additional option for affordable healthcare coverage will assist nonprofits with offering their employees increased, competitive wages, which are desperately needed. The State employee health insurance plan is a quality, comprehensive plan with low out-of-pocket expenses. A substantial benefit for participation in this program is the 8% cap on increases to the state plan. This would assist nonprofits who face annual increases in the teens to better budget for anticipated costs. While the question remains as to whether or not most nonprofits will be able to afford the state plan, it could certainly reduce the out-of-pocket costs that many nonprofit employees face on their existing plan. Making the program voluntary will allow those nonprofits that will save money on the state plan to join while not forcing others to further increase their cost of doing business. Sustainability of our health and human services system is becoming increasingly difficult. We appreciate the efforts of this committee and Representative Donovan to include our state’s nonprofits into the State employee healthcare plan. We urge you to pass HB 5536 and offer nonprofits another option for meeting their employees’ healthcare needs. Again, thank you for your attention to this complex and challenging problem. Please feel free to contact me with any questions or concerns. Thank you.














Oak Hill




Wheeler Clinic





The Governor’s Proposed Midterm Budget Adjustments SFY09- DSS Budget

Submitted By:

Frank R. Popkiewicz, Executive Director, Residential Management Services (RMS)


Repeal of the 2% Spending Cap on Room and Board Rates for Licensed CLA’s

We are a private nonprofit agency operating over forty CLA’s in Connecticut for people with developmental disabilities. We receive revenue from DSS to cover the cost of Room and Board expenses for the people we serve. In the past we have been compensated for our actual expenses with about an 18 month lag time, but compensated none the less. The 2% cap imposed by the legislature has a large impact on this agency. We have an anticipated loss based on our current expenses for this year of $156,648. I am writing to respectfully request that you reconsider, and repeal the 2% Spending Cap on licensed Community Living Arrangements (CLAs) which receive Room & Board funding through the Department of Social Services (DSS.) In closing, once again, I urge you to repeal of the 2% Spending Cap on room and board rates for licensed CLAs. Please do not hesitate to contact me with any questions, or for additional information: Frank R. Popkiewicz, Executive Director

Donna Marlow, Business Manager

RMS, Inc. 1-860-828-8635


TESTIMONY BEFORE THE PLANNING and DEVELOPMENT COMMITTEE PROPOSED BILL 5293 An Act Concerning Payments In Lieu of Taxes For Property of Nonprofit Organizations FEBRUARY 25, 2008 Senator Coleman, Representative Feltman, members of the Planning & Development Committee, I am Ron Cretaro, Executive Director of the Connecticut Association of Nonprofits which represents more than 500 nonprofit organizations across Connecticut. This proposed legislation would expand the current payments-in-lieu-of-taxes (PILOTS) FOR PROPERTY OF PRIVATE NONPROFIT COLLEGES AND HOSPITALS to include other nonprofit organizations. We would support that the PILOT program include arts & culture organizations as well as health care facilities such as community health centers and human service organizations. Many of our state’s towns and especially our larger cities have been host to many nonprofit organizations for decades, if not, several centuries. The presence of nonprofits while adding to the social capital and assisting communities and local government in meeting the needs of its citizens, nonetheless, also detracts from the revenues and grand list of the municipality given their tax exempt privilege. The State has chosen to correspondingly reimburse cities and towns for hospitals, colleges and universities and state owned property but not at full levels. Nor has the Legislature chosen to include other nonprofits organizations which occupy buildings and own property. This fact has engendered resentment among some town governments and, to be honest, among some legislators who feel their districts and communities have been beset by nonprofits, exacerbating their town’s financial difficulties. While we have strongly protested attempts by towns and cities to tax nonprofit organizations, we understand the situation facing our towns and cities. As nonprofits, we cannot succeed unless our towns and cities succeed. Nonprofits are good neighbors and contribute to the state’s economy and quality of Connecticut life. The mission of nonprofits is to improve the health and well-being of our local communities and serve the public good. This legislation proposes to mitigate the tax revenue loss borne by municipalities that have property owned by other nonprofit organizations besides hospitals and colleges. The State, municipalities, and the nonprofit community are partners in delivering vital programs & services to our citizens. We all share a common goal to strengthen our communities and we must work together to ensure that nonprofit providers and municipalities are adequately compensated


TESTIMONY BEFORE THE LABOR & PUBLIC EMPLOYEES COMMITTEE

HB 5536: AN ACT ESTABLISHING THE

CONNECTICUT HEALTHCARE PARTNERSHIP

By Ron Cretaro, Executive Director, Connecticut Association of Nonprofits

7 March 2008 Senator Prague, Rep. Ryan and members of the Labor Committee, I am Ron Cretaro, Executive Director of the Connecticut Association of Nonprofits. On behalf of our 520 members I wish to applaud this Committee, Rep. Donovan, Comptroller Wyman and others on including nonprofit organizations across the State in their proposal to give access to the state employee health plan. The passage of this legislation would signal another choice or option for nonprofits and small businesses in addressing their employees’ health benefit needs. Invariably, in the face of repeated significant annual rate increases, nonprofit leaders are confronted with the challenge of how to provide any wage increases while making health benefits less costly and affordable for their employees. It is a matter of sustainability and remaining competitive as the costs of operating increase while income and revenue become more difficult to obtain. For those state funded health and human service providers, annual double digit health insurance rate increases consume much of any cost of living increases, making it more challenging. What employer, nonprofit or other, would not want to be able to offer their employees a quality benefit plan as the state employee health plan. Offering the state plan would be a great benefit to employees that have high medical costs because there are very low co-pays for prescriptions and physician visits. The state plan could very well reduce the out-of-pocket expenses employees encounter. The issue will remain as to whether our members can afford the cost. Nonprofits with a smaller group will have health costs based on age and gender of the employee. Depending on the demographics of the organization, the state plan may be exceedingly attractive. There is some question of affordability for older individuals and women of child bearing age. An employer may be able to modify its contribution plan on health insurance in order to recognize the savings for its employees. Employees can pay more of the monthly premium in exchange for lower out-of-pocket medical costs. Larger employers that have the ability to leverage their size and offer multiple plans at lower costs may not find the state plan attractive. Nonprofits with less than 50 employees are locked into costs established for them and have little room to be "creative" in their benefits offerings. Another positive feature of the state plan is that insurance increases are capped at 8% annually while many nonprofits face increases in the teens each year. This plan would allow nonprofits to budget more efficiently. We appreciate the willingness of this proposal to include our state’s nonprofit community in efforts to control the high cost of health care.

Documents

Testimony 2008 - The Alliance: The Voice of Community ... · Testimony Before the Human Services Committee Regarding Senate Bill 562, An Act Concerning Increased Access to the