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Community action agencies urge review of state contracting and payment delays in HB 7232
Summary
Nonprofit service providers told the Appropriations Committee that slow contracting and delayed payments from multiple state agencies jeopardize services to vulnerable residents; they asked for a review of staffing, procurement tiers, master contracts and carry-forward authority.
Representatives of Connecticut's community action agencies and other nonprofit service providers told the Appropriations Committee that delays in state contract execution and payment create financial instability and threaten continuity of services.
Speakers from Thames Valley Council for Community Action (TVCCA), Access Community Action and the Human Resources Agency of New Britain described multi-month delays in contract execution and late reimbursements that forced agencies to front program costs, tap credit lines, lay off staff or defer services. TVCCA's CEO, Josh Kelly, told the committee TVCCA completed program work but did not receive reimbursement for one rapid rehousing program until January 2025, forcing the agency to front funds for an entire program year.
Witnesses asked the committee to support HB 7 2 32, a bill to review state contracting and payment processes, including staffing at agencies that handle contracts, tiered procurement processes that require multiple reviews, the viability of master contracts amendable over time, and the possibility of allocating prior-year carry-forward funds to sustain programs while contracts are delayed.
Nonprofits said they are ready to partner with the state on reforms but emphasized the moral imperative of fixing the systemic process failures that leave providers and clients exposed when payments and contracts are late. The committee took testimony and did not vote at the hearing.
