DECD budget cuts trim arts, tourism grants; agency says priorities remain and will brief legislature

HARTFORD — The Department of Economic and Community Development told the Appropriations subcommittee on March 12 that the governors proposed budget eliminates a various grants line that funded arts and cultural organizations and reduces multiple tourism fund line items after lower-than-expected hotel-tax projections.

Commissioner Dan OKeefe and DECD officials defended the administrations approach while acknowledging the changes will prompt questions from lawmakers. "This was a difficult budget year...hard decisions had to be made," the commissioner said. He added the agency remains committed to the arts and to marketing tourism once fiscal conditions permit.

Why it matters: Legislators pressed DECD for data on tourism return on investment and asked for a breakdown of line items that were moved into the department from previously off-budget entities, including CTNext (innovation support) and the Social Equity Council (cannabis-related programs). Lawmakers asked for lists of grant recipients and program outcomes to evaluate the impacts of changes.

Key points

- Arts and tourism: An approximately $8.7 million "various grants" general-fund line that supported arts and cultural organizations was eliminated in the governors proposal. Several dedicated tourism fund line items were also reduced to bring the tourism fund into balance with estimated hotel-tax revenue.

- CTNext and innovation: The administration said some functions formerly funded through bond-authorized quasi-public activity (CTNext) are being rebuilt inside DECD; the commissioner said the work is considered valuable but historically funded through different mechanisms and the administration prefers appropriations for recurring program staff.

- Social Equity Council and cannabis fund: The governors proposal would treat the Social Equity Councils operating account differently (moving it off the line-item appropriation structure), prompting committee members to ask how oversight and reporting to the legislature will continue. Brandon McGee, executive director of the Social Equity Council, said monthly reports to the legislature are required by law and that the council will continue to provide reporting and remain subject to procurement and fiscal rules.

Legislator requests and next steps

Lawmakers asked for: tourism and hotel-tax revenue detail; lists of previous grant recipients for arts and Connecticut Grown programs; CTNext transition accounting; MRDA and CRDA roles and geographic coverage; and a clearer accounting of funds and positions moved into DECD. DECD agreed to supply the requested information for the working group and to brief legislators on the innovation, workforce and social equity transitions.

Ending: Several members said they would press for restored arts and tourism funding in later budget negotiations and asked DECD to provide ROI and recipient lists in advance of the March 12 working group meeting.