State contracting board resumes meetings, but faces “dire” funding challenge

The State Contracting and Standards Board (SCSB) resumed its regular meetings following a long hiatus after former chairman Michael Walsh stepped down and Executive Director Greg Daniels halted meetings , but the board now faces a new challenge that could affect meetings and operations moving forward.

Newly appointed SCSB chairwoman Rochelle Palache and the rest of the board were informed by Daniels that they are running out of money and may have to cut back on meetings in fiscal year 2025.

Although the SCSB received funding to pay for its full complement of staff, there was no additional funding for operational expenses, which could leave the board short on the necessary funds to pay for board member fees — which were estimated to be roughly $29,000 — along with paper, pens, phones, service fees; essentially, all the necessities of running an agency.

According to Daniels and Chief Procurement Officer Jonathan Longman, they only have about $20,000 for operational costs in fiscal year 2025 and are actively requesting that the Office of Policy and Management (OPM) allow them to carry over funds into the next year.

“We were provided funding for staff but not for operations, which puts us in a difficult situation in fiscal year 25,” Daniels said. “Over the past several months the staff and I have been working diligently to get funding, operational funding, asking the legislature and well as OPM for funding for operations. We’ve fallen short and we’re still asking OPM for that funding.”

“The impact of not having that could be dire at this point,” Daniels continued. “And it may even impact our ability for our board to meet. What that means for our board, is that it may mean either having to be creative and either reduce meetings, possibly, or consolidate meetings, or something. We’re going to have to be creative in managing that.”

OPM has historically been a thorn in the side of the board, often opposing their funding requests, as the board has authority over state contracts, which comprise billions of dollars per year and can cancel those contracts if the board finds those contracts were made improperly. The board is not seeking much — $40,000 to $50,000 in operational costs – “a drop in the bucket” when it comes to state funding, Daniels said.

“We’re really trying to identify things we don’t need,” Longman said, noting that when they didn’t have a full staff, they were able to use staff funding to cover operational shortfalls. Now with a full staff, they no longer have that option. “We’re doing our best to try to make whatever pile of money we have work, but we recognize that next year is going to be a real challenge.”

Part of the problem is that this year’s budget adjustment wasn’t much of an adjustment. The General Assembly left the current budget in place and OPM denied their request for additional operational funding.

Board member Sal Luciano, however, expressed frustration that because the board had not been allowed to meet, they were unaware of the funding deficit and were unable to go to the legislature to request those funds.

“Instead, what was asked, without us knowing, which in terms of transparency, was a request for seven additional staff,” Luciano said. “As soon as that happened, I figured we weren’t going to get the additional seven staff, and we weren’t going to get the thirteen things that we as a board decided were important to this board.”

During the legislative session, a bill was put forward to give the SCSB oversight over Connecticut’s quasi-public agencies, and it included a funding request for additional staff – something the board never requested that Luciano likened to a “poison pill” during a tight budget session in which bills with even moderate fiscal notes were rejected. The legislation was passed in the Senate but did not come up for a vote in the House of Representatives.

“And now I’m hearing that the way the finances could work is if this board simply reduces the amount of meetings,” Luciano continued. “Excuse me if I’m a little bit angry but ironically, Bob Rinker never charged a cent to come here, I’ve never charged a cent to come here, and I’m not suggesting that board members lose any money for coming here, but I am suggesting that I find it fascinating the way to make the operational budget work is by reducing the amount of meetings that we come to, that we’re supposed to be supervising and guiding this agency.”

Board member Brenda Sisco offered that reducing meetings was only one potential way to save money that Daniels suggested, not the only way.

“That’s a potential option,” Sisco said, “but I think we still need to pursue the OE or getting a carry-forward put in. I know you’re taking issue with his comment, but he’s just sort of throwing things out there, not that we need to reduce this, but it’s just something we need to keep in the back of our minds.”

Daniels unilaterally shut down SCSB meetings following Walsh’s unexpected departure in February of 2024, claiming that under state statute the board could not nominate an interim chairperson while awaiting Gov. Ned Lamont’s next appointment, despite having used interim chairs in the past. The move led to in-fighting between some board members and Daniels before Lamont made his new nominations in June.

“We were in a rough patch. We had a chairman who stepped down and none of us knew he was going to step down,” Sisco said. “So yes, there’s been some issue going on with this board and trying to get the work done.”

“We have an issue, we need to get this funding,” Palache said. “And we need to do it together.”

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