Connecticut releases plan to privatize dozens of group homes


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HARTFORD, Conn. (AP) — Gov. Dannel P. Malloy's administration released a plan Tuesday to privatize 40 group homes and other services for people with developmental and intellectual disabilities, a move the union representing hundreds of affected state employees warned will "decimate" the state of Connecticut's ability to provide services to the disabled.

Department of Developmental Services Commissioner Morna Murray submitted the fiscal year 2017 spending plan to Malloy's budget office, saying it "follows national trends and best practices for reducing publicly-run residential and larger institutional facilities." She said the plan, which is projected to save the agency nearly $70 million, continues to provide "cost-effective, community-based options" for individuals served by DDS.

It calls for cutting 605 related staff positions, 113 of which have already been eliminated. While Murray acknowledged the transition will "create personal challenges" for many dedicated state employees, she said the state is requesting that private provider agencies give hiring preference when possible to those workers displaced by the privatization initiative.

Jennifer Schneider, spokeswoman for SEIU 1199, New England, the union representing the affected state employees, said "The governor's proposal would decimate our state's ability to provide services for the disabled." She urged Malloy to find the money to keep the disabled "in the only home many of them have ever known."

While the plan by DDS could be revised throughout the fiscal year, Office of Policy and Management Secretary Ben Barnes said it reflects the "new economic reality" Connecticut is facing, referring to projected shrinking revenues.

"As the world changes, we must change with it and state government must provide high-level services more efficiently," he said.

Under the DDS budget plan, 40 state-run group homes will be converted into private group homes. It also includes the previously announced closures of the Ella T. Grasso Regional Center in Stratford and the Meriden Regional Center, congregate living facilities for people with severe developmental disabilities. There also are plans to privatize state-run day and in-home support services.

Gian Carl Casa, CEO of the Connecticut Community Nonprofit Alliance and a recent, former employee of Malloy's budget office, said his group appreciates that DDS recognizes that community providers are "the most cost-effective way to delivery high quality, life-sustaining services." But he urged his former employer, the Office of Policy and Management, to make sure the nonprofit agencies are part of the discussion going forward, to confirm there are adequate resources. For years, the nonprofit agencies have complained they do not receive adequate state funds to provide services in Connecticut's dual system, which has state- and privately-run services for people with various needs.

The new budget plan comes as SEIU 1199 releases the second in a series of television ads criticizing Malloy for cutting social services to help fix Connecticut's budget deficit problems. The latest spot questions why the state is reducing services while providing a $22 million loan and grant package to Bridgewater Associates, the world's largest hedge fund, to upgrade and expand its Connecticut facilities. Malloy has defended the authorization by the State Bond Commission, which he chairs, as a good investment for the state.

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