June 13, 2008

The Honorable Susan Bysiewicz

Secretary of the State

30 Trinity Street

Hartford, CT 06106

Dear Madam Secretary: 

I am hereby returning without my signature Senate Bill 678, An Act Establishing a Community-Based Health and Human Services Cabinet.  This bill creates another level of state administration and cost in the delivery of health and human service benefits to Connecticut residents at a time when efficiency and cost reduction measures are of utmost importance.  This additional layer of administration will only create ambiguity and lead to unnecessary costs.

The proposed Health and Human Services Cabinet (“Cabinet”) is charged with identifying funding issues, developing proposed budget recommendations, categorizing community providers and identifying best practices regarding funding structures for not-for-profit community providers that contract with the State.  Not-for-profit community providers offer a tremendous service to Connecticut residents and these providers admittedly have been struggling due to financial constraints, as are many other entities in both the public and private sector.  Another bureaucracy will not solve these financial problems but will undoubtedly lead to additional cost burdens for state government and taxpayers.

Moreover, another level of oversight is simply unnecessary and infringes upon executive branch and legislative authority.  The bill authorizes the Cabinet to formally comment and contract on matters that are executive branch functions by state statute and constitution.  While input into state government is encouraged and indeed improves its functioning, recommendations currently may be made through existing legislative and executive branch agencies - a new Cabinet only becomes duplicative.  As troubling as this is, the bill also provides for increasing the Cabinet’s far-reaching authority over the next four years, which would only continue to undermine executive branch authority. 

The creation of a new Cabinet disregards the established statutory scheme in which the executive branch is granted the supervisory authority of State contracts with not-for-profit community providers.  Senate Bill 678 gives a 24-member Cabinet, comprised of several legislative appointees, potential concurrent jurisdiction with the executive branch.  The Cabinet would have overlapping responsibilities with the Office of the Governor, Office of Policy and Management and several other executive branch agencies. Such duplication of roles reduces both the effectiveness of state programs and services and diminishes accountability.  Management should remain with those elected officials, constitutional officers and legislators who are in charge of program administration and budgeting by statute. 

A final disconcerting aspect of the legislation is that it authorizes another entity to enter into State contracts without any oversight.  The Cabinet is provided broad discretion to “contract with consultants having expertise in the areas of economics, labor, higher education or accounting to assist the board in carrying out its duties.” Several members of the Cabinet have little or no experience in state contracting policies and procedures.  In addition, such explicit authorization may result in significant financial expenditures by the State for undefined purposes.  The State cannot afford to spend money on more consultants for additional studies when it faces difficulties paying for its current programs and operations and is forced to take steps daily to avoid a budget deficit.  Unnecessary expenses should be stymied, not escalated, during these difficult economic times.

Ultimately it is the Office of the Governor, in conjunction with the Office of Policy and Management and in cooperation with the Legislature, that is responsible for the successful administration and budgeting of health services to Connecticut residents.  Endowing such management responsibilities in a Health and Human Services Cabinet would only reduce the efficacy and transparency of state government and increase the cost of such services, while providing no clear mechanism to ensure that the Cabinet’s administration is held accountable. 

For these reasons, pursuant to Section 15 of Article Fourth of the Constitution of the State of Connecticut, I am returning Senate Bill 678, An Act Establishing a Community-Based Health and Human Services Cabinet, without my signature. 

Very truly yours,

M. Jodi Rell

Governor