Russell Sees Progress In Reviving Baby Bonds

Erick Russell isn’t holding a grudge. He’s negotiating a solution.

That’s the state treasurer’s take on how he’s working toward a deadline to revive and launch a stalled plan to create ​“baby bonds” for low-income kids.

Russell became state treasurer in January, the first New Havener elected to statewide office since 1986.

In that role he inherited responsibility for implementing the baby bonds program. The state legislature created the program, which sets aside $3,200 at birth for kids born into families receiving HUSKY (Medicaid). Recipients would be able to access that money — estimated to accrue to $11,000 — upon turning 18 and could put that money toward buying a home, attending college, or starting a business.

Even though a Democratic legislature passed the bill creating the program, the administration whose governor signed the bill set about undermining it so that the program couldn’t be funded. Its start was delayed two years as a result.

Russell took the oath of office as an eye-popping CT Mirror report revealed internal emails that showed a top state official in an email to the governor’s chief of staff belittling Russell for thinking he’ll have any more success than his predecessor in getting the money to start the program.

Russell said in an interview Tuesday on WNHH FM that he is in fact making progress with both the governor’s office and the legislature to make good on a promise to start the program on July 1.

“I’m not one to feed into the gossip or the back and forth. I came in completely committed to this cause. We have worked diligently since coming in to make sure the program is ready to implement on July 1,” Russell said.

“I came in with a clean slate. I don’t know what all the dynamics were prior to me coming in. I’ve had conversations with the governor. We’ve been working closely with the administration.”

A key hurdle has been Gov. Ned Lamont’s refusal to place funding for the $600 million, 12-year program on the Bond Commission agenda, a required step following the legislature’s approval of using state borrowing to pay for the bonds.

Russell said his staff has had ​“productive” discussions with both Lamont’s staff and legislators on possible tinkering with the funding plan in order to address concerns. Those possible changes could include borrowing more money up front to start the program at a higher level in order to cut the long-term cost closer to $400-$500 million; using a borrowing vehicle other than general obligation bonds; drawing at least in part on general funds for the annual $50 million budget. He’s open to forgoing borrowing as long as money is found elsewhere.

“I feel very comfortable in our ability to get this done,” Russell said.

“The governor agrees with the treasurer that we should not be funding the operations of a human services program, like baby bonds, through the state borrowing. At a time when Connecticut has finally moved beyond lurching from one fiscal crisis to the next, it would be fiscally irresponsible to put a program like this on our credit card. Other funding mechanisms are better utilized for the program of this nature, and the governor is open to discussing that as part of a broader conversation,” stated gubernatorial spokesman Adam Joseph.

Joseph cited other initiatives Lamont has supported to address poverty-related challenges such as raising the minimum wage, ​“ensuring access to quality, affordable healthcare, and investing in quality childcare and public K‑12 education.”

Click on the video to watch the full conversation with State Treasurer Erick Russell Tuesday on WNHH FM, including legislative changes he’s seeking to attract and retain members of his investment team.

Also on WNHH Tuesday, former state prosecutor and gubernatorial aide and legislative Judiciary Committee Co-chair Mike Lawlor, currently a criminal justice professor and New Haven police commissioner, ran down how Connecticut’s cash-bail system is fundamentally corrupt and counterproductive with all the wrong incentives. He points to a move in New Jersey to replace a similar system as a possible solution for Connecticut. He also predicts that a bill supported by urban mayors and police chiefs — to increase how much of court-set bonds that repeat serious gun offenders must pay — would be ripe for a court challenge if it passes. Click on the above video to watch the full discussion.

Click on the above video to watch Mark Pazniokas, Capitol bureau chief for the CT Mirror, assess the chances this legislative session of passing a bill to guarantee ​“predictable schedules” for hourly workers at retail stores, restaurants, hotels and nursing homes — and who might get left out of a compromise. The interview with Pazniokas begins at the 48-minute mark of the video. The video begins with a discussion of New Haven emergency management chief Rick Fontana about storm response.