OPM outlines bond pacing, recommends $15 million IT increase for DEMHS electronic health records and LOSIP grant rollout

The Office of Policy and Management presented the governors proposed midterm revision to the fiscal-year 2025 capital plan and answered committee questions about pacing and targeted supplemental items.

OPM said the governor proposes roughly $131 million in additional GEO authorizations for FY25 and recommended adding $15 million to the IT capital-improvement program to replace ARPA-funded work (the department cited DEMHSelectronic health records and other agency IT needs). Secretary of OPM emphasized that moving ARPA-funded IT projects to bonding preserves ARPA operating flexibility while meeting capital cash-flow needs.

OPM staff said the LOSIP (local capital improvement) funds are being transitioned this year from a reimbursement entitlement to a direct-grant distribution, and that the $45 million LOSIP grants will be distributed in May under the new program rules. The secretary explained bond-pacing considerations: Connecticut's debt-service burden is relatively high among states, so the administration meters allocations to manage debt-service impacts and maintain credit ratings; OPM indicated at least one further allocation round likely in the fiscal year but that the office calibrates frequency and size with the governors office and rating agencies.

OPM also described unallocated pools intended as state match for federal IIJA/IRA projects (not yet requested by agencies such as DEEP/DPH) and announced an upcoming nonprofit capital grant announcement funded from existing allocations.

Next steps: OPM will finalize LOSIP grant mechanics and distribute grants in May; it will also work with agencies to identify federal-match requests to draw on the unallocated state-match pool and will return to the bond commission as projects mature.