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    Saturday, November 09, 2024

    Menapace challenging Cheeseman again in 37th House District

    Election 2024 logo

    Democrat Nick Menapace is making another bid for the 37th District seat held for four terms by state Rep. Holly Cheeseman, R-East Lyme.

    Menapace, 35, is a teacher who has brought a focus on education, housing and energy to more than 13,000 homes across East Lyme, Salem and Montville while knocking on doors.

    The proponent of reducing reliance on vehicles said he’s put 700 miles on his bicycle in his effort to introduce himself to potential constituents and talk about what’s on their minds.

    He described himself in an interview at Niantic’s Cafe SoL as a “regular person” who can relate to those concerns.

    “I love the idea of trying to be a person who everybody in the community, agree or disagree, feels that they are able to come to with a problem,” he said.

    Cheeseman, 69, positioned herself the same way in an interview at the East Lyme Public Library.

    The state representative in 2022 fended off Menapace with 52.1% of the vote.

    “I've walked in people's shoes,” she said. “I've known what it's like to lose a loved one, to take care of an aging parent, to have children who struggled with mental health issues, to really know what it’s like to worry ‘how do I pay my electricity bill?’”

    She said she’s been able to address those issues during her time in the legislature by working across the aisle.

    “Because voters want someone who's not going to be extreme, but recognizes that both sides have good ideas,” she said. “I will work with anyone who has an idea that will move Connecticut forward. And I will fight like hell against things I think will take us in the wrong direction and not improve the lives of my residents.”

    ‘Better off with more voices’

    Cheeseman was serving on the East Lyme Board of Selectmen when she first was elected to the state General Assembly in 2016. She served as executive director of the Niantic Children's Museum until she stepped down at the end of last year after almost a decade at the helm.

    A New London native, she attended Mount Holyoke College before moving to England for 11 years. She came with her late husband and children to East Lyme in 1990, going on to serve 18 years on the library board and three terms as a selectwoman.

    A widow since the death of her husband Ian Cheeseman in 2012, she remarried Salem Herbfarm owner Joe Duncan last year. Some readers in the runup to the election have questioned whether she continues to live in the district since her new husband lives in the part of Salem she does not represent.

    Cheeseman this past week said she has owned her house in Niantic since 1994.

    “Niantic is my home and my legal residence. I pay property taxes there, my cars are registered there, my mail comes there, my dog is licensed there,” she said. “Of course I spend time at the Herbfarm. Joe and I spend time at both houses.”

    In Hartford, the Republican who this term found herself in a House that’s three seats away from a veto-proof Democratic majority is calling for a new dynamic.

    “I believe we're better off with more voices. We got that in 2017 when we had the bipartisan budget because Republicans had a seat at the table,” she said.

    That’s when reforms known as “fiscal guardrails” were instituted because a tie in the Senate and a slim Democratic majority in the House allowed for compromise. The guardrails included new caps on spending and bonding, and a volatility cap that directs surplus revenue into the state's Rainy Day Fund.

    The guardrails since then have helped the state achieve budget surpluses, strengthen the Rainy Day Fund and pay down its pension debt.

    A ranking member of the powerful Finance, Revenue and Bonding Committee, she described herself as instrumental in getting Republican tax cuts included in the 2023 bipartisan budget despite a much larger Democratic majority.

    “And we saw the biggest ever tax decrease in Connecticut history,” she said. “We also fast forwarded the elimination of the tax on social securities and pensions and annuities.”

    She pointed to her involvement in the signature House bill on child care that established the Early Childhood Care and Education Fund and created a pilot initiative in New London County with child care expenses for participants split evenly among employees, employers, and the state.

    “I'm so proud that I was picked by the Finance Vice Chair Kate Farrar last year to work on the bill,” she said. “They don't work with someone they don't think is going to be able to collaborate and work in an effective way. And that bill passed unanimously in the House.”

    She said she looks at issues with an open mind and will always explain why she voted the way she did.

    Sometimes it comes down to the way things work in the legislature, where sweeping bills can include a wide range of ideas.

    “You've seen those bills,” she said. “It's 173 pages with 17 sections, and two of them are good. Five of them are awful and the rest do nothing.”

    When the bad outweighs the good, she said, she’s going to vote against it.

    Making housing affordable

    Menapace, who was born and raised in South Windsor, has been an educator for more than 10 years. In addition to working for a time at a school for indigenous students on the Pine Ridge Reservation in South Dakota, he taught at several schools closer to home. He lives with his wife in Niantic.

    He was elected to the East Lyme Planning Commission in 2023.

    Menapace in June resigned from the Norwich public school system. Documents obtained through a Freedom of Information request for his resignation letter and any complaints show he was placed on a roughly five-week paid administrative leave in late January while officials investigated an allegation that he had directed a student to go to the office to retrieve medication his wife had dropped off for him. That’s despite a policy that does not allow students to possess over-the-counter or prescription medications.

    Menapace this past week said it was silly for him to have sent a student to pick up the envelope. He said he didn’t realize there was over-the-counter medication inside.

    “I appreciate the responsibility of school administrations to investigate any potential issues,” he said. “In my circumstance, they found it to be a minor issue that did not impact my position with the school.”

    He said the incident had nothing to do with his decision to resign. He went on to work for a company that provides certified teachers for homebound students before recently accepting a position in the New London Public Schools’ Adult and Continuing Education program.

    Menapace cited the availability of housing as a critical issue. At a time when demand outstrips supply, inequities have been exacerbated by the national trend of large corporations buying up the available stock with stark local repercussions.

    Residents of a 60-unit apartment complex in Niantic are seeing their rent to spike by around $900 each after the building was purchased in June by a real estate investment firm. The move resulted in the establishment last month of the East Lyme Fair Rent Commission to give residents a place to bring their complaints about unreasonable increases.

    He said he would like to see the expansion of the state’s just-cause eviction law. Existing protections, which prevent landlords from raising rent by an unreasonable amount or refusing without good reason to renew a lease, are currently limited to renters who are 62 or older and those with disabilities.

    He’d also like to see legislation better regulate the corporate groups coming in and buying up large swaths of housing formerly owned by local landlords.

    He called for more accessible zoning laws to promote diverse housing options where single-family homes have dominated.

    “And that's something I've been screaming from the rooftops,” he said.

    The teacher also cited universal preschool as a priority to better prepare children for learning and to help reduce the cost to parents who would otherwise have to send their children to private programs.

    “That's something I would love to see us pursue stronger, and I think there is some interest,” he said.

    Electricity bills

    Both candidates acknowledged electricity costs are a pre-eminent concern.

    Eversource Energy and United Illuminating customers were shocked this summer by a so-called “public benefits” charge largely related to a 2017 decision by the state legislature to support continued operation of the Millstone nuclear power plant in Waterford. The deal required Eversource and United Illuminating to buy half of the plant's energy output through 2029.

    Menapace called out Cheeseman’s support for the power purchase agreement, which she has identified as one of her proudest accomplishments for the way it helped the power plant stay in business.

    “Here we are years later, being like ‘It didn’t work out so great, did it?’” he said.

    Cheeseman said the move saved 197 jobs in East Lyme, Salem and Montville alone.

    “At a time when dozens of nuclear power plants, including Dominion's own Kewaunee, Wisconsin, plant, were closing, Connecticut took decisive action to save Millstone, the largest electricity generator in New England, preserving 1,500 local jobs and saving the $2 billion cost of replacing that power with new capacity,” she said.

    She blamed state regulators for preventing utility companies from spreading out the cost over time when natural gas prices increased. She said regulators were also responsible for blocking utility companies from shutting off power to customers for four years because of the COVID-19 pandemic, leaving customers now to cover the unpaid bills.

    Cheeseman said Republicans continue to call for a special session to address high energy prices, though the majority party has not agreed to bring lawmakers back to Hartford this year.

    Both candidates agreed serious conversations on the topic of energy must happen.

    Cheeseman said lawmakers in the next session “need to sit down and really have a very straightforward discussion of Connecticut's energy future.”

    Menapace put it this way: “We need to be having more of a long-term plan.”

    e.regan@theday.com

    Connecticut has $37 billion in unfunded pension obligations and a history of mismanaging its pension program. How should the state pay down this pension debt? What changes would you propose, if any, to existing pension programs for state and municipal employees? Be specific.

    Holly Cheeseman

    Because of decades of underfunding, Connecticut’s pension liability is huge. In the fiscal year ending June 30, 2023, the state had to contribute $239,750,000 to cover the year’s actuarial requirement and $1,793,575,000 to cover accrued pension debt. Even with the fiscal guardrails in place, Connecticut pension debt increased from $34.2B in 2018 just before Lamont took office to $42.0B in 2023 figure and the unfunded liability improved only $1.1B. These figures do not include the costs of OPEB (Other Post Employment Benefits) like retiree health care. Including those, the state’s total indebtedness approaches $80 billion dollars.

    Huge wage increases are a large driver of the increase, which has offset the impact of the Volatility Cap special deposits and the budget surplus deposits - almost completely. The average state employee salary is $88,196, before the cost of benefits, according to the 2023 actuary’s report on the valuation of the state employee retirement system prepared for the office of the State Comptroller 2023. Retiree benefit payments: have gone from $1.9B to $2.6B annually, as outlined above.

    Given this situation, what can and should be done?

    One, increase the return on our pension fund investments. Last year, Professor Jeffrey Sonnenfeld, dean of the Yale School of Management, issued a report on the woeful underperformance of Connecticut’s pension investments because of decades of failed investments by the state’s Treasurers. (https://insights.som.yale.edu/insights/why-connecticuts-investments-are-underperforming) The state had lost billions of dollars in investment returns because of poor investment decisions, seeing returns among the lowest in the country. As a result, the Finance, Revenue and Bonding Committee, on which I serve as the ranking House member, convened a special informational session with Professor Sonnenfeld and the current state treasurer, Erick Russell. It became clear that the new treasurer was making critical and needed changes to improve that return, with returns last year of 11.5%.

    Maintaining these higher returns will yield huge benefits and improve the financial condition of the pension funds. position

    Two, limit pension size going forward. Over 1,600 CT employees receive pensions of over $100,000, with some receiving over $1 million dollars. Bear in mind that state retirees also receive free retiree health care for themselves and spouses as well as pensions. New York State limits pensions to the cost of the Governor’s salary. Consider similar limits.

    Three, control employee wage increases. Connecticut state employees received 33% wage increases over the last four years, which has added to pension costs. Consider smaller increases more in line with the private sector.

    Nick Menapace

    Connecticut’s $37 billion in unfunded pension obligations is a significant issue, and addressing it requires a balanced approach that protects Connecticut’s fiscal stability while honoring the commitments made to state and municipal employees. First, the state should focus on paying down this debt by making total actuarially determined contributions to the pension funds. We must maintain this disciplined approach to reduce the long-term costs associated with pension debt.

    The state should consider dedicating a portion of budget surpluses or unexpected revenues to paying down pension debt. This year, Democrats ensured we paid off nearly $1.1 billion in state debts and are projected to allocate another billion next year. Another strategy is to explore refinancing options at lower interest rates to reduce the cost of the debt over time. Finally, improving the investment performance of pension funds through prudent and diversified investment strategies can help close the funding gap.

    Maintaining transparency and accountability in managing pension funds is crucial. In the past, Connecticut allowed for pension contributions to be either skipped or underfunded, and those poor choices brought us to this current situation. By taking a measured and responsible approach, Connecticut can gradually reduce its pension liabilities while ensuring that retirees receive the benefits they’ve earned.

    Rents are unaffordable for many working, disabled and retired people and youth are losing hope that they’ll ever be able to afford a home. Do you believe the state needs more affordable housing? If yes, what specific proposals would you recommend to increase affordable housing? If no, why is more affordable housing not needed?

    Holly Cheeseman

    Addressing the affordable housing issue will require many approaches. We need to increase supply. As a member of the state bond commission, I have been active in supporting $115 million dollars in bond allocations for the Connecticut Housing Finance Authority (CHFA) Time to Own program, which provides down payment assistance for first time home buyers, I have also voted as a member of the bond commission for an additional $147,848,409 to support affordable housing in the state. However, that’s not enough when it comes to eastern Connecticut. I have been working with state Senator Cathy Osten to require CHFA to revisit the so-called 'opportunity score' for a particular town or region, which CHFA uses to allocate funding for tax credits for developers for affordable housing. Unfortunately, only 1% of the regions in Tolland, Windham and New London counties qualify as 'high' opportunity affordable housing investment areas under their current metric, compared to a 20% statewide average. We must fix that. We also need to build the skilled workforce to create more affordable housing by fully funding our vocational schools and reforming apprentice ratios, to allow more apprenticeships in the skilled trades.

    Connecticut should encourage socially minded investors, through tax credits or other incentives, to engage in “impact investing,” acquiring apartment buildings where rents are due to increase and accepting lower returns. The apartments are managed by housing nonprofits at affordable rent levels. Massachusetts offer enters an income tax deduction of up to $2,500. Ohio is implementing a refundable tax credit for rent payments. Let’s allow employers to offer Housing Savings accounts, similar to health savings accounts, to help with housing costs and create tax incentives for employees to offer low cost or no cost loans for down payments or rent deposits that can be forgiven once an employee has been with a company for 3-5 years.

    Nick Menapace

    Yes, the state needs more housing that is affordable for everyday people. A lot must be done in the short and long term to address this problem. First, we need to make zoning work better for regular people. Too many towns effectively outlaw any type of housing besides large-lot homes: this policy needs to work on keeping pace with demand and creates increased costs for municipalities. Encouraging alternative types of housing, especially denser housing, mixed-use developments, and accessory dwelling units, are alternatives that towns should embrace.

    One major concern I’ve heard is about 8-30g, a state law that allows developers to build affordable housing if towns haven’t met a certain threshold. While I share frustrations with the law giving developers too much power, the solution is for towns to proactively promote affordable housing organically. This can be done by embracing alternative types of housing.

    Additionally, we need to combat corporate groups that buy up housing, in turn driving up costs and increasing homelessness. The state legislature has the power to police these predatory practices. We’ve seen East Lyme adopt a Fair Rent Commission, and I believe the state should help more towns establish these commissions, especially as corporate groups push to acquire more properties. I’ve encouraged both Salem and Montville to explore this option.

    Is climate change a problem for the state? If yes, what specific proposals would you recommend to address climate change? If no, why is it not a problem?

    Holly Cheeseman

    The state needs to prepare for all changes, be it in our climate or our economy. We have an aging infrastructure, with roads, bridges and dams requiring repair and replacement. We face continued crises with our grid, due to forecast increased demand driven by policy decisions and limited generation and transmission capacity. How can we address these challenges in a way that recognizes the logistical and financial hurdles, utilizes innovative technologies and does so in a realistic and pragmatic way?

    Embrace energy efficiency. The state could achieve 40% of its carbon reduction goals by making buildings and homes energy efficient, while reducing energy costs at the same time The state should complete its own audit of state buildings and implement the efficiency upgrades. As a member of the state bond commission, I have voted to provide the Department of Energy and Environmental Protection $12 million dollars for Residential Energy Preparation Services (REPS) Program to remove health hazards and enable energy efficiency upgrades.

    Embrace hybrids. Rather than banning the sale of gas-powered cars and limiting the sale of hybrids to 20%, which would be required by the adoption of the California Emissions standards, allow the market to work. Motorists are increasingly buying hybrids, which have much more reasonable costs, to lower emissions on those most polluting short journeys and avoid the expense and practical limitations of full EVs.

    Create funding mechanisms to access federal dollars available for infrastructure upgrades. Other states have created infrastructure banks to provide the matching funds available to federal grants. A new infrastructure bank in neighboring Massachusetts will deposit interest from its rainy-day fund in the bank to have the money available for federal grants. Connecticut could explore a similar approach.

    Embrace new technology. In time we can have small modular reactors at the Millstone site for more carbon free electricity. We can produce green hydrogen and synthetic fuels and biofuels using nuclear and excess renewable resources to power the carbon-intensive heavy transportation and industry.

    Nick Menapace

    Climate change is a severe problem for Connecticut, the United States, and the entire planet. It's particularly concerning for shoreline communities like East Lyme, but it’s just as critical everywhere. The idea that this is even a question is astonishing to me. 2024 was the hottest summer on record in Connecticut. We face increased energy demands to combat rising temperatures, more frequent flooding, and rising ocean levels. These changes also lead to secondary effects, like increased bacteria in our rivers due to runoff, which can result in beach closures. Whether we want to accept it or not, our climate is changing.

    To address climate change, we must increase our share of renewable energy, mainly through decentralized programs, increasing supply while lowering consumer costs. I supported several solar energy proposals in last year’s legislative session, but unfortunately, they didn’t gain enough traction. Additionally, we must focus on planning, zoning, and infrastructure improvements to reduce our carbon footprint through increased public transportation. Preserving open spaces, especially wetlands, is crucial, as they help mitigate climate change by cooling the surrounding areas. By prioritizing the environment, we can preserve our homes and prepare for a greener, healthier future.

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