CONNECTICUT HEALTH AND EDUCATION FACILITIES AUTHORITY (CHEFA) CHAIRPERSON (CGs § 10A-179)

The agency provides financing to nonprofit colleges and health care institutions to support construction of facilities such as dormitories, academic buildings, athletic facilities, clinics, hospitals, and laboratories. The legislature must confirm the appointment of a board member as chairperson. The legislature does not confirm the appointment of other board members.

QUESTIONS FOR NOMINEE

1. Why was CHEFA established and what is its purpose?

2. According to its most recent financial statement (June 30, 2006), CHEFA issued $ 982. 64 million in bonds in FY 06, about triple the amounts it issued in FY 04 and FY 05. What is the cause of the increased activity? Does CHEFA project similar levels of activity in FY 07? Over the next five years?

3. CHEFA provides financing for a wide range of entities, from hospitals and higher education institutions to private and charter schools and child care centers. Does CHEFA have the expertise needed to evaluate projects in all these different areas? Is CHEFA's charge too broad?

4. How should CHEFA's board of directors balance its responsibilities toward participating institutions, the people being served by those institutions, bondholders, and the state?

5. A November 22, 2006 report by the Office of Legislative Research (2006-R-0688) found that CHEFA has paid $ 246,900 in bonuses to 30 employees since February 17, 2005, the date the governor asked all quasi-public authorities to reassess their compensation and benefit policies to make them more consistent with those of state agencies. Will the CHEFA board take an active role in evaluating annual bonuses for CHEFA staff? What steps has the board taken to respond to the governor's request?

6. CHEFA's executive director has a base salary of $ 185,840 and, in addition, has received bonuses in excess of $ 32,000 in each of the last two fiscal years. What criteria does the CHEFA board use to establish salaries for high-ranking management staff? What evaluation does the board perform for the executive director and how does it set his annual bonus?

7. Although most of the institutions eligible for low-cost financing through CHEFA are nonprofit, the authority also helps for-profit nursing homes. What public benefit is gained from their eligibility for CHEFA financing?

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