Lamont: Hartford Senator Should 'Step Back' After Audit

Governor Ned Lamont said Hartford Democrat Douglas McCrory should “step back” from his legislative duties after an independent audit found the state senator “largely determined” spending at a nonprofit accused of mismanaging $15 million in state funds.

The audit, commissioned by the Department of Economic and Community Development, examined the Hartford-based Compass Youth Collaborative and found McCrory wielded unusual influence over the organization’s financial decisions despite holding no official board position. The nonprofit received state funding to provide job training and youth services in Hartford’s North End.

“When you have this kind of serious allegation and this type of report, I think the senator should step back,” Lamont told reporters Thursday at the State Capitol. The governor stopped short of calling for McCrory’s resignation but said the findings raised questions about oversight of state funding.

McCrory, who represents Hartford’s 5th District and serves on the legislature’s Appropriations Committee, has denied wrongdoing. His office did not immediately respond to requests for comment Thursday.

The 47-page audit report details how McCrory directed hiring decisions, approved expenditures, and controlled day-to-day operations at Compass Youth Collaborative between 2019 and 2023. Auditors found the senator’s involvement “blurred the lines” between legislative oversight and operational control of a state-funded organization.

“Senator McCrory’s role extended far beyond typical legislative engagement with constituent organizations,” the report states. “His influence over personnel, programming, and financial decisions created governance issues that may have contributed to fiscal mismanagement.”

The Department of Economic and Community Development suspended funding to Compass Youth Collaborative in March after discovering unexplained expenditures and missing documentation for programs that served roughly 200 Hartford teenagers annually. State officials are now seeking to recover misspent funds.

Compass Youth Collaborative operated out of a renovated warehouse on Albany Avenue, offering job training, mentoring, and educational support to young people in Hartford’s predominantly Black and Latino North End neighborhoods. The program was designed to connect participants with employers and reduce youth unemployment in one of Connecticut’s poorest areas.

The audit found several concerning patterns in the organization’s spending. Compass paid $180,000 to a consulting firm with ties to McCrory without competitive bidding. The nonprofit also spent $45,000 on staff retreats at upscale hotels while basic program supplies went unfunded, auditors discovered.

Additionally, McCrory allegedly directed the hiring of several staff members, including relatives of political allies, according to the report. Former employees told auditors they received paychecks while performing minimal work, with some spending most of their time on activities unrelated to youth programming.

“The organization became a vehicle for patronage rather than public service,” said one former Compass employee who spoke on condition of anonymity. “Kids in the community deserved better.”

The controversy adds to mounting scrutiny of how Connecticut distributes millions in federal and state grants to community organizations. Legislative leaders have promised reforms to grant oversight processes, particularly for nonprofits with political connections.

Republican legislators seized on the audit findings to criticize Democratic leadership’s handling of grant programs. “This is exactly the kind of mismanagement Connecticut taxpayers are fed up with,” said House Minority Leader Vincent Candelora. “We need accountability, not excuses.”

The audit also revealed weaknesses in state oversight procedures. DECD officials acknowledged they conducted limited monitoring of Compass Youth Collaborative despite the organization’s history of late financial reports and staff turnover.

“We are implementing new protocols to ensure closer supervision of grant recipients,” said DECD Commissioner Alexandra Daum. “These findings are unacceptable and we will take steps to prevent similar situations.”

McCrory, 52, was first elected to represent Hartford’s 5th District in 2014 and previously served on the Hartford City Council. He has been a vocal advocate for increased state funding for urban education and workforce development programs.

The senator’s district includes some of Hartford’s most economically distressed neighborhoods, where median household income falls well below the statewide average. Residents have long complained about inadequate youth programming and limited job opportunities for young adults.

“Doug McCrory has done good work for this community,” said Hartford resident Maria Santos, whose teenage son participated in Compass programs. “But if money meant for our kids was wasted, that’s not right either.”

State ethics officials are reviewing whether McCrory’s involvement with Compass Youth Collaborative violated conflict-of-interest rules for legislators. The State Elections Enforcement Commission could also investigate potential campaign finance violations related to the consulting contracts.

The Department of Economic and Community Development has suspended all new grants to Hartford-area nonprofits while implementing enhanced oversight procedures. Existing programs serving Hartford youth will continue operating under increased state supervision.

Legislative leadership faces pressure to address the scandal before the General Assembly reconvenes in February. Politics & Government watchers expect Republican lawmakers to push for McCrory’s removal from the Appropriations Committee, which helps determine state spending priorities.

Democratic leaders have remained largely silent about McCrory’s future, though several privately expressed concern about the political fallout heading into the 2024 election cycle. Hartford Democrats worry the controversy could undermine voter confidence in the party’s stewardship of urban communities.

The audit recommends criminal referral for potential fraud charges, though no arrests have been made. The State’s Attorney’s Office for Hartford County confirmed it is reviewing the findings but declined further comment on any potential prosecution.

Compass Youth Collaborative officially ceased operations in August after losing its state funding. The organization’s former headquarters now sits empty, with program participants transferred to other Hartford nonprofits.