At its first meeting Friday, board members of the Partnership for Connecticut sought to calm concerns about transparency around the $100 million in public funds that will go into the $300 million partnership — and spent over half of the three-hour session behind closed doors.
The foundation’s bylaws allow board members, including Gov. Ned Lamont and state legislators, to privately discuss any topic they choose, even though the foundation is using public funds.
“We have a special responsibility as public members to give people confidence and explain our decisions in an honest and transparent way, so people know what we’re doing for these kids and the schools,” said Lamont, who joined state legislators and philanthropist Barbara Dalio at the meeting. Billionaire Ray Dalio and Barbara Dalio donated $100 million to create the partnership earlier this year, with the agreement that the state would contribute $100 million and another $100 million would be raised from other sources.
When the General Assembly approved the unusual public-private arrangement this year, it exempted the partnership from open meeting and Freedom of Information laws. The partnership aims to fund programs for at-risk students in low-performing school districts to improve graduation rates and job training.
“We’re trying something new,” Lamont said. “We’ve always had the public sector, the private sector, and they’ve been two different worlds. I’m trying to find the best ways we can collaborate.”
Lamont explained that all board votes will take place in public, public board members will be available for comment, and meeting minutes will be released after each session.
In the public portion of the meeting, the partnership shared its current budget, list of 12 governing board directors, bylaws, a statement on its core values, and information in its search for a CEO. The board appointed Erik Clemons as chairman, Garrett M. Moran as treasurer, and Yvette Meléndez as secretary. Andrew Ferguson, a senior staff member of Dalio Philanthropies is serving in a temporary senior advisory role until a CEO is found.
Ferguson explained the partnership’s structure and governance. There are three top member classes above the board of directors. Barbara Dalio is the “philanthropic member,” and the governor is the “executive member.” These members also sit on the board of directors, along with the CEO.
The Legislative Member class includes Senate President Pro Tempore Martin M. Looney (D-New Haven) and Senate Minority Leader Len Fasano (R-North Haven), Speaker of the House Joe Aresimowicz (D-Berlin), and House Minority Leader Themis Klarides (R-Derby). Decisions made by the board must be approved by all three member classes.
Dalio stressed the importance of securing a CEO so the partnership can successfully raise $100 million, in addition to the $100 million donated by her family, and the $100 million matched by the state. She said it is difficult to “paint a picture” for prospective donors without the position filled.
“I think it’s important that we start putting things in place, so people know what the plan is,” she said, noting that every expenditure of and donation to the partnership will be made public.
While the foundation shared some industry benchmarks ranging from around $200,000 to $760,000, they are using to gauge the CEO’s salary, that discussion took place behind closed doors. When the CEO is found and the salary is set, it will have to be publicly approved in a vote.
Aresimowicz said that in his 16 years at the Capitol, he has learned that public deliberations lead to pandering more than problem-solving.
“It’s about time we have honest discussions free of political consequences,” he said. “You don’t get real [in public discussions], you don’t get to the root of the problem. … This transparency issue is being made way more than it is.”
Klarides disagreed.
“I want to state on the record my concerns with operating any of this partnership not in the full public view,” she said during the meeting. “I’ve made my intentions clear to comply with the Freedom of Information Act and my reservations about transparency on this board.”
She agreed to attend the executive session in this meeting, but asked the board to carefully consider these closed sessions in the future.
The board does not currently have a next meeting schedule, but will notify the public once one is planned.
Ray Dalio, a Greenwich resident and billionaire, is the state’s wealthiest resident. Bridgewater Associates, the world’s largest hedge fund, is headquartered in Westport. Dalio speaks frequently about the growing wealth gap in America and the need to radically reform capitalism.
Amanda Blanco can be reached at ablanco@courant.com.
