August 3, 2007

Senator Joseph Lieberman

706 Hart Office Building
Washington, DC 20510

Dear Senator Lieberman,

As we discussed on the telephone last week, I held a teleconference with Deputy Secretary of the Navy, Wayne Arny (DSN Arny).  The purpose of the call was to discuss how the State of Connecticut could partner with the Navy to make improvements to Submarine Base New London (Subase) in a manner that improves its military value and lessens its chance of being included on any future closure list in a potential future Base Realignment and Closure round. 

In my discussions with DSN Arny, he made it quite clear that it was the Navy’s position that it lacks the legislative authority to partner with the state or enter into leases with the state, as envisioned in proposals made by my Commission for the Economic Diversification of Southeastern Connecticut (Commission) early last winter.  In its Final Report, the Commission recommended the creation of a state Military Value Fund (Fund) that would provide funding for infrastructure improvements at the Subase, which would be repaid to the Fund via lease payments, interest free, over the course of a 15 year lease. 

At present it is the Navy’s position that it can only accept gifts from the state.  They are insistent that the federal Antideficiency Act prohibits the Navy from entering into long-term financial obligations the full costs of which are not included in current year appropriations.  They did, however, acknowledge that exceptions have been carved out via congressional acts to allow such partnerships between the Navy and others.  One such example is the Navy’s multi-year multi-million dollar contract for housing development at the Subase with GMH, Inc.

In light of the Navy’s position, I would request that you sponsor legislation that would allow for an exception to the Antideficiency Act, enabling the Navy to partner and/or enter into leases with Connecticut to make infrastructure improvements at the Subase.  In our telephone conversation of last week you shared a willingness to make such a proposal in the Senate.  With this letter, I am asking you to do so with all due haste.

Today we have an opportunity to take concrete action to lessen the chance of a future closure of the Subase.  However, current federal law appears to bar such a solution.  With your leadership and the support of the Connecticut delegation, I am certain this proposed change will facilitate a partnership that makes a significant and substantive impact on the Subase’s chances for long term survival.

Thank you once again for your generous offer to take the lead on making this legislative change happen.  If I can be of assistance in any way, please do not hesitate to contact my office.

Sincerely,

M. Jodi Rell

Governor