Waste Of The Day: Grants For Winter Heating Bills Are Missing

Authored by Jeremy Portnoy via RealClearInvestigations,

Topline: The nonprofit New Opportunities, Inc. used $2.8 million in taxpayer funds meant for low-income families’ heating bills on its own operating expenses, according to the Connecticut Office of Policy and Management.

In a Dec. 22 letter obtained by CT Insider, CT Mirror and more, OPM Secretary Joshua Wojcik claims New Opportunities admitted to “impermissibly” using grant funds “to provide fiscal support for other organizational operations.”

Key facts: New Opportunities was founded in 1964 and now helps administer Connecticut’s federally funded Energy Assistance Program, which helps families earning 60% or less of the state median income pay their heating bills over the winter. 

The federal Administration for Children and Families, part of the U.S. Department of Health and Human Services, gives grant funding to Connecticut, which in turn sends it to nonprofits like New Opportunities. The nonprofits then pay energy companies to deliver oil, natural gas or another heat source to low-income families.

According to Wojcik’s letter, New Opportunities recently sent three checks worth $2.8 million to the energy company Eversource to pay for natural gas. The checks bounced when Eversource tried to cash them because New Opportunities had already used the grant money for unrelated expenses, and there were not enough funds left in its account. That is a violation of state and federal contracting rules, according to CT Mirror.

New Opportunities later paid Eversource $1.2 million of the balance, but $1.6 million was still missing as of Dec. 22.

Connecticut’s Department of Social Services barred New Opportunities from the Energy Assistance Program in the towns of Waterbury, Meriden and Torrington, CT Mirror reported. Wojcick also plans to appoint a representative to oversee all of New Opportunities’ spending and fire any board member who fails to “ensure that State or Federal funding was used for their intended purposes,” according to his letter.

Background: New Opportunities is almost entirely taxpayer-funded. It received $38.8 million in government grants in fiscal year 2024 from Connecticut, the U.S. Department of Agriculture and more, but only $995,000 from private grants and $1,700 from fundraising events, according to its most recent 990 tax form.

The nonprofit operated at a deficit of $1.6 million that year, according to an independent audit reviewed by the CT Mirror, which found there is “substantial doubt” about the nonprofit’s ability to remain solvent. 

President and CEO William Rybczyk still collected a $267,000 salary, part of over $12 million spent on payroll and benefits, the 990 form shows. Former President James Gatling, who retired in 2021, still earned over $100,000 in fiscal year 2024. 

Office expenses cost $480,000, and employee travel cost $427,000. The nonprofit runs food production and early childhood education programs in addition to its energy assistance program.

In fiscal year 2025, the nonprofit accepted $26.4 million from the State of Connecticut, according to records obtained by Open the Books.

Summary: The federal government has already approved $3.7 billion for Energy Assistance Programs around the country in 2026. As always, it’s vital that the government tracks every penny to ensure it reaches the families it’s intended for.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com