Gov. Dannel Malloy’s administration announced they are cutting the budgets for the state’s watchdog agencies. The Office of State Ethics, the Freedom of Information Commission, and the State Elections Enforcement Commission will be subject to shrinking budgets at a time when the governor’s office is facing investigations from two of the agencies.

Just months ago, Malloy’s administration stated the agencies would not face cuts, but reversed its position soon after the Office of State Ethics voted to investigate the administration’s hiring of a former lobbyist to lead the regulatory review of a former client’s proposed merger. The timing has led to talk of the cuts being a form of retribution.

The State Elections Enforcement Commission also just levied a $325,000 penalty against Malloy’s state Democratic Party for pay-to-play violations, the subject of a new federal grand jury investigation. Heads of the agencies argue, however, the cuts are illegal under a 2004 law meant to prevent unilateral action by the governor.

The State Elections Enforcement Commission (SEEC) used unusually strong language while asking the Federal Election Commission (FEC) to prevent the Connecticut Democratic State Central Committee (CDSCC) from using federally designated funds for a state race. The state party has requested an advisory opinion from the FEC approving the use of funds in a federal campaign account to pay for a mailing encouraging the reelection of Gov. Dannel Malloy.

In a letter to the FEC, signed by all five members, the SEEC denounced the inquiry stating it would violate both the letter and spirit of state campaign finance laws. In response, the CDSCC argued it is simply seeking clarification where federal and state laws are in conflict.

Federal law requires certain “federal election activity,” potentially including mailings, be paid for with a minimum of 15 percent federal funds whereas Connecticut law requires state candidates be supported exclusively with state funds. The CDSCC believes, should its reading of the law be confirmed, federal law will preempt state statutes and the use of federal funds will be required.

Sebastian N. Giuliano, the former mayor of Middletown, Connecticut, has been chosen by the State Elections Enforcement Commission to serve as the agency’s executive director and general counsel.

The selection was announced Thursday night by commission chairman Stephen F. Cashman, but will not be formally approved until the commission’s January 18, 2012 meeting.

Giuliano was selected for the position from a field of 35 candidates. He is due to assume the duties of the position January 20, 2012.