| 18 | | - | (a) [After the accounts for the General Fund have been closed for each fiscal year and the Comptroller has determined the amount of unappropriated surplus in said fund, after any amounts required by provision of law to be transferred for other purposes have been deducted, the amount of such surplus shall be transferred by the State Treasurer to a special fund to be known as the Budget Reserve Fund.] The Treasurer shall transfer the following amounts into a special fund to be known as the Budget Reserve Fund: (1) Any net General Fund revenue for the fiscal year in progress in the revised consensus revenue estimate issued on January fifteenth pursuant to section 2-36c, that is in excess of the statement of estimated revenue for the fiscal year in progress contained in the most recent state budget act passed by the legislature; (2) any amounts received from a sale of surplus state property pursuant to subsection (c) of section 4b-21; (3) any net General Fund revenue for the fiscal year in progress in the revised consensus revenue estimate issued on April thirtieth pursuant to section 2-36c, that is in excess of the revised consensus revenue estimate for the fiscal year in progress issued on the immediately preceding January fifteenth pursuant to section 2-36c, not including any amounts transferred pursuant to subdivision (1) of this subsection; and (4) an amount equal to any unappropriated surplus remaining in the General Fund after any amounts required by provision of law to be transferred for other purposes have been deducted as determined by the Comptroller after the accounts for the General Fund have been closed for each fiscal year. The Treasurer shall transfer the amount in subdivision (1) of this subsection not later than five days after the Comptroller issues the January cumulative monthly financial statement pursuant to section 3-115. The Treasurer shall transfer the amount in subdivision (3) of this subsection not later than five days after the Comptroller issues the April cumulative monthly financial statement pursuant to section 3-115. |
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| 20 | | - | (b) When the amount in said fund equals [ten] fifteen per cent of the net General Fund appropriations for the fiscal year in progress, no further transfers shall be made by the Treasurer to said fund and the [amount of such surplus] amounts listed in subsection (a) of this section in excess of that transferred to said fund shall be deemed to be appropriated to the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the system as set forth in the most recent actuarial valuation certified by the Retirement Commission. Such [surplus] amounts listed in subsection (a) of this section in excess of the amounts transferred to the Budget Reserve Fund and the state employees retirement system shall be deemed to be appropriated for: (1) Redeeming prior to maturity any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state; (2) purchasing outstanding indebtedness of the state in the open market at such prices and on such terms and conditions as the Treasurer shall determine to be in the best interests of the state for the purpose of extinguishing or defeasing such debt; (3) providing for the defeasance of any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state by irrevocably placing with an escrow agent in trust an amount to be used solely for, and sufficient to satisfy, scheduled payments of both interest and principal on such indebtedness; or (4) any combination of these methods. Pending the use or application of such amount for the payment of interest and principal, such amount may be invested in (A) direct obligations of the United States government, including state and local government treasury securities that the United States Treasury issues specifically to provide state and local governments with required cash flows at yields that do not exceed Internal Revenue Service arbitrage limits, (B) obligations guaranteed by the United States government, and (C) securities backed by United States government obligations as collateral and for which interest and principal payments on the collateral generally flow immediately through to the security holder. |
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| 22 | | - | [(b)] (c) Moneys in said Budget Reserve Fund shall be expended only as provided in this subsection. When in any fiscal year the Comptroller has determined the amount of a deficit applicable with respect to the immediately preceding fiscal year, to the extent necessary, the amount of funds credited to said Budget Reserve Fund shall be deemed to be appropriated for purposes of funding such deficit. |
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| 24 | | - | [(c)] (d) The Treasurer is authorized to invest all or any part of said fund in accordance with the provisions of section 3-31a. The interest derived from the investment of said fund shall be credited to the General Fund. |
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| 30 | + | (a) [After the accounts for the General Fund have been closed for each fiscal year and the Comptroller has determined the amount of unappropriated surplus in said fund, after any amounts required by provision of law to be transferred for other purposes have been deducted, the amount of such surplus shall be transferred by the State Treasurer to a special fund to be known as the Budget Reserve Fund.] The Treasurer shall transfer the following amounts into a special fund to be known as the Budget Reserve Fund: (1) An amount equal to fifty per cent of any projected surplus in the General Fund for the current fiscal year as determined in the Comptroller's January cumulative monthly financial statement pursuant to section 3-115; (2) any amounts received from a sale of surplus state property pursuant to subsection (c) of section 4b-21; (3) any amounts in excess of the estimated revenues in the revised consensus revenue estimate issued on April thirtieth pursuant to section 2-36c; and (4) an amount equal to any unappropriated surplus remaining in the General Fund after any amounts required by provision of law to be transferred for other purposes have been deducted as determined by the Comptroller after the accounts for the General Fund have been closed for each fiscal year. The Treasurer shall transfer the amount in subdivision (1) of this subsection not later than five days after the Comptroller issues the January cumulative monthly financial statement pursuant to section 3-115. When the amount in [said fund] the Budget Reserve Fund equals [ten] fifteen per cent of the net General Fund appropriations for the fiscal year in progress, no further transfers shall be made by the Treasurer to said fund and the amount of such surplus in excess of that transferred to said fund shall be deemed to be appropriated to the State Employees Retirement Fund, in addition to the contributions required pursuant to section 5-156a, but not exceeding five per cent of the unfunded past service liability of the system as set forth in the most recent actuarial valuation certified by the Retirement Commission. Such surplus in excess of the amounts transferred to the Budget Reserve Fund and the state employees retirement system shall be deemed to be appropriated for: [(1)] (A) Redeeming prior to maturity any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state; [(2)] (B) purchasing outstanding indebtedness of the state in the open market at such prices and on such terms and conditions as the Treasurer shall determine to be in the best interests of the state for the purpose of extinguishing or defeasing such debt; [(3)] (C) providing for the defeasance of any outstanding indebtedness of the state selected by the Treasurer in the best interests of the state by irrevocably placing with an escrow agent in trust an amount to be used solely for, and sufficient to satisfy, scheduled payments of both interest and principal on such indebtedness; or [(4)] (D) any combination of these methods. Pending the use or application of such amount for the payment of interest and principal, such amount may be invested in [(A)] (i) direct obligations of the United States government, including state and local government treasury securities that the United States Treasury issues specifically to provide state and local governments with required cash flows at yields that do not exceed Internal Revenue Service arbitrage limits, [(B)] (ii) obligations guaranteed by the United States government, and [(C)] (iii) securities backed by United States government obligations as collateral and for which interest and principal payments on the collateral generally flow immediately through to the security holder. |
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| 28 | | - | Sec. 3. Section 10a-8c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): |
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| 30 | | - | (a) Except as provided in subsection (b) of this section, notwithstanding the provisions of sections 10a-77a, 10a-99a, 10a-109c, 10a-109i and 10a-143a, no funds shall be appropriated to the Office of Higher Education for grants pursuant to subdivision (2) of subsection (a) of section 10a-77a, subdivision (2) of subsection (a) of section 10a-99a, subdivision (2) of subsection (b) of section 10a-109i and subdivision (2) of subsection (a) of section 10a-143a: (1) Until such time as the amount in the Budget Reserve Fund, established in section 4-30a, as amended by this act, equals [ten] fifteen per cent of the net General Fund appropriations for the fiscal year in progress, (2) the amount of the grants appropriated shall be reduced proportionately if the amount available is less than the amount required for such grants, and (3) the amount of funds available to be appropriated during any fiscal year for such grants shall not exceed twenty-five million dollars. |
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| 32 | | - | (b) Endowment fund eligible gifts that meet the criteria set forth in subdivision (2) of subsection (a) of section 10a-77a, subdivision (2) of subsection (a) of section 10a-99a, subdivision (2) of subsection (b) of section 10a-109i and subdivision (2) of subsection (a) of section 10a-143a made by donors during the period from January 1, 2005, to June 30, 2005, shall be matched by the Office of Higher Education in an amount equal to one-half of the total amount of endowment fund eligible gifts received. The board shall transfer the amount of the match to the endowment funds of the constituent units in accordance with section 10a-8b. |
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