General Assembly Raised Bill No. 5432
February Session, 2018 LCO No. 1698
*01698_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
General Assembly
Raised Bill No. 5432
February Session, 2018
LCO No. 1698
*01698_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
AN ACT CONCERNING A PROPOSED STATEMENT OF ESTIMATED REVENUE.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 2-35 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):
(a) (1) All bills carrying or requiring appropriations and favorably reported by any other committee, except for payment of claims against the state, shall, before passage, be referred to the joint standing committee of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, unless such reference is dispensed with by a vote of at least two-thirds of each house of the General Assembly. Resolutions paying the contingent expenses of the Senate and House of Representatives shall be referred to said committee. Said committee may originate and report any bill [which] that it deems necessary and shall, in each odd-numbered year and subject to the provisions of subdivision (2) of this subsection, report such appropriation bills as it deems necessary for carrying on the departments of the state government and for providing for such institutions or persons as are proper subjects for state aid under the provisions of the statutes, for the ensuing biennium. In each even-numbered year, the committee shall originate and report at least one bill [which] that adjusts expenditures for the ensuing fiscal year in such manner as it deems appropriate. Each appropriation bill shall specify the particular purpose for which appropriation is made and shall be itemized as far as practicable. The state budget act may contain any legislation necessary to implement its appropriations provisions, provided no other general legislation shall be made a part of such act.
(2) In each odd-numbered year, prior to the reporting by such committee of any appropriations bill the committee deems necessary for carrying on the departments of the state government and for providing for such institutions or persons as are proper subjects for state aid under the provisions of the statutes, for the ensuing biennium, the joint standing committee of the General Assembly having cognizance of matters relating to state finance, revenue and bonding shall report a proposed statement of estimated revenue, based upon the most recent consensus revenue estimate or the revised consensus revenue estimate issued pursuant to section 2-36c, itemized by major source, for each appropriated fund, for the ensuing biennium.
(b) (1) The state budget act passed by the legislature for funding the expenses of operations of the state government in the ensuing biennium shall contain a statement of estimated revenue, based upon the [most recent consensus revenue estimate or the revised consensus revenue estimate issued pursuant to section 2-36c] proposed statement of estimated revenue reported under subdivision (2) of subsection (a) of this section, itemized by major source, for each appropriated fund, and supplied by the joint standing committee of the General Assembly having cognizance of matters relating to state finance, revenue and bonding. Commencing in the fiscal year ending June 30, 2018:
(A) Such itemization shall include the estimate for each major component of the personal income tax imposed pursuant to chapter 229 as follows: Withholding payments and estimated and final payments; and
(B) Commencing with the consensus revenue estimate or revised consensus revenue estimate maintained or revised not later than November 10, 2017, each consensus revenue estimate or revised consensus revenue estimate shall include a line item designated as the volatility adjustment that reflects the amount of the estimated transfer pursuant to subsection (a) of section 4-30a.
(2) The statement of estimated revenue applicable to each such fund shall include, for any fiscal year, an estimate of total revenue with respect to such fund, which amount shall be reduced by (A) an estimate of total refunds of taxes to be paid from such revenue in accordance with the authorization in section 12-39f, and (B) an estimate of total refunds of payments to be paid from such revenue in accordance with the provisions of sections 3-70a and 4-37.
(3) The total estimated revenue for each fund, as adjusted in accordance with this section, shall not be less than the total net appropriations made from each fund plus, for the fiscal year ending June 30, 2014, and each fiscal year thereafter, the amount necessary to extinguish any unassigned negative balance in each budgeted fund as addressed in the most recently issued annual report of the Comptroller published in accordance with section 3-115. On or before July first of each fiscal year, the joint standing committee of the General Assembly having cognizance of matters relating to state finance, revenue and bonding shall, if any revisions in such estimates are required by virtue of legislative amendments to the revenue measures proposed by said committee, changes in conditions or receipt of new information since the original estimate was supplied, meet and revise such estimates and, through its cochairpersons, report to the Comptroller any such revisions.
(c) If the state budget act passed by the legislature for funding the expenses of operations of the state government in the ensuing biennium or making adjustments to a previously adopted biennial budget contains state-wide budgeted reductions not allocated by a budgeted agency, such act shall specify the amount of such budgeted reductions to be achieved in each branch of state government.
Sec. 2. Subsection (a) of section 3-21 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2018):
(a) No bonds, notes or other evidences of indebtedness for borrowed money payable from General Fund tax receipts of the state shall be authorized by the General Assembly or issued except such as shall not cause the aggregate amount of the total amount of bonds, notes or other evidences of indebtedness payable from General Fund tax receipts authorized by the General Assembly but which have not been issued and the total amount of such indebtedness which has been issued and remains outstanding to exceed one and six-tenths times the total General Fund tax receipts of the state for the fiscal year in which any such authorization will become effective or in which such indebtedness is issued, as estimated for such fiscal year by the joint standing committee of the General Assembly having cognizance of finance, revenue and bonding in accordance with subsection (b) of section 2-35, as amended by this act. Credit revenue bonds issued pursuant to section 3-20j shall be considered as payable from General Fund tax receipts of the state for purposes of this subsection. In computing such aggregate amount of indebtedness at any time, there shall be excluded or deducted, as the case may be, (1) the principal amount of all such obligations as may be certified by the Treasurer (A) as issued in anticipation of revenues to be received by the state during the period of twelve calendar months next following their issuance and to be paid by application of such revenue, or (B) as having been refunded or replaced by other indebtedness the proceeds and projected earnings on which or other funds are held in escrow to pay and are sufficient to pay the principal, interest and any redemption premium until maturity or earlier planned redemption of such indebtedness, or (C) as issued and outstanding in anticipation of particular bonds then unissued but fully authorized to be issued in the manner provided by law for such authorization, provided, as long as any of such obligations are outstanding, the entire principal amount of such particular bonds thus authorized shall be deemed to be outstanding and be included in such aggregate amount of indebtedness, or (D) as payable solely from revenues of particular public improvements, (2) the amount which may be certified by the Treasurer as the aggregate value of cash and securities in debt retirement funds of the state to be used to meet principal of outstanding obligations included in such aggregate amount of indebtedness, (3) every such amount as may be certified by the Secretary of the Office of Policy and Management as the estimated payments on account of the costs of any public work or improvement thereafter to be received by the state from the United States or agencies thereof and to be used, in conformity with applicable federal law, to meet principal of obligations included in such aggregate amount of indebtedness, (4) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 1991, (5) all authorized indebtedness to fund the program created pursuant to section 32-285, (6) all authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year ending on or before June 30, 2002, (7) all indebtedness authorized and issued pursuant to section 1 of public act 03-1 of the September 8 special session, (8) all authorized indebtedness issued pursuant to section 3-62h, (9) any indebtedness represented by any agreement entered into pursuant to subsection (b) or (c) of section 3-20a as certified by the Treasurer, provided the indebtedness in connection with which such agreements were entered into shall be included in such aggregate amount of indebtedness, and (10) all indebtedness authorized and issued pursuant to section 3-20g. In computing the amount of outstanding indebtedness, only the accreted value of any capital appreciation obligation or any zero coupon obligation which has accreted and been added to the stated initial value of such obligation as of the date of any computation shall be included.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2018 2-35
Sec. 2 July 1, 2018 3-21(a)
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2018
2-35
Sec. 2
July 1, 2018
3-21(a)
Statement of Purpose:
To require, in odd-numbered years, that a proposed statement of estimated revenue be reported by the committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding prior to the reporting of certain appropriations bills by the committee of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]