LCO 2926 \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05545-R03- HB.docx 1 of 6 General Assembly Committee Bill No. 5545 January Session, 2021 LCO No. 2926 Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT Introduced by: (HED) AN ACT CONCERNING TH E BUDGET OF THE CONN ECTICUT STATE COLLEGES AND UNIVERS ITIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 10a-8 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2021): 2 (a) The provisions of sections 4-77 and 4-78 shall not apply to the 3 constituent units of the state system of higher education, and for the 4 purposes of said sections only, the Board of Regents for Higher 5 Education shall be deemed the budgeted agency for the Connecticut 6 State University System, the regional community-technical college 7 system, [and] Charter Oak State College and the central office of the 8 Connecticut State Colleges and Universities. The Board of Regents for 9 Higher Education shall develop a formula or program-based budgeting 10 system to be used by each institution in preparing operating budgets. 11 The Board of Regents for Higher Education shall prepare a single 12 budget request itemized by the Connecticut State University System, the 13 regional community-technical college system, [and] Charter Oak State 14 Committee Bill No. 5545 LCO 2926 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05545- R03-HB.docx } 2 of 6 College and the central office of the Connecticut State Colleges and 15 Universities using the formula or program-based budgeting system and 16 shall submit such budget request displaying all operating funds to the 17 Secretary of the Office of Policy and Management in accordance with 18 sections 4-77 and 4-78, subject to procedures developed by the Board of 19 Regents for Higher Education and approved by said secretary. The 20 budget request shall set forth, in the form prescribed by the Board of 21 Regents for Higher Education, a proposed expenditure plan which shall 22 include: (1) The total amount requested for such appropriation account; 23 (2) the amount to be appropriated from the General Fund; and (3) the 24 amount to be paid from the tuition revenues of the regional community-25 technical college system, [and] the Connecticut State University System 26 and Charter Oak State College. After review and comment by the Board 27 of Regents for Higher Education, the proposed expenditure plans shall 28 be incorporated into the single public higher education budget request 29 including recommendations, if any, by said board. Any tuition increase 30 proposed by the regional community-technical college system, [and] the 31 Connecticut State University System and Charter Oak State College for 32 the fiscal year to which the budget request relates shall be included in 33 the single public higher education budget request submitted by the 34 Board of Regents for Higher Education for such fiscal year, provided if 35 the General Assembly does not appropriate the amount requested by 36 any such system or college, such system or college may increase tuition 37 and fees by an amount greater than that included in the budget request 38 in response to which the appropriation was made. The General 39 Assembly shall make appropriations directly to the constituent units. 40 Allotment reductions made pursuant to the provisions of subsections 41 (b) and (c) of section 4-85 shall be applied by the Board of Regents for 42 Higher Education among the appropriations to the constituent units and 43 the central office without regard to the limitations on reductions 44 provided in said section, except that said limitations shall apply to the 45 total of the amounts appropriated. The Board of Regents for Higher 46 Education shall apply such reductions after consultation with the 47 Secretary of the Office of Policy and Management. Any reductions of 48 more than five per cent of the appropriations of any constituent units 49 Committee Bill No. 5545 LCO 2926 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05545- R03-HB.docx } 3 of 6 shall be submitted to the appropriations committee which shall, within 50 thirty days, approve or reject such reduction. 51 (b) The boards of trustees of each of the constituent units may transfer 52 to or from any specific appropriation of such constituent unit a sum or 53 sums totaling up to fifty thousand dollars or ten per cent of any such 54 specific appropriation, whichever is less, in any fiscal year without the 55 consent of the Finance Advisory Committee. Any such transfer shall be 56 reported to the Finance Advisory Committee within thirty days of such 57 transfer and such report shall be a record of said committee. 58 Sec. 2. Subsection (b) of section 10a-77 of the general statutes is 59 repealed and the following is substituted in lieu thereof (Effective July 1, 60 2021): 61 (b) The Board of [Trustees of the Community-Technical Colleges] 62 Regents for Higher Education shall establish and administer a fund to 63 be known as the Regional Community-Technical Colleges Operating 64 Fund. Appropriations from general revenues of the state and, upon 65 request by the board and with an annual review and approval by the 66 Secretary of the Office of Policy and Management, the amount of the 67 appropriations for fringe benefits and workers' compensation 68 applicable to the regional community-technical colleges pursuant to 69 subsection (a) of section 4-73, shall be transferred from the Comptroller, 70 and all tuition revenue received by the regional community-technical 71 colleges in accordance with the provisions of subsection (a) of this 72 section shall be deposited in said fund. Income from student fees or 73 related charges; the proceeds of auxiliary activities and business 74 enterprises, gifts and donations; federal funds and grants for purposes 75 other than research, and all receipts derived from the conduct by the 76 colleges of their education extension programs and summer school 77 sessions shall be credited to said fund but shall be allocated to the central 78 office and institutional operating accounts which shall be established 79 and maintained for the central office and each community-technical 80 college. If the Secretary of the Office of Policy and Management 81 disapproves such transfer, the secretary may require the amount of the 82 Committee Bill No. 5545 LCO 2926 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05545- R03-HB.docx } 4 of 6 appropriation for operating expenses to be used for personal services 83 and fringe benefits to be excluded from said fund. The State Treasurer 84 shall review and approve the transfer prior to such request by the board. 85 [of trustees.] The board shall establish an equitable policy, in accordance 86 with section 10a-8, as amended by this act, for allocation of 87 appropriations from general revenues of the state, fringe benefits 88 transferred from the Comptroller and tuition revenue deposited in the 89 Regional Community-Technical Colleges Operating Fund. At the 90 beginning of each quarter of the fiscal year, the board shall allocate and 91 transfer, in accordance with said policy, moneys for expenditure in such 92 institutional operating accounts, exclusive of amounts retained for 93 central office operations and reasonable reserves for future distribution. 94 All costs of waiving or remitting tuition pursuant to subsection (f) of this 95 section shall be charged to the Regional Community-Technical Colleges 96 Operating Fund. Repairs, alterations or additions to facilities supported 97 by operating funds and costing one million dollars or more shall require 98 the approval of the General Assembly, or when the General Assembly 99 is not in session, of the Finance Advisory Committee. Any balance of 100 receipts above expenditures shall remain in said fund, except such sums 101 as may be required for deposit into a debt service fund or the General 102 Fund for further payment by the Treasurer of debt service on general 103 obligation bonds of the state issued for purposes of the regional 104 community-technical colleges. 105 Sec. 3. Subsection (b) of section 10a-99 of the general statutes is 106 repealed and the following is substituted in lieu thereof (Effective July 1, 107 2021): 108 (b) The Board of [Trustees of the Connecticut State University 109 System] Regents for Higher Education shall establish and administer a 110 fund to be known as the Connecticut State University System Operating 111 Fund. Appropriations from general revenues of the state and upon 112 request by the Connecticut State University System and with the annual 113 review and approval by the Secretary of the Office of Policy and 114 Management, the amount of the appropriations for fringe benefits 115 Committee Bill No. 5545 LCO 2926 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05545- R03-HB.docx } 5 of 6 pursuant to subsection (a) of section 4-73, shall be transferred from the 116 State Comptroller and all tuition revenue received by the Connecticut 117 State University System in accordance with the provisions of subsection 118 (a) of this section shall be deposited in said fund. Income from student 119 fees or related charges, the proceeds of auxiliary activities and business 120 enterprises, gifts and donations, federal funds and grants, subject to the 121 provisions of sections 10a-98 to 10a-98g, inclusive, and all receipts 122 derived from the conduct by a state university of its education extension 123 program and its summer school session shall be credited to said fund 124 but shall be allocated to the central office and institutional operating 125 accounts which shall be established and maintained for the central office 126 and each state university. Any such gifts and donations, federal funds 127 and grants for purposes of research shall be allocated to separate 128 accounts within such central office and institutional operating accounts. 129 If the Secretary of the Office of Policy and Management disapproves 130 such transfer, [he] the secretary may require the amount of the 131 appropriation for operating expenses to be used for personal services 132 and fringe benefits to be excluded from said fund. The State Treasurer 133 shall review and approve the transfer prior to such request by the 134 university. The board [of trustees] shall establish an equitable policy, in 135 accordance with section 10a-8, as amended by this act, for allocation of 136 appropriations from general revenues of the state, fringe benefits 137 transferred from the State Comptroller and tuition revenue deposited in 138 the Connecticut State University System Operating Fund. At the 139 beginning of each quarter of the fiscal year, the board shall allocate and 140 transfer, in accordance with said policy, moneys for expenditure in such 141 institutional operating accounts, exclusive of amounts retained for 142 central office operations and reasonable reserves for future distribution. 143 All costs of waiving or remitting tuition pursuant to subsection (f) of this 144 section shall be charged to the Connecticut State University System 145 Operating Fund. Repairs, alterations or additions to facilities supported 146 by the Connecticut State University System Operating Fund and costing 147 one million dollars or more shall require the approval of the General 148 Assembly, or when the General Assembly is not in session, of the 149 Finance Advisory Committee. Any balance of receipts above 150 Committee Bill No. 5545 LCO 2926 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-05545- R03-HB.docx } 6 of 6 expenditures shall remain in said fund, except such sums as may be 151 required for deposit into a debt service fund or the General Fund for 152 further payment by the Treasurer of debt service on general obligation 153 bonds of the state issued for purposes of the Connecticut State 154 University System. 155 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2021 10a-8 Sec. 2 July 1, 2021 10a-77(b) Sec. 3 July 1, 2021 10a-99(b) HED Joint Favorable APP Joint Favorable