Connecticut 2021 Regular Session

Connecticut House Bill HB05545 Latest Draft

Bill / Comm Sub Version Filed 05/04/2021

                             
 
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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 Section 10a-8 of the general statutes is repealed and the 1 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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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