OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5681
AN ACT CONCERNING MUNICIPAL OPPORTUNITY
REIMBURSEMENT AND EDUCATIONAL EQUITY.
Primary Analyst: EMG 3/26/21
Contributing Analyst(s): MP
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect Out Years
Treasurer, Debt Serv. GF - Potential
Cost
See Below
Note: GF=General Fund
Municipal Impact:
Municipalities Effect Out Years
Various Municipalities Potential
Revenue
Gain
See Below
Explanation
The bill, which increases school construction reimbursement rates
for projects within "inclusive municipalities" after FY 23, represents a
potential cost to the state and potential revenue gain to municipalities.
To the extent municipalities qualify and are named "inclusive
municipalities" and undertake eligible school construction projects in
or after FY 24, municipal reimbursements from the state for such
projects would be 10 percentage points higher than they would be
otherwise. To the extent additional bond funds are authorized and
used due to the increased rates, there is potential for additional debt
service costs paid by the state.
This bill does not approve school construction projects or authorize 2021HB-05681-R000148-FN.DOCX Page 2 of 2
additional bond funds for school construction. Specific costs from
eligible projects, including the marginal increase from increased
reimbursement rate, would be determined when projects are
approved.
The Out Years
The ongoing fiscal impact identified above would continue subject
to project approval and bond fund authorization.