OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6617
AN ACT CONCERNING AUTHORIZATION OF STATE GRANT
COMMITMENTS FOR SCHOOL BUILDING PROJECTS AND
REVISIONS TO THE SCHOOL BUILDING PROJECTS STATUTES.
Primary Analyst: EMG 5/5/21
Contributing Analyst(s):
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $ Out Years $
Treasurer, Debt
Serv.
GF - Future Cost See Below See Below 635 million
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $ Out Years $
Various
Municipalities
Future
Revenue
Gain
See Below See Below 450 million
Explanation
The bill approves a net increase of $450 million in state grant
commitments for school construction projects, which represents
potential revenue gain for the specified municipalities. The grants-in-
aid will be financed through the issuance of General Obligation (GO)
bonds in future fiscal years. The bill does not authorize new GO bonds.
The projected debt service cost to the General Fund to issue $450
million of GO bonds at market rates is $635 million.
The bill makes several changes to contracting requirements for the
school construction process and adds new requirements regarding
inclusion of water bottle filling stations. To the extent these changes
alter the total cost of future projects, the altered cost would be shared 2021HB-06617-R000647-FN.DOCX Page 2 of 2
between municipalities and the state at the appropriate reimbursement
ratio.
The Out Years
The ongoing fiscal impact identified above will continue into the
future subject to project completion, successful municipal application
for reimbursement, and the costs of borrowing.