OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-932
AN ACT CONCERNING AN ALLIANCE DISTRICT TEACHER
LOAN SUBSIDY PROGRAM.
Primary Analyst: EMG 4/5/21
Contributing Analyst(s): SB
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Treasurer, Debt Serv. GF - Potential
Cost
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill authorizes $7 million of General Obligation (GO) bonds
each fiscal year starting in FY 22. To the extent the new bonds
authorized are fully allocated and expended, there would be an
increase in annual General Fund debt service costs until such bonds
are fully repaid. At current market rates, total repayment costs over 20
years for $7 million of GO bond authorizations are estimated to be
approximately $10 million.
The bill creates an annual new GO bond authorization, which
would continue to add $7 million of new bond authorizations each
year until changed or repealed. Additional years of authorization past
the initial year would increase the potential costs proportionately – for
example, 10 years of authorizations would be $70 million of bond
authorizations at a total estimated debt service cost of $100 million.
However, when portions of an authorization are specified to
become effective in future years, the full authorization amount is
typically known at the time of adoption. If considered a valid 2021SB-00932-R000289-FN.DOCX Page 2 of 2
authorization, the total potential debt service cost is unknowable,
given the lack of a finite amount or time frame of the bond
authorization.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation and the terms of any bonds
issued.