OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-11
AN ACT MAKING ADJUSTMENTS TO STATE REVENUE AND
CONCERNING CAPTIVE INSURANCE COMPANIES.
Primary Analyst: MM 4/21/22
Contributing Analyst(s): LD, CG, ES, CW, RJW
OFA Fiscal Note
State Impact: See Below
Municipal Impact: None
Explanation
General Fund estimated changes in $ millions
Policy Sec. FY 22 FY 23 FY 24 FY 25 FY 26
Adjust Property Tax Credit
Amount 1 0.0 (60.0) (60.0) (60.0) (60.0)
Restore Eligibility for Property
Tax Credit 1 0.0 (53.0) 0.0 0.0 0.0
Accelerate Schedule for Tax
Exemptions for Certain
Income from Pensions &
Annuities 2 0.0 (42.9) (29.3) (15.6) 0.0
Expand Student Loan Tax
Credit 3 0.0 (9.4) (9.9) (10.4) (10.9)
Reduce Revenue Replacement
from ARPA 4 (559.9) (250.0) 0.0 0.0 0.0
Transfer ARPA HCBS / SUD
Revenue from FY 22 to FY 23 5 (83.2) 83.2 0.0 0.0 0.0
Provide Tax Amnesty for
Certain Insurers 6-17 0.0 7.5 0.2 0.2 0.2
Designate "revenue cap"
equivalents to a Children's
Trust Account* 18 0.0 0.0 (319.9) (383.7) (451.3)
TOTAL (643.1) (324.6) (418.9) (469.5) (522.0)
*Newly established, separate non-lapsing account 2022SB-00011-R000608-FN.DOCX Page 2 of 3
Section 18 of the bill designates "revenue cap" equivalents to be
transferred out of the General Fund to a newly established, separate and
non-lapsing account, beginning in FY 24. The "revenue cap" percentages
under current law are unaffected
1
by the bill. The bill redirects these
resources from supporting the General Fund in the event of future
deficits or (in the case of operating surpluses) making deposits into
pension funds to reduce unfunded liabilities.
2
Through FY 26, up to
approximately $1,154.9 million in total could be redirected under the
bill. The impact will preclude future reductions in the unfunded pension
liability and the annual actuarially determined employer contribution
(ADEC).
"Revenue cap" requirements
Fiscal
Year
Maximum
appropriations as a
percentage of revenues
Budget surplus a.k.a.
"revenue cap"
requirement Total
2020 99.50% 0.50% 100.00%
2021 99.25% 0.75% 100.00%
2022 99.00% 1.00% 100.00%
2023 98.75% 1.25% 100.00%
2024 98.50% 1.50% 100.00%
2025 98.25% 1.75% 100.00%
2026 + 98.00% 2.00% 100.00%
1
The "revenue cap" requirement is scheduled to increase to 2.00% in FY 26 and remain
at that rate thereafter.
2
Provided that the Budget Reserve Fund remains at the 15% maximum of net total
General Fund appropriations, any additional General Fund operating surpluses
would be deposited into either of teachers or state employees' pension systems. 2022SB-00011-R000608-FN.DOCX Page 3 of 3
Section 4 of the bill reduces reliance on certain federal ARPA funds
to balance the State's FY 22 – FY 23 General Fund budget, as illustrated
below.
Use of Federal ARPA (State Fiscal Recovery Fund) as CT Revenue
(in $ millions)
Fiscal Year Original Budget sSB 11 Difference
2022 559.9 0.0 (559.9)
2023 1,194.9 944.9 (250.0)
TOTAL 1,754.8 944.9 (809.9)
The Out Years
State Impact: See table and analysis above
Municipal Impact: None