OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-12
AN ACT AUTHORIZING AND ADJUSTING BONDS OF THE STATE
FOR CAPITAL IMPROVEMENTS AND OTHER PURPOSES AND
CONCERNING THE CONNECTICUT BABY BOND TRUST
PROGRAM AND GRANTS FOR CERTAIN LAW ENFORCEMENT
EQUIPMENT AND HOMELESSNESS PREVENTION AND
RESPONSE.
Primary Analyst: EMG 4/22/22
Contributing Analyst(s):
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $
Treasurer, Debt Serv. GF - Cost See Below
Resources of the General Fund GF - Precludes
Revenue Gain
See Below
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 23 $
Various Municipalities Potential
Revenue
Gain
See Below
Explanation
BONDING
Table 1 below summarizes the increases and reductions made to
General Obligation (GO) bonds in FY 23.
1
1
The fiscal impact is limited to just those bond authorizations changed in the bill and
does not reflect the overall amount of bond authorizations effective under current law
in FY 23. 2022SB-00012-R000609-FN.DOCX Page 2 of 3
Table 1: FY 22 and FY 23 Increases and Reductions to GO, STO, and
CWF Bond Authorizations (in millions)
Description FY 23 $
General Obligation (GO) Bonds
New Authorizations 337.8
Changes to Prior Authorizations 128.0
Reductions to Current Authorizations (100.5)
NET TOTAL GO BONDS 365.3
Table 2 indicates the eventual total General Fund fiscal impact of the
bill, through debt service, if all bonds authorized by the bill are allocated
by the State Bond Commission and issued by the Office of the State
Treasurer. If new authorizations are fully allocated when effective, there
would be a cost to the General Fund for debt service of approximately
$18.3 million in FY 24. The remaining debt service costs identified in
Table 2 would be repaid after FY 24.
Table 2: Net GO Bond Authorizations and Estimated Total Debt
Service Cost (in millions)
Fiscal Year
Authorized
Authorization Amount $
Total Estimated Debt
Service Cost
1 $
2023 365.3 522.6
1
Debt service estimates based on market rates and repaid over 20 year terms.
Municipal Impact of Bonding Provisions
To the extent authorized bonds are allocated by the State Bond
Commission, new authorizations for multiple bond programs,
including programs regarding municipal traffic signals, municipal
purchase of electric buses, school HVAC construction, open space
conservation, and clean water programs, will result in potential revenue
gain to various municipalities.
Baby Bonds Program Changes 2022SB-00012-R000609-FN.DOCX Page 3 of 3
Besides the $50 million increase in GO bonds for the Baby Bonds
program reflected in the totals provided above, the bill eliminates the
FY 34 authorization for the program of $50 million. The bill also alters
technical and administrative aspects of the program. Future General
Fund debt service costs may be incurred sooner under the bill to the
degree that it causes future authorized GO bond funds to be available,
expended, or to be expended more rapidly than they otherwise would
have been.
The bill also exempts disbursements from the fund from state and
local taxes, which precludes a potential revenue gain to the state
beginning in FY 40.
The Out Years
To the extent that bonds are allocated and issued, debt service
payments may extend up to 20 years from the time, and under of the
terms, of issuance.