Analyst: BP Page 1 5/8/23
OFA Bill Analysis
HB 6660
AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET
RECOMMENDATIONS FOR GENERAL GOVERNMENT.
SUMMARY:
This bill makes various changes to the state's budget as discussed
below.
Section 1 changes the number of executive assistants that may be
permitted from four to two for each department head.
EFFECTIVE DATE: From Passage
Section 2 requires the Department of Economic and Community
Development to pay for the administrative costs of the Community
Investment Board. The bill disallows the use of bond proceeds to
support the administration of the Community Investment Fund 2030.
EFFECTIVE DATE: July 1, 2023
Sections 3 - 4 eliminate the sales and use tax transfer for the
Municipal Revenue Sharing Account (MRSA) and instead transfers the
funds into the new Municipal Revenue Sharing Fund, established in Sec.
5 of this bill.
Section 5 requires the following grants to be paid out of the
Municipal Revenue Sharing Fund (MRSF) beginning in FY 24: (1) motor
vehicle property tax grants paid out by August 1
st
annually, (2) payment
in lieu of taxes (PILOT) grants, known as Tiered PILOT, and (3) the
supplemental revenue sharing grant paid out by October 31
st
annually,
and (4) the Mashantucket Pequot and Mohegan grants. The bill requires
that the amount of each grant will be reduced proportionately if the total
exceeds the amount appropriated. 2023HB-06660-R00-BA.DOCX
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Section 5 also requires any remaining funds in MRSF accrued during
each fiscal year, be paid out by October 1
st
following the end of the
previous fiscal year as the municipal revenue sharing grant.
Sections 6-8 change the payment date for PILOT from May 30
th
to
September 30
th
annually. These sections also consolidate within one
section of statute the statutory payments paid out under the PILOT
grant to Voluntown, Branford, and New London for certain properties.
Sections 9 and 10 eliminate payments from the Municipal Revenue
Sharing Account (MRSA). Under Section 5 of this bill, these grants will
be paid out of the Municipal Revenue Sharing Fund beginning in FY 24.
EFFECTIVE DATE: July 1, 2023
Section 11-14 renames the Social Equity and Innovation Fund as the
Cannabis Social Equity and Innovation Fund. The bill also renames the
Prevention Recovery and Services Fund as the Cannabis Prevention
Recovery and Services Fund.
The bill requires any expenditures under these two funds to be made
only pursuant to appropriation by the General Assembly. The bill also
requires any remaining balance in the funds to be carried forward to the
next fiscal year.
The bill makes other clarifying and conforming changes related to the
two funds.
EFFECTIVE DATE: July 1, 2023
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Section 15 makes changes to the salaries for judges of the Superior
Court, Appellate Court, and Supreme Court including additional
compensation for judges who assume an administrative role for fiscal
years 2024 and 2025. The additional compensation for administrative
judges is currently $1,292 annually. This increases it to $1,318 in FY 24
and $1,344 in FY 25. The table below illustrates the changes to judges
salaries in this section.
Title Current
Salary
Fiscal Year
2024 Salary
Fiscal Year
2025 Salary
Chief Justice of the
Supreme Court
$226,711 $231,245 $235,870
Chief Court
Administrator
$217,854 $222,211 $226,655
Associate Judge
Supreme Court
$209,770 $213,965 $218,245
Chief Judge of
Appellate Court
$207,450 $211,599 $215,831
Appellate Court Judge $197,046 $200,987 $205,007
Deputy Chief Court
Administrator
$193,420 $197,288 $201,234
Superior Court Judge $189,483 $193,273 $197,138
EFFECTIVE DATE: July 1, 2023
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Section 16 makes changes to the rates of judge trial referees for fiscal
years 2024 and 2025. Judge trial referees are paid on a per diem basis in
addition to any retirement compensation and expenses.
Current Rate Fiscal Year 2024 Rate Fiscal Year 2025 Rate
$285 $291 $297
EFFECTIVE DATE: July 1, 2023
Section 17 makes changes to the salary of the Chief Family Support
Magistrate and the salaries of other family support magistrates for fiscal
years 2024 and 2025.
Title Current Salary Fiscal Year 2024
Salary
Fiscal Year 2025
Salary
Chief Family
Support
Magistrate
$164,932 $168,231 $171,595
Family support
magistrates
$156,973 $161,012 $163,315
EFFECTIVE DATE: July 1, 2023
Section 18 makes changes to the rates of family support referees for
fiscal years 2024 and 2025. Family support referees are paid on a per
diem basis in addition to any retirement compensation and expenses.
Current Rate Fiscal Year 2024 Rate Fiscal Year 2025 Rate
$245 $250 $255
EFFECTIVE DATE: July 1, 2023 2023HB-06660-R00-BA.DOCX
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BACKGROUND
Municipal Revenue Sharing Fund
The MRSF was established by May Special Session P.A. 16-2, Sec. 41
as a separate, nonlapsing fund. The act requires OPM to use the MRSF
to fund various grant programs to municipalities.
Municipal Revenue Sharing Account
The MRSA is a separate, nonlapsing General Fund account. It was
originally created in 2011 to fund certain property tax relief grants, but
its funding mechanism was significantly altered in 2015 via PA 15-244,
the FY 16 and FY 17 Budget. This account is funded by a diversion of
7.9% of the state’s 6.35% sales and use tax collections, but the revenue
diversion was delayed until FY 22.
In FY 22 and FY 23, the MRSA revenue funded: (1) motor vehicle
property tax grants, (2) PILOT grants, and (3) municipal revenue
sharing grants.
Under the FY 22-23 budget implementer, a portion of the sales and
use tax deposited into MRSA ($262.7 million in FY 22 and $276.3 million
in FY 23) was transferred back to the General Fund to support
appropriations for the motor vehicle tax grants and PILOT grants. The
remaining funds in MRSA then paid the balance of Tiered PILOT, and
finally the municipal revenue sharing account grant according to the
formula, at the close of each fiscal year.
Motor Vehicle Property Tax Grants
This grant, also referred to as the municipal transition grant or the car
tax grant, reimburses municipalities and districts for a portion of the
local revenue loss due to the statewide motor vehicle mill rate cap. A
municipality's motor vehicle mill rate, when combined with that of their
special taxing districts, must fall below the statewide cap.
PA 22-146 reduced the motor vehicle mill rate cap from 45 mills to
32.46 mills.
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Tiered PILOT Grants
Tiered PILOT grants consist of the State Property PILOT and College
and Hospital PILOT grants. These grants reimburse towns for the tax
loss resulting from the presence of state-owned land and state-owned
private college and hospital property. Towns generally receive a
percentage of taxes that would have been paid if not for the property's
exemption.
Prior to FY 22, PILOT grants were proportionately reduced in years
that appropriations were insufficient for full funding. PA 21-3 changed
the calculation required in those circumstances. The new calculation is
referred to as Tiered PILOT. This calculation guarantees towns a
minimum funding level, based on town wealth (as defined by Equalized
Net Grand List Per Capita, or ENGLPC). Towns in different wealth tiers
are guaranteed a specified percentage of the amount of PILOT funding
they are owed by the state.
Supplemental Revenue Sharing Grants
The bill's supplemental revenue sharing grant is a combination of
two statutory payments to towns: (1) the General Fund Municipal
Revenue Sharing grant and (2) the Municipal Stabilization grant.
Under current law, these are appropriated from the General Fund.
Under the bill, these grants will be combined under the new
supplemental revenue sharing grant.
Municipal Revenue Sharing Grants
Under current law, this grant is paid out at the close of each fiscal
year. The amount is determined by what is left in MRSA after the
balanced of Tiered PILOT is paid out. The grant is distributed to towns
based on population and mill rate.
Compensation of Judges and Constitutional Officers
Public Act No. 22-85 made changes that impacted salaries for
constitutional officers and tied them to the compensation for certain
judicial positions. The Governor receives the same annual salary as the
Chief Justice of the Supreme Court. The Lieutenant Governor, the 2023HB-06660-R00-BA.DOCX
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Treasurer, the Secretary, the Comptroller, and the Attorney General all
receive the same annual salary as a judge of the Superior Court.
Additionally, Workers Compensation Commissioners and Probate
Court judges receive an annual salary within a range that is based upon
the salary of a Superior Court judge.
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COMMITTEE ACTION
Appropriations Committee
Joint Favorable Substitute
Yea 44 Nay 8