OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1201
AN ACT CONCERNING AUTHORIZATION OF STATE GRANT
COMMITMENTS FOR SCHOOL BUILDING PROJECTS AND
REVISIONS TO THE SCHOOL BUILDING PROJECTS STATUTES.
Primary Analyst: EMG 4/28/23
Contributing Analyst(s):
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 24 $ FY 25 $ Out Years $
Treasurer, Debt
Serv.
GF - Future Cost See Below See Below 1,278
million total
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 24 $ FY 25 $ Out Years $
Various
Municipalities
Future
Revenue
Gain
See Below See Below 824 million
Explanation
The bill approves a net increase of $824 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 $824 million
of GO bonds at market rates is $1,278 million.
The bill changes the statutory reimbursement range for new school
construction projects from 10-70% to 10-80%. It also allows federal funds
to be used as municipal share of project costs. Both provisions are
expected to result in increased state costs through higher levels of state 2023SB-01201-R000666-FN.DOCX Page 2 of 2
reimbursement for projects approved in the future. The impact of
increased reimbursement for future projects on the school construction
priority list will be reflected when such projects are considered by the
legislature in the future.
The Out Years
The ongoing fiscal impact identified above will continue into the
future subject to project completion, successful application for
reimbursement, and the costs of borrowing.