OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-7151
AN ACT REQUIRING THE OFFICE OF POLICY AND
MANAGEMENT TO PROVIDE TECHNICAL ASSISTANCE TO
CERTAIN MUNICIPALITIES.
Primary Analyst: LG 4/3/25
Contributing Analyst(s):
Reviewer: RW
OFA Fiscal Note
State Impact: None
Municipal Impact: See below
Explanation
The bill prohibits enforcement of the municipal spending cap in FY
26. This may reduce any potential revenue loss to municipalities in FY
26 that would have otherwise occurred to the extent they violated the
municipal spending cap and received a penalty.
1
Enforcement of the
municipal spending cap is through a reduction in the Municipal
Revenue Sharing Grant – MRSF which is comprised of funds paid out
at the end of each fiscal year.
2
Any impact is dependent on the extent a municipality violated the
spending cap and what funds are available for the grant used to enforce
the spending cap.
3
If there are no funds remaining in the Municipal
Revenue Sharing Fund for this grant at the end of the fiscal year, no
grant will be paid out.
4
Current projections show that no funds will be
1
As of March 24, 2025, no municipal spending cap violations have been enforced.
2
This grant is comprised of the remaining funds in the Municipal Revenue Sharing
Fund (MRSF) at the close of the fiscal year. The MRSF is funded via a sales tax revenue
diversion and a transfer from the General Fund. The following grants are paid out
from the MRSF (1) Tiered PILOT, (2) Motor Vehicle Tax Grant, (3) Supplemental
Revenue Sharing Grant, and (4) the Municipal Revenue Sharing Grant – MRSF.
3
The municipal spending cap violation penalty results in a 50-cent reduction for every
dollar spend over the cap.
4
There were no funds available at the close of FY 24 to be paid out in FY 25. 2025HB-07151-R000528-FN.DOCX Page 2 of 2
available at the close of FY 25 to be paid out for this grant in FY 26.
The bill also requires the Office of Policy and Management (OPM) to
provide technical assistance to municipalities upon request to help
determine if they will continue to be eligible for the Motor Vehicle Tax
grant. This does not result in a fiscal impact as OPM has the resources
and expertise necessary to provide this assistance.
The Out Years
State Impact: None
Municipal Impact: None