Substitute Senate Bill No. 1261, also known as Public Act No. 25-105, seeks to expand the Alliance District Loan Subsidy Program by revising eligibility criteria and administrative guidelines. The bill repeals and replaces Section 10a-247, establishing a new program that subsidizes interest rates on loans for teachers, paraeducators, and school counselors in designated alliance districts, as well as individuals in high-priority occupations within these educational settings. Additionally, it mandates the Connecticut Higher Education Supplemental Loan Authority to collaborate with the Commissioner of Education to set the program's eligibility criteria and guidelines. The bill also repeals and replaces Section 10a-247a, ensuring the funding account for the loan subsidy program remains nonlapsing and includes state appropriations and bond proceeds, while allowing a maximum of $7,000,000 for the expanded loan subsidy programs.

Furthermore, the bill amends existing law regarding the issuance of bonds by the authority, particularly those secured by a special capital reserve fund. It establishes a "required minimum capital reserve" that must be maintained, which can be adjusted based on the authority's resolution. The authority is prohibited from issuing new bonds if it would exceed the available amount in the special capital reserve fund unless sufficient funds are deposited at issuance. The bill also allows for annual appropriations from the state General Fund to restore the special capital reserve fund to its required minimum and includes provisions for the repayment of state-allotted funds once they are no longer needed. Additionally, it caps the total amount of outstanding bonds at three hundred million dollars, ensuring that revenues from the financed programs cover all associated costs. Overall, the legislation aims to enhance the financial stability and accountability of the authority while supporting educators and professionals in high-demand roles.

Statutes affected:
Raised Bill:
HED Joint Favorable Substitute:
File No. 172:
Public Act No. 25-105: