Substitute Senate Bill No. 1261, also known as Public Act No. 25-105, seeks to enhance the Alliance District Loan Subsidy Program by revising eligibility criteria and administrative guidelines. The bill repeals and replaces Section 10a-247 of the general statutes, introducing a new program that provides interest rate subsidies on loans for teachers, paraeducators, and school counselors in designated alliance districts, as well as individuals in high-priority occupations within these educational settings. It mandates the Connecticut Higher Education Supplemental Loan Authority to collaborate with the Commissioner of Education to establish the program's eligibility criteria and guidelines. Additionally, the bill repeals Section 10a-247a, creating provisions for a separate account to manage the loan subsidy program's funds and administrative expenses, while allowing a maximum funding of $7,000,000 for the expanded program.

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 for these bonds, restricting the authority from issuing new bonds if it would exceed the special capital reserve fund unless adequate funds are deposited at issuance. The bill also includes provisions for annual appropriations from the state General Fund to restore the special capital reserve fund to its required minimum and mandates repayment to the state for any amounts allotted once they are no longer needed. It caps the total outstanding bonds secured by the special capital reserve funds at $300 million and requires the authority to ensure program revenues cover all associated costs before issuing bonds for financing.

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