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, creating 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. The Connecticut Higher Education Supplemental Loan Authority is responsible for developing a memorandum of agreement with the Commissioner of Education to establish eligibility criteria and guidelines. Additionally, the bill repeals Section 10a-247a and introduces provisions for maintaining a separate account for the program, ensuring proper allocation of funds for its purposes and administrative expenses, with a maximum of $7,000,000 available for the expanded loan subsidy programs.

Furthermore, the bill amends existing law regarding the issuance of bonds by the authority, particularly concerning the management of special capital reserve funds. It establishes a "required minimum capital reserve" that must be maintained for bonds secured by these funds, prohibiting the issuance of new bonds if it would exceed the available amount in the special capital reserve fund. The authority is also allowed to use funds from the state General Fund to restore the special capital reserve to the required minimum level. The bill includes provisions for the repayment of state-allotted amounts and sets a cap of three hundred million dollars on the total amount of outstanding bonds. It mandates that the authority ensure sufficient revenues from the program to cover principal, interest, and associated costs, promoting fiscal responsibility in bond management.

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