OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
EMERGENCY CERTIFICATION
HB-5518
AN ACT AUTHORIZING AND ADJUSTING BONDS OF THE STATE
FOR CAPITAL IMPROVEMENTS, TRANSPORTATION AND OTHER
PURPOSES, AND CONCERNING MUNICIPAL REPORTS ON
CERTAIN PROPERTY TAX EXEMPTIONS, VALIDATION OF A
REFERENDUM AND HIGHWAY PROJECTS.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 20 $ FY 21 $
Treasurer, Debt Serv. GF - Cost See Below See Below
Treasurer, Debt Serv. TF - Cost See Below See Below
Note: GF=General Fund; TF=Transportation Fund
Municipal Impact:
Municipalities Effect FY 20 $ FY 21 $
All Municipalities Revenue See Below See Below
Gain
Explanation
Table 1 below summarizes the increases and reductions made to
General Obligation (GO) bonds, Special Tax Obligation (STO) bonds,
and Clean Water Revenue (CWF) fund bonds in FY 20 and FY 21.
Table 1: FY 20 and FY 21 Increases and Reductions to GO, STO, and
CWF Bond Authorizations (in millions)
Description FY 20 $ FY 21 $
General Obligation (GO) Bonds
Primary Analyst: EMG 3/11/20
Contributing Analyst(s): AB, WL
Reviewer: MM
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New Authorizations 1,547.0 1,518.5
Reductions to Current Authorizations (3.4) -
Changes to Prior Authorizations Effective in (140.4) 119.8
Biennium
NET TOTAL GO BONDS 1,403.2 1,638.3
Special Tax Obligation (STO) Bonds
NET TOTAL STO BONDS 777.6 782.4
Clean Water Fund (CWF) Revenue Bonds
NET TOTAL CWF BONDS - 84.0
Table 2 indicates the eventual total General Fund fiscal impact of the
bill, through debt service, if all bonds authorized by the bill are
allocated by the State Bond Commission and issued by the Office of
the State Treasurer. If new authorizations are fully allocated when
effective, there would be a cost to the General Fund for debt service of
approximately, $70.2 million in FY 21. The remaining debt service costs
identified in Table 2 would be repaid after the biennium.
Table 2: Net GO Bond Authorizations and Estimated Total Debt
Service Cost (in millions)
Fiscal Year Total Estimated Debt
Authorization Amount $
Authorized Service Cost1 $
2020 1,403.2 2,007.6
2021 1,638.3 2,343.9
TOTAL 3,041.5 4,351.5
1 Debt service estimates based on market rates and repaid over 20 year terms.
Table 3 indicates the eventual total Special Transportation Fund
(STF) fiscal impact of the bill, through debt service, if all Special Tax
Obligation (STO) bonds authorized by the bill are allocated by the
State Bond Commission and issued by the Office of the State Treasurer.
If new STO authorizations are fully allocated, there would be an
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annual cost to the STF for debt service of approximately, $62.4 million
from bonds authorized in FY 20 and $62.8 million from funds
authorized in FY 21. Total debt service costs for STO bond
authorizations are identified in Table 3, most of which would be repaid
after the biennium.
Table 3: STO Bond Authorizations and Estimated Debt Service Cost
for the Infrastructure Improvement Program (in millions)
Fiscal Year Total Estimated Debt
Authorization Amount $
Authorized Service Cost 1 $
2020 777.6 1,248.0
2021 782.4 1,255.6
TOTAL 1,560.0 2,503.6
1 Debt service estimates based on market rates and repaid over 20 year terms.
Clean Water Fund Revenue Bonds
Clean Water Fund Revenue bonds are issued and repaid using the
resources of the Clean Water Fund. These bonds are not expected to
have an impact on appropriated funds.
Municipal Impact of Bonding Provisions
To the extent authorized bonds are allocated by the State Bond
Commission, the bill will result in a collective municipal revenue gain
of at least $166 million in each of FY 20 and FY 21, including revenue
from three programs (Local Capital Improvement Program (LoCIP) -
$30 million each year, Town Aid Road (TAR) - $60 million each year,
and Grants for Municipal Purposes - $76 million each year). New
authorizations for multiple other bond programs, including programs
regarding school construction, urban development projects, and
drinking water programs, will also result in additional revenue gain to
various municipalities.
The Out Years
To the extent that bonds are allocated and issued, debt service
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payments may extend up to 20 years from the time, and under of the
terms, of issuance.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly,
solely for the purposes of information, summarization and explanation and does not represent the intent of the
General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety
of informational sources, including the analysts professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.


Statutes affected:
New Bill: 10-287d, 10-292k
Public Act No. 20-1: 10-287d, 10-292k