OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-887
AN ACT AUTHORIZING AND ADJUSTING BONDS OF THE STATE
FOR CAPITAL IMPROVEMENTS, TRANSPORTATION AND OTHER
PURPOSES.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
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 22 $ FY 23 $
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 Fund (CWF) revenue bonds in FY 22 and FY 23.
Table 1: FY 22 and FY 23 Increases and Reductions to GO, STO, and
CWF Bond Authorizations (in millions)
Description FY 22 $ FY 23 $
General Obligation (GO) Bonds
New Authorizations 1,753.4 1,565.1
Reductions to Current Authorizations (143.6) -
NET TOTAL GO BONDS 1,609.8 1,565.1
Special Tax Obligation (STO) Bonds
Primary Analyst: EMG 5/6/21
Contributing Analyst(s):
Reviewer: MM
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NET TOTAL STO BONDS 836.9 929.6
Clean Water Fund (CWF) Revenue Bonds
NET TOTAL CWF BONDS 281.0 237.0
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, $80.5 million in FY 23. 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 $
2022 1,609.8 2,270.9
2023 1,565.1 2,207.9
TOTAL 3,174.9 4,478.8
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
annual cost to the STF for debt service of approximately $67.2 million
from bonds authorized in FY 22 and $74.6 million from funds
authorized in FY 23. Total debt service costs for STO bond
authorizations are identified in Table 3, most of which would be repaid
after the biennium.
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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 $
2022 836.9 1,343.1
2023 929.6 1,491.9
TOTAL 1,766.5 2,835.0
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 22 and FY 23, 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
payments may extend up to 20 years from the time, and under of the
terms, of issuance.


Statutes affected:
Governor's Bill: 10-287d, 10-508
FIN Joint Favorable Substitute: 10-287d, 10-508, 3-20
File No. 639: 10-287d, 10-508, 3-20