March 3, 2004 |
2004-R-0210 | |
STATE SPECIAL FUNDS | ||
You asked for a listing of state funds that are not subject to legislative appropriations. For each fund, you want to know (1) the statutory authority, (2) its purpose and uses, (3) its funding source, (4) the amount of activity within it in FY 2002-03, and (5) the balance.
This report focuses exclusively on the most readily available listing of such funds, the state’s Special Revenue Funds. There may be additional funds that are not subject to appropriation, such as the Second Injury Fund, which are not included here. Let us know if you would like us to provide information on these other funds as well.
SPECIAL REVENUE FUNDS
This category of funds was established to group those funds accounting for the expenditure of revenues that have been restricted to specific programs. The financial position of the combined Special Revenue Funds at June 30, 2003, together with the cash transactions for the fiscal year ended on that date, are shown in Exhibit C and Schedule C-1, respectively, of the Comptroller’s 2003 Annual Report. On June 30, 2003, there were 51 authorized funds n this category, with the Transportation Fund being the largest. Of these 51 funds, the following nine funds operate under legislatively enacted budget plans (the statement of appropriations and expenditures for which can be found on Schedules C-5 and C-6 in the comptroller’s report):
• Banking Fund (1103)
• Insurance Fund (1104)
• Consumer Counsel and Public Utility Control Fund (1106)
• Workers’ Compensation Administration Fund (1108)
• Mashantucket Pequot and Mohegan Fund (1114)
• Soldiers’, Sailors’ and Marines’ Fund (1115)
• Regional Market Operation Fund (1129)
• Criminal Injuries Compensation Fund (1139)
• Transportation Fund (1201)
Revenues for the Banking, Insurance, Consumer Counsel and Public Utility Control and Workers’ Compensation Administration funds are derived from assessments on the industries, which the corresponding state agencies regulate. The Mashantucket Pequot and Mohegan Fund derives revenue from casino gambling monies, which are partially distributed to towns. The Soldiers’, Sailors’ and Marines’ Fund operates from interest earned for the purpose of furnishing food, clothing, medical or surgical care and funeral expenses to individuals who served in any branch of military service. Revenues for the Regional Market Operation Fund are derived from rents and other monies collected to pay the expenses relating to the operation and maintenance of the regional market. The Criminal Injuries Compensation Fund operates from monies collected from the criminal injuries board. Various taxes and fees provide revenue for operations of the Transportation Fund.
Table 1 (the balance sheet) indicates a net negative fund balance of $ 89. 3 million as of June 30, 2003 for all of the funds. This balance results from the following assets, liabilities and reserves:
Table 1: Special Revenue Funds, Balance Sheet Summary as
of June 30, 2003 (Figures in $ Millions)
Assets |
||
Cash and Short Term Investments [1] |
$ 654. 4 |
|
Accrued Taxes and Interest Receivable |
44. 2 |
|
Federal and Other Grants Receivable |
216. 5 |
|
Loans Receivable |
303. 5 |
|
Due from Other Funds |
. 9 |
|
Long Term Investments |
. 4 |
|
Total - Assets |
$ 2033 | |
Liabilities and Reserves |
||
Deferred Federal and Other Grant Revenue |
13. 5 |
|
Reserve for Receivables |
303. 5 |
|
Appropriations Continued into FY 03 from FY 02 |
992. 2 |
|
Total - Liabilities and Reserves |
1,309. 2 | |
Fund Balance |
(89. 3) |
1. This figure is $ 734. 7 million lower than cash and short-term investments figure of $ 1,389. 1 million as of one year earlier on June 30, 2002.
The Comptroller’s Comprehensive Annual Financial Report (CAFR) for FY 03 is not yet available, however, this report for FY 02 indicates that the unreserved balance for the state’s Special Reserve Funds for FY 02 was $ 600 million on June 30, 2002. The total Other Funds balance (including Special Reserve Funds) as of that date was $ 1 billion. In FY 02, expenditures exceeded revenues by $ 1. 4 billion in the Other Funds category. Bonds issued in the amount of $ 1. 6 million provided an offset to this deficit. The Comptroller’s FY 02 CAFR report further indicates that the “state has a long history of utilizing bond proceeds to offset operating deficits within these funds. ”
Although the net negative balance for the Special Revenue Funds is $ 89. 3 million for FY 03, it should be noted that many of the individual funds exhibit positive balances. The Transportation Fund’s balance of $ 132. 9 million is the largest positive balance among all of the funds. Maintaining such a large positive balance enables the fund to keep the costs of debt issuance relatively low. In addition, the Office of Fiscal Analysis’ out-year projections based on current services for the Transportation Fund indicate that operating deficits of between $ 2 million and $ 6 million beginning in FY 06 will reduce the cumulative Transportation Fund balance to $ 124. 3 million in FY 09. Other Special Revenue Funds related to Economic Development are commonly required to maintain balances as a condition for issuing debt. Some funds may exhibit year-end balances that will be earmarked for specific purposes in future years.
Table 2 lists each of the special revenue funds; its enabling statute; purpose; funding source; FY 2002-03 pass through amount, showing receipts, expenditures, and transfers; and balance as of June 30, 2003.
Table 2: Special Revenue Funds
|
Fund/Comptroller Number |
Stat. Citation |
Purpose/Authorized Uses |
Funding Source |
FY 2002-03 Activity c: cash & investments as of 7/1/02 r: revenue/receipts t: transfers (interfund) d: disbursements |
Fund Balance as of 6/30/03 [1] |
Expressway Repair/1102 |
Not statutory—one of five special funds required under the Connecticut Turnpike Bond Covenant |
Fund was used to pay for various repair and maintenance projects for turnpike and tolls |
Transfers of turnpike revenue (tolls and concessions) from Expressway Revenue Fund |
$ 725,446 c $ 0 r $ 0 t $ 0 d |
$ 704,158 |
Banking/1103 |
§ 36a-65 |
Pays expenses of DOB, including reserve for contingencies |
Fees from credit unions, banks |
$ 24,046,572 c $ 19,677,972 r $ 0 t 13,265,329 d |
$ 30,209,215 |
Insurance/1104 |
§§ 38a-47 –52a; 38a-226(a) |
Pays for expenses of Insurance Dept. and Office of Managed Care Ombudsman; pays DOI expenses of regulating utilization review (UR) companies |
Domestic insurance companies; UR companies |
$ 8,309,598 c $ 23,497,349 r $ 28,046 t $ 19,055,303 d |
$ 12,211,684 |
Probate Court Administration/1105 |
§ 45a-82 |
Several, including health insurance for probate judges and employees, counsel fees related to commitment of mentally ill children, and retirement benefits |
Payments by probate judges from entry and other related probate court fees |
$ 30,250,470 c $ 9,860,856 r $ (16,369,411) t $ 7,118,867 d |
$ 16,012,000 |
Consumer Counsel and Public Utility Control/1106 |
§ 16-48a |
Administrative costs of DPUC, Office of Consumer Counsel |
Fees on DPUC-regulated companies |
$ 4,624,011 c $ 19,126,838 r $ 0 t $ 18,071,175 d |
$ 5,679,674 |
Workers’ Compensation/1108 |
§ 31-344a |
Pays expenses of Workers’ Compensation Commission |
Assessments on employers |
$ 13,167,038 c $ 21,636,497 r $ 81,617 t $ 19,958,075 d |
$ 14,987,389 |
Siting Council/1111 |
§ 16-50v |
Siting council administration, studies |
Certificate application fees, fees on regulated companies |
$ 244,538 c $ 1,494,524 r $ 0 t$ 1,323,215 d |
$ 144,824 |
Mashantucket Pequot and Mohegan Fund/1114 |
§ 3-55i-j |
Payments to municipalities eligible for state grants in lieu of taxes for state-owned real property of reservation land held in trust by the state for Indian tribes, and impact grants to towns located close to the casinos |
Indian casino slot machine payments, pursuant to memorandum of understanding between tribes and state |
$ 13,000,000 c $ 0 r $ 92,992,000 t $ 105,992,000 d |
$ 0 |
Soldiers’, Sailors’ and Marines’/1115 |
§§ 27-138 - 140 |
Benefits, such as food, apparel, medical or surgical aid, or care and burial expenses to needy wartime veterans |
Interest accumulations on principal and if that is not enough, General Fund approps. |
$ 39,819 c $ 70 r $ 2,935,281 t $ 3,428,709 d |
$ (453,539) |
Public Bus Transportation/1120 |
Not statutory |
Repository for revenues from state-owned and -operated bus system—pays for system operation costs |
Revenues, primarily from fares, generated by bus operations |
$ 3,442,762 c $ 22,012,007 r $ 0 t $ 22,130,000 d |
$ 972,779 |
Municipal Employees Retirement/1123 |
§ 7-440 |
Provides funding for Comptroller’s Office to administer the Municipal Employees Retirement program |
Fees levied on participating employees of municipalities, fire districts, housing authorities, or other eligible entities |
$ 1,110,181 c $ 1,206,915 r $ 0 t $ 935,423 d |
$ 1,191,603 |
Regional Market Operations/1129 |
§ 22-62, et. seq. |
Regional market operations |
Bond proceeds |
$ 641,625 c $ 878,336 r $ 0 t $ 804,108 d |
$ 715,853 |
Criminal Injuries Compensation/1139 |
§ 54-215 |
Fund compensation and restitution services for crime victims |
Court costs by those convicted of crimes or who plead no contest to violations; restitutions collected by the Child Support Division not disbursed; court-ordered restitution by offenders in cases where crime victim compensated by fund; profits and other payments derived as a result of crime |
$ 2,343,180 c $ 2,255,922 r $ 11,039 t $ 1,424,275 d |
$ 3,196,872 |
Vending Facilities Operators’ Fringe Benefits/1143) |
§ 10-303(b) |
Fringe benefits for vendors operating in federal buildings located in state |
Receipts from vending machines in federal buildings |
$ 13,358 c $ 20,421 r $ 153 t $ 9,315 d |
$ 17,460 |
Recreation and Natural Heritage Trust/1154 |
§ 23-74 |
To acquire open space land, including land representing the state’s ecological diversity and that, among other things, includes essential habitat for endangered and threatened species and land for recreational, scientific, educational, cultural, and aesthetic purposes |
Bond proceeds and any funds received as contributions from government or private sources |
$ 1,655,283 c $ 15,325 r $ 0 t $ 0 d |
$ 462,763 |
State University Operating Fund/1163 |
§ 10a-99 |
Waiving/remitting tuition, facilities repair, alteration, additions |
Tuition revenues, student fees, proceeds of auxiliary businesses or activities, gifts and donations, and federal funds |
$ 69,492,956 c $ 435,197,250 r $ (18,481,702) t $ 419,899,578 d |
$ (66,009,415) |
Regional Comm/Tech Colleges Operating Fund/1164 |
§ 10a-77 |
Waiving or remitting tuition; facilities repair, alterations, and additions |
Tuition revenues, student fees, proceeds of auxiliary businesses and activities, gifts and donations, federal funds |
$ 49,581,573 c $ 110,164,338 r $ 225,948 t 110,295,506 d |
$ (56,972,055) |
Tax Exempt Proceeds Fund/1169 |
§§ 3-24a--3-24h |
Investment of bond proceeds, temporary funding of state capital projects for which Bond Commission authorizes funds |
[2] |
[2] $ 44,591,690 c $ 30,408,980 r $ 0 t $ 39,518,644 d |
$ 0 |
Environmental Quality/1177 |
§ 22a-27g |
Funds DEP pollution control programs |
Fees from pollution control programs |
$ 27,406,307 c $ 19,852,254 r $ 27,443 t $ 31,760,154 d |
$ 8,968,808 |
Conservation Fund/1181 |
§ 22a-27h |
Dedicated funding for DEP’s conservation programs and increased DEP staffing |
Fees from state parks and DEP forestry, fisheries, and game programs |
$ 7,307,130 c $ 13,896,030 r $ (426,372) t $ 11,992,384 d |
$ 5,954,437 |
Transportation/1201 |
§ 13b-68 |
Bond debt service on short-term obligation bonds issued for transportation purposes, debt service on outstanding GO bonds for transportation, DOT budgeted expenses for operations, including pension and fringe benefits, bus and rail subsidies, DMV budgeted operating expenses |
Main ones include motor fuel taxes; license, permit, and fee revenue; portions of petroleum products gross earnings tax on motor fuels and motor vehicles sales tax |
$ 163,159,486 c $ 999,603,818 r $ (55,427,284) t $ 998,194,576 d |
$ 132,948,201 |
Special Assessment Unemployment Compensation/1400 |
§ 31-264a |
Pays back the federal government for unemployment compensation funds advanced to the state and for debt service |
State-issued revenue bonds, federal government, and employer assessments |
$ 2,328,424 c $ 748,128 r $ (1,281,945) t $ 0 d |
$ 1,794,607 |
Economic Development/1501 [3] |
§§ 32-23qq, 32-316, 32-267, 32-23v(b), 32-23x(b), 32-9qq |
Numerous, including financing pollution prevention projects, promoting energy saving technologies in residential structure, and providing financial assistance for economic development projects that cannot obtain adequate funds from banks or other conventional sources |
Bond proceeds |
$ 18,233,423 c $ 2,330,509 r $ 0 t $ 2,132,162 d |
$ 10,287,810 |
Economic Assistance Bond Fund/1502 [3] |
§§ 32-222a, 32-240, 32-290, 32-7e, 32-348, 32-349 |
Loans and loan guarantees (expired in 1996); grants to organizations forming manufacturer networks; grants for entrepreneurial training to low-income people; grants and loans to regional organizations planning and implementing economic development projects; grants for establishing the CT State Technology Extension Program; Funding for DECD to establish one-stop business registry |
$ 37. 1 million in; $ 15. 4 million out |
$ (16,240,307) c $ 37,078,382 r $ 0 t $ 15,399,572 d |
$ (11,794,648) |
Economic Assistance Revolving Fund/1503 |
§ 32-231 |
Economic development financing for businesses and nonprofit development corporations under the Manufacturing Assistance Act |
Loan repayments |
$ 22,536,770 c $ 8,566,685 r $ 0 t $ 4,337,682 d |
$ 23,259,133 |
Connecticut Works/1504 |
§ 32-23ii |
Financing business development projects that cannot obtain adequate conventional financing |
GO bonds |
$ 3,977,706 c $ 0 r $ 0 t $ 0 d |
$ 3,977,706 |
Tobacco Settlement/1507 |
§ 4-28e |
Tobacco and Health Trust Fund, Biomedical Research Trust Fund, General Fund unrestricted revenues—some used for anti-smoking efforts |
Repository for any funds the state receives from the 1998 Master Settlement Agreement with tobacco companies |
$ 69,958 c $ 137,928,043 r $ (137,998,001) t $ 0 d |
$ 0 |
Individual Development Account (IDA) Reserve Fund/1508 |
§ 31-51zz |
Grants to community organizations for grants to low-income participants in the IDA program, which encourages low wage earners to save—helps defray work, educational, and housing costs |
Budget appropriation |
$ 100,575 c $ 846,292 r $ 0 t $ 130,321 d |
$ 314,817 |
Housing Repayment & Revolving Loans—Taxable/1601 |
§ 8-37qq |
Loans for any bond-financed state housing program that the ultimate recipient is obligated to repay the state, administrative expenses, rebates to federal government of investment earnings |
All payments made to state of principal and interest on loans under variety of statutorily established loan programs, including those for elderly housing and urban homesteading |
$ 15,466,714 c $ 3,487,072 r $ 0 t $ 3,892,861 d |
$ 12,202,751 |
Housing Repayment & Revolving Loans—Tax Exempt/1602 |
§ 8-37qq |
Same as above |
Same as above |
$ 2,507,848 c $ 30,935 r $ 0 t $ 0 d |
$ 2,538,783 |
Housing Assistance Bond Fund—Taxable/1801 |
§ 8-37qq |
Pays the costs of financial assistance and administrative expense for bond-financed state housing programs |
Proceeds from bond sales and most bond anticipation notes issued for bond-financed state housing programs |
$ 5,334,944 c $ 10,258,714 r $ 0 t $ 8,721,526 d |
$ (627,047) |
Housing Assistance Bond Fund—Tax Exempt/1802 |
§ 8-37qq |
Same as above |
Same as above |
$ 19,674,576 c $ 394,305 r $ 0 t $ 7,089,591 d |
$ (3,674,027) |
Vocational Education Equipment/1824 [5] |
§§ 10-256a to 10-265d |
Grants to reimburse local and regional school districts, regional education service centers, and cooperative arrangements |
State bonds and short-term notes |
[2] $ 51,112 c $ 0 r $ 0 t $ 0 d |
$ 51,112 |
Flood Relief Purposes/1825 |
SA 84-54 |
No current activity |
Bond proceeds |
$ 28,422 c $ 0 r $ 0 t $ 0 d |
$ 24,490 |
High Technology Development/1832 |
§ 32-41a |
Finances venture capital investment made by the state’s venture capital agency—quasi-public Connecticut Innovations, Inc. —includes loans, and royalty financing for high tech. companies and products |
GO bonds, application fees, royalty payments, investment income, and loan repayments |
$ 51,737 c $ 0 r $ 0 t $ 0 d |
$ 2,120 |
Vocational Education Equipment/1842 [5] |
§§ 10-256a— 265d |
Grants to reimburse local and regional school districts, regional education service centers, and cooperative arrangements |
State bonds and short-term notes |
$ 5,378 c $ 0 r $ 0 t $ 0 d |
$ 5,378 |
Child Care Facilities/1843 |
§ 17b-749g, et seq. |
Funds tax-exempt loan program, guaranteed loan fund program, and small direct loan fund program |
Bond proceeds; one-time appropriations |
$ 160,000 c $ 0 r $ 0 t $ (59,194) d |
$ 219,194 |
Estuarine Embayments Grants/1864 |
§ 22a-113 |
DEP commissioner makes grants to municipalities to address problems of water quality, siltation, and erosion in estuarine embayments |
Bond proceeds |
$ 48,750 c $ 0 r $ 0 t $ 0 d |
$ 0 |
Local Capital Improvement/1870 |
§ 7-535 |
Holds bonds used to provide grants to municipalities for capital improvements |
Bond proceeds |
$ 2,653 c $ 22,500,000 r $ 0 t $ 22,497,078 d |
$ 1,762 |
Capital Equipment Purchase/1872 |
§§ 4a-9—4a-11c |
(1) Acquiring capital equipment expected to last at least five years; (2) acquiring necessary data processing equipment expected to last at least five years if it costs less than $ 1,000 per unit; and (3) financing state agency projects to reduce costs and increase efficiency through capital investments in such things as new technologies, improved equipment, and energy efficiency measures |
(1) State GO bonds, (2) assessments from hospitals from the fund on behalf of the Office of Health Care Access, and (3) assessments from CT insurers for fund expenditures on behalf of the DOI |
$ 69,642,213 c $ 17,956, 216 r $ 0 t $ 14,564,624 d |
$ (7,746,103) |
Economic Development and Other Grants/1874 |
SA 77-47 |
Grants and loans for preserving historically significant buildings, structures, objects, or sites |
GO bonds |
$ 1,876,880 c $ (27,047) r $ 0 t $ 555,366 d |
$ (2,417,345) |
Shellfish/1877 |
§ 26-237b |
Agriculture commissioner uses to purchase shell or other cultch material for deposit on state shellfish beds |
Revenue collected under the state harvesting shellfish license and proceeds of bonds authorized for purchasing material for deposit on beds |
$ 249,967 c $ 0 r $ 0 t $ 0 d |
$ 249,967 |
Housing for Homeless Persons with AIDS/1879 |
§ 17b-803 |
Housing for homeless persons suffering from AIDS or AIDS-related complex |
Bond proceeds |
$ 105,394 c $ 0 r $ 0 t $ 970,000 d |
$ (1,384,606) |
Budget Reserve/1900 |
§ 4-30a; Art. III, sec. 18 of State Const. |
Funds prior year deficits; investments |
Budget surpluses |
$ 594. 7 million transferred to GF to cover FY 01-02 deficit |
$ 0 |
Bond Exemption Acquisition Fund/1951 |
§ 12-242uu |
[6] |
State GO bonds |
$ 4,034 c $ 0 r $ 0 t $ 0 d |
$ 3,486 |
Special Contaminated Property Remediation/Insurance/1961 |
§ 22a-133t |
DEP commissioner may use to clear up spills of oil, gasoline, other chemicals, or hazardous waste where the owner is an innocent landowner; administrative costs up to $ 5,000 of a clean up of property for which a loan was made under § 22a-133u (b) |
Bond proceeds, tax or revenue and interest or other incomes earned on fund investments |
$ (232,015) c $ 1,524,803 r $ 0 t $ 0 d |
$ 1,292,788 |
Hartford Downtown Redevelopment/1971 |
§ 32-653 |
Grants, loans, and other financial assistance for developing Adriaen’s Landing (not stadium) |
GO bonds |
$ 34,752,422 c $ 61,781,688 r $ 0 t $ 103,913,883 d |
$ (124,000,000) |
Employment Security/Various |
§ 31-259 |
Administration of Employment Security Division, which includes unemployment compensation system. Also can be used to administer programs including the Veterans Employment Service, Trade Adjustment Act, and Bureau of Labor Statistics. |
Primarily federal dollars but also includes state and other sources |
$ 1,656,609 c $ 78,181,231 r $ 3,281,076 t $ 82,734,600 d |
$ (13,546,557) |
Grants to Local Governments and Others/Various |
Numerous special and public acts dating back to 1986 |
Grants to municipalities for a wide range of open space, sewers, parks, and other environmental programs |
Bonds |
$ 63,511,868 c $ 37,861,487 r $ 0 t $ 84,125,237 d |
$ (161,216,466) |
University/Health Center Operating Fund/Various |
§§ 3-27(a), 10a-105(c), 10a-139 |
Waiving/remitting tuition; facilities repair, alterations, additions |
Tuition revenues, student fees, proceeds of auxiliary businesses, among others |
$ 106,461,890 c $ 857,915,666 r $ (2,272,804) t $ 838,908,300 d |
$ 44,946,344 |
University/Health Center Research Foundation/Various |
§ 10a-130 |
Disbursements for operations or projects on the order of duly authorized officers of the health center |
Proceeds of grants and endowments or “other things tangible or intangible that may be acceptable to the fund” |
$ 39,579,989 c $ 146,842,559 r $ 44,630 t $ 149,336,590 d |
$ 24,967,319 |
1. Excludes appropriations continued in FY 2002-03 from FY 2001-02
2. This fund is a large investment run by the state treasurer on behalf of state agencies, municipalities, and nonprofit organizations that receive the proceeds of bonds through grants or loans. It contains several subfunds and accounts. The fund listed in the comptroller’s annual report as a special revenue fund (Fund 1169) is one of these subfunds. The treasurer uses Fund 1169 to manage state bond proceeds being transferred between state agencies.
3. The Economic Development Fund is actually several funds, including: Environmental Assistance Revolving Loan Fund, Energy Conservation Fund, Regional Revolving Loan Fund, Connecticut Growth Fund, Comprehensive Business Assistance Fund, and Business Outreach Center Challenge Center Grant Program.
4. The Economic Assistance Bond Fund is a multi-faceted fund, providing monies to a variety of statutorily created loan and grant programs.
5. The State Department of Education has given out no grants under this program since 1996. The comptroller’s report lists two separate funds for this grant program, so the balances for each are listed separately. It appears that the two funds were created because of a clerical error in the fund numbering, since according to the State Department of Education, they supported the same grant program.
6. This fund is not mentioned by name in the statutes. According to Cathy Boone of the Debt Management Division of the state treasurer’s office, the fund was set up to implement PA 95-2. Under that act, the state took the rights of holders of certain state and municipal bonds to exclude the interest on those bonds earned or accrued after January 1, 1992, from their corporation business taxes. Because, under federal law, a state cannot tax interest on federal bonds unless it taxes interest on its own bonds, excluding interest on the bonds affected by this act jeopardized Connecticut's ability to tax federal bond interest. PA 95-2 authorized the Office of Policy and Management (OPM) secretary to take these rights through eminent domain and provide just compensation for them. It authorized $ 48 million in bonds to compensate bondholders for this taking, to make refunds to corporations that held these state and local bonds for the taxes they paid on interest on federal obligations, and for administrative costs associated with the taking.
Robin Cohen, for OLR
Geary Maher, for OFA
RC/GM: ro