OLR Bill Analysis
AN ACT INCREASING CERTAIN BOND AUTHORIZATIONS FOR CAPITAL IMPROVEMENTS AND CONCERNING INFRASTRUCTURE IMPROVEMENTS AT THE UNITED STATES NAVAL SUBMARINE BASE-NEW LONDON.
This bill authorizes a total of up to $ 768. 3 million in state general obligation (GO) bonding in FY 10 and $ 743. 6 million in FY 11 for various programs and purposes, including local school construction projects, economic and community development projects, clean water project grants, and the Local Capital Improvement Program (LOCIP). The bill also authorizes up to $ 80 million in revenue bonds in each year for Clean Water Fund loans for water pollution control projects.
The bill cancels $ 290. 7 million in unallocated balances from prior GO bond authorizations. The cancellations include authorizations for the Housing Trust Fund, Manufacturing Assistance Act, farmland preservation, charter school capital expenses, farmland preservation, and municipal and state energy projects.
The bill also:
1. extends the maximum allowable term for municipal borrowing needed to pay a court judgment or establish a reserve for property and casualty losses,
2. establishes a nonprofit collaboration incentive grant program to help nonprofit organizations cover infrastructure costs arising from a program or service consolidation between two or more such organizations, and
3. exempts the U. S. Navy and Defense departments and their eligible contractors from various state requirements when they use state financial assistance for infrastructure projects for ongoing naval operations at the U. S. Naval Submarine Base–New London.
EFFECTIVE DATE: July 1, 2009, except for the provisions concerning the sub base infrastructure projects, which take effect on passage.
NEW BOND AUTHORIZATIONS
The bill authorizes additional bonds for various purposes for FY 10 and FY 11 as shown in Table 1. It authorizes up to $ 768. 3 million in GO bonds for FY 10 and up to $ 743. 6 million for FY 11. It also authorizes $ 80 million in revenue bonds for each year for Clean Water Fund loans.
Table 1: New Authorizations
§ |
Agency |
Purpose/Fund |
FY 10 |
FY 11 |
2 |
Office of Policy & Management |
Small Town Economic Assistance Program (STEAP) economic and community development project grants |
$ 10,000,000 |
$ 10,000,000 |
5 |
Office of Policy & Management |
Local Capital Improvement Program (LOCIP) |
0 |
50,000,000 |
8 |
Education |
School construction projects |
675,700,000 |
630,400,000 |
9 |
Education |
School construction interest subsidy grants |
11,600,000 |
11,200,000 |
10 |
Developmental Services |
Community Residential Facility Revolving Loan Fund |
1,000,000 |
0 |
12 |
Environmental Protection |
Clean Water Fund grants |
65,000,000 |
40,000,000 |
13 |
Environmental Protection |
Clean Water Fund loans (revenue bonds) |
80,000,000 |
80,000,000 |
16 |
Environmental Protection |
Face of Connecticut account |
2,000,000 |
2,000,000 |
17 |
Office of Policy & Management |
Nonprofit collaboration incentive grant program (see explanation below) |
3,000,000 |
0 |
BOND CANCELLATIONS
The bill cancels $ 290,706,078 in authorized but unallocated GO bonds as shown in Table 2.
Table 2: Bond Authorizations Cancelled
§ |
Agency |
Purpose/Fund |
Amount Cancelled |
1 |
Office of Policy & Management/ Economic & Community Development |
Economic and community development project grants (Urban Act) |
$ 20,060,000 |
3 |
Office of Policy & Management |
Capital Equipment Purchase Fund |
13,650,790 |
6 |
Economic & Community Development |
Housing Trust Fund |
50,000,000 |
7 |
Education |
Charter school capital expenses |
5,000,000 |
11 |
Agriculture |
Farmland preservation |
2,575,288 |
14 |
Environmental Protection |
Connecticut bikeway grant program |
9,000,000 |
15 (a) (2) |
Economic & Community Development |
Capital City Economic Development Authority - riverfront infrastructure development and improvement project |
5,120,000 |
15 (a) (5) |
Economic & Community Development |
Capital City Economic Development Authority - parking projects |
3,000,000 |
18 |
Economic & Community Development |
Manufacturing Assistance Act |
12,300,000 |
24 |
Transportation |
Competitive matching grants for commercial rail freight lines operating in the state for improvements, repairs, and modernization of existing rail, rail beds, and related facilities (§ 13b-236) |
10,000,000 |
24 |
Connecticut Innovations, Inc. |
Municipal grants for renewable energy and energy efficiency projects (§ 16-245bb) |
50,000,000 |
24 |
Public Works |
Energy efficiency projects in state buildings (§ 16a-38m) |
30,000,000 |
24 |
Public Utility Control |
Grant program for distributed (on-site) generation projects in state and business-owned buildings (§ 16a-38o) |
50,000,000 |
24 |
Connecticut Innovations, Inc. |
Renewable energy or combined heat and power projects in state buildings (§ 16a-38p) |
30,000,000 |
§ 4 — MAXIMUM TERM FOR MUNICIPAL BONDS TO COVER JUDGMENTS
By law, municipalities and regional school districts may issue bonds, notes, or other obligations to pay a judgment, compromised or settled claim, or meet any other court-ordered payment, other than an award arising from an employment contract, if the payment exceeds 5% of its total annual tax revenue or $ 250,000, whichever is less. Such borrowing may also be used to fund a reserve for property or casualty losses. The bill extends the maximum term of such borrowing from 15 to 20 years.
§ 17 — NONPROFIT COLLABORATION INCENTIVE GRANT PROGRAM
The bill establishes a nonprofit collaboration incentive grant program and authorizes $ 3 million in GO bonding to fund it. It requires the Office of Policy and Management (OPM) secretary to use the funds to provide grants to nonprofit organizations for infrastructure costs arising from any collaboration between two or more organizations to consolidate programs and services. Organizations can use the grants to:
1. buy and improve facilities;
2. refinance facility loans;
3. buy equipment;
4. fund energy conservation, transportation, and technology projects;
5. pay planning and administrative costs related to the above activities; and
6. engage in other activities authorized under the program guidelines.
By October 1, 2009, the bill requires the OPM secretary to consult with the Human Services Committee chairpersons and representatives of nonprofit organizations receiving state funding to develop guidelines for (1) administering the grant program, (2) grant eligibility criteria, (3) spending grant funds, and (4) prioritizing grant awards.
Starting by November 1, 2009, the secretary must publish an annual notice that the grant is available and solicit proposals. Eligible organizations must submit funding applications when and how the secretary prescribes. The secretary must use the program guidelines to review applications and determine the projects and amounts to be funded.
§§ 18-22 — INFRASTRUCTURE CONTRACTS FOR THE NEW LONDON SUBMARINE BASE
The state has authorized $ 50 million in GO bonds to the Department of Economic and Community Development (DECD) under the Manufacturing Assistance Act (MAA) to provide grants to enhance infrastructure for ongoing naval operations at the U. S. Naval Submarine Base-New London. The bill adds the Department of Defense to the entities that may receive the grants. Under current law, grant recipients are the U. S. Navy and other eligible applicants. The bill also corrects the reference to the Navy by specifying that grants go to the Department of the Navy.
The bill exempts the sub base infrastructure project grants and contracts, as well as the Navy and Defense departments and other eligible contractors, from certain requirements applicable to state contracts, contractors, and applicants for state financial assistance. It:
1. exempts the Navy and Defense departments from any requirement to be in compliance with any executive order of the governor;
2. waives, for the Navy and Defense departments and other eligible applicants, the requirement to apply for financial assistance to the DECD commissioner;
3. exempts any state contractor working on the sub base project under a contact between the state and the Navy or Defense departments from restrictions on state contractors' political contributions to candidates for state office; and
4. exempts contracts between the state and either department from the state requirement that state contractors and their subcontractors comply with state antidiscrimination laws and affirmative action requirements, as well as from minority and small business set-aside requirements for state contracts.
The bill also allows DECD to provide financial assistance for 100% of the total cost of sub base infrastructure enhancement project. With some exceptions, current law limits DECD's financial assistance to 50% of the total cost of a project receiving aid under the MAA.
BACKGROUND
Related Bills
sSB 834, favorably reported by the Finance, Revenue and Bonding Committee, authorizes $ 10 million in special tax obligation bonds for FY 10 for competitive matching grants for commercial rail freight lines operating in the state for improvements, repairs, and modernization of existing rail, rail beds, and related facilities.
sHB 6609, Files 203 and 867, requires OPM, within available appropriations, to establish a grant program to help state-funded nonprofit organizations consolidate their programs and services. That bill also requires the OPM secretary, in collaboration with the Appropriations Committee and representatives of the nonprofits that receive state funds, to develop guidelines for administering and distributing the grants.
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable Substitute
Yea |
55 |
Nay |
0 |
(04/16/2009) |