OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

sHB-7367

AN ACT CONCERNING THE ADMINISTRATION OF THE DEPARTMENT OF TRANSPORTATION.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 08 $

FY 09 $

Department of Transportation

TF - Cost

520,300

None

Department of Transportation

GF - Revenue Impact

See Below

See Below

Note: TF=Transportation Fund; GF=General Fund

Municipal Impact:

Municipalities

Effect

Various Municipalities

See Below

Explanation

Sections 1 through 9 and 40 of the bill are not anticipated to result in any fiscal impact to the Department of Transportation.

Sections 10 through 37 and 39 of the bill results in a cost to the Department of Transportation of $20,300 in FY 08 as a result of renaming various bridges and roadways. A pair of signs, on the average, cost $800, one for each side of the road.

Section 38 of the bill is permissive. It allows DOT to sell, lease or convey land obtained in connection with the Route 6 Expressway. The fiscal impact of this is: (1) a loss in asset value to the Transportation Fund for land that is conveyed and (2) a revenue gain to the Transportation Fund for land that is sold at fair market value or leased. The cost to the General Fund for making land conveyances is minimal (less than $1,000 each). There is also a minimal General Fund savings to the state for payments-in-lieu-of-taxes (PILOT) for state owned property.

Land conveyances are subject to the review and approval of the State Properties Review Board, which is required to review each conveyance within 30 days. Deeds or any other instruments necessary for the conveyances must be executed and delivered by the State Treasurer. These activities are part of the respective agencies normal operations and can be accomplished with existing staff and resources.

Section 39 of the bill is estimated to cost the Department of Transportation $500,000 for the purchase and installation of electric signals and gates at a certain railroad crossing.

Municipal

Municipalities that receive land by conveyance will experience: (1) a gain in asset value; (2) a minimal revenue loss for PILOT payments to the degree that the parcels are eligible for PILOT; and (3) a potential revenue gain for those properties that are used for economic development purposes and become fully taxable.

Sections 41 and 42 of the bill repeal the three property conveyances authorized in prior years that are listed in the table below. The fiscal impact of these two sections is to preclude a loss in asset value of $32,500 to the Transportation Fund.

Property Conveyances repealed in Sections 41 and 42

Sec.

From

To/Location

Acres

Estimated

Value

Use Restriction

PA 05-279

Sec. 4

DOT

Town of Sprague

1. 65 acres

$7,500

Recreation

PA 05-279

Sec. 31

DOT

M. Ramos,

Milford

N/A

Fair market

value

None

PA 99-17

Sec. 6

DOT

Meriden

. 56 acres

$25,000

Open space

   

Transportation Fund

$32,500

 

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.