OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-404

AN ACT CONCERNING THE MINIMUM BUDGET REQUIREMENT, THE CARRY-OVER OF EDUCATION COST SHARING ACCOUNTABILITY FUNDS AND THE REPEAL OF AN OBSOLETE PUBLIC ACT SECTION.

OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 09 $

FY 10 $

All Municipalities

See Below

See Below

See Below

Explanation

The bill increases the minimum budget requirement (MBR) from a 15% to 65% sliding scale to a 50% to 80% sliding scale. This does not alter the ECS aid which a town receives but potentially alters the allocation of those funds by a town between required education funding and potential tax relief.

Additionally, the bill provides that a school district shall not be deemed out of MBR compliance if a member town of a regional school district's per student assessment were decreased.

The bill also provides that unexpended funds in FY 08 within ECS targeted for districts in need of improvement may be carried forward for use in FY 09.

The Out Years

The fiscal impact identified above would continue into the future.