OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-6585

AN ACT CONCERNING REGIONALISM.

As Amended by Senate "A" (LCO 9318)

House Calendar No. : 309

Senate Calendar No. : 688

OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 10 $

FY 11 $

Various Municipalities

Revenue Impact

See Below

See Below

Explanation

The bill as amended allows two or more municipalities that belong to the same federal economic development district to enter into mutual agreements to (1) promote regional economic development and (2) share the real and personal property tax revenue from new economic development.

This could result in a revenue impact to certain municipalities who are eligible to enter into such an agreement and choose to share property tax revenue with their partner municipality. The revenue impact is dependent on the stipulations of the agreement and the location and extent of new economic development in the participating municipalities.

It is anticipated that the Office of Policy and Management can approve regional economic development plans and determine whether towns that enter mutual agreements are consistent with provisions of the bill within the agency's normal budgetary resources.

The bill as amended will result in a revenue gain to municipalities from federal Economic Development Administration (EDA) Funds to the extent; 1) the bill provides an incentive to municipalities to enter into Economic Development Districts (EDD), 2) the state approves the formation of EDDs and EDD plans, and 3) the federal government provides funding for the EDD plans.

Senate “A” removes sections 2, 4, and 6 from the underlying bill resulting in the fiscal impact indicated above.

The Out Years

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

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.