PA 09-1, June Special Session—SB 1801 (VETOED)

Emergency Certification

AN ACT CONCERNING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2011, AND MAKING APPROPRIATIONS THEREFORE

SUMMARY: This act appropriates funds for state agencies and programs for FY 10 and FY 11 from the General Fund, the Mashantucket Pequot and Mohegan Fund, and the Criminal Injuries Compensation Fund. It carries forward unspent appropriations from prior years and directs funds to be spent for specific programs and purposes. In addition, among other things, it:

1. requires the Office of Policy and Management (OPM) secretary to recommend a total of $120 million in annual reductions in personal services, other expenses, and state contracts in FY 10 and FY 11;

2. gives the governor authority to transfer funds among agencies to achieve mandated savings, take advantage of available federal funding, or implement specified programs;

3. specifies each town's Education Cost Sharing (ECS) grant for FY 10 and FY 11;

4. prohibits the governor from reducing the Judicial Branch's requested budget;

5. limits the governor's unilateral authority to reduce allotments of appropriated funds to the legislative and judicial branches; and

6. eliminates the authority of six legislative commissions over their personnel and staffing.

The act also increases taxes and makes other revenue changes affecting FY 09, FY 10, and FY 11. It (1) increases taxes on personal income, cigarettes, and tobacco products; (2) imposes temporary surcharges on corporation and estate taxes; (3) eliminates and restructures business tax credits and exemptions; (4) imposes a $3 per-tire fee on the sale of tires; and (5) increases the annual fee payable by state marshals. It also:

1. authorizes the state to issue economic recovery notes, payable over seven years, to cover the FY 09 General Fund deficit and two years of interest on the notes;

2. transfers funds from the Budget Reserve Fund to General Fund revenue for FY 10 and FY 11;

3. requires the state treasurer and the OPM secretary to formulate a plan to finance up to $335 million in net state revenue for FY 11, including possibly by borrowing against (“securitizing”) future state lottery revenue; and

4. requires these two officials to formulate a plan to sell state assets to raise up to $10 million in net revenue for FY 11 and up to $102. 5 million in FY 12.

Finally, for FY 09 through FY 11, the act exempts Bridgeport from a statutory requirement that it annually contribute the actuarially required amount to a pension plan funded with pension deficit funding bonds; requires the city to propose acceptable funding plans for those years to the OPM secretary and the state treasurer; and if the two officials do not approve the city's plans, to contribute at least $4 million per year to the pension plan.

EFFECTIVE DATE: July 1, 2009, unless otherwise noted below.

1-6 — FY 10 AND FY 11 APPROPRIATIONS

The act appropriates funds for state agencies and programs from the General Fund, Mashantucket Pequot and Mohegan Fund, and Criminal Injuries Compensation Fund for FY 10 and FY 11. Annual appropriations from each fund are shown in Table 1.

Table 1: FY 10 and FY 11 Appropriations by Fund

Fund

Net Appropriation

FY 10

FY 11

1, 4

General Fund

$17,528,437,382

$18,047,806,627

2, 5

Mashantucket Pequot and Mohegan Fund

61,779,907

61,779,907

3, 6

Criminal Injuries Compensation Fund

3,407,410

3,683,598

7 — BIRTH-TO-THREE PROGRAM

For FY 10 and FY 11, the act requires the State Department of Education (SDE) to annually transfer $1 million of the federal special education funds it receives to the Department of Developmental Services (DDS) for the Birth-to-Three Program to carry out special education-related requirements consistent with the federal special education law.

8 — WACE TECHNICAL TRAINING CENTER

For FY 10 and FY 11, the act exempts WACE Technical Training Center in Waterbury from statutory requirements for adult education grants and allows it to spend up to $300,000 of its grant in each year for technical training.

9 — PRIORITY SCHOOL DISTRICT GRANTS

The act distributes the priority school district grant appropriation to state education programs as shown below.

Table 2: Priority School District Grant Allocations

Grant

FY 10

FY 11

Priority School Districts

$41,413,547

$41,413,547

School Readiness

69,813,190

69,813,190

Extended School Building Hours

2,994,752

2,994,752

School Accountability

3,499,699

3,499,699

10 — PRIVATE OCCUPATIONAL SCHOOL STUDENT PROTECTION ACCOUNT

Despite statutory restrictions on such spending, the act allows the Department of Higher Education (DHE) to spend $245,000 in FY 10 and $257,000 in FY 11 from the private occupational school student protection account.

11 — CONNECTICUT INDEPENDENT COLLEGE STUDENT GRANT PROGRAM

The law requires independent colleges and universities to award aid to individual students under the Connecticut Independent College Student Grant (CICSG) Program based on the U. S. Department of Education's need analysis system. For FY 10 and FY 11, the act prohibits any independent college or university from receiving its annual CICSG allocation if it (1) meets students' full financial needs and (2) uses a need analysis system that results in determinations of need for individual students that are greater than the federal system.

The act requires DHE to redistribute two-thirds of the unallocated CISCG funds in FY 10 and FY 11 to all other eligible independent colleges and universities, using the statutory formula. DHE must set aside the remaining one-third and transfer up to $500,000 per year to Opportunities for Veterinary Medicine in FY 10 and FY 11.

12-14 & 19-23 — FUNDS CARRIED FORWARD

The act carries forward various unspent balances from prior years' appropriations and requires them to be used for the same purpose in FY 10 or in both FY 10 and FY 11, rather than lapsing at the end of FY 09 (see Table 3).

Table 3: Funds Carried Forward the Same Purpose

Agency

Purpose

Amount

To FY

12

Motor Vehicles

Commercial Vehicle Information Systems and Networks project

Unspent balance

2010

2011

13 (a)

Motor Vehicles

Upgrading registration and drivers' license data processing systems

Unspent balance

2010

2011

13 (b)

Motor Vehicles

Upgrading registration and drivers' license data processing systems

Up to $7 million

2010

2011

13 (c)

Motor Vehicles

Upgrading registration and drivers' license data processing systems

Up to $8. 5 million

2010

2011

14 (a)

Banking

Improvements associated with the new office lease

Up to $750,000

2010

14 (b)

Banking

Improvements associated with the new office lease

Up to $250,000

2010

19 (a)

 

Collective bargaining and related costs appropriated in the 2008-2009 state budget

Unspent balance as determined by the OPM secretary

2010

2011

19

(b)

 

Collective bargaining and related costs appropriated for FY 10 in the act

Unspent balance as determined by the OPM secretary

2011

20

OPM

Other expenses – for a health care and pension consulting contract

Unspent balance

2010

2011

21

OPM

Other expenses – to prevent potential base closures

Up to $50,000

2010

23

OPM

(1) Design and implementation of a comprehensive, state-wide information technology system for sharing criminal justice information and (2) costs related to the Criminal Justice Information System Governing Board

Unspent balance

2010

The act also carries forward to FY 10 the unspent balance of an appropriation to OPM for licensing and permitting fees. It transfers the money to the Department of Information Technology to implement a common licensing and permit issuance service for state agencies ( 22).

15 — NEIGHBORHOOD YOUTH CENTER GRANTS

The act requires OPM to use amounts from its FY 10 and FY 11 appropriation for Neighborhood Youth Centers as follows: (1) a $1 million grant to the Boys' and Girls' Clubs of Connecticut contingent on the organization providing a 100% cash match and (2) a $200,000 grant to Centro San Jose, Hill Cooperative Youth, and Central YMCA in New Haven, contingent on the organizations' matching at least 50%, with a cash match of at least 25%, of the grant amount.

16 — PILOT ASTHMA AWARENESS PROGRAM

The act transfers $150,000 from the Tobacco and Heath Trust Fund for FY 10 to the Department of Public Health (DPH) for a pilot asthma awareness program.

17 — ENERGY ASSISTANCE PROGRAM

The act requires the unspent balance of an $8. 5 million appropriation to OPM that was carried forward to FY 10 in PA 09-2 for an emergency energy assistance program to be available between July 1, 2009 and June 30, 2010. Under PA 09-2 and this act, the program must assist Connecticut households with incomes between 150% and 200% of the applicable federal poverty level that cannot make timely payments on deliverable fuel, electricity, or natural gas bills. The program requires Operation Fuel, a nonprofit organization that serves people who are not eligible for publicly funded energy assistance, to pay assistance directly to fuel vendors, electric or gas companies, or municipal electric or gas utilities.

18 — TRANSFERS TO THE RESERVE FOR SALARY ADJUSTMENTS

The act allows the governor to recommend, and the Finance Advisory Committee (FAC) to approve, transfers of FY 10 and FY 11 General and Mashantucket Pequot and Mohegan Fund appropriations for personal services to the reserve for salary adjustments account to more accurately reflect the impact of collective bargaining and related costs. The governor can make transfers from the reserve and add amounts from special funds as needed to implement salary increases; other employee benefits; costs, including accrual payments, related to staff reductions; agency personal services reductions; or other personal services adjustments this act or any other law authorizes.

24 — UNEMPLOYMENT TRUST FUND ALLOCATIONS

For FY 10 and FY 11, the act appropriates $30 million from Connecticut's account in the federal Unemployment Trust Fund to the Labor Department. The money must be spent in accordance with the federal unemployment compensation law. For FY 10, the act allocates up to $12 million of that amount to the department's administrative infrastructure with a maximum of $7 million earmarked for improving its information technology systems. For FY 11, the administrative infrastructure allocation is up to $18 million, with a maximum of $13 million for improving information technology systems.

25 — NEWBORN SCREENING ACCOUNT

For FY 10 and FY 11, the act allocates $800,000 annually, rather than the statutorily required $500,000, to the General Fund's newborn screening account. The funding comes from fees the DPH charges institutions for comprehensive newborn testing, parent counseling, and treatment. DPH must use the money (1) to buy upgraded screening technology and (2) for its testing expenses.

26 — STEM CELL RESEARCH FUND

The act allows the DPH commissioner to use up to $200,000 per year from the Stem Cell Research Fund in FY 10 and FY 11 for administrative expenses.

27 & 28 — PRE-TRIAL ALCOHOL SUBSTANCE ABUSE PROGRAM FUNDING

For FY 10 and FY 11, the act earmarks the following annual amounts from the Department of Mental Health and Addiction Services' (DMHAS) appropriations for the Pre-Trial Alcohol Substance Abuse Program: (1) up to $1. 1 million in each year for regional action councils and (2) up to $510,000 in each year for the Governor's Partnership to Protect Connecticut's Workforce.

29 — DSS DISPROPORTIONATE SHARE (DSH) PAYMENTS TO DMHAS HOSPITALS

The act requires DSS to spend money appropriated to it for FY 10 and FY 11 for DMHAS/Medicaid Disproportionate Share payments only when, and in the amounts, OPM specifies. DSS must make payments to DMHAS hospitals for operating expenses and related fringe benefits. Hospitals must reimburse the comptroller from the fringe benefit payments and deposit the other funds to “grants – other than federal accounts. ” Unspent DSH funds in the “grants” account must lapse at the end of each fiscal year.

30 & 31 — UCONN HEALTH CENTER AND VETERANS' AFFAIRS DSH TRANSFERS

The act allows the OPM secretary to transfer all or part of any FY 10 or FY 11 appropriation for the UConn Health Center or the Department of Veterans' Affairs to DSS' DSH-Medical Emergency Assistance account in order to maximize federal reimbursement.

32 — INFORMATION TECHNOLOGY REDUCTION

The act requires the OPM secretary to reduce agency allotments for information technology systems and services by $30,836,354 for FY 10 and $31,718,598 for FY 11.

33 — NONFORMULARY DRUG APPEAL PROCESS FOR CLIENTS ELIGIBLE FOR BOTH MEDICAID AND MEDICARE PART D

The act requires the DSS commissioner to report to the Appropriations and Human Services committees by September 1, 2009, a description of revisions to its nonformulary exception review and appeals process for clients who are eligible for both Medicaid and Medicare Part D. (Nonformulary drugs are drugs that are not on the list of drugs pre-approved for reimbursement under a Medicaid or Medicare Part D plan. Costs for such drugs may be reimbursed through exceptions after appeals. ) In addition, the report must explain DSS' revised process for (1) determining whether a nonformulary drug is medically necessary before pursuing appeals with private plans and (2) requiring a third appeal through the Center for Medicaid Advocacy before it pays for such a drug.

34 — SUPPORTIVE HOUSING FOR FAMILIES PROGRAM

The act requires the Department of Children and Families (DCF)'s Supportive Housing for Families program to prioritize the families who enroll in the program after July 1, 2009 to maximize the number of such families in the program that have a child in an out-of-home placement and are likely to be reunified. It requires the DCF commissioner to report to the Appropriations and Human Services committees by January 1, 2010, on how the department will use funding for the program to give priority to such families undergoing reunification. The report must include the number of children the program serves and the number later returned to state care.

35 — GOVERNOR'S AUTHORITY OVER JUDICIAL BRANCH BUDGET

The act prohibits the governor from reducing the Judicial Branch's proposed budget. It requires the OPM secretary to include in the proposed budget documents that OPM submits to the legislature the estimates of expenditure requirements, together with any recommended adjustments and revisions, that OPM receives from the Judicial Branch's administrative head. It also bars the governor from reducing the Judicial Branch's allotment requisitions or allotments in force.

36 — PERSONAL SERVICES, OTHER EXPENSES, AND STATE CONTRACTS

For FY 10 and FY 11, the act requires the OPM secretary to recommend ways to reduce the following types of spending by the following annual amounts:

1. $14 million for personal services,

2. $11 million for other expenses, and

3. $95 million for contracts and personal service agreements.

It exempts the higher education constituent units from the recommended personal services or other expense expenditure reductions and requires recommended reductions in contracting and personal service agreements to exclude those for providing direct programs and health services to consumers.

The secretary must submit a plan detailing the recommended reductions to the Appropriations Committee through the Office of Fiscal Analysis by August 1, 2009. The plan takes effect 30 days after the committee receives it unless the committee rejects or modifies it. If the committee modifies the plan, the secretary must implement it as modified. If the committee rejects the plan, the act requires the secretary to submit a revised plan within 30 days after the rejection. If the committee rejects the revised plan, the secretary must continue to submit new plans every 30 days until approved.

37 — PERSONAL SERVICES SAVINGS

The act allows the governor, with FAC approval, to modify or reduce allotment requisitions from FY 10 and FY 11 appropriations to achieve the reductions in personal services costs required by this act, any other public or special act, or any collective bargaining agreement.

38 — GENERAL SERVICES REVOLVING FUND POSITIONS

The act limits to 124 the number of positions the Department of Administrative Services (DAS) may fill from the General Services Revolving Fund. By law, the fund, whose statutory name is the Department of Administrative Services Revolving Fund, is used to pay agencies' costs for supplies, material, equipment, and contractual services before the comptroller finally determines how to allocate the expenses to particular agency accounts (CGS 4a-75).

39 — TRANSFERS TO MAXIMIZE FEDERAL MATCHING FUNDS

The act allows the governor, with FAC approval, to transfer all or part of an agency's General Fund appropriation, at its request, to another agency to take advantage of federal matching funds, as long as both agencies certify that the receiving agency will spend the money for the original purpose. Federal funds generated from transfers can be used to reimburse General Fund spending, expand services, or both as the governor, with FAC approval, determines.

40 — TRANSFERS TO ALLOW RECEIPT OF FEDERAL STIMULUS FUNDS

The act allows the governor, with FAC approval, to transfer all or part of an agency's General Fund appropriation, at its request, to another agency in order for the state to receive federal stimulus funds under the 2009 federal American Recovery and Reinvestment Act (ARRA).

The governor must present a plan for transferring the funds to the Appropriations Committee and the legislative committee with jurisdiction over the transferring agency. Both committees must approve, modify, or reject the plan within 15 days after they receive it. If the committees cannot agree or if they fail to act within the required time, the governor's plan is considered approved. If the governor's plan is approved, the Appropriations Committee must ask the FAC to approve the plan.

41 — FUNDING ADJUSTMENTS TO MAXIMIZE FEDERAL FUNDING

The act allows the governor, with FAC approval, to adjust an agency's General Fund appropriation to maximize federal funding to the state. The governor must present a plan for the adjustment to the Appropriations and Finance, Revenue and Bonding committees. The committees must approve, modify, or reject the governor's plan within 30 days after they receive it. If the committees cannot agree or if they fail to act within the required time, the governor's plan is considered approved. If the governor's plan is approved, the Appropriations Committee must ask the FAC to approve the plan.

42 — FEDERAL REIMBURSEMENT FOR DSS DATA WAREHOUSE PROJECT

In compliance with an advanced planning document for developing a data warehouse approved by the federal Department of Health and Human Services, the act authorizes DSS to establish a “receivable” (presumably, a receivable account) for FY 10 and FY 11 for the anticipated reimbursement from the data warehouse project.

43 — AUTHORITY FOR ADVANCE PAYMENTS TO CERTAIN NURSING HOMES

For FY 10 and FY 11, the act allows the DSS commissioner, after consulting the OPM secretary, to provide payments in advance of normal bill payment processing to nursing homes that provide services eligible for payment under the medical assistance program. The nursing facility must ask for the advance payments. The act limits advances to the estimated amounts due the facility for services to eligible recipients over the most recent two months.

The DSS commissioner must recover the advance either by reducing payments due the facility or through a cash receipt within 90 days after issuing the advance. The act requires the commissioner to take prudent measures to assure that no advances are made to nursing homes in danger of insolvency or bankruptcy and allows her to execute appropriate agreements to secure repayment.

44 — DCF-LICENSED PRIVATE RESIDENTIAL TREATMENT FACILITIES

For FY 10 and FY 11, the act eliminates per diem and other rate increases, as well as cost of living adjustments, for private residential treatment facilities licensed by DCF.

45 — FUND TRANSFERS FOR PRISONER REENTRY PROGRAMS

The act allows the governor, without FAC approval, to transfer Department of Correction (DOC) General Fund appropriations for FY 10 and FY 11 as needed to (1) achieve budgeted savings and (2) provide services and programs to prepare inmates who are or may become eligible to participate in reentry programs. The latter purpose includes providing adequate community supervision for participating inmates. The DOC commissioner must submit a report by August 1, 2009, to the Appropriations and Judiciary committees that (1) outlines the policies needed to achieve the budgeted savings and the projected shift in resources and (2) estimates how many inmates are affected by such programs (presumably reentry programs). Thereafter, the commissioner must submit quarterly reports on her implementation of these policies.

46 — COMMISSION ON ENHANCING AGENCY OUTCOMES

PA 09-2 established the 17-member commission to determine if there are agency duplications or functional overlaps and make other recommendations it considers appropriate. PA 09-2 required the commission to report its findings and recommendations to the governor, House speaker, and Senate president pro tem by July 1, 2009 and terminated the commission when it submits its report or on July 1, 2009, whichever is later. This act extends the commission until December 31, 2011, makes its July 1, 2009 report an interim one, and requires it to submit additional reports periodically.

47 — GOVERNOR'S AUTHORITY TO REDUCE ALLOTMENTS OR ALLOTMENT REQUISITIONS BY LEGISLATIVE AND JUDICIAL BRANCH AGENCIES

The act bars the governor from unilaterally reducing an allotment of appropriated funds currently in force for, or an allotment of appropriated funds requisitioned by, any legislative or judicial branch agency. Instead, it allows the governor to recommend an aggregate allotment reduction for the legislative or judicial branch. It allows the Joint Committee on Legislative Management or the chief court administrator to achieve the reduction in their discretion and as the committee or the administrator determines.

Under prior law, the governor, under certain conditions, could unilaterally reduce allotments and allotment requisitions for legislative and judicial branch appropriations by a maximum of 5% of any appropriation and 3% of the total appropriations from any fund.

48 & 49 — PAYMENTS IN LIEU OF TAXES TO CERTAIN TOWNS

The act requires the state to make the following payments in lieu of taxes (PILOT) in FY 10:

1. $100,000 to East Lyme for the U. S. Navy's Dodge Pond Acoustic Measurement Facility and

2. $400,000 to Mansfield for the Fenton River Watershed for the Mansfield Hollow Dam.

50 — FILLING STATE EMPLOYEE POSITIONS

Unless the governor recommends it and the FAC approves, the act limits the number of positions state agencies may fill to the number recommended by the Appropriations Committee as revised by the General Assembly and set out in the Office of Fiscal Analysis (OFA) report on the state budget.

51 — CHRONIC GAMBLERS TREATMENT AND REHABILITATION

The act temporarily increases, by $400,000 per year, the annual amount of lottery ticket sales revenue the Connecticut Lottery Corporation must transfer to the chronic gamblers treatment and rehabilitation account. For FY 10 and FY 11, it requires the corporation to transfer $1. 9 million per year rather than $1. 5 million. Starting in FY 12, the act resumes annual transfers at $1. 5 million. The funds in the account are used for preventing chronic gambling and treating and rehabilitating chronic gamblers.

52 — ENHANCED E-9-1-1 TELECOMMUNICATIONS FUND

In FY 10 and FY 11, the act allocates $541,982 from the fund each year for the regional emergency medical services councils.

53 — EASY BREATHING PROGRAM

The act transfers $800,000 annually in FY 10 and FY 11 from the Tobacco and Health Trust Fund to DPH for the Easy Breathing Program. Of this amount, it allocates $300,000 for the adult asthma program and $500,000 for the children's asthma program. It also requires DSS to require use of the Easy Breathing program model in the HUSKY Program.

54 — TRANSFERS TO IMPLEMENT JUVENILE JUSTICE SERVICES CONSOLIDATION

The act allows the governor, with FAC approval, to transfer positions or funds from DCF to the Court Support Services Division during FY 10 to implement the consolidation of certain juvenile justice services in the division as of January 1, 2010.

55 — STATE CONTRIBUTION FOR RETIRED TEACHERS' HEALTH COVERAGE

For FY 10 and FY 11, the act suspends the statutory requirement that the state appropriate one-third of the cost of premiums for the basic health coverage plan the Teachers' Retirement Board (TRB) must offer to retired teachers participating in Medicare and one-third of the cost of the state subsidy for local board of education health plans covering retired teachers not participating in Medicare. Instead, for FY 10 and FY 11, it requires the OPEB (Other Post-Employment Benefits) Teacher's Fund to pay two-thirds of the cost of the basic TRB plan and the full cost of the health subsidy to local boards. The OPEB Teacher's Fund consists of active teachers' total annual health contributions in excess of $500,000 and investment earnings on the fund balance. Active teachers contribute 1. 25% their annual salary for retired teachers' health insurance coverage.

56 — MEDICARE WAIVER OVERSIGHT COMMITTEE

The act establishes a 10-member committee to advise DSS on developing and implementing federal Medicaid waivers. The committee consists of three members each appointed by the DSS, DMHAS, and DPH commissioners, and the healthcare advocate or the advocate's designee. The commissioners' appointees must have experience and expertise in matters relating to medical treatment and Medicaid benefits.

The commissioners must make their appointments within 30 days after the act's passage. Vacancies are filled by appointing authorities. The DSS commissioner selects the chairperson from among the members. The chairperson must schedule the committee's first meeting, which must be held within 60 days after the act's passage. DSS administrative staff serves as the committee's administrative staff.

The act requires the committee to file annual reports, starting by January 1, 2010, on its findings and recommendations. The reports are submitted to the governor and the Public Health and Human Services committees.

57 — FUND TRANSFERS RELATING TO INMATE TRANSPORTATION

The act allows the OPM secretary to transfer DOC appropriations for FY 10 and FY 11 to the Judicial Department as necessary to achieve efficiencies in inmate transportation. The secretary may make the transfers without prior approval from the FAC.

58 — STATE POLICE SUBSISTENCE EXPENSES

The act restores a requirement, eliminated in PA 09-2, that the state pay subsistence for state police personnel and reimburse them for expenses incurred in the performance of their official duties. It repeals a requirement that, beginning April 1, 2009, the state pay meal allowances only for Department of Public Safety employees covered by a collective bargaining agreement requiring the allowance.

59 — CONNECTICUT HEALTH INFORMATION NETWORK

The act transfers $500,000 each year for FY 10 and FY 11 from the Tobacco and Health Trust Fund to the UConn Health Center for the Connecticut Health Information Network.

60 — AIDS INTERFAITH NETWORK

The act earmarks $100,000 of the DPH's FY 10 General Fund appropriation for AIDS Services for a grant to the AIDS Interfaith Network for capacity building and technical assistance.

61 & 62 — AGRICULTURAL PROGRAM ALLOCATIONS FROM THE COMMUNITY INVESTMENT ACCOUNT

PA 09-229 temporarily increased a fee for each document recorded in municipalities' land records from $30 to $40. This act changes the effective date of the increase from the date of PA 09-229's passage (June 3, 2009) to July 1, 2009. The fee increase is effective until July 1, 2011.

By law, municipalities retain $4 of the fee and must send the balance to the state for deposit to the Community Investment account. Money from the account is distributed quarterly to the Commission on Culture and Tourism, the Connecticut Housing Finance Authority, the Department of Environmental Protection, and the Department of Agriculture (DOAg). These agencies must use the funds for purposes specified in the law. PA 09-229 temporarily altered the distribution of fund revenues among these agencies, increasing DOAg's share from 25% to 40% and reducing those of the other agencies from 25% to 20% each. These shares apply from PA 09-229's passage date until July 1, 2011.

During the period DOAg is receiving the 40% share of the funding, this act requires it to also make the required distributions to the specified agricultural programs quarterly instead of annually as shown in Table 4. Each year's total quarterly allocations under the act are the same as the annual amounts for the same program specified under PA 09-229.

Table 4: Agriculture Program Allocations

Program

PA 09-229 - Annually

This Act - Quarterly

Agricultural viability grant program

$500,000

$125,000

Farm transition program

500,000

125,000

Encouraging sale of Connecticut-grown food

100,000

25,000

Connecticut farm link program

75,000

18,750

Agricultural sustainability account (grants to milk producers)

Remaining amount distributed annually

Remaining amount distributed each quarter

63 – BRIDGEPORT PENSION PLAN FUNDING

For FY 09 through FY 11, the act exempts a city (1) with a population greater than 130,000 and (2) that has issued pension deficit funding bonds, from a statutory requirement to appropriate money for, or contribute to, the pension plan funded with the bond proceeds. Only Bridgeport meets these qualifications.

The act requires the city, by May 31, 2009, to submit to the OPM secretary and the state treasurer a plan acceptable to them for funding the pension plan for FY 09. The city must also submit acceptable plans to the secretary and the treasurer for funding the pension plan for FY 10 and FY 11, by August 1, 2010 and August 1, 2011, respectively.

In each year the secretary and the treasurer fail to approve the city's plans, the city must contribute at least $4 million to the pension plan.

State law allows municipalities to issue pension deficit funding bonds to fund unfunded past pension obligations. If a municipality issues such bonds, it must ordinarily contribute at least the actuarially required amount to its pension plan in each fiscal year that it has outstanding pension deficit funding bonds for the plan (CGS 7-364c (c) (3)).

64 — FUNDS TO EXPAND CHARTER SCHOOLS

When distributing grants to expand the number of grades at a state charter school that, the education commissioner has determined, will assist the state to meet the goals of the 2008 Sheff desegregation stipulation and court order, the act requires the commissioner to use only funds appropriated to SDE for the Sheff settlement.

65-70 — STAFF FOR LEGISLATIVE COMMISSIONS

The act eliminates the authority for six legislative commissions to employ necessary staff as well as their authority over staffing and personnel. Instead, it requires that (1) each commission have an executive director and (2) the director and any necessary commission staff be employed by the Legislative Management Committee. The act applies to the:

1. Latino and Puerto Rican Affairs Commission,

2. African American Affairs Commission,

3. Asian Pacific American Affairs Commission,

4. Permanent Commission on the Status of Women,

5. Commission on Children, and

6. Commission on Aging.

The act also eliminates a requirement that the first three of the above-listed commissions employ their staff in accordance with the State Personnel Act. The State Personnel Act governs the state's classified service and requires agencies to use merit principles in hiring and employment. By law, legislative employees are exempt from the classified service (CGS 5-198).

71 — EDUCATION COST SHARING (ECS) GRANTS TO TOWNS

The act overrides the statutory formula for calculating ECS grants and specifies each town's ECS grant for FY 10 and FY 11. Under the act, each town's grant is the same for both years.

72 — POLICE OFFICER STANDARDS AND TRAINING (POST) COUNCIL

The act transfers the POST's administrative functions to the Department of Public Safety (DPS) and requires the department to provide the administrative assistance the council requires to maintain independent operations. Under prior law, the council was part of DPS for administrative purposes only. The act specifies that the POST Council remains solely responsible for its own operations and programs.

The POST Council establishes standards and provides training for police officers. It also establishes standards for, and accredits, law enforcement units in the state.

73 — PLAN FOR BORROWING AGAINST FUTURE STATE REVENUE

The act requires the state treasurer and the OPM secretary jointly to develop a financing plan to raise up to $335 million in net general state revenue for FY 11. The plan can include “securitization” of revenue from the state lottery; issuing bonds and other debt instruments or placing them privately; or the purchase of state debt instruments by public pension and trust funds, such as the state, municipal employees', and teachers' retirement funds. “Securitization” allows the state to borrow against a future revenue stream.

The treasurer and secretary must finish the plan and provide it to the chairpersons of the Appropriations and Finance, Revenue and Bonding committees by February 3, 2010.

74 — MARSHAL FEE INCREASE

Starting October 1, 2009, the act increases the annual fee each state marshal must pay from $250 to $750. The fee is payable by October 1 each year to the State Marshal Commission and is deposited in the General Fund.

75 — DEPARTMENT OF SOCIAL SERVICES DEADLINES FOR SERVICE OF PROCESS

The act requires the DSS commissioner to send any subpoena, summons, warrant, or court order related to department-initiated proceedings to a state marshal for service if (1) no action has been taken on it within the preceding 14 days and (2) the underlying proceedings are unresolved. In addition, to resolve any backlog, the act requires that, starting August 1, 2009, the commissioner forward up to 150 such documents per month to state marshals for service, if no action has been taken on them within the preceding 30 days.

77 & 86 — CORPORATION TAX SURCHARGE

The act imposes a 25% corporation tax surcharge for income years beginning in 2009, 2010, and 2011. Companies must calculate their surcharges based on their tax liability excluding any credits. The surcharge is due, payable, and collectible as part of each company's total tax for the year.

The surcharge applies to all companies that pay the tax, except those owing only the $250 minimum. It applies both to companies that pay the tax on their net income and those that pay on their capital base.

EFFECTIVE DATE: July 1, 2009 and applicable to income years starting on or after January 1, 2009.

76, 78 & 79 — CORPORATION TAX PROVISIONS FOR DOMESTIC INTERNATIONAL SERVICE COMPANIES

The act eliminates a corporation tax exemption for companies that qualify under the federal tax code as domestic international service companies (DISCs) as well as a deduction for dividends received from DISCs. It also requires companies to include receipts from sales of tangible personal property to DISCs in their total gross receipts for interstate apportionment purposes.

Under the federal tax code, companies that meet certain conditions (see BACKGROUND) and receive most of their income from qualified export, can elect to be treated as interest charge DISCs (IC-DISCs) for federal tax purposes. Unlike most corporations, IC-DISCs are not generally subject to federal tax on their income. Instead, their shareholders pay taxes on the income when it is actually distributed, but federal law allows the taxes on those distributions to be deferred if the shareholders pay annual interest on the deferred amounts. The IRS establishes the annual interest rate based on the 12-month Treasury bill interest rate (Internal Revenue Code, 992; 995(f)).

EFFECTIVE DATE: July 1, 2009 and applicable to income years starting on or after January 1, 2009.

78 & 96 — FEDERAL DOMESTIC PRODUCTION ACTIVITY DEDUCTION

The act bars companies and individuals from using the federal tax deduction for domestic production activity when determining their taxable income for the state's corporation and income taxes.

Federal tax law allows corporations, individuals, and pass-through companies to deduct a percentage of qualifying income they earn from eligible production activities taking place wholly or mostly within the United States. Eligible production activity includes manufacturing, construction, engineering, energy production, computer software, films and videotape, and agricultural products processing. The percentage deduction is 6% for 2008 and 2009 and 9% for 2010 and after (Internal Revenue Code 199).

The act requires (1) corporations to exclude the domestic production activity deduction when calculating net income for purposes of the state corporation tax and (2) individuals to add back any such deduction included in their federal AGI when calculating Connecticut AGI for state income tax purposes.

EFFECTIVE DATE: July 1, 2009. The corporation tax change applies to income years starting on or after January 1, 2009 and the income tax change applies to tax years starting on or after January 1, 2009.

80 — TAX CREDIT FOR DONATING OPEN SPACE

The law provides a credit against the corporation tax for donations or discounted sales of open space land or interests in land to the state, a political subdivision, or a nonprofit land conservation organization when the land will be permanently preserved as open space. The credit equals 50% of the (1) donated land's market value at its highest and best use or (2) value of the discounted sales price of the land or interest in the land.

The act extends the period for which a company may carry forward unused credits from 15 to 25 years. As under prior law, the carry-forward applies only to credits allowed for any tax year starting on or after January 1, 2000.

EFFECTIVE DATE: July 1, 2009 and applicable to income years starting on or after January 1, 2009.

81-85 & 110FILM AND DIGITAL ANIMATION PRODUCTION AND INFRASTRUCTURE INVESTMENT TAX CREDITS

Credit Administration

The law establishes tax credits against the corporation and insurance premium taxes for film and digital animation production and infrastructure investment related to both. The act transfers the administration of the credits from the Connecticut Commission on Culture and Tourism (CCCT) to the Department of Economic and Community Development (DECD). It transfers to DECD the CCCT's powers and duties concerning digital media and motion picture promotion activities. It also requires state agencies and institutions that contract for digital media or film productions to send copies of their requests for proposals to DECD, rather than CCCT.

Interim Film Production Tax Credit. The act eliminates a company's ability to obtain an interim film production tax credit. It does this by eliminating the process that allows a company to apply for a tax credit voucher while a production is in progress, starting three months after submitting its eligibility application, for its expenses up to that time. It continues to allow a production company to apply for and receive credits on an annual basis or after it incurs its last production expense.

Cost Certification. A film production or digital animation company must provide independent certification of the amount of its production expenses and costs when it applies for a tax credit voucher. The act requires the production company to use an audit professional, chosen from a list DECD compiles, to provide the independent certification.

Reporting Requirement. CCCT had to report to the General Assembly every two years on its digital media and movie production promotion activities, the economic impact of all productions, and the impact of each state-assisted production. The act transfers the reporting requirement to DECD; requires that DECD report annually, starting by January 1, 2010; and requires the department to submit the report to the Commerce and Finance, Revenue and Bonding committees instead of the whole General Assembly. It eliminates a requirement that the report include the impact of each state-assisted production and instead requires that it include (1) an analysis of all three credits and (2) for each project or production issued a tax credit, (a) a description of the project, (b) the amount of the credit, and (c) the total production expenses or costs the taxpayer issued the credit incurred in the state.

Eligible and Ineligible Production Expenses

Minimum Qualifying Expenditure. Under prior law, a company was eligible for the film or digital animation production tax credit if it incurred at least $50,000 in eligible production expenses in the state. For income years starting January 1, 2009, the act increases the minimum expenditure for both credits to $1 million.

In- and Out-of-State Expenditures. The act requires, for the film production tax credit, that the production company (1) conduct at least 50% of its principal photography days and (2) incur at least 50% of its postproduction costs within the state.

Prior law allowed a company to count 50% of the production expenses it incurs outside the state and 100% of the expenses it incurs in the state towards the film production credit if they are used in the state. This applied from January 1, 2009 to January 1, 2012, after which no out-of-state expenses would count towards the credit. The act moves up the phase-out date, to January 1, 2010, for out-of-state production expenses.

Star Salaries. Under prior law, the first $15 million paid to a single person, or the person's representative, for services on a film or digital media production counted as a credit-eligible expense. Anything over this amount did not. Starting January 1, 2009, the act limits credit-eligible compensation for all star talent featured in a film or digital media production to $20 million in the aggregate.

Audit Costs. The act excludes any costs related to an independent audit of film or digital animation production project costs and expenses that DECD requires before certification.

Film and Digital Animation Infrastructure Investment Tax Credit

Under prior law, the credit amounts for infrastructure investments in the film and digital media industry depended on the project's cost. Projects costing at least (1) $15,001 qualified for a 10% credit, (2) $150,000 qualified for a 15% credit, and (3) $1 million qualified for a 20% credit.

Starting January 1, 2009, the act makes the credit a flat 20% and increases the minimum qualifying expenditure to $5 million. It also requires that the project be 100%, rather than at least 60%, complete before it can receive a tax credit voucher.

EFFECTIVE DATE: July 1, 2009 and applicable to income years starting on or after January 1, 2009. The repeal of statutes to conform to the act's transfer of the film responsibilities from CCCT to DECD takes effect upon passage.

87 — COMBINED REPORTING PREFERENCE TAX

The act increases the maximum preference tax for groups of companies filing combined corporation tax returns from $250,000 to $400,000.

By law, any company subject to the Connecticut corporation tax and that is included with one or more affiliated corporations in a consolidated federal income tax return can choose to file a combined Connecticut return as well. The Department of Revenue Services (DRS) commissioner may also require a corporation to file a combined return with its affiliates under certain circumstances. In either a case, a corporate group filing a combined Connecticut corporation tax must pay a supplemental tax in addition to that calculated using the group's combined net income or capital base. This so-called “preference tax” is the difference between the sum of the amounts that would have been due if each member of the corporate group filed separately and the amount due under the combined return, but no more than a maximum amount. The act increases this maximum amount from $250,000 to $400,000.

88-90 — CIGARETTE TAX

The act increases the cigarette tax by 75 cents, from $2 to $2. 75 per pack of 20 (from 10 cents to 13. 75 cents per cigarette), starting July 1, 2009.

It also imposes a 75-cent “floor tax” on each pack of cigarettes that dealers and distributors have in their inventories at the later of the close of business or 11: 59 p. m. on June 30, 2009. By August 15, 2009, each dealer and distributor must report to the DRS the number of cigarettes in inventory as of that time and date and pay the floor tax. If a dealer or distributor does not report by the due date, the DRS commissioner must file the report, estimating the number of cigarettes in the dealer's or distributor's inventory using any information the commissioner has or obtains.

Failure to file the report by the due date is grounds for DRS to revoke a dealer's or distributor's license, and willful failure to file subjects the dealer or distributor to a fine of up to $1,000, one year in prison, or both. A dealer or distributor who willfully files a false report can be fined up to $5,000, sentenced to one to five years in prison, or both. Late filers are also subject to the same interest and penalties as apply to other late cigarette tax payments.

EFFECTIVE DATE: The cigarette tax increase is effective July 1, 2009 and applicable to cigarette sales on or after that date. The floor tax is effective on passage.

91 & 92 — TOBACCO PRODUCTS TAX INCREASE

The act increases the tobacco products tax from 20% to 27. 5% of the wholesale price and the tax on snuff tobacco from 40 cents to 55 cents per ounce. The tobacco products tax applies to cigars, cheroots, pipe tobacco, and similar products.

The act imposes the same “floor tax” on inventory as the cigarette floor tax above, except that the rate is 7. 5% on the wholesale price of tobacco products and 15 cents per ounce or a proportional share of fractional amounts of snuff that distributors or unclassified importers have in their inventories.

EFFECTIVE DATE: July 1, 2009 and applicable to sales on and after that date. The floor tax is effective on passage.

93 — ESTATE TAX SURCHARGE

The act imposes a 30% estate tax surcharge on the taxable estates of those who die in 2009, 2010, or 2011. The estate tax applies to taxable gifts and estates over $2 million. Under the act, the surcharge must be added to the Connecticut estate tax due and is payable in the same manner as the underlying tax.

EFFECTIVE DATE: July 1, 2009 and applicable to estates of those who die on or after January 1, 2009.

94 — USE TAX TABLE

The act requires the DRS commissioner to include a use tax table on state income tax forms. The table must show the Connecticut use tax rate (6% for most items) and the total taxes that would be due for various amounts spent.

By law, when someone buys a taxable item or service for use in Connecticut and does not pay sales tax to the retailer at the time of the purchase, the buyer must remit the equivalent use tax directly to DRS. Use tax is generally remitted along with personal income tax payments.

95 — INCOME TAX RATE INCREASE

The act increases income taxes for those with taxable incomes over $500,000 for joint filers, $265,000 for single filers, $400,000 for heads of households, and $250,000 for married people filing separately. It does so by adding three higher-income brackets and increasing the marginal tax rates for income in those brackets from a flat 5. 0% to a range of 6. 0% to 7. 5%. It increases the flat tax rate for trusts and estates from 5. 0% to 7. 5%.

Table 5 shows tax rates and brackets under the prior law and the act. (Note: The tax rates shown apply only to the taxable income in the applicable bracket, not to all of a taxpayer's income. )

Table 5: Income Tax Rates and Brackets Under Prior Law and The Act

TAX RATES

CT TAXABLE INCOME

Married Filing

Jointly

Single

Prior Law

Act

Over

But Not Over

Over

But Not Over

3. 0%

3. 0%

$0

$20,000

$0

$10,000

5. 0%

5. 0%

20,000

500,000

10,000

265,000

6. 0%

500,000

600,000

265,000

318,000

6. 5%

600,000

750,000

318,000

397,500

7. 5%

Over $750,000

Over $397,500

TAX RATES

Head of

Household

Married Filing

Separately

Prior Law

Act

Over

But Not Over

Over

But Not Over

3. 0%

3. 0%

$0

$16,000

$0

$10,000

5. 0%

5. 0%

16,000

400,000

10,000

250,000

6. 0%

400,000

480,000

250,000

300,000

6. 5%

480,000

600,000

300,000

375,000

7. 5%

Over $600,000

Over $375,000

EFFECTIVE DATE: July 1, 2009 and applicable to tax years starting on or after January 1, 2009.

97 & 98 — DELAY IN SCHEDULED INCOME TAX REDUCTIONS FOR SINGLE FILERS

The act delays scheduled income tax reductions for single filers for three years. It does so by delaying scheduled increases in (1) their adjusted gross income (AGI) exempt from the tax and (2) income thresholds for phasing out their personal exemptions and credits and their propertytax credits.

Personal Exemption

The maximum personal exemption for single filers for the 2008 tax year was $13,000. Under prior law, the maximum exemption was scheduled to increase to $13,500 on January 1, 2009 and to rise in five more annual steps to $15,000 on January 1, 2012. The act instead maintains the $13,000 personal exemption for three more years, through the 2011 tax year, delaying the increase to $13,500 and each subsequent increase by three years. It also delays scheduled increases in the exemption reduction thresholds to correspond, as shown in Table 6. (The income tax personal exemption is reduced by $1,000 for each $1,000 of AGI over a specified threshold, which varies according to filing status. )

Table 6: Personal Exemptions for Single Filers

Tax Year(s)

Maximum Personal

Exemption

(AGI)

Personal

Exemption

Reduction

Threshold (AGI)

Old Law

The Act

2008

Through 2011

$13,000

$26,000

2009

2012

13,500

27,000

2010

2013

14,000

28,000

2011

2014

14,500

29,000

2012 and after

2015 and after

15,000

30,000

Personal Credit

The act also delays by three years scheduled increases in income ranges that allow single filers to qualify for personal credits against their income tax. Personal credits range from 1% to 75% of tax liability depending on AGI. Filers with AGIs above specified levels, which vary depending on filing status, do not qualify for any credit. Table 7 shows qualifying personal credit income ranges for single filers under prior law and the act.

Table 7: Personal Credits for Single Filers

Tax Year(s)

Qualifies for 1% to 75% Personal Credit (AGI)

Prior Law

The Act

Over

But Not Over

2008

Through 2011

$13,000

$56,500

2009

2012

13,500

58,500

2010

2013

14,000

60,500

2011

2014

14,500

62,500

2012 and after

2015 and after

15,000

64,500

Property Tax Credit

Finally, the act delays by three years scheduled increase in AGI ranges that allow single filers to qualify for property tax credits. By law, the maximum property tax credit is $500. Certain taxpayers qualify for a reduced credit or no credit depending on their AGI and filing status, with the maximum credit reduced by 10% for each $10,000 of AGI over the specified threshold. Under prior law, the AGI threshold at which a single filer's maximum property tax credit starts to be reduced was scheduled to increase annually over the four years from 2008 to 2012 from $56,500 to $64,500. This act delays each of these scheduled increases by three years as shown in Table 8.

Table 8: Maximum Property Tax Credits for Single Filers

Tax Year (s)

Maximum Property

Tax Reduction

Threshold (AGI)

Prior Law

The Act

2008

Through 2011

$56,500

2009

2012

58,500

2010

2013

60,500

2011

2014

62,500

2012 and after

2015 and after

64,500

EFFECTIVE DATE: July 1, 2009 and applicable to income years starting on or after January 1, 2009.

99 — TIRE FEE

The act requires motor vehicle tire retailers to pay a $3 fee for each tire they sell. Such retailers must register with the DRS commissioner and submit quarterly returns, starting with the quarter beginning July 1, 2009. Returns are due by the last day of the month following the end of each quarter. Fees not paid when due are subject to a penalty of 10% or $50, whichever is greater, and interest of 1. 25% per month or part of a month until paid. Tire fee revenue must be deposited in the General Fund.

The act requires the DRS commissioner to distribute tire fee return forms widely in the state but specifies that failure to receive a form does not excuse a person from the obligation to pay the fee. The act applies to the tire fee the same administrative, audit, deficiency assessment, and appeal procedures as apply to admissions and dues taxes.

EFFECTIVE DATE: Upon passage

100 — PLAN TO SELL STATE ASSETS

The act requires the state treasurer and the OPM secretary jointly to establish a plan to sell state assets to raise net general revenue of up to $10 million for FY 11 and $102. 5 million for FY 12. They must finish the plan and provide it to the Appropriations and Finance, Revenue and Bonding committee chairpersons by February 3, 2010.

101 — TRANSFERS FROM THE BUDGET RESERVE (“RAINY DAY”) FUND

The act requires the state treasurer to transfer from the Budget Reserve Fund to General Fund revenue (1) $461. 1 million for FY 10 on July 1, 2009 and (2) $920. 7 million for FY 11 on July 1, 2010.

EFFECTIVE DATE: Upon passage

102 & 103 — ECONOMIC RECOVERY NOTES

The act authorizes the state to issue economic recovery notes to fund (1) the FY 09 General Fund deficit, (2) the interest payable or accrued on the notes through June 30, 2011, and (3) the costs of their issuance. The notes are state general obligations and must mature before July 1, 2016. The act exempts the debt attributable to the notes from the statutory limit on state General Fund-supported debt (see BACKGROUND).

The act requires the comptroller to certify the FY 09 deficit amount to the treasurer “promptly” after the act's passage based on her most recent monthly report of the state's fiscal condition. The comptroller's certification provides conclusive evidence of the amount of economic recovery notes the treasurer can issue under the act. When the comptroller knows the final deficit, she must certify that amount to the treasurer. If the final amount is greater than the initial amount certified, the act authorizes the treasurer to issue additional notes to cover the difference.

The treasurer must issue the notes on or after the act's passage and deposit the proceeds from their sale in the General Fund. In any determination of the General Fund's position for FY 10, the comptroller must reflect the amount of the note proceeds funding the FY 09 General Fund deficit, if the notes are issued before the determination.

The act exempts interest on, and gains from the sale of, the notes from all taxes imposed by the state or under its authority, except estate or succession taxes. It also requires the treasurer to structure the notes so their interest is excluded from federal taxes if that is appropriate or necessary to improve the notes' marketability.

The act makes the notes legal investments for banks, insurance companies, fiduciaries, and public bodies and allows public officers to accept them for any purpose for which they may receive or deposit state notes.

Finally, the act incorporates and applies to the economic recovery notes various statutory provisions relating to issuing state general obligation bonds and notes. These concern, among other things, the treasurer's authority to make agreements and promises relating to issuing and repaying the notes, and the procedure for, and state defenses in, any bond holder lawsuit under contracts, agreements, and covenants relating to the notes.

EFFECTIVE DATE: Upon passage

104-109 — REVENUE ESTIMATES

The act adopts revenue estimates for FY 10 and FY 11 for three state funds, as shown in Table 9.

Table 9: Revenue Estimates for FY 10 and FY 11

Fund

FY 10

FY 11

General Fund

$17,528,700,000

$18,048,400,000

Mashantucket Pequot & Mohegan Fund

61,800,000

61,800,000

Criminal Injuries Compensation Fund

3,500,000

3,700,000

BACKGROUND

IC-DISCs

To be an IC-DISC, a corporation must be organized under the laws of a state or the District of Columbia and:

1. derive at least 95% of its gross receipts during the tax year from qualified exports;

2. at the end of the tax year, have at least 95% of its assets as qualified export assets;

3. have only one class of stock with a par or stated value of at least $2,500 on each day of the tax year;

4. maintain separate books and records;

5. not be a member of any controlled group of which a foreign sales corporation (FSC) is also a member (a FSC is an affiliate of a U. S. company that is incorporated in a qualifying foreign country and serves as an agent for the U. S. exporter);

6. have a tax year that conforms to the tax year of its largest shareholder in terms of voting power; and

7. elects to be treated as an IC-DISC for the tax year.

Statutory Debt Limit

State law limits the amount of state General Fund-supported debt to 1. 6 times the net General Fund tax receipts the Finance, Revenue and Bonding Committee projects for the fiscal year in which the legislature authorizes the debt. Certain types of debt are excluded from the debt limit calculation, including debts incurred for federally reimbursable public works projects, assets in debt retirement funds, and debt incurred in anticipation of revenue and some other purposes.

OLR Tracking: JSL: KM: PF: DF