Location:
BONDS; BUDGET, STATE;

OLR Research Report


October 7, 2009

 

2009-R-0341

STATE BUDGET, DEBT, AND LONG-TERM OBLIGATIONS

By: Judith Lohman, Chief Analyst

You asked for the following data for each year since 1989: (1) total General Fund appropriations, (2) general obligation bond authorizations, and (3) debt service expenditures in both dollars and as a percentage of the budget. You also asked for available estimates of the state's total unfunded long-term obligations.

GENERAL FUND APPROPRIATIONS

Table 1 shows the General Fund appropriations for each fiscal year since 1989.

TABLE 1: GENERAL FUND APPROPRIATIONS

1989-2009

Fiscal Year

General Fund Appropriation

(in millions)

1989

$6,433.6

1990

7,071.3

1991

7,705.6

1992

7,962.1

1993

8,693.5

1994

9,298.2

1995

9,789.5

1996

10,022.8

1997

10,399.3

1998

10,839.4

1999

11,414.1

2000

12,404.5

2001

12,932.6

2002

13,265.5

2003

13,572.6

2004

13,948.6

2005

14,457.1

2006

16,168.2

2007

16,505.6

2008

17,991.9

2009

17,083.0

Source: Office of Fiscal Analysis, Annual Budget Books

GENERAL OBLIGATION BOND AUTHORIZATIONS

Table 2 shows total general obligation bond authorizations for each fiscal year since 1989.

TABLE 2: GENERAL OBLIGATION BOND AUTHORIZATIONS

(in millions)

Fiscal Year

Legislative

Session(s)

Total

Authorizations [1]

Reductions &

Cancellations

Net

Authorizations

1989

1988

$829.3

$-51.1

$778.2

1990

1989

963.9

-82.8

881.1

1991

1990

1,442.5

-190.1 [2]

1,252.4

1992

1991

920.1

-236.6

683.5

1993

1992

952.8 [3]

-317.9

634.9

1994

1993

1,353.0

-247.2

1,105.8

1995

1993/94

976.5

-153.9

822.6

1996

1995

843.8

-396.0 [4]

447.8

1997

1995/96

807.3

-94.5

712.8

1998

1997

899.9

-96.2

803.7

1999

1997/98

1,382.2

-32.1

1,350.1

2000

1999

1,711.7 [5]

-330.8 [6]

1380.9

2001

1999/00

1430.8 [7]

-70.1 [8]

1,360.7

2002

2001

1,442.6

-79.9

1,362.7

2003

2001/02

1073.3

-380.0 [9]

693.3

2004

2002/03/04

1,246.1 [10]

0

1,246.1

2005

2004

1,299.2

-200.3

1,098.9

2006

2005

1,294.5

-41.2

1,253.2

2007

2005

1,488.7

0

1,488.7

2008

2007

2,179.2

-206.9

1,972.3

2009

2007

1,732.9

0

1,732.9

Source: Connecticut's Capital Budget, Office of Fiscal Analysis, February 2009

Footnotes for Table 2:

[1] Figures show gross authorizations for agencies. Reductions and cancellations appear separately.

[2] Includes $130.85 million in old projects that were canceled and reauthorized.

[3] Does not include $250,000 in General Fund revenue bonds for the Connecticut Marketing Authority.

[4] Includes cancellation of $251.1 million for a stadium in Hartford.

[5] Does not include $20 million in revenue bonds for Bradley International Airport.

[6] Includes cancellation of $274.4 million for the Patriots Stadium project in Hartford.

[7] Does not include $40 million in revenue bonds for Bradley International Airport.

[8] Includes cancellation of $28 million in tax incremental financing for the Long Wharf project in New Haven.

[9] Includes cancellation of $120 million in tax incremental financing for the Steele Point project in Bridgeport.

[10] Includes changes made during 5/02 Special Session, 9/03 Special Session and 5/04 Special Session.

DEBT SERVICE EXPENSES

Table 3 shows the annual debt service expenditures for the General and Special Transportation funds in dollars and as a percentage of total expenditures.

TABLE 3: ANNUAL GENERAL AND SPECIAL TRANSPORTATION FUND

DEBT SERVICE, 1989-2009

Fiscal

Year

Fund

Debt Service

Expenditure

($ millions)

% of Total

Budget

1989

General

$210.4

3.8

Transportation

174.3

30.4

Combined

384.7

6.2

1990

General

267.6

4.2

Transportation

213.1

34.0

Combined

480.7

6.9

1991

General

310.4 [1]

4.7

Transportation

247.3

40.0

Combined

557.7

7.7

1992

General

413.1

5.7

Transportation

277.1

43.0

Combined

690.2

8.8

1993

General

447.8

6.1

Transportation

312.1

45.1

Combined

759.9

9.5

1994

General

498.6 [2]

6.3

Transportation

303.4 [2]

42.1

Combined

802.0

9.3

1995

General

580.7

6.7

Transportation

330.3

43.6

Combined

911.0

9.7

1996

General

645.7

7.3

Transportation

345.5

43.6

Combined

991.2

10.3

1997

General

725.5

7.9

Transportation

358.6

44.3

Combined

1,084.1

10.8

1998

General

790.2 [3]

8.2

Transportation

372.5 [4]

46.6

Combined

1,162.7

11.1

1999

General

848.4 [3]

8.3

Transportation

379.4 [4] [5]

47.7

Combined

1,227.8

11.1

2000

General

926.4

8.3

Transportation

375.7 [4]

45.9

Combined

1,320.1

10.8

2001

General

973.6

8.2

Transportation

395.4

46.8

Combined

1,368.9

10.8

2002

General

992.1

8.1

Transportation

396.0

45.4

Combined

1,388.0

10.6

2003

General

998.5

8.2

Transportation

407.0

46.0

Combined

1,395.4

10.7

2004

General

1,127.5

9.0

Transportation

416.6

46.6

Combined

1,544.1

11.5

2005

General

1,259.1

9.4

Transportation

416.3

44.6

Combined

1,675.4

11.7

2006

General

1,306.1

9.0

Transportation

425.8

42.6

Combined

1,731.9

11.2

2007

General

1,477.0 [6]

9.7

Transportation

416.3

40.1

Combined

1,893.3

11.6

2008

(estimated)

General

1,413.1

8.5

Transportation

421.4

38.4

Combined

1,834.5

10.3

2009

(budgeted)

General

1,543.9

9.0

Transportation

449.5

38.9

Combined

1,993.4

10.9

Source: Connecticut's Capital Budget, Office of Fiscal Analysis, February 2009

Footnotes for Table 3:

[1] The figure includes a $39 million debt service payment in FY 91 for housing-related bonds by the Connecticut Housing Finance Authority.

[2] The General Fund and Transportation Fund totals reflect a $10 million payment by the General Fund of transportation-related debt service.

[3] PA 97-11, June 18 Special Session appropriated $40 million for debt service payments of $20 million in FY 98 and $20 million in FY 99. An additional $4 million was appropriated for debt service payments on nursing home bonds issued by the Connecticut Health and Education Facilities Authority and secured by a special capital reserve fund. Expenditure of these amounts is reflected in this table.

[4] PA 97-309 required the treasurer to use any year-end balance in the Transportation Fund balance that exceeds $20 million to reduce outstanding indebtedness or the debt service requirements of the fund. In September 1997, $84.9 million was used to cash (defease) $80.8 million of bonds. In May 1998, $9.8 million was used to pay debt service due in FY 99. In December 1999, $81.8 million was used to defease $84.9 million in bonds. In June 2000, the treasurer directed that the remaining surplus of $1.5 million will be used to pay debt service due in FY 01. PA 00-170 repealed the provision that permits balances in excess of $20 million be directed toward debt reduction or for the payment of debt service requirements on special tax obligation bonds, and allowed surplus balances to be carried forward as had been in practice prior to PA 97-309. Please note that the figures in this table do not reflect debt service for the defeased debt because payments are made from the escrow account and not the appropriated debt service account.

[5] SA 98-6 appropriated $15 million from the FY 98 budget surplus to FY 98 Transportation Fund debt service and carried these funds forward to the FY 99 debt service appropriation. The FY 99 figures reflect this carry forward.

ESTIMATES OF LONG-TERM OBLIGATIONS

The Office of Policy and Management and the Office of Fiscal Analysis must provide estimates of the state's long-term obligations every November in fiscal accountability reports to the Appropriations and Finance, Revenue and Bonding committees. The reporting requirement began in 2006. The two offices have agreed on the estimates of long-term obligations in each of the three reports submitted. The estimates for 2006 through 2008 are shown in Table 4.

TABLE 4: CONNECTICUT'S LONG-TERM OBLIGATIONS

Obligation

Estimated Cost

(in billions)

2006 Estimate

2007 Estimate

2008 Estimate

Bonded Indebtedness

$14.8

$14.4

$16.8

State Employee Pensions – Unfunded

6.9

7.9

9.3

Teacher Pensions – Unfunded

5.2

6.9

6.5

State Employee Post-Retirement Health and Life Insurance - Unfunded

21.1

21.7

21.7

Teacher Post-Retirement Health and Life Insurance - Unfunded

Not specified

2.2

2.3

Generally Accepted Accounting Principles (GAAP) Deficit

1.0

1.1

1.0

TOTAL

$49.0

$54.2

$57.4

Source: Office of Policy and Management, Fiscal Accountability Reports, November, 2006, 2007, and 2008

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