OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-1152

AN ACT CONCERNING THE UNIVERSITY OF CONNECTICUT HEALTH CENTER.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Treasurer, Debt Serv.

GF - Cost

None

None

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill: (1) authorizes $262. 9 million in new General Obligation (GO) bonds for renovations and new construction at the University of Connecticut Health Center (UCHC) between FY 14 and FY 17 and (2) reduces prior GO authorizations for the UConn Health Network Initiatives by $8 million, which results in a net total increase of $254. 9 million. The total General Fund debt service cost for principal and interest payments to bond $254. 9 million over 20 years, assuming a 5. 0% interest rate, is $388. 7 million (comprised of $133. 8 million in interest and $254. 9 in principal). There is no General Fund impact in FY 12 or FY 13 because no additional bonds are authorized until FY 14.

The table below shows the changes made by PA 10-104 and the bill:

Changes to GO Bond Authorizations

 

Amount ($-millions)

Purpose

Prior law

PA 10-104 changes

sSB 1152 changes

After sSB 1152

CLAC Reno Biosafety Level 3 Lab

14. 0

   

14. 0

Deferred Maintenance/Code/ADA

50. 0

   

50. 0

Dental School Renovation

5. 0

   

5. 0

Equipment, Library, Telecom

75. 0

   

75. 0

Library/Computer Center Reno

5. 0

   

5. 0

Main Building Reno

75. 0

(25. 0)

75. 0

125. 0

Med School Academic Bldg Reno

9. 0

   

9. 0

Parking Garage

8. 4

   

8. 4

Research Tower

60. 0

   

60. 0

Support Building Addition/Reno

4. 0

   

4. 0

Health Center New Construction

0. 0

207. 0

187. 9

394. 9

Planning and design costs

0. 0

25. 0

 

25. 0

Total UConn 2000

305. 4

207. 0

262. 9

775. 3

         

UConn Health Initiatives

0. 0

30. 0

(8. 0)

22. 0

         

TOTAL GO Authorizations

305. 4

237. 0

254. 9

797. 3

Other Provisions

The bill also:

● Eliminates language related to the proposed Institute for Nursing Excellence and the Connecticut Institute for Clinical and Translational Science. These eliminations correspond with the $8 million reduction in GO bonds noted above.

● Requires UCHC to provide for the construction of an ambulatory care center through debt or equity financing obtained from one or more private developers.

● Requires UCHC to contribute at least $69 million towards the project cost from operation, gifts or other sources.

● Removes the requirement that $100 million in non-state funds be received before the UCHC project can proceed.

The Out Years

State Impact:

The $254. 9 million increase in GO bond authorizations is effective between FY 14 and FY 17. Assuming the bonds are issued in the year in which they become effective, the increase in General Fund debt service costs associated with the bonds is expected to begin in FY 14. The debt service cost will continue for the 20-year term of the bonds.

Municipal Impact: None