OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-1173

AN ACT CONCERNING QUALIFIED PRIVATE INVESTMENTS FOR CONNECTICUT INNOVATIONS, INCORPORATED'S PRESEED PROGRAM.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

CT Innovations Inc. (quasi-public) – Preseed Financing Account

GF - Potential Cost

Up to 750,000

Up to 750,000

Note: GF=General Fund

Municipal Impact: None

Explanation

This bill may result in a cost to the Preseed Finance Account within the General Fund. 1 The bill specifies that private investment dollars, as required by preseed financing program, can include certain funding sources at public institutions of higher education. This modification will allow Connecticut Innovations, Incorporated (CII) to extend the program to businesses affiliated with the state's public universities.

Each approved business may receive funding of up to $150,000 from CII. If CII approves five new businesses under the program, the resulting cost to the preseed program could be up to $750,000.

Background

As of February 2011, CII has committed funding totaling more than $1 million to seven startup technology companies through the preseed program.

The Out Years

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

1 The Preseed Financing Account is a separate nonlapsing account within the General Fund. P. A. 10-75 authorized $5 million in general obligation bonds to fund the preseed program. Proceeds from those bonds are deposited into the Account.