OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-440

AN ACT CONCERNING PHOSPHOROUS REDUCTION IN STATE WATERS.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 13 $

FY 14 $

Treasurer, Debt Serv.

GF - Cost

See Below

See Below

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 13 $

FY 14 $

Various Municipalities

Savings

See Below

See Below

Explanation

The bill adds phosphorus removal to the list of costs eligible for a 30% grant-in-aid under the Clean Water Fund (CWF) Program. This is anticipated to result in an increase of $17 million over nine years in the amount of future General Obligation bond authorizations needed for the CWF Program, which will result in a debt service cost to the General Fund.

Municipalities are required to comply with the federal mandate that phosphorus be removed from waste water. The bill will result in municipal savings of $17 million over nine years because the state will pay a portion of the cost to meet the federal requirement.

The Out Years

The General Fund fiscal impact identified above would continue into the future for the 20-year term of issuance of General Obligation bonds.

Sources:

Office of the State Treasurer