OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-25

AN ACT AUTHORIZING AND ADJUSTING BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS, TRANSPORTATION AND OTHER PURPOSES.

AMENDMENT

LCO No.: 5456

File Copy No.: 573

Senate Calendar No.: 411

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 13 $

FY 14 $

Treasurer, Debt Serv.

GF - Cost

See Below

See Below

Treasurer, Debt Serv.

TF - Cost

See Below

See Below

Note: GF=General Fund; TF=Transportation Fund

Municipal Impact:

Municipalities

Effect

FY 13 $

FY 14 $

Various Municipalities

Revenue Gain

See Below

See Below

Explanation

The amendment strikes the file copy and eliminates the associated fiscal impact.

The new language does the following in FY 13:

(1) It authorizes $621.1 million in new General Obligation (GO) bonds,

(2) It cancels $22.3 million in GO bonds

(3) It authorizes $120.0 million in new Special Tax Obligation (STO) bonds, and

(4) It makes a variety of language changes to existing bond authorizations.

The authorization amounts and the associated General Fund and Special Transportation Fund debt service costs1 are shown in the table below.

New FY 13 Bond Authorizations and Estimated Debt Service Cost

($-millions)

Fiscal Year

Authorization

Amount

Total Debt Service Cost*

Interest

Principal

General Obligation (GO) Bonds – General Fund

FY 13

621.1

947.2

326.1

621.1

*The figures assume that the GO bonds are issued at 5.0% for a term of 20 years.

Special Tax Obligation (STO) Bonds – Special Transportation Fund

FY 13

120.0

200.8

80.3

120.0

*The figures assume that STO bonds are issued at 5.5% for a term of 20 years.

The amendment will result in a revenue gain for grants-in-aid to various municipalities related to: (1) computer-assisted mass appraisal, and (2) capital expenditures for education programs.

Further Explanation

The table below provides a list of the provisions in the amendment organized by agency.

Bonding Provisions in LCO #5456

Section

Agency/Description

Amount ($)

     
 

General Obligation Bonds

 
 

Office of Policy and Management

 

Sec. 34

Capital Equipment Purchase Fund

2, 000, 000

     

Sec. 9(a) (1)

Grants-in-aid to municipalities for development of a computer-assisted mass appraisal in accordance with section 12-62f of the general statutes

38, 500

     

Sec. 9(a) (2)

Grants-in-aid to municipalities for the incentive housing zone program established pursuant to chapter 124b of the general statutes

2, 000, 000

     

Sec. 2(a)

Information Technology Capital Investment Program

50, 000, 000

 

Subtotal

54, 038, 500

     
 

Capital Region Development Authority

 

Sec. 43

Grants or loans for residential housing development

60, 000, 000

     
 

Department of Administrative Services

 

Sec. 25

Exterior renovations and improvements, including installation of air conditioning, to the State Office Building in Hartford. PA 11-57 Sec. 21(d) (1)

2, 500, 000

     

Sec. 25

Infrastructure repairs and improvements, including fire, safety and compliance with the Americans with Disabilities Act improvements, improvements to state-owned buildings and grounds, including energy conservation and off-site improvements, and preservation of unoccupied buildings and grounds, including office development, acquisition, renovations for additional parking and security improvements. PA 11-57 Sec. 21(d) (2)

180, 000, 000

 

Subtotal

182, 500, 000

     
 

Dept of Construction Services

 

Sec. 2(b) (1)

Removal or encapsulation of asbestos in state-owned buildings

5, 000, 000

     

Sec. 2(b) (2)

Capital construction, improvements, repairs, renovations and land acquisition at fire training schools

28, 200, 000

     

Sec. 22

Infrastructure repairs and improvements, including fire, safety and compliance with the Americans with Disabilities Act improvements, improvements to state-owned buildings and grounds, including energy conservation and off-site improvements, and preservation of unoccupied buildings and grounds, including office development, acquisition, renovations for additional parking and security improvements. PA 07-7, (JSS) , Sec. 21(e) (2)

(180)

     

Sec. 26

Removal or encapsulation of asbestos in state-owned buildings. PA 11-57, Sec. 21(e) (1)

(5, 000, 000)

     

Sec. 26

Infrastructure repairs and improvements, including fire, safety and compliance with the Americans with Disabilities Act improvements, improvements to state-owned buildings and grounds, including energy conservation and off-site improvements, and preservation of unoccupied buildings and grounds, including office development, acquisition, renovations for additional parking and security improvements. PA 11-57, Sec. 21(e) (2)

(2, 500, 000)

     

Sec. 26

Notwithstanding the provisions of section 4b-1 of the general statutes, land acquisition, construction, improvements, repairs and renovations at fire training schools. PA 11-57, Sec. 21(e) (3)

(2, 000, 000)

 

Subtotal

23, 699, 820

     
 

Department of Emergency Services and Public Protection

Sec. 27

Alterations and improvements to buildings and grounds, including utilities, mechanical systems and energy conservation projects. PA 11-57 Sec. 21(f)

1, 375, 000

     

Sec. 2(c) (1)

Design and construction of alterations, renovations and improvements for an emergency services facility, including canine training and vehicle impoundment area and a fleet maintenance and administration facility, including acquisition of property and related costs

5, 256, 985

     

Sec. 2(c) (2)

Design and construction of alterations, renovations and improvements for a firearms training facility and vehicle operations training center

6, 576, 000

     

Sec. 17

Emergency services facility, including canine training and vehicle impound area, in Cheshire. PA 99-242, Sec. 2(c) (1)

(5, 256, 985)

     

Sec. 19

Alterations, renovations and improvements to Building 5 at the Mulcahy Complex in Meriden. PA 07-7, (JSS) , Sec. 2(h) (3)

(750, 000)

     

Sec. 20

Language change: Improvements to the department shooting range [in Simsbury] . PA 07-7, (JSS) , Sec. 2(h) (7)

0

     

Sec. 23

Alterations, renovations and improvements to Building 5 at the Mulcahy Complex in Meriden. PA 07-7, (JSS) , Sec. 21(f) (3)

(5, 826, 000)

     

Sec. 40

Buy-out program for homeowners and businesses who receive FEMA funding related to property damage due to weather events in 2011 and subsequent years

2, 000, 000

 

Subtotal

3, 375, 000

     
 

Department of Energy and Environmental Protection

Sec. 9(b) (1)

Study and assess feasible alternatives to plan, design, acquire and construct, as may be necessary, structural and nonstructural improvements to mitigate flooding conditions that caused property damage due to weather events in 2011, which shall include, but need not be limited to, a cost benefit analysis and an analysis of the environmental impact of such alternatives

2, 000, 000

     

Sec. 9(b) (2)

A program to establish energy microgrids to support critical municipal infrastructure

25, 000, 000

     

Sec. 39

Buy-out program for homeowners and businesses that receive Federal Emergency Management Agency funding related to property damage due to weather events in 2011 and subsequent years

2, 000, 000

     

Sec. 48

Underground Storage Tank Cleanup Program - $9 million authorized in each of FY 13, FY 14, FY 15 and FY 16 ($36 million total)

9, 000, 000

 

Subtotal GO Bonds

38, 000, 000

     
 

Department of Economic and Community Development

Sec. 2(e)

Implementation of a minority business enterprise assistance program to assist such businesses in obtaining surety bonds, including bid, performance and payment bonds, for capital construction projects, which program may be run by a nonprofit entity with which said department shall contract, provided not more than $2, 000, 000 shall be made available to a nonprofit entity that shall give priority to minority business enterprises located in the northern half of the state, and not more than $2, 000, 000 shall be made available to a nonprofit entity that shall give priority to minority business enterprises located in the southern half of the state.

4, 000, 000

     

Sec. 9(c) (1)

Grants-in-aid to nursing facilities for alterations, renovations and improvements for conversion to other uses in support of right-sizing

10, 000, 000

     

Sec. 9(c) (2)

Grants-in-aid to municipalities and nonprofit organizations for cultural and entertainment-related economic development projects, including museums

5, 000, 000

     

Sec. 9(c) (3)

Grant-in-aid to the Connecticut Housing Finance Authority for the purposes of sections 8-265cc to 8-265kk, inclusive, of the general statutes

60, 000, 000

     

Sec. 30

Housing development and rehabilitation programs, provided not more than $12, 500, 000 shall be used for development of congregate housing, not more than $1, 000, 000 shall be used for grants-in-aid for accessibility modifications for persons transitioning from institutions to homes under the Money Follows the Person program established pursuant to section 17b-369 of the general statutes, not more than $500, 000 shall be used to purchase equipment and software to update the homeless information system and not more than $30, 000, 000 shall be used for revitalization of state low and moderate income rental housing units of the Connecticut Housing Finance Authority's state housing loan portfolio transferred in accordance with section 8-37uu of the general statutes. PA 11-57 Sec. 28

62, 500, 000

     

Sec.38

Amend Manufacturing Assistance Act - CGS Sec. 32-235(b) (8) : [two] four million dollars shall be used by said department for the purpose of a grant to companies adversely impacted by the construction at the Quinnipiac Bridge, where such grant may be used to offset the increase in costs of commercial overland transportation of goods or materials brought to the port of New Haven by ship or vessel.

0

 

Subtotal

141, 500, 000

     
 

Connecticut Innovations, Incorporated

 

Secs. 36 & 37

Transfer bonds to the Clean Energy Finance and Investment Authority and repurposed them for a new program

0

     
 

Department of Public Health

 

Sec. 9(d)

Grants-in-aid to community health centers and primary care organizations for the purchase of equipment, renovations, improvements, and expansion of facilities, including acquisition of land and/or buildings provided that up to $15, 000, 000 shall be made available to member centers affiliated with the Community Health Center Association of Connecticut, and up to $15, 000, 000 shall be made available to Community Health Center, Incorporated

30, 000, 000

     
 

Department of Social Services

 

Sec. 31

Language change: Grants-in-aid for neighborhood facilities, [child day care projects, ] elderly centers, multipurpose human resource centers, [shelter facilities for victims of domestic violence and food distribution facilities] and related facilities PA 11-57, Sec. 32(g)

0

     
 

Department of Education

 

Sec. 9(e) (1)

Grants-in-aid for the purpose of capital start-up costs related to the development of new interdistrict magnet school programs to assist the state in meeting the goals of the 2008 stipulation and order for Milo Sheff, et al. v. William A. O'Neill, et al., for the purpose of purchasing a building or portable classrooms, subject to the reversion provisions in subdivision (1) of subsection (c) of section 10-264h of the general statutes, leasing space, renovating space and purchasing equipment, including, but not limited to, computers and classroom furniture

13, 645, 000

     

Sec. 9(e) (2)

Grants-in-aid for alterations, repairs, improvements, technology, equipment and capital start-up costs including acquisition costs, to expand the availability of high quality school models

25, 000, 000

     

Sec. 9(e) (3)

Grants-in-aid to targeted local and regional school districts for alterations, repairs, improvements, technology, and equipment in low-performing schools

16, 000, 000

     

Sec. 9(e) (4)

Grants-in-aid to municipalities and organizations exempt from taxation under Section 501(c) (3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, for facility improvements and minor capital repairs to that portion of facilities that house school readiness programs and state-funded day care centers operated by such municipalities and organizations

10, 000, 000

 

Subtotal

64, 645, 000

     
 

Department of Children and Families

 

Sec. 9(f)

Grants-in-aid to private nonprofit mental health clinics for children for fire, safety and environmental improvements, including expansion

1, 000, 000

     
 

Judicial Department

 

Sec. 31

Alterations, renovations and improvements to buildings and grounds at state-owned and maintained facilities

(1, 000, 000)

     

Sec. 2(d)

Development of a juvenile court building in Meriden or Middletown

1, 000, 000

 

Subtotal

0

     
 

Net Total GO Bonds

598, 758, 320

 

New GO Bond Authorizations

621, 091, 485

 

GO Bond Cancellations

(22, 333, 165)

     
 

Special Tax Obligation Bonds

 

Sec. 33

State bridge improvement, rehabilitation and replacement projects PA 11-57, Sec. 35

90, 000, 000

     

Sec. 47

Town Aid Road Program

30, 000, 000

 

Total STO Bonds

120, 000, 000

     
 

Other Provisions

 

Sec. 35

Technical change to correct drafting error

0

     

Sec. 41

CREC is not subject to liens or repayment penalty in 2011 (exemption for Sec. 19 of PA 11-57)

0

     

Sec. 42

CREC is not subject to liens or repayment penalty in 2012 (exemption for Sec. 15 of sSB 25)

0

     

Secs. 44 & 45

The $10 million authorized in sSB 1 is available in FY 13 (sSB 1 provided $5 mil in each of FY 12 and FY 14)

0

     

Sec. 46

Codification of the process for using federal, private or other money received for bond-funded projects. The language was formerly included in each bond act but will no longer be needed because it will appear in statute.

0

     

Sec. 49

Eliminates the $60 million authorization to the Connecticut Housing Finance Authority in sSB 360 because it duplicates Sec. 9(c) (3) of this amendment

0

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 The first year that the state will experience costs associated with the bonds depends on when they are allocated through the State Bond Commission and when the funds are expended.