OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-840
AN ACT CONCERNING NEXT GENERATION CONNECTICUT.
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 14 $ |
FY 15 $ |
Treasurer, Debt Serv. |
GF - Cost |
None |
0.64 million |
UConn |
GF - Cost |
None |
See Below |
State Comptroller - Fringe Benefits1 |
GF - Cost |
None |
See Below |
Explanation
The bill increases the amount of General Obligation (GO) bonds authorized over a ten-year period for the UConn 2000 infrastructure program by $1.551 billion. The General Fund debt service cost associated with issuing this amount is $2.365 billion (comprised of $814.3 million in interest cost and $1.551 billion in principal), assuming that the bonds are issued for a 20 year term at an interest rate of 5.0%.
The bill has no debt service impact in FY 14. It will result in a $0.64 million increase in General Fund debt service cost in FY 15, assuming that the bonds providing funding for the additional FY 14 authorization of $6.4 million are issued the spring of 2014.
Funds totaling $15 million for FY 15 are included in sHB 6350, the FY 14 and FY 15 budget bill, as favorably reported by the Appropriations Committee for Next Generation Connecticut. The funding includes $10 million for 58 positions at the University of Connecticut along with an associated $5 million in fringe benefits within the State Comptroller's fringe benefit accounts.
The Out Years
The General Fund debt service cost identified above would continue over the 20 year term of the bonds.
The annualized ongoing fiscal impact identified above for the University of Connecticut and the Comptroller's Fringe Benefits Account would continue into the future subject to inflation.
1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 34.54% of payroll in FY 14 and FY 15.