OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-6853

AN ACT CONCERNING GRANTS AVAILABLE THROUGH THE INTERTOWN CAPITAL EQUIPMENT PURCHASE INCENTIVE PROGRAM.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 16 $

FY 17 $

Treasurer, Debt Serv.

GF - Acceleration of Debt Service Costs

Potential

Potential

Municipal Impact:

Municipalities

Effect

FY 16 $

FY 17 $

All Municipalities

Revenue Gain

Potential

Potential

Explanation

The bill increases the maximum grant that the Office of Policy and Management (OPM) can award through the Intertown Capital Equipment Purchasing Program (ICEP). Municipalities could experience a revenue gain to the extent that OPM provides larger grant awards for certain capital projects as a result of the bill.

The ICEP program is funded with General Obligation (GO) bonds and the debt service on GO bonds is paid by the General Fund. The bill could result in General Fund debt service costs being incurred sooner to the degree that authorized GO bond funds are expended more rapidly than they otherwise would have been.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to changes in the amount of grant funding awarded under the Intertown Capital Equipment Purchasing Program.