OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-1062

AN ACT PROVIDING CONTINUED FUNDING FOR THE DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION'S RECREATION TRAILS 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

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill expands the Connecticut bikeway grant program to remove the restriction that grants are only awarded to municipalities. Instead, the bill (1) allows grant awards for other purposes, such as local trail systems; (2) equipment and trail facilities; (3) allows for in-kind services to count towards a municipal, federal, other state, nonprofit, or private funds match; and increases, from 2% to 5%, the amount of bond allocation the Department of Energy and Environmental Protection (DEEP) can use for program administration.

The Connecticut bikeway, pedestrian walkway and greenway grant program is funded with General Obligation (GO) bonds and the debt service on GO bonds is paid by the General Fund (GF). Expanding the purposes for which grant funds could be used under the program could result in GF 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 unallocated bond balance for the program is $2 million as of April 1, 2015. There were no allocations for this purpose in FY 14.

There is no increased cost to DEEP for administration as there has been no activity in this program.

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 Connecticut bikeway, pedestrian walkway and greenway grant program.