Senate Bill 887, An Act Authorizing and Adjusting Bonds of the State for Capital Improvements, Transportation and Other Purposes

Debt service is a large component of the growth in fixed costs. Two years ago, Governor Lamont established a plan is to keep the growth in General Obligation (GO) bond debt service more in line with revenue growth. The recommended budget for the FY 2022-2023 biennium for GO bond debt service continues the Governor’s plan to hold annual GO bond issuance to $1.6 billion, an over 15% reduction in debt issuance compared to the average of the five years prior to his taking office. To meet the GO bond issuance goal, the Governor has closely managed GO bond allocations through the State Bond Commission. Over the past two years, Governor Lamont reduced GO bond allocations by over 40% compared to the average of the prior eight years. 

As a result, actual GO bond fund spending has begun bending the curve, even as debt service continues to rise due to the actions of prior administrations.

The Governor is prioritizing bond allocations to areas that require the most investment, which include municipal aid, affordable housing, school construction, information technology improvements, economic development, workforce development, and state agency infrastructure improvements.

The Governor is proposing new General Obligation (GO) bond authorizations of $1.404 billion in FY 2022, which includes cancellation of $153.7 million of prior GO bond authorizations which are no longer needed, and $1.419 billion in FY 2023. Additionally, prior authorizations becoming effective over the biennium include $190.5 million in FY 2022 and $1x25.1 million in FY 2023 for UConn 2000, $25 million in each year of the biennium for the Bioscience Innovation Fund and $9.6 million in FY 2022 and $9.8 million in FY 2023 for the Strategic Defense Investment Act.

The Governor is also recommending authorizations for $836.9 million of Special Tax Obligation (STO) bonds in FY 2022 and $929.6 million in FY 2023, to keep our transportation infrastructure in a state of good repair and $281 million in FY 2023 of revenue bonds to fund low interest loans under the Clean Water Fund.

Information about Senate Bill 887.

Legislative Management

FY 2022

FY 2023

Renovations, technology upgrades at the State Capitol Complex

$4,780,000

 

Replacement of the Legislative drafting and information system

2,000,000

 

Office of Policy and Management

FY 2022

FY 2023

Grants-in-aid to distressed municipalities eligible under section 32-9s

7,000,000

$7,000,000

Local Capital Improvement Program

30,000,000

30,000,000

Grants for municipal purposes and projects

76,000,000

76,000,000

Urban Act Program

50,000,000

50,000,000

Small Town Economic Assistance Program

 

15,000,000

Grants to municipalities for body cameras and dashboard cameras

2,000,000

2,000,000

Capital Equipment Purchase Fund

10,000,000

27,000,000

Information Technology Capital Investment Program

65,000,000

65,000,000

Per capita grants-in-aid to distressed municipalities

50,000,000

 

Department of Administrative Services

FY 2022

FY 2023

School Construction Program

550,000,000

550,000,000

Infrastructure repairs and improvements

 

15,000,000

Asbestos and hazardous materials abatement in state-owned buildings

10,000,000

10,000,000

Renovations to the Connecticut Building at the Big E

1,000,000

 

Department of Emergency Services and Public Protection

FY 2022

FY 2023

Alterations, renovations and improvements to buildings and grounds

10,700,000

28,200,000

School security infrastructure competitive grant program

5,000,000

10,000,000

Replacement of the Connecticut Land Mobile Radio Network

39,000,000

 

Department of Motor Vehicles

FY 2022

FY 2023

Development of a master plan for department facilities

500,000

 

Military Department

 

 

State matching funds for anticipated federal reimbursable projects

1,810,000

3,250,000

Alterations, renovations and improvements to buildings and grounds

200,000

200,000

Department of Energy and Environmental Protection

FY 2022

FY 2023

Clean Water Fund (General Obligation Bonds)

75,000,000

75,000,000

Clean Water Fund and Drinking Water Fund (Revenue Bonds)

 

281,000,000

Grants to municipalities for open space acquisition

5,000,000

5,000,000

Connecticut bikeway, walkway, trail and greenway grant program

3,000,000

3,000,000

Projects in state buildings and assets that reduce environmental impacts and greenhouse gas emissions

20,000,000

10,000,000

Renovations at state parks and other recreation facilities

 

15,000,000

Grants to municipalities for improvements to incinerators and landfills

2,900,000

2,900,000

Microgrid and resilience grant and loan pilot program

5,000,000

5,000,000

Grants for mitigation of contaminated industrial sites in urban areas

10,500,000

10,500,000

Grants for mitigation of identified hazardous waste disposal sites

5,000,000

5,000,000

Grants for potable water and remedial action for PFAS contamination

1,150,000

1,150,000

Department of Economic and Community Development

FY 2022

FY 2023

Small Business Express Program

25,000,000

25,000,000

Connecticut Manufacturing Innovation Fund

10,000,000

10,000,000

Brownfield Remediation and Revitalization program

25,000,000

25,000,000

For Career ConneCT workforce training programs

20,000,000

20,000,000

Department of Housing

FY 2022

FY 2023

Housing Trust Fund

55,000,000

50,000,000

Housing development and rehabilitation programs

100,000,000

100,000,000

Connecticut Port Authority

FY 2022

FY 2023

Grants-in-aid for improvements to deep water ports, including dredging

50,000,000

 

Connecticut Agricultural Experiment Station

FY 2022

FY 2023

Additions and renovation to the Valley Laboratory in Windsor

6,300,000

 

Office of the Chief Medical Examiner

FY 2022

FY 2023

Renovation and additions - Medical Examiner's office in Farmington

2,500,000

 

Department of Developmental Services

FY 2022

FY 2023

Fire, safety and environmental improvements to facilities

2,000,000

2,000,000

Department of Mental Health and Addiction Services

FY 2022

FY 2023

Fire, safety and environmental improvements to facilities

9,600,000

5,000,000

Sprinkler systems in direct patient care buildings

904,500

3,740,000

Design for replacement of Whiting Forensic Hospital

3,000,000

 

Department of Transportation

FY 2022

FY 2023

Interstate Highway Program

13,000,000

13,000,000

Urban Systems Projects

16,750,000

16,750,000

Local Bridge Program

10,000,000

10,000,000

State Bridge Program

33,000,000

33,000,000

Fix-it-First program to repair the state's bridges

74,000,000

155,000,000

Fix-it-First program to repair the state's roads

65,785,000

64,783,000

Environmental compliance

8,810,000

15,300,000

Capital resurfacing

107,500,000

107,500,000

Intrastate Highway Program

63,000,000

72,000,000

Bus and rail facilities and equipment

248,120,000

270,800,000

Local Transportation Capital Improvement Program

67,000,000

67,000,000

Highway and Bridge Renewal Equipment

19,000,000

19,000,000

Department Facilities

68,945,000

43,425,000

Community Connectivity and alternative mobility program

12,000,000

12,000,000

Town Aid Road

60,000,000

60,000,000

Department of Education

FY 2022

FY 2023

Grants to low-performing schools for improvements, technology, equipment

5,000,000

5,000,000

Technical and Career Education System renovations, equipment, vehicles, technology

15,100,000

14,100,000

Connecticut State Colleges and Universities

FY 2022

FY 2023

System telecommunications infrastructure upgrades

15,000,000

9,000,000

Colleges: Deferred maintenance

19,000,000

20,000,000

Universities: Deferred maintenance

20,000,000

20,000,000

Advanced manufacturing and emerging technology programs

3,000,000

3,075,000

Instruction, research and/or laboratory equipment

22,000,000

22,000,000

Security Improvements

2,500,000

2,500,000

Renovations and improvements for the One College Office

2,900,000

 

Department of Correction

FY 2022

FY 2023

Alterations, renovations and improvements

30,000,000

10,000,000

Judicial Department

FY 2022

FY 2023

Alterations, renovations and improvements to buildings and grounds

5,000,000

5,000,000

Technology Strategic Plan Project

2,000,000

2,000,000

Security improvements at various state-owned and maintained facilities

2,000,000

2,000,000

Alterations in compliance with the Americans with Disabilities Act

2,000,000

2,000,000

 

Reason for Proposal

This bill implements the Governor's recommended capital budget for the biennium.

 

Significant Impacts

The Governor is prioritizing bond allocations to areas that require the most investment, which include municipal aid, affordable housing, school construction, information technology improvements, economic development, workforce development, and state agency infrastructure improvements.