OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-402

AN ACT CONCERNING AUTHORIZATION OF STATE GRANT COMMITMENTS FOR SCHOOL BUILDING PROJECTS AND CONCERNING CHANGES TO THE STATUTES CONCERNING SCHOOL BUILDING PROJECTS.

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact:

Explanation

Section 1 of the bill authorizes $345. 37 million in state grant commitments for 29 new school construction projects of various types. It also reauthorizes a total of 17 previously authorized projects, 12 for the first time, three for the third time, and one for the fourth time. These projects have changed substantially (more than 10%) in cost or scope. The reauthorizations increase state grant commitments by a net $87. 2 million from the amounts previously authorized for these projects. The total cost of the bill is anticipated to be approximately $660. 0 million; this includes $433. 0 million in principal payments, and $227. 0 million in interest payments.

Section 2 of the bill results in a potential savings to the state and therefore a potential revenue loss to local and regional school districts by limiting the time period for which change orders may be submitted. The extent of the potential savings and associated revenue loss is dependent upon actual change order submittals, which cannot be projected at this time.

The bill makes various other changes that are technical in nature and/or have no fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified with the new school construction projects would continue into the future subject to the debt service repayment schedule. The annualized ongoing fiscal impact associated with change orders, would continue into the future.