CONNECTICUT GENERAL ASSEMBLY
OFFICE OF FISCAL ANALYSIS

OFA
Synopsis of Governor’s Budget Plan
FY 20 – FY 21
Solving the General Fund Deficit
Millions of Dollars

Other
Expenditures
Expenditure
Policy
190.7
Reduce
Teacher's
Pension Costs
183.4
$1.55
Achieve Labor
Savings
181.9

Revenue &
Expenditures
Net Hospital
Changes
417.9

Billion

Other
Revenue
205.8

Sales Tax
371.0

Revenue

 Table of Contents

I. MAJOR POLICY CHANGES ................................................................................................ 2
II. FINANCIAL SUMMARY..................................................................................................... 4
III. SIGNIFICANT CHANGES BY SUBCOMMITTEE ...................................................... 7
IV. SIGNIFICANT REVENUE CHANGES ......................................................................... 14
V. SIGNIFICANT CAPITAL BUDGET CHANGES .......................................................... 17
VI. MUNICIPAL AID .............................................................................................................. 20
APPENDIX A: Full Time Authorized Position Count by Agency and Fund .................. 23
APENDIX B: Revenue Policies ............................................................................................... 25

 The following is intended to provide information on the Governor’s FY 20 and FY 21 Budget, revenue
and capital plan for the committees of Appropriations and Finance, Revenue and Bonding as background
for the Office of Policy and Management presentation. Since the budget was released Wednesday, we have
tried to highlight major areas of interest rather than provide a full-scale comprehensive analysis. Such indepth analysis will be undertaken by both committees with the assistance of OFA staff in the coming
weeks.
Executive Summary
The Governor’s FY 20 and FY 21 Budget balances projected General Fund deficits of $1.5 billion
and $2.2 billion, respectively. This is largely the result of changes in hospital financing, revenue
policies, technical adjustments and growth in revenue and expenditures.
These deficits are closed primarily though: 1) maintaining the hospital user fee structure; 2)
expanding the Sales Tax base, and maintaining the transfer of motor vehicle Sales Tax revenues
to the Special Transportation Fund; 3) savings related to state employee and teacher pension;
and 4) making a number of other distinct ongoing revenue and expenditure policy
changes. These changes are detailed in depth further in this report.
Special Transportation Fund
The Governor’s proposal freezes the General Fund transfer of the car sales tax at the current rate
of 8.0% and maintains the existing Sales and Use tax transfer of 0.5% which includes additional
revenue from expanding the scope of the tax. Together these policies result in a decrease in
revenue of $63.6 million in FY 20 and $131.5 million in FY 21. The proposal also: (1) changes the
duration of operator licenses and registrations which increases revenue by $25.7 million in FY
21 and (2) transfers $20 million of the cumulative FY 20 balance to FY 21.
The proposed revenue changes allow for operating surpluses in FY 20 and FY 21 but ultimately
lead to an operating balance deficiency starting in FY 22, which may have an impact on
marketing Special Tax Obligation bonds for transportation initiatives.
The Governor’s recommendation to solve long-term projected deficits relies on two tolling
options expecting to begin collecting revenue in FY 23; (1) congestion mitigation pricing (i.e., all
vehicles) which is projected to generate $185.8 million in FY 23, $742.3 million in FY 24 and
approximately $800 million annually when fully implemented; and (2) truck only tolling which
would generate $29.5 million in FY 23 and $36 million in FY 24. Full implementation of the
truck-only tolling is projected to raise $200 million annually, but, according to the Governor’s
proposal, could “take decades” to achieve.
MUNICIPAL AID
The Governor’s FY 20 and FY 21 budget proposal reduces municipal aid from FY 19 levels by
$74.0 million in FY 20 and $17.3 million in FY 21. This is primarily due to 1) decreases in
Teachers’ Retirement Contributions on behalf of municipalities of $83.5 million in FY 20 and
$44.3 million in FY 21, and 2) a requirement for municipalities to contribute $23.8 million in FY
20 and $49.2 million in FY 21 towards the normal cost of teachers’ retirement contributions.
Town Contributions to the Normal Cost for the Teachers’ Retirement System
The proposal requires most towns to pay a phased-in contribution for at least one-quarter (25%)
of the normal cost ($23.8 million in FY 20 and $49.2 million in FY 21) paid on its behalf by the
state. The full normal cost contribution is required in FY 22, the third year of the phase-in, and
1

 is an estimated $71.5 million. Municipalities who have teacher salaries above the statewide
median are required to pay a share equal to each percentage point they are above the median.
Contributions by distressed municipalities are limited to five percent of their associated normal
cost.
CAPITAL SUMMARY
Changes to Bond Authorizations
The Governor’s recommended budget has total net effective authorizations at $2.8 billion in FY
20 and $2.2 billion in FY 21. New authorizations (approximately $1 billion per year in General
Obligation (GO) bonding and around $780 million per year in transportation bonds)
supplement existing authorizations that are scheduled to become effective in the biennium.
The GO authorization changes, combined with changes to General Fund net revenues, are
projected to put the state at 82.2% of the debt limit ($2.1 billion below the 90% threshold) for FY
20 and at 79.6% ($2.9 billion below the 90% threshold) for FY 21.
Limit Bond Issuance to Reduce Debt Service
The Governor’s recommended budget includes reductions to debt service in the General and
Special Transportation Funds, based on limiting bond issuance going forward. General bond
issuance would be limited to $1.6 billion per year (below the current $1.9 billion issuance cap),
while transportation bonds would be set at $800 million in FY 21.
More information on the Governor’s recommended changes to bonding is available in the
capital section of this synopsis.

I. MAJOR POLICY CHANGES
Restore Hospital Provider Tax and Supplemental Payments to FY 19 Level
The following table reflects restoring the hospital provider tax and Medicaid supplemental
hospital payments to FY 19 levels after accounting for a $40 million reduction to the Medicaid
supplemental payments to bring payments under the federal limit.
Current Law - $

Item
Hospital Tax
Supplemental Payments
Federal Grant Revenue
Total Net Impact

Governor Proposal - $
FY 20
FY 19
FY 20
FY 21
FY 20
FY 21
Impact
900
384
384
900
900
516
(493.3) (166.5) (166.5) (453.3) (453.3)
(286.8)
328.8
109.2
109.2
297.9
296.5
188.7
735.5
326.7
326.7
744.6
743.2
417.9

Labor Concessions
The following proposals are reflected in the Governor’s Recommended Budget as Labor
Concession Savings and accounted for as a bottom line lapse (savings) in the General Fund in
the amount of $181.9 million in FY 20 and $276.8 million in FY 21 and $18.3 million in FY 20 and
$19.7 million in FY 21 in the Special Transportation Fund.
Modify State Employees’ Retirement System (SERS)
The Governor recommends the following changes to SERS: (1) link COLA formula for future
retirees to SERS investment performance, (2) extend the amortization period from 2032 to 2046
2

 for the statutory portion of the unfunded accrued liability (UAL) which is approximately $4
billion of the total $21.2 billion UAL, and (3) eliminate legislator travel allowance from the
SERS benefit formula. The estimated General Fund impact of the changes is approximately
$131.9 million in FY 20 and $141.8 million in FY 21. SERS is currently governed by a collective
bargaining agreement which is in effect until 2027.
Implement Changes to the Active and Retire State Employee Health Programs
The Governor recommends the following changes to the active and retired state employee
health programs: (1) expand the Health Enhancement Program (HEP) and Smart Shopper
program and (2) establish a maximum reimbursement rate for hospital services at a percentage
increase over Medicare. The estimated savings from these initiatives are $50 million FY 20 and
$135 million in FY 20. Active and retiree health are currently governed by a collective
bargaining agreement which is in effect until 2027.
CHANGES TO TEACHERS’ RETIREMENT SYSTEM
Invoke “Adequate Provision” to Pension Obligation Bonds to Make Changes to TRS
Payments
The 2008 Pension Obligation Bonds (POBs) include a requirement to make the actuarially
determined payment necessary to eliminate any unfunded liability in the fund by a fixed year
(2033). Also included in the bond covenant for the POBs are the ways in which these
requirements may be altered, including one option where changes can be made if the state has
made “adequate provision” for bondholders.
The Governor proposes making “adequate provision” by setting aside $381 million1, the
amount of the highest annual POB debt repayment, and further backing the POBs repayment by
attaching them to lottery receipts. In turn, the state would make changes to the unfunded
liability payment calculation that otherwise would not be allowed prior to repayment of the
POBs.
Adjust Funding Methodology in Teachers’ Retirement System (TRS)
The proposal includes changes to the funding methodology of the TRS which result in a
contribution reduction of $183.4 million in FY 20 and $189 million in FY 21. These changes are
similar to many of the provisions adopted for the State Employees’ Retirement System in 2017
and include the following:




Reducing the assumed discount rate from 8.0 percent to 6.9 percent.2
Re-amortizing the unfunded liability over a new 30-year period.
Transitioning from a level percent of payroll to a level dollar amortization over a fiveyear transition period.

1

Appropriates $381million of FY 19 projected surplus to debt service.
Re-amortization is contingent upon “adequate provision” for bondholders as described above.

2

3

 II. FINANCIAL SUMMARY
The Governor’s Recommended General Fund Budget has an operating surplus of $105.7 million
in FY 20 and $170.4 million in FY 21. After reflecting the new budgeting requirements3 the
Governor’s Recommended General Fund Budget has a budgeted surplus of $8.9 million in FY
20 and $20.2 million in FY 21.
Balance Summary (in millions)

Revenues
Appropriations
Operating Surplus / (Deficit)
Required Surplus1
Budgeted Surplus / (Deficit)

Recommended
FY 20 $
19,365.0
19,259.3
105.7
96.8
8.9

Recommended
FY 21 $
20,037.3
19,866.9
170.4
150.3
20.2

Special Transportation Fund
Revenues
Appropriations
Operating Surplus / (Deficit)
Required Surplus1
Budgeted Surplus / (Deficit)

1,724.5
1,705.3
19.2
8.6
10.6

1,823.7
1,806.6
17.1
13.7
3.4

Other Appropriated Funds
Revenues
Appropriations
Budgeted Surplus / (Deficit)

254.6
253.5
1.1

266.6
265.1
1.5

All Appropriated Funds
Revenues
Appropriations
Operating Surplus / (Deficit)
Required Surplus
Budgeted Surplus / (Deficit)

21,344.1
21,218.1
126.0
105.4
20.6

22,127.6
21,938.6
189.0
164.0
25.0

General Fund

The Governor’s Recommended General Fund Budget has a growth rate of 1.4% in FY 20 and
3.2% in FY 21. See the table below for details.
Budget Growth Rates (in millions)
Fund
General
Transportation
Other Appropriated
TOTAL

FY 19 Revised
Appropriation $
18,998.2
1,617.3
239.9
20,855.4

Recommended
FY 20 $
19,259.3
1,705.3
253.5
21,218.1

FY 20 Change
$
261.1
88.0
13.6
362.7

%
1.4%
5.4%
5.7%
1.7%

Recommended
FY 21 $
19,866.9
1,806.6
265.1
21,938.6

FY 21 Change
$
607.60
101.3
11.6
720.5

%
3.2%
5.9%
4.6%
3.4%

3PA

17-2 JSS limits total appropriations for the General Fund and the Special Transportation Fund to a set percentage
of total revenues; 99.5% in FY 20 and 99.25% in FY 21.

4

 FY 20 and FY 21 Budget Fund Summaries
Fund Summary
General Fund
Special Transportation Fund
Banking Fund
Insurance Fund
Consumer Counsel and Public Utility Control Fund
Workers' Compensation Fund
Mashantucket Pequot and Mohegan Fund
Regional Market Operation Fund
Criminal Injuries Compensation Fund
Tourism Fund
Subtotal
General Fund Lapses
Unallocated Lapse
Unallocated Lapse - Judicial
Statewide Hiring Reduction
Achieve Labor Concessions
Subtotal
Special Transportation Fund Lapses
Unallocated Lapse
Achieve Labor Concessions
Subtotal
Net Appropriations
General Fund
Special Transportation Fund
Banking Fund
Insurance Fund
Consumer Counsel and Public Utility Control Fund
Workers' Compensation Fund
Mashantucket Pequot and Mohegan Fund
Regional Market Operation Fund
Criminal Injuries Compensation Fund
Tourism Fund
TOTAL NET APPROPRIATIONS

FY 20 $
19,462,701,846
1,735,552,639
25,492,225
105,723,303
27,426,276
28,024,178
49,942,796
1,084,678
2,934,088
12,894,988
21,451,777,017

FY 21 $
20,165,168,753
1,838,288,769
26,495,108
114,616,424
28,495,325
28,653,645
49,942,796
1,106,857
2,934,088
12,894,988
22,268,596,753

(9,515,570)
(5,000,000)
(7,000,000)
(181,900,000)
(203,415,570)

(9,515,570)
(5,000,000)
(7,000,000)
(276,800,000)
(298,315,570)

(12,000,000)
(18,300,000)
(30,300,000)

(12,000,000)
(19,700,000)
(31,700,000)

19,259,286,276
1,705,252,639
25,492,225
105,723,303
27,426,276
28,024,178
49,942,796
1,084,678
2,934,088
12,894,988
21,218,061,447

19,866,853,183
1,806,588,769
26,495,108
114,616,424
28,495,325
28,653,645
49,942,796
1,106,857
2,934,088
12,894,988
21,938,581,183

5

 Governor’s Recommended Budget - Out Year Impact
The following table presents the Governor’s estimated available General Fund revenue and
expenditures for the three fiscal years ensuing the next biennium4. These estimates assume the
policies recommended in the Governor’s proposed FY 20 –FY 21 biennium budget are adopted
in whole and are annualized into future fiscal years.
Out Years (in millions)
General Fund
Total Revenue
Budgetary Caps
Available Revenue
Expenditures
BALANCE

FY 22 $
20,650.8
(458.3)
20,192.5
20,576.7
(384.2)

FY 23 $
21,169.8
(545.6)
20,624.2
21,378.3
(754.1)

FY 24 $
21,606.9
(626.3)
20,907.7
21,961.2
(990.5)

Budget Reserve Fund
The Governor’s proposed budget results in an increase in the Budget Reserve Fund from $1.185
billion in the current fiscal year to a projected $2.794 billion after FY 21. Deposits come from
annual operating surpluses, volatility transfers, and statutorily required surpluses 5. These
deposits are offset in the current year by a transfer of a portion of the current year balance to the
Teachers’ Retirement System Special Capital Reserve Fund.
Budget Reserve Fund Projections (in millions)

Beginning Balance
Operating Surplus
Volatility Transfer
Required Surplus
Transfer to TRB SCRF
BRF TOTAL

FY 19 $
1,185.3
516.1
648.0
-

FY 20 $
1,968.4
8.9
280.2
96.8

FY 21 $
2,354.3
20.2
269.1
150.3

(381.0)
1,968.4

2,354.3

2,793.9

4Estimates

are from the Governor’s Three Year Budget Report, FY 22, FY 23, and FY 24.
JSS limits total appropriations for the General Fund and the Special Transportation Fund to a set percentage
of total revenues; 99.5% in FY 20 and 99.25% in FY 21.
5PA-17-2

6

 III. SIGNIFICANT CHANGES BY SUBCOMMITTEE
LEGISLATIVE
Adjust Budget Request – OLM, CEO, CWS, APA
The Legislative budget requests are reduced by $12.7 million in FY 20 and $14.7 million in FY 21
through a back of the budget lapse. Included in this lapse are:





Reductions of $4.6 million in FY 20 and $6.3 million in FY 21 in Personal Services,
Reductions of $4.3 million in FY 20 and $3.7 million in FY 21 in Other Expenses,
Reductions of $2.1 million in FY 20 and $1.1 million in Equipment, and
Reductions of $1.1 million in FY 20 and $3.6 million in various other accounts.

GENERAL GOVERNMENT B
Provide Funding for Minimum Wage Impact on Private Providers- OPM
The proposal provides funding of $3 million in FY 20 and $6 million in FY 21 for private
providers in recognition of the Governor’s proposed minimum wage increase.
Fund Grants for Regional Councils of Government via Regional Planning Incentive AccountOPM
The proposal eliminates appropriation of $3.6 million in each of FY 20 and FY 21 for regional
Councils of Government. The Governor’s proposal provides for this funding via the nomappropriated Regional Planning Incentive Account.
Provide Funding for Car Tax Grants using updated mill rate data- OPM
The proposal reduces funding by $1.1 million in FY 20, and increase funding by $1.6 million in
FY 21, to reimburse towns for the revenue loss related to the motor vehicle mill rate cap based
on actual FY 18 and FY 19 mill rates.
Modifying Accounting for the Higher Education Alternate Retirement Program – OSC Fringe
Benefits
The proposal provides funding of $30 million in FY 20 and FY 21 in the Higher Education
Alternate Retirement Program (ARP) account to reflect gross appropriating the General Fund
(GF) contribution to ARP for GF supported employees. Recoveries from other funding sources
will be deposited into the General Fund as revenue resulting in a revenue adjustment of $43.7
million in FY 20 and $43.4 million in FY 21 as opposed to being credited to the ARP
appropriation.
Digital Front Door – 21st Century Digital Experience - DAS
The Governor is proposing $2 million in FY 20 and $4.4 million in FY 21 for a new digital
service that will work with agencies to move their interactions with businesses and residents to
a state-wide portal.
The proposal includes funding for five IT professionals as well as for IT consultants to help
develop a one-stop-shop for individuals starting a business, accessing support during a family
crisis, or seeking stability through training and employment.
7

 REGULATION AND PROTECTION
Reduce Overtime Costs in the Department of Emergency Services and Public Protection
(DESPP)
The proposal reduces DESPP’s Personal Services account by $4 million to achieve overtime
savings. In FY 18, agency overtime totaled $18.9 million. Through two quarters of FY 19, DESPP
spent approximately 37% more ($16.5 million compared to $12 million) than the same period in
FY 18.
CONSERVATION AND DEVELOPMENT
Establish a Paid Family Medical Leave Program - DOL
The proposal establishes a program to provide up to 12 weeks of paid coverage for family and
medical leave funded via a 0.5% payroll tax (capped at the Social Security tax base) on all
private sector employees (public employees and tribal members are exempted). The payroll tax
is effective July 1, 2020 and benefit payments begin in FY 22.
A one-time appropriation of approximately $5.2 million for start-up funding is provided in FY
20. This includes $3.5 million for partial-year funding for 45 staff and associated fringe costs
(assuming an average salary of $80,500), as well as $1.2 million and $435,000 for facilities and
information technology costs, respectively. Program administration costs, anticipated to equate
to roughly 5% of tax receipts, in FY 21 and beyond are funded entirely via the payroll tax.
Provide Funding for Community Investment Act (CIA) Programs through General Fund
Appropriations – (DEEP, DECD, DOH, and DAG)
The proposal transfers positions and funding of approximately $17.4 million for the CIA onto
the General Fund. This includes funding of $5.5 million in the biennium for dairy farmers, $2.5
million for farmland preservation, $2.8 million for open space, approximately $2.8 million for
DECD programs, and approximately $2.3 million for DOH programs.
Provide Positions and Funding for Industrial Hemp – AES and DAG
The proposal provides three positions and funding of $181,180 in FY 20 and $192,051 in FY 21
for industrial hemp.
Transfer 35 Park Staff from General Fund to Passport to Parks Account – DEEP
The proposal transfers 35 parks supervisors and maintainers and $2.7 million in FY 20 and $2.8
million in FY 21 from the General Fund to the Passport to Parks account.
HEALTH
Provide Funding for High School Graduates in Employment and Day Services ProgramsDDS
The proposal provides funding of $6.4 million in FY 20 and $14.6 million in FY 21 for new
placements in Employment Opportunities and Day Services programs. This supports 324 high
school graduates in FY 20 and 369 in FY 21.

8

 Reduce Funding for the Behavioral Services Program - DDS
The proposal reduces funding by $1.0 million in FY 20 and $1.5 million in FY 21 to reflect
attrition in the Behavioral Services Program.
Provide Funding to Expand the Connecticut Vaccine Program – DPH
The proposal provides Insurance Fund support of $4.5 million in FY 20 and $8.8 million in FY
21 to make additional vaccinations available to privately insured children. Coverage will be
expanded to include: (1) the rotavirus vaccines for children 18-months-old through age two
(effective 10/1/19), (2) serogroup B meningococcal vaccine for youth 16 years-old through 18
years-old (effective 10/1/19), and (3) the influenza vaccine for children ages five through
eighteen (starting in FY 21).
Reduce Funding for Local and District Health Departments by 20% - DPH
The proposal reduces funding by $935,666 in both FY 20 and FY 21. This reflects a 20% decline
in statutorily-required (CGS Sec. 19a-245 and CGS Sec. 19a-202) per-capita funding provided to
municipal and district departments of health by DPH.
Annualize Costs for an Additional Physician - CME
The proposal provides funding of $206,978 in both FY 20 and $212,145 in FY 21 to continue
support for a ninth physician hired in FY 19 to regain National Association of Medical
Examiners (NAME) accreditation. Funding supports salary expenses and associated
professional supplies.
Achieve Savings through Privatization- DMHAS
The proposal reduces state operated services and redirects funding to private providers to
achieve savings of $2.3 million in FY 20 and $4.3 million in FY 21. This applies to 41 Young
Adult Services residential beds, 10 CMHC transitional residential beds, 16 Capital Regional
inpatient beds, and local mental health authority services in Danbury and Torrington.
HUMAN SERVICES
Maintain Community Services Post-Juvenile Justice (JJ) Consolidation - DCF
The proposal provides funding of $4.1 million in both FY 20 and FY 21 to continue support for
various community-based services benefitting non-delinquent children and youth, formerly
funded under DCF’s Juvenile Justice Outreach Services account. Following the consolidation of
JJ funding for delinquent children and youth under the Court Support Services Division (CSSD)
of the Judicial Branch (PA 17-2 JSS), the Juvenile Justice Outreach Services account was
transferred to CSSD.
Reduce Overtime Expenditures with Technology – DCF
The proposal reduces Personal Services account funding by $2.1 million in both FY 20 and FY 21
to reflect overtime savings projected from improved scheduling and management of overtime
through the implementation of Kronos software.
Achieve Efficiencies Through the Creation of a Central Transportation Unit – DCF
The proposal reduces funding by a net $1.6 million in FY 20 and $3.4 million in FY 21 through
the establishment of a transportation unit within the agency. This unit is anticipated to reduce

9

 utilization of credentialed transportation vendors and overtime, similar to the Department of
Corrections unit.
Achieve Savings in Medicaid Prescription Drug Benefit – DSS
The proposal includes total savings of $1.6 million in FY 20 and $15.5 million and FY 21 in DSS,
after factoring in the federal share of expenditures, related to the following: (1) increase
prescription drug purchasing through purchasing pools similar to the multi-state consortium
TOP$, (2) expand the use of step therapy for prescriptions to treat certain conditions, and (3)
revise diabetic supply program for test strips and lancets to uniformly include them on the
preferred drug list as opposed to being provided for certain beneficiaries through the durable
medical equipment benefit.
Modify Hospital Medicaid Reimbursement- DSS
The proposal includes the following changes to Medicaid hospital reimbursement: (1)
implement 15% hospital readmission adjustment for hospital readmissions 30 days after
discharge and (2) restore hospital Medicaid inpatient rate reduction related to the most recent
3M grouper. The proposals result in a net impact, after factoring in the federal share of
expenditures, of $165 million in FY 20 and $169.9 million in FY 21.
Institute an Asset Test under the Medicare Savings Program (MSP)- DSS
The proposal establishes an asset test of $7,650 for individuals and $11,340 for couples, which
reduces eligibility for the Medicare Savings Program and results in savings of approximately
$10.5 million ($21 million gross) in FY 21. The policy also provides funding of $2.8 million in FY
20 and $1.8 million in FY 21 to support staff and an asset verification system. After considering
the federal grants revenue impact, the net savings to the budget is $25.6 million when
annualized.
Provide Support for Special Populations to Achieve Net Savings- DSS/DOH
The Governor’s budget provides $1.2 million in FY 20 to support targeted initiatives, which
result in net savings of $3.5 million in FY 21 primarily through decreased Medicaid
expenditures. When the federal share is considered, this results in total Medicaid savings of
approximately $19 million in FY 21. Initiatives include:






Diabetes prevention program targeting HUSKY Health members to reduce the risk of
developing type 2 diabetes through weight loss, increased physical activity, and
addressing psychological and social challenges;
Medicaid supportive housing benefit for up to 850 high cost high need individuals
through a 1915(i) state plan amendment (related funding for stable housing and
wraparound services is provided under the Department of Housing);
Increased rebalancing efforts under Money Follows the Person (MFP) for up to 800
additional transitions through increased staff capacity, predictive modeling, and
targeting transition resources (related funding for supportive housing vouchers is
provided under the Department of Housing).

10

 HIGHER EDUCATION
Increase Block Grants to the Public Colleges and Universities- BOR, UOC, UHC
The proposal increases Operating Expenses appropriations to each of the public institutions of
higher education, including the University of Connecticut Health Center, by between 5.0 and
6.2 percent annually for wage increases in each of FY 20 and FY 21.
Increase Bioscience Funding – UHC
The proposal increases Bioscience Initiative funding by $4.1 million in FY 20 and $4.7 million in
FY 21, an increase of approximately 40 percent. The Bioscience Initiative is a multi-year effort to
support the bioscience industry and the health center through construction, hiring, equipment
investments, and community programs.
ELEMENTARY AND SECONDARY EDUCATION
Reduce Education Cost Sharing (ECS) - SDE
The proposal reduces ECS funding compared to the statutory formula by $18.2 million in FY 20
and $35.1 million in FY 21 by revising the formula to include the following policy changes:



The definition of need students uses Direct Certification data, which reduces by 26,053
the number of low-income students counted in the ECS formula in FY 20.
The annual phase-out (reduction) increment for towns funded over 100 percent of the
formula increases to 25% (from 8.33%) of the difference between full funding and the
town’s FY 17 grant. A related technical change further reduces grants to these towns.

Delay Separation of the Connecticut Technical Education and Career System (CTECS) from
the State Department of Education (SDE)
The Governor recommends maintaining the CTECS as a line item within SDE and delay the
transfer to establish a separate agency of $165 million in FY 20 and FY 21.
Extend Caps on Various Statutory Grants - SDE
The Governor recommends extending the cap on various statutory grants, which provide
municipal aid to cities and towns. Extending the cap results in a savings to the state of $67.7
million in FY 20 and $74.4 million in FY 21.

11

 Reallocate Funding to Support Sheff Transportation - SDE
The Governor recommends establishing a new account to support Sheff transportation and
reallocates funding from various accounts:
Account
Sheff Settlement
Open Choice
Magnet Schools
Sheff Transportation

FY 20 $
(800,000)
(13,864,786)
(30,085,635)
44,750,421

FY 21 $
(800,000)
(14,517,973)
(30,463,825)
45,781,798

Provide Funding for Increased Enrollment in Choice Programs - SDE
The Governor recommends providing additional funding in various accounts for increased
enrollment in Choice programs:
Account
Magnet Schools
Charter Schools
Open Choice
Vocational Agriculture
Local Charter Schools
Total

FY 20 $
1,782,325
1,858,368
1,561,627
163,571
60,000
5,425,891

FY 21 $
3,988,969
4,164,618
3,061,627
323,922
120,000
11,659,136

Eliminate the Health and Welfare Services Pupils Private School Grant - SDE
The Governor recommends eliminating the Health and Welfare Services Private School grant
and requires private schools to pay the former local share of health services by $3.5 million in
FY 20 and $3.5 million in FY 21.
Provide Funding for Educational Shared Services - SDE
The Governor recommends providing three new positions and corresponding Personal Services
funding of $300,000 and $500,000 in Other Expenses for consulting services, for a total of
$800,000 in FY 20 and FY 21 to help districts consolidate or expand shared services among
districts.
Eliminate Various Grants - SDE
The Governor recommends eliminating various grant programs:
Account
Parent Trust Fund
Young Parents Program
LEAP
CT Writing Project
Bridges to Success
Total

FY 20 $
(267,193)
(71,657)
(312,211)
(20,250)
(27,000)
(698,311)

FY 21 $
(267,193)
(71,657)
(312,211)
(20,250)
(27,000)
(698,311)

Fully Fund TRB Health Accounts - TRB
The proposal provides funding of $11.4 million in FY 20 and $15.2 million in FY 21 in the TRB
Retiree Health account and $887,000 in FY 20 and $890,900 in FY 21 in the Municipal Health
Subsidy account. This restores the state share to the statutory one-third level.
12

 Net Appropriate Care4Kids - OEC
The proposal reduces the Care4Kids General Fund appropriation by approximately $68 million
in FY 20 and $53.6 million in FY 21 to reflect only the state share of program funding in the
General Fund line item. A similar adjustment is made to Federal Grants revenue to reflect
reallocating federal Child Care Development Funds (CCDF), which support Care4Kids, to a
separate federal account. While this change does not impact the overall funding for Care4Kids,
it is a change from current practice to reflect only the state share of program funding in the
budget.
JUDICIAL AND CORRECTIONS
Adjust Judicial’s Budget Request – JUD
The Judicial Department budget request is reduced by $25.9 million in FY 20 and $32.5 million
in FY 21 through a back of the budget lapse. Included in this lapse are:





$10.1 million in FY 20 and FY 21 – Annualized costs for the juvenile justice transfer from
DCF to Judicial
$6.5 million in FY 20 and FY 21 – Increase security at the courthouses
$2.9 million in FY 20 and $8.2 million in FY 21 – Probate Court adjustments
$1.6 million in FY 20 and FY 21 – Transfer positions from the Foreclosure Mediation
Program (Banking Fund) to the General Fund

Reduce Prison Capacity through Closure of Select Buildings and Units - DOC
The proposal of funding is reduced by $3.9 million in FY 20 and FY 21 to reflect the closure of
various units, cottages, and buildings throughout the Department of Correction. Recommended
closures include: (1) two unit closures at Northern Correctional Institute in Somers, (2) two
cottage unit closures at Manson Youth Institute in Cheshire, and (3) one building closure at
Bridgeport Correctional Institute. The savings will mainly be seen in overtime as the staff in
these units and buildings are re-deployed to fill vacancies throughout the agency.
Provide Funds to Expand the Medication Assisted Treatment Program (MAT) - DOC
The proposal of funding of $2.0 million in FY 20 and $6.0 million in FY 21 is recommended to
expand the Medication Assisted Treatment (MAT) program for inmates with Opioid Use
Disorder. It’s estimated that approximately 10% or 1,200 inmates will qualify for the program.

13

 IV. SIGNIFICANT REVENUE CHANGES
Expand Sales Tax to Services6
The proposal expands the Sales Tax to various services provided to consumers (business to
business transactions remain exempted from the tax):







Professional services ($208.7 million to the General Fund (GF) in FY 21): legal,
accounting, architectural, engineering, interior design, and real estate activities;
Personal Services ($82.8 million to the GF in FY 21): veterinary, barbershops/beauty
salons, dry-cleaning and laundry (including coin-operated), parking, massage therapists
and electrology services;
Recreational Services ($7.6 million to the GF in FY 21): sports/recreation instruction and
industries (camps and schools engaged in athletic instruction, golf courses and country
clubs, skiing facilities, marinas, bowling, billiards, fitness and recreational sports, mini
golf, go carts, rowing clubs, paintball, shooting ranges, hunting clubs, soccer clubs),
horse boarding and training (exempt farmers), scenic and sightseeing transportation,
travel arrangement/reservation services.
General ($48.8 million to the GF in FY 21): services to buildings/dwellings (e.g.
extermination/pest control, janitorial, landscaping, cleaning of: carpet/upholstery,
chimney, power washing, drains, driveway, ducts, gutter, windows, swimming pools),
waste collection, renovation and repair of residential property.

Repeal Various Sales Tax Exemptions6
The proposal eliminates various sales tax exemptions in statute for a total annualized revenue
gain of $152.1 million in FY 21, including: non-prescription drugs, college and professional
school textbooks, newspapers and magazines, Connecticut credit unions, campground rentals,
bicycle helmets, child car seats, vegetable seeds, safety apparel.
Increase Hotel Tax Rate
Under current law, the Room Occupancy Tax is 15%, of which 10% (or 1.5 percentage points) of
the revenue collected transferred to the Tourism Fund.
The proposal increases the Room Occupancy Tax rate to 17%, which benefits the General Fund
by $18 million in FY 20 as well as the Tourism Fund at $1.8 million with the 10% transfer
currently in statute.
Freeze the Sales Tax on Motor Vehicles to the STF at 8%
PA 17-2 JSS, as amended by PA 18-81 shifts revenues from the sale of new and used motor
vehicles by a dealer from the General Fund to the Special Transportation Fund under the
following schedule: FY 19 (8%); FY 20 (33%); FY 21 (56%); FY 22 (75%); and FY 23 (100%). This
results in a revenue gain to the General Fund, and a revenue loss to the Special Transportation
Fund, of $91.0 million in FY 20 and $175.8 million in FY 21.

6The

Special Transportation Fund receives 0.5 percentage points from the 6.35% sales tax rate. The Governor’s
proposal to extend the 6.35% sales tax to various services and exemptions therefore results in a revenue gain of $27.4
million in FY 20 and $44.3 million in FY 21 as well.

14

 The proposal maintains indefinitely the transfer at 8%of motor vehicle sales, or approximately
$30 million in annual transfers.
STF Motor Vehicle Transfer Impact
In millions of dollars
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0

100%

100%

80%

75%
56%
339.2
33%
8%

175.8

100%

339.9

246.7

60%
40%
20%

91.0

0%
FY 19

FY 20

FY 21

FY 22

FY 23

FY 24

Gov Proposal - STF Transfer

Gov Proposal - Remains in GF

PA 18-81 Transfer Rate

Gov Proposal Freeze at 8%

Impose a 1.5 cent per ounce Tax on Certain Sugar-sweetened Beverages
The proposal results in an estimated revenue gain of $163.1 million by establishing a 1.5 cent
per ounce tax at the point of sale on sugar-sweetened beverages. The proposal includes sodas,
fruit drinks, sports drinks, ready-to-drink tea and coffee, enhanced water, and energy drinks.
The proposal excludes diet drinks, freshly served coffee, powders (fruit drink powder mixes).
Currently seven cities have a sugary beverages tax; no U.S. state has enacted a tax as of this
date.
Establish New Property Tax Credit
Beginning with FY 24, the proposal establishes a new credit (in addition to the current $200
property tax credit) available to Income Tax filers with property taxes in excess of 6.5% of their
adjusted gross income (AGI) which results in a revenue loss of $170 million annually. The
credit is worth 33% of the excess above the 6.5% threshold up to a maximum credit of
$1,200. The credit is available to renters, who are allowed to assume that 18% of rent goes to
property taxes.
Lower Tax Credit Utilization Cap
Under current law most tax credits allowed under the Corporation Business Tax cannot exceed
50.01% of the amount of a taxpayer’s pre-credit liability. However, the cap for Research &
Development (R&D) and Urban & Industrial Sites Reinvestment Act (URA) tax credits 70%; the
proposal lowers the cap for R&D and URA tax credits to 50.01% for a total revenue gain of $34.4
million in FY 20 and $21.5 million annually thereafter.
Additionally, the proposal extends the 50.01% credit utilization cap on all credits to the Public
Service Companies Tax, which is not currently subject to any credit cap. This results in a
revenue gain of $2 million annually.

15

 Eliminate Business Entity Tax and Increase Pass-Through Entity Annual Filing Fee
This proposal eliminates the $250 biennial Business Entity Tax levied on pass-through entities,
resulting in a revenue loss of $11 million in FY 20 and $44 million in FY 21. This is partially
offset by increasing the Secretary of State’s annual filing fee for pass-through entities from $20
to $100, which results in a revenue gain of $16 million annually beginning in FY 20.
Repeal Gift Tax and Delay Estate Tax Filing Deadline
This proposal eliminates the Gift Tax, and establishes a 3-year lookback for gifts made in
contemplation of death. This results in a revenue loss of $9 million annually beginning in FY
20.
Additionally, the filing deadline for the Estate Tax is delayed from 6 months to 9 months from
death; this results in a one-time revenue loss of $33.6 million due to a shift in the timing of
payments.

16

 V. SIGNIFICANT CAPITAL BUDGET CHANGES
The Governor’s recommended capital budget authorizations and cancellations are in the table
below.
Net Effective Bonds by Type (in millions)

General Obligation Bonds (GO)
Special Tax Obligation Bonds (STO)
Clean Water Fund Revenue Bonds (CWF)
Total
Changes by Bond Type
General Obligation Bonds (GO)
New authorizations
Existing authorizations effective July 1
Changes to existing authorizations
Net Effective Authorizations

FY 20 $
1,296.0
1,482.6
2,778.6

FY 20
944.2
492.3
(140.4)
1,296.0

FY 21 $
1,357.5
782.4
84.0
2,223.9

FY 21
976.5
261.2
119.8
1,357.5

The Governor’s proposal revises effective years for authorizations within the UConn 2000 and
CSCU 2020 programs, which results in a reduction of current FY 20 authorizations by $140.4
million and an increase in FY 21 authorizations by $119.8 million. More detail on proposed new
authorizations is provided later in this section.
The Governor also proposes limiting GO bond issuance to $1.6 billion per year, $300 million less
than the current statutory bond issuance cap. Without further changes, the current cap, which
began in FY 19, is to be adjusted by an inflationary figure beginning in FY 20.
Special Tax Obligation Bonds (GO)
New authorizations
Existing authorizations effective July 1
Net Effective Authorizations

FY 20
776.6
706.0
1,482.6

FY 21
782.4
782.4

Besides the new $776.6 million in new STO bond authorizations in FY 20, the proposal does not
change the last year of Let’s Go, CT! authorization.
The Governor’s proposal would limit STO issuance to $800 million starting in FY 21. Current
law limits STO issuance to $750 million in FY 19 and FY 20, but also allowed $250 million of GO
bonding for transportation in each of those years. The proposal would prevent the use of the
GO transportation bonds, effectively limiting transportation bonding to $750 million in FY 20.
Clean Water Fund Revenue Bonds (CWF)
New Authorizations

FY 20
-

FY 21
84.0

17

 New Bond Authorizations by Bond Type and Agency (in millions)
Bond Type/Agency/Program
GO (subtotal)
CSCU
Advanced manufacturing
All colleges - renovations
All universities - renovations
System equipment
System telecom
DAS
Removal or encapsulation of asbestos
School Construction Payments (Principal)
Alterations and improvements ADA
DECD
Brownfield redevelopment
Cultural grants
DEEP
Clean Water Fund Grants - GO bond
DESPP
Criminal Justice Information System
DOH
CHFA Downpayment Assistance
CHFA Downpayment Assistance - Teachers
DOT
Town Aid Road GO (Note: Additional $30 million per year in STO bonds)
JUD
Alterations and improvements ADA
Alterations, renovations and improvements to state buildings
Security Improvements at various state-owned buildings
Stamford HVAC
Technology plan
MIL
State matching funds
OLM
Capitol Renovations
Capitol sidewalks/roads
Old State House
OPM
Capital Equipment Purchase Fund
IT investment
LoCIP
Nonprofit grant program
Urban Act
Municipal Projects and Purposes Grants

FY 20 $

FY 21 $

944.2

976.5

3.0
14.0
7.0
6.0
2.0

3.0
14.0
7.0
6.0
2.0

10.0
500.0
-

10.0
500.0
1.0

10.0
-

10.0
5.0

75.0

75.0

8.9

-

4.0
0.5

4.0
0.5

30.0

30.0

2.0
11.0
2.0
2.3
2.0

2.0
10.0
2.0
2.0

1.0

1.0

15.0
1.8
1.7

-

95.0
30.0
50.0
60.0

27.0
95.0
30.0
25.0
50.0
60.0

18

 Bond Type/Agency/Program
SDE
VT school infrastructure
STO (subtotal)
DOT
Bus and rail facilities and equipment
Capital resurfacing and related construction
Department Facilities
Environmental compliance
Fix-it-First program to repair the state's bridges
Fix-it-First program to repair the state's roads
Highway and Bridge Renewal Equipment
Interstate Highway Program
Intrastate Highway Program
Local Bridge Program
Local Transportation Capital Program
State bridge improvement, rehabilitation
Town aid road (Note: Additional $30 million per year in GO bonds)
Urban Systems Program

FY 20 $

FY 21 $
-

5.0

776.6

782.4

236.0
106.5
9.4
9.9
110.0
75.0
16.0
13.0
44.0
10.0
67.0
33.0
30.0
16.8

236.0
106.5
15.2
9.9
110.0
75.0
16.0
13.0
44.0
10.0
67.0
33.0
30.0
16.8

-

84.0

-

84.0

CWF (subtotal)
DEEP
Clean Water Fund Loans (Revenue Bonds)

Bond Cap Calculation - The Governor’s proposed bond package for the biennium is below the
statutory bond cap on General Obligation bonds in each fiscal year, based on revenue estimates
that include his tax proposals. The table below shows the debt percentage is expected to be
82.2% as of July 1, 2019 and 79.6% as of July 1, 2020.
CGS Section 3-21 stipulates that if the level of bonded indebtedness reaches 90% of the limit, the
governor must review each bond act for which no obligations have yet been incurred and
recommend to the General Assembly priorities for repealing these authorizations.
Statutory Bond Cap Estimate for the Governor’s Proposed Bond Package
(in millions)
Proposed Net Tax Revenues, including Governor’s tax proposals
Statutory Multiplier
Debt Limit
Proposed Net Indebtedness
Percentage of Debt Limit
90% Debt Limit Threshold
Capacity Remaining Under 90% Threshold

FY 20 $
16,845.9
1.6
26,953.4
22,146.3
82.2%

FY 21 $
17,454.8
1.6
27,927.7
22,244.3
79.6%

24,258.1

25,134.9

2,111.7

2,890.6

19

 VI. MUNICIPAL AID
TRS Changes Drive Decreases in Municipal Aid
The Governor’s FY 20 and FY 21 budget proposal reduces municipal aid from FY 19 levels by
$74.0 million in FY 20 and $17.3 million in FY 21. This is primarily due to 1) decreases in
Teachers’ Retirement Contributions on behalf of municipalities of $83.5 million in FY 20 and
$44.3 million in FY 21, and 2) a requirement for municipalities to contribute $23.8 million in FY
20 and $49.2 million in FY 21 towards the normal cost of teachers’ retirement contributions.
Other Significant Changes in Municipal Aid
The Governor’s budget also:




Provides $17.7 million in FY 20 and $39.4 million in FY 21 to partially fund the changes
in Education Cost Sharing funding passed in PA 17-2, the FY 18 and FY 19 budget.
Provides $1.5 million in FY 20 and $4.2 million in FY 21 to provide Car Tax Cap
Reimbursement grants using updated FY 18 and FY 19 municipal mill rates.
Eliminates funding of $3.4 million for Health and Welfare Services for Private School
Students. The Governor’s proposal requires private schools to make the payments
currently made by the state.

See the chart below for a grant-by-grant summary of changes in municipal aid:

Municipal Aid Synopsis, FY 20 - FY 21 Governor’s Recommended
Fund/Agency

FY 19
Estimated $

Appropriated Funds
Office of Policy and Management
State Property PILOT
54,944,031
College & Hospital
105,889,432
PILOT
Reimbursement
364,713
Property Tax Disability Exemption
Property Tax Relief
65,000
Elderly Freeze Program
Property Tax Relief for
2,708,107
Veterans
Municipal Transition
28,138,552
(Car Tax Cap
Reimbursement Grants)
Municipal
27,300,000
Restructuring1
Municipal Revenue
36,819,135
Sharing (Supplemental
PILOT)
Municipal Stabilization
37,753,335

FY 20 Gov.
Rec. $

FY 21 Gov.
Rec. $

FY 20 Gov.
Rec. - FY 19 $

FY 21 Gov.
Rec. - FY 19 $

54,944,031
105,889,434

54,944,031
105,889,434

2

2

364,713

364,713

-

-

40,000

40,000

(25,000)

(25,000)

2,708,107

2,708,107

-

-

29,596,908

32,331,732

1,458,356

4,193,180

7,300,000

7,300,000

(20,000,000)

(20,000,000)

36,819,135

36,819,135

-

-

37,753,335

37,753,335

-

-

20

 Fund/Agency

FY 19
Estimated $

Grant
Pequot Grants
49,942,796
State Department of Education
Vocational Agriculture
13,759,589
Adult Education
20,383,960
Health and Welfare
3,438,415
Services Pupils Private
Schools
Education Equalization
2,016,728,682
Grants1
Bilingual Education
3,177,112
Priority School Districts
37,150,868
Young Parents
71,657
Program
Interdistrict
1,537,500
Cooperation
School Breakfast
2,158,900
Program
Excess Cost - Student
140,619,782
Based
Youth Service Bureaus
2,598,486
Open Choice Program2
39,138,373
Magnet Schools2
326,508,158
After School Program
4,720,695
Sheff Transportation2
Teachers' Retirement Board
Retirement
1,292,314,000
Contributions
Retirees Health Service
14,575,250
Cost
Municipal Retiree
4,644,673
Health Insurance Costs
Other Appropriated Aid
Housing/Homeless
575,226
Services- Municipality
Local and District
4,144,588
Departments of Health
School Based Health
10,743,232
Clinics
Teen Pregnancy
98,281
Prevention Municipality
Connecticard Payments
703,638
Municipal
20,000,000
Restructuring (Debt
Service)1
4,303,716,166
Total Appropriated

FY 20 Gov.
Rec. $

FY 21 Gov.
Rec. $

FY 20 Gov.
Rec. - FY 19 $

FY 21 Gov.
Rec. - FY 19 $

49,942,796

49,942,796

-

-

14,952,000
20,383,960
-

15,124,200
20,383,960
-

1,192,411
(3,438,415)

1,364,611
(3,438,415)

2,034,411,986

2,056,150,639

17,683,304

39,421,957

3,177,112
37,150,868
-

3,177,112
37,150,868
-

(71,657)

(71,657)

1,537,500

1,537,500

-

-

2,158,900

2,158,900

-

-

140,619,782

140,619,782

-

-

2,612,772
26,835,214
298,204,848
4,720,695
44,750,421

2,612,772
27,682,027
300,033,302
4,720,695
45,781,798

14,286
(12,303,159)
(28,303,310)
44,750,421

14,286
(11,456,346)
(26,474,856)
45,781,798

1,208,783,000

1,248,029,000

(83,531,000)

(44,285,000)

26,001,300

29,849,400

11,426,050

15,274,150

5,532,120

5,535,640

887,447

890,967

575,226

575,226

-

-

3,742,666

3,742,666

(401,922)

(401,922)

10,550,187

10,550,187

(193,045)

(193,045)

98,281

98,281

-

-

703,638
45,666,625

703,638
56,314,629

25,666,625

36,314,629

4,258,527,560

4,340,625,505

(45,188,606)

36,909,339

21

 Fund/Agency
Funds
Bond Funds
Town Aid Road
LoCIP
Grants for Municipal
Projects
Total Bond Funds
GROSS TOTAL
Teachers' Retirement
Board- Normal Cost
payments
NET TOTAL

FY 19
Estimated $

FY 20 Gov.
Rec. $

FY 21 Gov.
Rec. $

FY 20 Gov.
Rec. - FY 19 $

FY 21 Gov.
Rec. - FY 19 $

60,000,000
34,999,987
60,000,000

60,000,000
30,000,000
60,000,000

60,000,000
30,000,000
60,000,000

(4,999,987)
-

(4,999,987)
-

154,999,987
4,458,716,153
-

150,000,000
4,408,527,560
(23,825,270)

150,000,000
4,490,625,505
(49,201,442)

(4,999,987)
(50,188,593)
(23,825,270)

(4,999,987)
31,909,352
(49,201,442)

4,458,716,153

4,384,702,290

4,441,424,063

(74,013,863)

(17,292,090)

1The

Governor's budget funds all debt service payments to the City of Hartford via the Municipal Restructuring- Debt Service
line item within the Treasurer's Office. These payments are made in accordance with the Contract Assistance Agreement
reached between the City of Hartford and the Municipal Accountability Review Board on March 27, 2018.
2The Governor's budget establishes the Sheff Transportation account and reallocates funding from the Open Choice and Magnet
School accounts.

22

 APPENDIX A: Full Time Authorized Position Count by Agency and Fund
Fund/Agency
General Fund
Legislative Management
Auditors of Public Accounts
Commission on Women, Children & Seniors
Commission on Equity and Opportunity
Governor's Office
Secretary of the State
Lieutenant Governor's Office
Elections Enforcement Commission
Office of State Ethics
Freedom of Information Commission
State Treasurer
State Comptroller
Department of Revenue Services
Office of Governmental Accountability
Office of Policy and Management
Department of Veterans' Affairs
Department of Administrative Services
Attorney General
Division of Criminal Justice
Department of Emergency Services and Public
Protection
Military Department
Department of Consumer Protection
Labor Department
Commission on Human Rights and Opportunities
Protection and Advocacy for Persons with
Disabilities
Department of Agriculture
Department of Energy and Environmental Protection
Council on Environmental Quality
Department of Economic and Community
Development
Department of Housing
Agricultural Experiment Station
Department of Public Health
Office of Health Strategy
Office of the Chief Medical Examiner
Department of Developmental Services
Department of Mental Health and Addiction Services
Psychiatric Security Review Board
Department of Social Services
State Department on Aging
Department of Rehabilitation Services
Department of Education
Technical Education and Career System
Office of Early Childhood
State Library

Authorized

Revised

Governor
Recommended

Governor
Recommended

FY 18

FY 19

FY 20

FY 21

444
126
6
6
28
85
7
35
16
16
45
277
660
19
125
243
663
311
486
1,735

436
126
6
6
28
85
7
35
16
16
45
277
660
19
125
243
663
311
486
1,735

436
126
6
6
28
85
7
35
16
16
45
277
660
19
125
243
668
311
486
1,735

436
126
6
6
28
85
7
35
16
16
45
277
660
19
125
243
669
311
486
1,735

42
218
191
82

42
218
191
82

42
221
191
82

42
221
191
82

-

-

-

-

50
618
2
89

50
618
89

55
587
91

55
587
91

23
69
495
50
2,980
3,438
3
2,009
113
1,819
118
55

23
69
480
23
50
2,980
3,438
3
1,986
136
1,819
118
55

23
70
476
23
51
2,980
3,438
3
2,021
136
1,822
118
55

23
70
476
23
51
2,980
3,438
3
2,021
136
1,822
118
55

23

 Fund/Agency

Authorized
FY 18

Office of Higher Education
University of Connecticut
University of Connecticut Health Center
Teachers' Retirement Board
Connecticut State Colleges and Universities
Department of Correction
Department of Children and Families
Judicial Department
Public Defender Services Commission
General Fund Total
Special Transportation Fund
State Treasurer
Department of Motor Vehicles
Department of Energy and Environmental Protection
Department of Transportation
Special Transportation Fund Total
Banking Fund
Department of Banking
Judicial Department
Banking Fund Total
Insurance Fund
Office of Policy and Management
Insurance Department
Office of the Healthcare Advocate
Department of Housing
Department of Public Health
Office of Health Strategy
Insurance Fund Total
Consumer Counsel and Public Utility Control Fund
Office of Consumer Counsel
Department of Energy and Environmental Protection
Consumer Counsel and Public Utility Control Fund
Total
Workers' Compensation Fund
Division of Criminal Justice
Labor Department
Workers' Compensation Commission
Department of Rehabilitation Services
Workers' Compensation Fund Total
Regional Market Operation Fund
Department of Agriculture
Regional Market Operation Fund Total
GRAND TOTAL – Appropriated Funds

Revised

27
2,413
1,698
27
4,633
6,117
3,240
4,329
447
40,728

FY 19
27
2,413
1,698
27
4,633
6,117
3,240
4,329
447
40,726

1
603
29
3,357
3,990

Governor
Recommended

Governor
Recommended

FY 20

FY 21

27
2,413
1,698
27
4,633
6,118
3,021
4,329
451
40,532

27
2,413
1,698
27
4,633
6,118
3,021
4,329
451
40,533

1
603
29
3,362
3,995

1
603
29
3,412
4,045

1
603
29
3,412
4,045

119
20
139

119
20
139

117
117

117
117

2
151
27
1
5
186

2
150
18
1
5
9
185

2
151
17
1
9
10
190

2
151
17
1
9
10
190

12
122
134

12
122
134

12
122
134

12
122
134

4
2
117
6
129

4
2
117
6
129

4
2
117
6
129

4
2
117
6
129

7
7
45,313

7
7
45,315

7
7
45,154

7
7
45,155

24

 APENDIX B: Revenue Policies
General Fund
Fund/Tax
Type

Policy

FY 20

FY 21

FY 22

FY 23

FY 24

-

-

-

-

(170.0)

24.2

17.4

18.4

19.6

20.9

32.8

41.1

57.5

73.9

90.4

3.9

7.9

11.8

15.8

19.7

8.0

8.0

8.0

8.0

8.0

Personal Income Tax Total
Repeal the Municipal Revenue Sharing Account

68.9
-

74.4
-

95.7
356.3

117.3
365.2

(31.0)
374.4

Expand the Sales Tax to include Legal Services
Expand the Sales Tax to include Accounting
Services

35.3
5.0

71.7
10.2

72.7
10.3

73.7
10.5

74.7
10.6

Expand the Sales Tax to include Architectural
Services

5.7

11.6

11.8

11.9

12.1

Expand the Sales Tax to include Engineering
Services

21.1

42.7

43.3

43.9

44.5

1.9

3.9

4.0

4.0

4.1

Expand the Sales Tax to include Real Estate
Activities and Agents/Brokers

33.8

68.6

69.6

70.7

71.7

Expand the Sales Tax to include Veterinary
Services

9.1

18.6

18.8

19.1

19.3

20.8

42.2

42.9

43.5

44.2

Expand the Sales Tax to include Dry-Cleaning
and Laundry Services, including Coin-Operated

8.6

17.3

17.6

17.9

18.1

Repeal the Sales Tax Exemption for Massage
Therapists and Electology Services

0.5

1.0

1.0

1.0

1.1

Expand the Sales Tax to include Sports /
Recreation Instruction & Industries

3.0

5.9

6.0

6.1

6.1

Expand the Sales Tax to include Horse Boarding
and Training

0.3

0.5

0.6

0.6

0.6

Expand the Sales Tax to include Travel
Arrangement and Scenic Transportation

0.6

1.2

1.3

1.3

1.3

Expand the Sales Tax to include Buildings and
Dwellings

7.9

16.0

16.2

16.5

16.7

Taxes
Personal
Income Tax

Sales and Use
Tax

Establish a new credit against the Income Tax
when Property Taxes exceed 6.5% of taxpayers'
AGI
Repeal expansion of the Income Tax exemption
for Social Security Income
Repeal the new Income Tax exemption for
Pension and Annuity Income
Repeal the new Income Tax credit for STEM
graduates
Permanently cap at 25% the Teachers' Pension
Exemption from the Income Tax

Expand the Sales Tax to include Interior Design
Services

Expand the Sales Tax to include Barber Shops
and Beauty Salons

25

 General Fund
Fund/Tax
Type

Policy

FY 20

FY 21

FY 22

FY 23

FY 24

0.5

1.1

1.1

1.1

1.1

15.6

31.7

32.1

32.6

33.1

Repeal the Sales Tax Exemption for the
Maintenance of Vessels

1.9

3.9

4.0

4.0

4.1

Repeal the Sales Tax Exemption for Winter
Storage of Vessels

0.8

1.1

1.1

1.2

1.2

Increase the Sales Tax on Boats from 2.99% to
6.35%

2.3

2.3

2.3

2.4

2.4

Increase the Sales Tax on Digital Downloads
from 1.0% to 6.35%

27.5

37.1

37.7

38.2

38.8

Increase the Hotel Occupancy Tax from 15% to
17%

17.6

18.1

18.5

19.0

19.5

Repeal the Sales Tax Exemption for vehicular
trade-ins

60.4

61.6

62.8

64.1

65.4

Repeal the Sales Tax Exemption for NonPrescription Drugs

14.9

30.5

31.2

32.0

32.8

Repeal the Sales Tax Exemption for Text Books,
College & Professional Schools

0.3

0.5

0.5

0.5

0.5

Repeal the Sales Tax Exemption for Newspapers
and Magazines

6.5

13.2

13.4

13.6

13.8

Repeal the Sales Tax Exemption for CT Credit
Unions

0.3

0.5

0.5

0.5

0.5

Repeal the Sales Tax Exemption for
Campground Rentals

0.4

0.8

0.8

0.8

0.8

Repeal the Sales Tax Exemption for Bicycle
Helmets

0.1

0.2

0.2

0.2

0.2

Repeal the Sales Tax Exemption for Child car
Seats
Repeal the Sales Tax Exemption for Vegetable
Seeds

0.1

0.2

0.2

0.2

0.2

-

0.1

0.1

0.1

0.1

Repeal the Sales Tax Exemption for Safety
Apparel
Recognize Increase in Sales Tax due to ECigarettes Excise Tax

0.1

0.1

0.1

0.1

0.1

0.4

0.6

0.7

0.7

0.8

Recognize Decrease in Sales Tax due to Raising
the Age for Cigarette Restriction

(0.8)

(0.8)

(0.7)

(0.7)

(0.7)

Eliminate the Sales-Tax free week
Expand the Sales Tax to include Parking
Reflect impact on the Tourism Account from
increasing the Hotel Occupancy Tax rate

4.9
1.8
(1.8)

5.0
3.7
(1.8)

5.0
3.7
(1.9)

5.1
3.8
(1.9)

5.2
3.8
(1.9)

Freeze the diversion of the motor vehicle sales

91.0

175.8

246.7

339.2

339.9

Expand the Sales Tax to include Waste
Collection
Repeal the Sales Tax Exemption for Renovation
and Repair of Residential Property

26

 General Fund
Fund/Tax
Type

Policy

FY 20

FY 21

FY 22

FY 23

FY 24

(27.4)
371.0

(44.3)
652.6

(45.0)
1,087.5

(45.7)
1,197.0

(46.5)
1,214.7

60.0

37.5

37.5

37.5

37.5

(11.0)
34.4

(44.0)
21.5

(11.0)
21.5

(44.0)
21.5

(11.0)
21.5

-

-

-

-

-

83.4
3.6

8.0
23.0
3.6

20.0
68.0
3.6

30.0
45.0
3.6

40.0
88.0
3.6

2.0

2.0

2.0

2.0

2.0

5.6
(9.0)

5.6
(9.0)

5.6
(9.0)

5.6
(9.0)

5.6
(9.0)

Delay estate filing from 6 months to 9 months to
match federal

(33.6)

-

-

-

-

Inheritance and Estate Tax Total
Tax E-Cigarettes liquid at 75% wholesale
Raise the Age to 21 for cigarettes
Cigarette Tax Total
Increase the rate for movies from 6.0% to 6.35%

(42.6)
6.7
(5.8)
0.9
0.2

(9.0)
9.7
(5.5)
4.2
0.3

(9.0)
10.5
(5.2)
5.3
0.3

(9.0)
11.4
(4.9)
6.5
0.3

(9.0)
12.3
(4.6)
7.7
0.3

Admissions and Dues Total
Increase the rate on residential real estate >
$800k to 1.5% from 1.25%
Real Estate Conveyance Total
Reduce alcohol beverage excise taxes at craft
breweries by 50%
Alcoholic Beverages Total
Maintain Hospital User Fee at FY 2019 level of
$900 million
Implement recommendation of ambulatory
surgical center tax study
Technical fix to intermediate care facilities (ICF)
user fee
Health Provider Total
Surcharge on Plastic Bags of 10 cents
Establish a 1.5¢ per ounce tax on sugar-

0.2
7.7

0.3
7.9

0.3
8.2

0.3
8.4

0.3
8.7

7.7
(0.1)

7.9
(0.1)

8.2
(0.1)

8.4
(0.1)

8.7
(0.1)

(0.1)
516.0

(0.1)
516.0

(0.1)
516.0

(0.1)
516.0

(0.1)
516.0

(1.0)

(1.0)

(1.0)

(1.0)

(1.0)

0.1

0.1

0.1

0.1

0.1

515.1
30.2
-

515.1
26.8
163.1

15.1
21.4
154.2

515.1
17.2
139.2

515.1
13.7
139.9

tax from the GF at 8%
Reflect STF portion of Sales Tax Expansion
Sales and Use Tax Total
Corporation
Tax

Public Service
Companies
Tax

Inheritance
and Estate
Tax

Cigarette Tax

Admissions
and Dues
Real Estate
Conveyance
Alcoholic
Beverages
Health
Provider

Miscellaneous

Maintain current 10% surcharge set to expire in
tax year 2019
Repeal the business entity tax of $250
Reduce cap on R&D and URA tax credits to
50.01%
Limit carryforward of new R&D tax credits to 15
years
Repeal 7/7 Program
Corporation Tax Total
Eliminate exemption for gas sold to facility with
775 MW of Capacity
Cap credits claimed against the public utilities
tax at 50.01% of liability
Public Service Companies Tax Total
Repeal gift tax (3-year lookback for gifts in
contemplation of death)

27

 General Fund
Fund/Tax
Type

Policy

FY 20

FY 21

FY 22

FY 23

FY 24

30.2
1,040.3

189.9
1,463.9

175.6
1,952.2

156.4
2,042.5

153.6
1,953.6

0.1

0.1

0.1

0.1

0.1

16.0

16.0

16.0

16.0

16.0

Fees for Industrial Hemp Program
Bring the off-budget community investment act
(CIA) program on budget
Licenses, Permits, Fees Total
Town reimbursement for teachers' retirement
fund
Miscellaneous Total
Add 25 cent deposit on wine and liquor glass
bottles
Add 5 cent deposit to 50ml bottles of alcohol
Rents, Fines, Escheats Total
Other Revenue Total

0.1
18.5

0.3
18.5

0.3
18.5

0.3
18.5

0.3
18.5

34.7
23.8

34.9
49.2

34.9
71.3

34.9
72.6

34.9
73.8

23.8
4.4

49.2
6.0

71.3
6.1

72.6
6.2

73.8
6.2

0.5
4.9
63.4

0.6
6.6
90.7

0.6
6.7
112.9

0.6
6.8
114.3

0.6
6.8
115.5

Net Appropriate for Care 4 Kids/Child Care
Development Fund
Maintain Supplemental (Hospital) Payments at
FY 2019 level
Reflect increase in revenue attributable to
Medicaid (expenditure) changes
Federal Grants Total
Fund Higher Education Alternative Retirement
Plan

(67.6)

(53.3)

(53.3)

(53.3)

(53.3)

215.4

214.0

214.0

214.0

214.0

(21.8)

(6.4)

(6.4)

(6.4)

(6.4)

126.0
43.7

154.3
43.4

154.3
43.4

154.3
43.4

154.3
43.4

8.1

8.1

8.1

8.1

8.1

51.8
177.8
(96.8)

51.5
205.8
(150.3)

51.5
205.8
(204.0)

51.5
205.8
(261.1)

51.5
205.8
(319.4)

(96.8)
1,184.7

(150.3)
1,610.1

(204.0)
2,066.9

(261.1)
2,101.5

(319.4)
1,955.5

sweetened beverages
Miscellaneous Total
Taxes Total
Other
Revenue
Licenses,
Permits, Fees

Miscellaneous

Rents, Fines,
Escheats

Other
Sources
Federal
Grants

Transfers
From / (To)
Other Funds

Adjust
Available
Revenues

Include Recommended Tests in Newborn
Screening Panel
Increase annual filing fee for LLC's and LLP's
from $20 to $100

Maintain the FY 2019 transfer to the
Mashantucket/Pequot Fund
Transfers From / (To) Other Funds Total
Other Sources Total
Implement "revenue cap"

Adjust Available Revenues Total
General Fund Total

Special Transportation Fund

28

 Fund/Tax
Type

Policy

FY 20

FY 21

FY 22

FY 23

FY 24

Taxes
Sales and
Use Tax

Other
Sources
Motor
Vehicle
Receipts

Transfers
From / (To)
Other Funds

Sales tax attribution of sales tax expansions

27.4

44.3

45.0

45.7

46.5

Freeze the diversion of the motor vehicle sales tax
from the GF at 8%
Sales and Use Tax Total

(91.0)

(175.8)

(246.7)

(339.2)

(339.9)

(63.6)

(131.5)

(201.7)

(293.5)

(293.4)

Taxes Total

(63.6)

(131.5)

(201.7)

(293.5)

(293.4)

Increase operator license renewal from 6 years to
8 years

-

3.3

3.3

5.4

5.5

Increase operator registration renewal from 2
years to 3 years

-

22.4

46.2

(0.3)

(0.9)

Motor Vehicle Receipts Total

-

25.7

49.5

5.1

4.6

Transfer FY 2020 revenue for use in FY 2021

(20.0)

20.0

-

-

-

Transfers From / (To) Other Funds Total

(20.0)

20.0

-

-

-

Other Sources Total

(20.0)

45.7

49.5

5.1

4.6

-

-

-

185.8
185.8

743.3
743.3

(8.6)

(13.7)

(18.5)

(29.2)

(39.0)

(8.6)
(92.2)

(13.7)
(99.5)

(18.5)
(170.7)

(29.2)
(131.8)

(39.0)
415.5

Tolls
Tolls

Install tolls for congestion mitigation
Tolls Total

Adjust
Available
Revenues

Implement "revenue cap"

Adjust Available Revenues Total
Special Transportation Fund Total

Tourism Fund
Fund/Tax
Type
Sales and
Use Tax

Policy

Reflect impact on the Tourism
Account from increasing the Hotel
Occupancy Tax rate
GRAND TOTAL

FY 20

FY 21

FY 22

FY 23

FY 24

1.8

1.8

1.9

1.9

1.9

1,094.3

1,512.4

1,898.1

1,971.6

2,372.9

29