STATE OF CONNECTICUT

FY 2020 & FY 2021
Budget Update
June 21, 2019

Prepared by the Office of Policy and Management

 THIS PAGE INTENTIONALLY LEFT BLANK

FY 2019 Budget Accomplishments
1. Budget is balanced and was passed before the end of regular session
2. Preserves a Budget Reserve Fund at record levels
3. Honors all budgetary caps
a. Spending Cap
b. Volatility Cap
c. Revenue Cap
4. Teachers’ Retirement System re-amortization and establishment of a Special Capital
Reserve Fund
5. No increase in Income Tax rates or general Sales Tax rate
6. Tentative agreement with Hospitals
7. Increases the minimum wage to $15 an hour over a 4 year period
8. Establishes Paid Family Medical Leave program
9. Makes changes to state employee and retiree healthcare programs that will result in a
savings of $185 million over the next two years
10. Establishes a new Debt Free College Fund
11. Increases funding for education and workforce development
12. Does not cut appropriated municipal aid to towns and cities and brings underfunded school
districts closer to full funding
13. Makes a $75 million payment toward the cumulative GAAP deficit
14. Includes $29 million in funding over two years for wage increases for nursing home workers
15. Expands eligibility for HUSKY A adults to 160 percent of the federal poverty level
16. Provides over $6 million in funding for a digital front door - a new digital service that will
move the public’s interactions with state government online, and provide services that are
personalized, more secure, efficient, and cost-effective.
17. Raises the age for the consumption of tobacco products from 18 years to 21 years old and
adds taxes on consumption of E-cigarettes
18. Combats the opioid epidemic by increasing oversight and treatment
19. Increases recruitment of minority teachers in Connecticut schools by increasing student
loan reimbursements
20. Sets aside $20 million in state funds to match the generous Dalio Philanthropies’ education
donation

Items Expected to Be
Addressed in Upcoming Special Session(s)
Date(s) to be Determined

1. Capital Budget
2. Ratification of potential Hospital Settlement
3. Tolls

1

 Reconciliation of General Fund Surplus
Fiscal Year 2019
(In Millions)
Per OPM
5/20/19
Letter
1. Original Budget Balance

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

$

Revenues - Over/(Under) Budget
Personal Income - Withholding
Personal Income - Estimates and Finals
Sales and Use
Corporation Tax
Pass-through Entity
Unified Gift and Estate Tax
Refunds of Taxes
Indian Gaming
Federal Grants
Transfers to Budget Reserve Fund - Volatility Cap
All Other

13. Total Revenue Change

$

Per OPM
6/20/19
Letter

10.5 $

10.5

430.4 $ 430.4
72.4
(27.6)
137.3
177.2
127.1
152.1
450.0
560.0
36.0
52.5
(112.2)
(127.1)
51.0
51.0
(39.5)
(39.5)
(522.4)
(532.4)
(47.8)
6.3

$

582.3 $

702.9

$

(44.9) $
(12.1)
(3.5)
(4.5)
107.0

52.5

17. Total Additional Requirements/Lapses

$

42.0 $

52.5

18. Miscellaneous Adjustments (Adjudicated Claims)

$

(63.0) $

(65.0)

19. Operating Surplus/(Deficit) Prior to Actions

$

571.8 $

700.9

14.
15.
16.
17.
16.

20.
21.
22.
23.

Expenditures - Additional Requirements/ Change in Lapses
Department of Correction
Office of Early Childhood
Department of Mental Health and Addiction Services
Department of Children and Families
Net Change in Lapses

Actions Taken per Adopted Budget (P.A. 19-117)
Teachers Retirement Fund - Capital Reserve (sec. 90)
Reserve for Potential Hospital Settlement (sec. 50)
DSS Medicaid Carryforward (sec. 38)
Alternative Higher Education Carryforward (sec. 53)

$ (380.9) $ (380.9)
(160.0)
(160.0)
(17.6)
(13.0)
-

22. Total Actions Taken

$ (571.5) $ (540.9)

23. Estimated FY 2019 Year-End Operating Surplus/(Deficit)

$

Note: Year-end deficit based on OPM estimates as adjusted by P.A. 19-117.
2

0.3 $

160.0

 General Fund
Baseline Estimate Versus Adopted Budget
PA 19-117
June 5, 2019
(In millions)

Revenue
1. Revenues, Gross
2. Revenue Cap
3. Revenue Cap Deduction

Fiscal Year 2020
Baseline
Policy
Adopted
Estimate
Changes
Budget
$ 18,400.5 $ 1,059.7 $ 19,460.2
99.50%
99.50%
99.50%
(92.0)
(5.3)
(97.3)

Fiscal Year 2021
Baseline
Policy
Adopted
Estimate
Changes
Budget
$ 18,689.8 $ 1,458.4 $ 20,148.2
99.25%
99.25%
99.25%
(140.2)
(10.9)
(151.1)

4. Revenue, Available

$ 18,308.5 $

1,054.4 $ 19,362.9

$ 18,549.6 $

1,447.5 $ 19,997.1

Expenditures
5. Expenditures

$ 19,528.4 $

(209.3) $ 19,319.1

$ 20,348.0 $

(366.0) $ 19,982.0

Operating Balance
6. Surplus/(Deficit)
7. Deficit as a % of
Baseline Revenues

$

(1,219.9) $

1,263.7 $

43.8

6.6%

$

(1,798.4) $
9.6%

Baseline Revenues per April 30, 2019 Consensus Revenue Estimate
Baseline Expenditures per February 20, 2019 Governor's Budget

3

1,813.5 $

15.1

 SPENDING CAP CALCULATIONS
For FY 2020 and FY 2021
(in millions)

Total All Appropriated Funds - Prior Year

FY 2018-19

FY 2019-20

FY 2020-21

Revised

Biennial

Biennial

Budget

Budget

Budget

$ 20,414.3

$ 20,855.4

$ 21,285.2

Passport to Parks

(4.1)

-

-

Higher Ed Alternative Retirement Plan

-

42.6

-

Net Budgeting of CCDF

-

(63.7)

-

Husky D (FY 20 and FY 21)
Rebase HUSKY B for Federal Change

-

38.4
3.4

55.8
4.9

$ 20,410.2

$ 20,876.1

$ 21,346.0

Debt Service

2,894.3

2,864.8

2,975.8

SERS/TRS/JRS UAL
Federal Funds

2,088.5
1,592.4

2,222.9
1,587.0

$6,575.3

$6,674.7

$6,649.8

$13,834.9

$14,201.4

$14,696.2

Adjusted Total All Appropriated Funds
Less "Non-Capped" Expenditures:

Total "Non-Capped" Expenditures - Prior Year
Total "Capped" Expenditures

(1)
(2)

2,210.9
1,463.1

Allowable Cap Growth Rate

1.77%

3.05%

2.77%

Allowable "Capped" Growth

244.2

432.8

407.1

$14,079.1

$14,634.2

$15,103.26

"Capped" Expenditures
Plus "Non-Capped" Expenditures:
Debt Service

$2,864.8

$2,975.8

$3,136.8

3.6

1.5

1.5

2,244.0
1,664.3

2,210.9
1,463.1

Total "Non-Capped" Expenditures

$6,776.7

$6,651.3

$6,967.8

Total All Expenditures Allowed

$20,855.9

$21,285.5

$22,071.1

Appropriation for this year

$20,855.4

$21,285.2

$22,066.1

Federal Mandates and Court Orders (new $)
SERS/TRS/JRS UAL
Federal Funds

Amount Total Appropriations are Over/
(Under) the Cap

$

(3)

(3)

(0.5)

$

(0.2)

(4)

2,360.8
1,468.8

$

(1) Rebased to reflect OPM estimate of payment of unfunded liabilities.
(2) Rebased to reflect January 15, 2019 consensus revenue. Adjustment made for FY 2018
hospital payments and net budgeting of CCDF.
(3) Adjusted to reflect $381 million transfer to Teachers' Retirement Fund Special Capital Reserve
(4) UAL per OFA 6/6/2019

4

(5.0)

(4)

 BUDGET RESERVE FUND PROJECTIONS
(In Millions)
Fiscal
Year

Beginning
Balance

2019
2020
2021

$ 1,185.3 $
2,240.8
2,700.2

895.5 $
318.3
301.5

- $
97.3
151.1

160.0
43.8
15.1

$

1,515.3 $

248.4 $

218.9

TOTALS

Volatility Cap
Transfer

Revenue Cap
Transfer

Operating
Surplus
(1)

Ending
Balance

% of Net
Appropriations

$ 2,240.8
$ 2,700.2
$ 3,167.9

11.6%
13.5%
15.4%

(1) Anticipated FY 2019 surplus after $380.9 million transfer to Teachers' Retirement
System Special Capital Reserve, and $160.0 million for the potential hospital settlement.
FY 2019 updated for OPM 6/20/2019 Letter.

Millions

$3,100
$2,800
$2,500
$2,200
$1,900
$1,600
$1,300
$1,000
$700
$400
$100
-$200
-$500
-$800
-$1,100
-$1,400

BRF Ending Balance - FY 2018
Projected Operating Surplus - FY 2019 (6/20/19 Est.)
Volatility Cap Deposit - FY 2019 (6/20/19 Est.)
Reserve for TRS Special capital Reserve Fund
Reserve for Hospital Settlement
Estimated BRF Total - FY 2019

$302.2
$363.9$446.5
$269.2
$0.0

$3,167.9
$2,700.2
$2,240.8

$ 2,240.8

$1,381.7 $1,381.7 $1,381.7
$1,112.5

$0.0

(in millions)
$ 1,185.3
700.9
895.5
(380.9)
(160.0)

$0.0 $0.0

$1,185.3

$519.2
$406.0
$235.6
$270.7
$103.2
$212.9
$0.0 $93.5
-$103.2

$1,055.5
$972.4
$459.4 $467.7

$177.2
-$22.7
$248.5-$113.2
-$170.4

Deposits/(Withdrawals)
Account Balance
-$1,278.5

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Fiscal Year
Est.Est.Est.

5

 SUMMARY OF APPROPRIATION CHANGES - FY 2020 Over FY 2019
(In Millions)

General Fund
Special Transportation Fund
Banking Fund
Insurance Fund
Consumer Counsel and Public Utility Fund
Workers' Compensation Fund
Mashantucket Pequot & Mohegan Fund
Regional Market Operating Fund
Criminal Injuries Compensation Fund
Tourism Fund
Total

Appropriation
FY 2019
$ 18,998.2
1,617.3
27.0
94.3
25.6
24.9
49.9
1.1
2.9
12.9
$ 20,854.2

Net
Adjustments
FY 2020
$
320.9
93.0
0.6
9.9
1.9
3.1
1.5
0.0
0.3
$
431.1

Enacted
Appropriation
FY 2020
$ 19,319.1
1,710.3
27.6
104.2
27.4
28.0
51.5
1.1
2.9
13.1
$ 21,285.2

% Growth
Over
FY 2019
1.7%
5.7%
2.3%
10.5%
7.3%
12.4%
3.1%
1.6%
0.0%
1.9%
2.1%

SUMMARY OF APPROPRIATION CHANGES - FY 2021 Over FY 2020
(In Millions)

General Fund
Special Transportation Fund
Banking Fund
Insurance Fund
Consumer Counsel and Public Utility Fund
Workers' Compensation Fund
Mashantucket Pequot & Mohegan Fund
Regional Market Operating Fund
Criminal Injuries Compensation Fund
Tourism Fund
Total

Enacted
Appropriation
FY 2020
$ 19,319.1
1,710.3
27.6
104.2
27.4
28.0
51.5
1.1
2.9
13.1
$ 21,285.2

6

Net
Adjustments
FY 2021
$
662.9
106.1
1.1
9.1
1.1
0.6
0.0
(0.1)
$
780.8

Enacted
Appropriation
FY 2021
$ 19,982.0
1,816.3
28.8
113.3
28.5
28.7
51.5
1.1
2.9
13.1
$ 22,066.1

% Growth
Over
FY 2020
3.4%
6.2%
4.1%
8.7%
3.9%
2.2%
0.0%
2.0%
0.0%
-0.6%
3.7%

 GENERAL FUND APPROPRIATIONS - SUMMARY OF CHANGES
Adjustments to Current Services
(in millions)
Gov 2020
Current Services Adjustments
Debt Service
State Employee Wages and Coll. Barg. Increases
State Employees' Pension and Healthcare
Teachers' Pension and Healthcare
Hospitals - Supplemental & Current DRG
Caseload, Utilization, Reimb., and COLAs
Statutory Grants and Rates
All Other
Total - Current Services Updates
Extend Current Policies
Maintain Hospital User Fee
Maintain Statutory Formula Aid and Rates
All Other
Total - Current Policies
New Policy Proposals
Reduce Debt Issuance
Achieve Labor Savings
Reduce Teachers' Pension Costs
Increase ECS
Pension Subsidies for UCHC, CCC and Res. Troopers
Increased NH Rates
Husky A Exp.
Min. Wage Inc.
Probate Courts
Hep. C Funding
Various Leg. Priorities*
Carryforwards / PFML & CIA off-budget
Increased Lapse Targets
All Other

Gov 2021
242.6
232.2
436.5
161.3
(391.6)
369.8
260.7
38.4

Final 2020

Final 2021

$

59.5
66.1
216.5
112.2
(388.9)
215.7
192.4
34.3

$

$

73.5
66.1
221.5
112.2
(388.9)
219.2
192.4
34.3

$

$

530.3

$ 1,349.8

$

507.8

$ 1,297.8

$

326.8
(200.5)
(31.9)

$

326.8
(268.1)
(17.2)

$

326.8
(200.5)
(31.9)

$

326.8
(268.1)
(17.2)

$

94.4

$

41.5

$

94.4

$

41.5

$

(14.4)
(181.9)
(183.4)
20.6

$

(63.9)
(276.8)
(189.4)
42.3

$

(14.4)
(163.2)
(183.4)
40.5
43.4
11.0
5.3
1.6
2.9
27.9
(39.2)
(24.5)
11.0

$

(63.9)
(256.2)
(189.4)
78.2
22.3
18.5
9.1
8.6
8.2
20.0
30.2
(16.4)
(31.7)
7.1

(34.9)

(4.4)

199.1
232.2
431.5
161.3
(391.6)
366.3
260.7
38.4

Total - New Policies

$

(363.6)

$

(522.6)

$

(281.3)

$

(355.5)

Total Change from FY 2019

$

261.1

$

868.7

$

320.9

$

983.8

* Includes new or expanded funding for JJ Outreach, JJ Planning, JRBs, Probate Courts, YSBs, CMHC, West River, Pilot Re-entry program,
Manufacturing Pipeline, SAMA, Funeral Allowance, MRDA, Afterschool programs, ABD, Adv. Manufacturing Coursework, African Am. /
Hispanic Curriculum, Air Quality Monitoring in Sherman, ASD, Boys and Girls Village, Center for medicare Advocacy, Charter Oak Urgent
Care, CT Diaper Bank, Youth Employment Prog., CRIS Radio, Ed Advance, Fair Haven Clinic, Full Circle Youth Emplymt, HRD-Hispanic,
Green Jobs Initiative, Groton and Thompson, Hartford 2000, JFACT Citizen Training, Jobs Funnel Prog, Juvenile Services, Manufaturing
Init., Meals on Wheels, Natchaug Hosp., Occum Fire Station, Person to Person, Platform for Employment, Project Longevity, S. Windsor
Nutritional Ed., Minority Teacher Inc., CCSU O'Neil Chair, Veteran Machinist Training, West Haven Fire Dist. - Allentown, WBDC, YMCA,
Youth Svcs Prev., Welcome Centers, Communities of Color, Childcare rates, and LGBTQ HHS Network.

7

 STATE OF CONNECTICUT
GENERAL FUND
Adopted Revenue Schedule
(In Millions)
FY 2020

Taxes
PIT - Withholding
PIT - Estimates and Finals
Sales & Use Tax
Corporation Tax
Pass-through Entity Tax
Public Service Tax
Inheritance & Estate Tax
Insurance Companies Tax
Cigarettes Tax
Real Estate Conveyance Tax
Alcoholic Beverages Tax
Admissions & Dues Tax
Health Provider Tax
Miscellaneous Tax
Total Taxes
Less Refunds of Tax
Less Earned Income Tax Credit
Less R&D Credit Exchange
Total - Taxes Less Refunds
Other Revenue
Transfers-Special Revenue
Indian Gaming Payments
Licenses, Permits, Fees
Sales of Commodities
Rents, Fines, Escheats
Investment Income
Miscellaneous
Less Refunds of Payments
Total - Other Revenue
Other Sources
Federal Grants
Transfer From Tobacco Fund
Transfers From/ (To) Other Funds
Transfers to BRF - Volatility Adjustment
Total - Other Sources
Total - General Fund Revenues

April 30, 2019
Consensus
Revenue
Forecast
$
6,808.6
2,767.5
4,299.1
1,005.4
850.0
237.7
165.8
203.3
347.1
217.5
64.4
42.7
534.0
20.7
$ 17,563.8
(1,412.3)
(97.3)
(5.1)
$ 16,049.1

PA 19-117
Revenue
Changes
$
101.9
(5.0)
145.0
94.4
(2.4)
(0.1)
4.5
(0.8)
516.1
27.7
$
881.3
103.0
$
984.3

$

$

$
$

$
$

366.0
226.0
322.7
30.2
158.5
52.6
178.1
(66.4)
1,267.7
1,401.8
136.0
(130.8)
(323.3)
1,083.7
18,400.5

$
$

$
$

2.0
18.5
20.5
124.2
(74.3)
5.0
54.9
1,059.7

8

FY 2021
PA 19-117
Projected
Revenue
$
6,910.5
2,762.5
4,444.1
1,099.8
850.0
237.7
165.8
203.3
344.7
217.4
68.9
41.9
1,050.1
48.4
$ 18,445.1
(1,309.3)
(97.3)
(5.1)
$ 17,033.4

April 30, 2019
Consensus
Revenue
Forecast
$
7,062.6
2,841.9
4,319.6
1,065.2
850.0
244.7
146.3
205.8
329.9
224.4
64.8
43.1
535.5
21.2
$
17,955.0
(1,481.9)
(100.6)
(5.2)
$
16,367.3

PA 19-117
Revenue
Changes
$ 105.9
(5.0)
268.8
17.3
(3.0)
6.2
4.9
(1.6)
516.1
26.8
$ 936.4
103.0
$ 1,039.4

PA 19-117
Projected
Revenue
$
7,168.5
2,836.9
4,588.4
1,082.5
850.0
244.7
146.3
205.8
326.9
230.6
69.7
41.5
1,051.6
48.0
$ 18,891.4
(1,378.9)
(100.6)
(5.2)
$ 17,406.7

$

$

374.6
225.4
300.6
31.0
160.9
52.9
181.7
(67.7)
1,259.4

$

2.0
83.7
85.7

$

$

368.0
226.0
341.2
30.2
158.5
52.6
178.1
(66.4)
1,288.2

$

1,385.9
114.5
(130.8)
(306.5)
1,063.1

$

122.7
205.6
5.0
333.3

$

$

1,526.0
136.0
(205.1)
(318.3)
1,138.6

$ 1,458.4

$

$

19,460.2

$

$
$

18,689.8

$

$

$

$

376.6
225.4
384.3
31.0
160.9
52.9
181.7
(67.7)
1,345.1
1,508.6
114.5
74.8
(301.5)
1,396.4
20,148.2

 STATE OF CONNECTICUT
Estimated General Fund Revenues
FY 2019 and FY 2020 and FY 2021 Biennial Budget
(In Millions)
FY 2019
6/20/2019
Estimate

Taxes
Personal Income Tax
Withholding
Estimates and Finals
Sales & Use Tax
Corporation Tax
Pass-Through Entity Tax
Public Service Tax
Inheritance & Estate Tax
Insurance Companies Tax
Cigarettes Tax
Real Estate Conveyance Tax
Alcoholic Beverages Tax
Admissions & Dues Tax
Health Provider Tax
Miscellaneous Tax

$

6,578.1
2,932.3
4,330.8
1,072.3
1,160.0
248.3
228.7
195.0
365.5
209.4
65.0
46.8
1,049.2
19.5

Total Taxes
Less Refunds of Tax
Less Earned Income Tax
Less R&D Credit Exchange

$

Total Taxes Less Refunds

$

Other Revenue
Transfers-Special Revenue
Indian Gaming Payments
Licenses, Permits, Fees
Sales of Commodities
Rents, Fines, Escheats
Investment Income
Miscellaneous
Refund of Payments
Total Other Revenue

$

FY 2020

Economic
Growth
Rate*

6/5/2019
Adopted
Budget

7.2
(18.2)
3.2
14.5
0.0
10.5
9.2
(10.5)
(5.0)
3.1
2.8
3.8
0.9
3.1

FY 2021

Economic
Growth
Rate*

$

6,910.5
2,762.5
4,444.1
1,099.8
850.0
237.7
165.8
203.3
344.7
217.4
68.9
41.9
1,050.1
48.4

18,500.9
(1,367.3)
(94.2)
(5.4)

$

18,445.1
(1,309.3)
(97.3)
(5.1)

$ 18,891.4
(1,378.9)
(100.6)
(5.2)

17,034.0

$

17,033.4

$ 17,406.7

366.5
254.6
297.6
28.1
166.1
49.8
209.1
(60.1)

$

368.0
226.0
341.2
30.2
158.5
52.6
178.1
(66.4)

5.3
(5.6)
1.8
0.4
0.0
(3.4)
(16.0)
4.0
(5.0)
3.9
(0.9)
1.6
0.9
2.8

6/5/2019
Adopted
Budget
$

$

7,168.5
2,836.9
4,588.4
1,082.5
850.0
244.7
146.3
205.8
326.9
230.6
69.7
41.5
1,051.6
48.0

376.6
225.4
384.3
31.0
160.9
52.9
181.7
(67.7)

$

1,311.7

$

1,288.2

$

1,345.1

$

2,072.9
110.2
78.3
(895.5)

$

1,526.0
136.0
(205.1)
(318.3)

$

1,508.6
114.5
74.8
(301.5)

Total Other Sources

$

1,365.9

$

1,138.6

$

1,396.4

Total General Fund Revenues
Revenue Cap Deduction

$

19,711.6
-

$

19,460.2
(97.3)

$ 20,148.2
(151.1)

Available Net General Fund Revenue

$

19,711.6

$

19,362.9

$ 19,997.1

Other Sources
Federal Grants
Trans. From Tobacco Settlement Fund
Transfers to Other Funds
Transfer to BRF - Volatility

* Growth Rates reflect baseline economic activity prior to any tax changes.

9

Economic
Growth
Rate*
4.0
2.7
2.4
3.0
0.0
1.9
1.6
1.2
(5.0)
3.5
0.6
0.9
1.0
3.3

 SPECIAL TRANSPORTATION FUND
Adopted Revenue Schedule
(In Millions)

Taxes
Motor Fuels Tax
Oil Companies Tax
Sales and Use Tax
Sales Tax - DMV
Total Taxes
Less Refunds of Taxes
Total - Taxes Less Refunds
Other Sources
Motor Vehicle Receipts
Licenses, Permits, Fees
Interest Income
Federal Grants
Transfers From (To) Other Funds
Less Refunds of Payments
Total - Other Sources
Total - STF Revenues

April 30, 2019
Consensus
Revenue
Forecast
$

$
$
$

$
$

FY 2020
2019
Legislative PA 19-117
Revenue Projected
Changes
Revenue

507.2 $
322.9
468.9
85.7
1,384.7 $
(14.3)
1,370.4 $
254.4 $
145.5
36.1
12.1
(5.5)
(5.0)
437.6 $
1,808.0

$

April 30, 2019
Consensus
Revenue
Forecast

$ 507.2 $
322.9
(54.6)
414.3
85.7
(54.6) $ 1,330.1 $
(14.3)
(54.6) $ 1,315.8 $
25.7 $
(30.0)
(4.3) $

280.1 $
145.5
36.1
12.1
(35.5)
(5.0)
433.3 $

(58.9) $ 1,749.1

10

$

FY 2021
2019
Legislative
Revenue
Changes

PA 19-117
Projected
Revenue

505.1 $
$
330.2
562.0
(107.9)
86.1
1,483.4 $ (107.9) $
(15.0)
1,468.4 $ (107.9) $
256.4 $
146.6
36.7
11.8
(5.5)
(5.2)
440.8 $
1,909.2

$

49.5
30.0
79.5

$

$

(28.4) $

505.1
330.2
454.1
86.1
1,375.5
(15.0)
1,360.5
305.9
146.6
36.7
11.8
24.5
(5.2)
520.3
1,880.8

 SPECIAL TRANSPORTATION FUND - STATEMENT OF FINANCIAL CONDITION
(In Millions)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Actual & Projected Revenues
Motor Fuels Tax, Motor Vehicle Receipts,
Licenses, Permits, Fees
Sales & Use Tax
Sales Tax - DMV
Oil Companies Tax
Federal Grants
Interest Income
Transfers from / (to) Other Funds
Total Revenues
Refunds
Total Net Revenues
Revenue Cap Adjustment
Budget Revenues

14.
15.
16.
17.
18.
19.
20.

Projected Debt Service and Expenditures
Projected Debt Service on the Bonds
DOT Budgeted Expenses
DMV Budgeted Expenses
Other Budget Expenses
Program Costs Paid from Current Operations
Estimated Unallocated Lapses
Total Expenditures

FY 2018
$

894.8
327.5
85.9
312.5
12.2
17.7
(5.5)
$ 1,645.0
(14.9)
$ 1,630.1
$ 1,630.1

148.1

22. Revised Cumulative Excess (Deficiency)

$
$

32.
33.
34.
35.
36.
37.
38.
39.
40.

915.2
370.7
86.7
307.5
12.3
35.2
(5.5)
$ 1,722.1
(37.9)
$ 1,684.2
$ 1,684.2

$

907.1
468.9
85.7
322.9
12.1
36.1
(5.5)
$ 1,827.3
(19.3)
$ 1,808.0
(9.0)
$ 1,799.0

FY 2021
$

908.1
562.0
86.1
330.2
11.8
36.7
(5.5)
$ 1,929.4
(20.2)
$ 1,909.2
(14.3)
$ 1,894.9

FY 2022
$

909.4
640.7
86.7
339.2
11.0
37.3
(5.5)
$ 2,018.8
(20.8)
$ 1,998.0
(20.0)
$ 1,978.0

FY 2023
$

910.1
749.2
87.1
347.7
10.1
38.0
(5.5)
$ 2,136.7
(21.2)
$ 2,115.5
(26.4)
$ 2,089.1

FY 2024
$

910.8
767.9
87.6
356.4
9.2
38.8
(5.5)
$ 2,165.2
(21.6)
$ 2,143.6
(32.2)
$ 2,111.4

575.0 $ 645.7 $ 690.6 $ 764.9 $ 830.8 $ 921.0 $ 1,010.9
639.9
680.0
702.8
719.6
762.8
785.3
808.7
59.7
65.4
67.9
70.9
73.7
76.7
79.8
195.8
216.4
258.3
275.1
294.0
311.5
314.3
11.5
13.6
13.7
13.7
14.0
14.3
14.7
0.0
0.0
(12.0)
(12.0)
(12.0)
(12.0)
(12.0)
$ 1,482.0 $ 1,621.1 $ 1,721.3 $ 1,832.2 $ 1,963.3 $ 2,096.8 $ 2,216.4

$

New Revenue Changes
Modify the Car Sales Tax Diversion (17% FY 2020, 25% FY 2021)
Sales tax attribution of sales tax expansions
Increase Operator Regisrations from 2 to 3 years
Increase Operator Licenses from 6 to 8 years
Transfer FY 2020 revenue for use in FY 2021
Total Revenue Changes
Total Revised Revenues
Revenue Cap Adjustment
Total Revised Budget Revenues

$

FY 2020

$

21. Excess (Deficiency)

23.
24.
25.
26.
27.
28.
29.
30.
31.

FY 2019

$

77.7

245.7 $

318.7 $

396.4

-

-

$
$ 1,630.1
$ 1,630.1

New Expenditure Changes
DOT - Reduce Non-ADA Dial-A-Ride Program
DOT - Provide Funds to Issue 60-Day Passes to Discharged Offenders
DOT - Approps Committee - Adjust Rest Area Hours of Operation

DEBT - Maintain $800M in FY 2021, $875M in FY 2022 and thereafter
DEBT - Increase Issuance for Paving ($100M, $75M)
OSC - Approps Committee - Provide Funding for Fringe Benefits for Additiona
Pension and Healthcare Savings
Total Expenditure Changes
Total Revised Expenditures
$ 1,482.0

$

$

63.1

$

(58.2)
3.6
22.4
3.3
(30.0)
$
- $ (58.9)
$ 1,684.2 $ 1,749.1
(8.7)
$ 1,684.2 $ 1,740.4

$

14.7

$

(7.7) $ (105.0)

$ 459.1

$ 473.8

$ 466.1

$ 361.1

$ (113.4)
5.5
46.2
3.3
30.0
$ (28.4)
$ 1,880.8
(14.1)
$ 1,866.7

$

$

$

5.6
(0.3)
5.4
$ 10.7
$ 2,008.7
(20.1)
$ 1,988.7

5.8
(0.9)
5.5
$ 10.4
$ 2,125.9
(26.6)
$ 2,099.3

5.9
3.6
7.2
$ 16.7
$ 2,160.3
(32.4)
$ 2,127.9

(1.0)
(1.0)
(1.0)
(1.0)
(1.0)
0.1
0.1
0.1
0.1
0.1
1.2
1.2
1.2
1.2
1.2
(8.3)
(28.5)
(56.3)
(83.9)
6.5
11.3
14.5
14.5
14.5
0.6
0.6
0.6
0.6
0.6
(18.3)
(19.7)
(19.7)
(19.5)
(19.7)
(11.0)
(15.9)
(32.9)
(60.5)
(88.3)
$ 1,710.3 $ 1,816.3 $ 1,930.4 $ 2,036.3 $ 2,128.1

$

$

30.0
347.6

$

148.1

42. Revised Cumulative Excess (Deficiency)

$

245.7 $

308.8 $

2.83

2.61

63.1

Note: Table assumes debt issuance of $850 million in FY 2020, $875 million in FY 2021 and thereafter.

11

62.7

$ 1,621.1

41. Revised Projected Excess (Deficiency)

43. Revised Debt Service Coverage Ratio

$

2.53

$

50.4

$ 412.1
2.49

$

58.2

$ 490.3
2.50

$

63.0

$ 579.9
2.46

$

(0.3)

$ 612.1
2.33

 Final 2019 Legislation
General Fund
(In Millions)

Tax Type
Personal Income Tax

#
1.
2.
3.
4.

PA
19-117
19-117
19-117
19-117

Sec.
385
332, 334
347
Rev. Schd.

Legislative Proposals
Eliminate 5 year, $500 credit for STEM college graduates
Cap teachers' pension exemption at 25% for 2 years
Extend/Expand the Angel Investor Tax Credit to 7/1/2024
Adjust Withholding Growth Rate in FY 2020

Eff.
Date
1/1/2019
1/1/2019
7/1/2019
7/1/2019

Subtotal Personal Income Tax
Sales and Use Tax

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

19-117
19-117
19-117
19-117
19-117
19-117
19-117
19-13
19-117
19-117
19-117
19-117
19-117
19-117
19-117
19-117

325,326
325
325
319-322
388
317,318
351
Var.
352,353
Var.
331
329,330
327,328
323,324
Var.
323,324

Expand to interior design services
Expand to dry-cleaning and laundry services, excl. coin-operated
Expand to parking
Increase tax on digital downloads from 1.0% to standard 6.35% rate
Safety apparel - repeal exemption
Adjust diversion of the car sales tax to the STF at 17% and 25%
Increase in sales tax due to E-cigarettes tax
Decrease in sales tax due to increase in cigarette age restriction
Increase in sales tax due to alcoholic beverage tax increase
Reflect STF portion of Sales Tax Expansion
Implement CSP to Enhance Sales Tax Collections of Online Sales
Mandate occupancy tax be collected and remitted by on-line platforms
Lower the threshold for collection of online retail Sales Tax
Impose a 1% Prepared Foods Tax
Tourism Fund portion of the expanded remittance of occupancy tax
Marine Diesel Fuel taxed at 2.99%

$
1/1/2020 $
1/1/2020
1/1/2020
10/1/2019
1/1/2020
7/1/2019
10/1/2019
7/1/2019
8/1/2019
7/1/2020
10/1/2019
7/1/2019
10/1/2019
10/1/2019

Subtotal Sales and Use Tax
Corporation Tax

21.
22.
23.
24.
25.

19-117
19-117
19-117
19-117
19-117

341-343
338,339
349
376,385
340

Maintain current 10% surcharge set to expire in tax year 2019 for 2 years
Repeal the business entity tax of $250
Reduce cap on R&D and URA tax credits to 50.01%
Repeal 7/7 Program
Phase out Capital Stock Tax by 1/1/2024

1/1/2019
1/1/2020
1/1/2019
1/1/2019
1/1/2021

Subtotal Corporation Tax
Public Utilities Tax

26.

19-117

350,370

Cigarette Tax

27.
28.

19-117
19-13

351
2

29.
30.

19-117
19-117

335,337
336

31.
32.
33.

19-117
19-117
19-117

352
352
353

$

100.9

1.9 $
3.9
8.1
16.8
1.8
3.7
27.5
37.1
0.1
0.1
58.2
113.4
0.1
0.2
(0.6)
(0.8)
0.3
0.3
(3.6)
(5.5)
30.0
1.5
2.0
1.5
2.0
48.3
65.8
(0.1)
(0.2)
<$10k
<$10k

$

145.0

$

268.8

$

60.0
34.4
-

$

37.5
(44.0)
21.5
8.0
(5.7)

$

94.4

$

17.3

$

-

$

-

7/1/2019

Tax E-Cigarettes (10% wholesale "open" & $0.40/ml "closed")
Raise the Age to 21 for cigarettes

10/1/2019 $
7/1/2019

1.9 $
(4.3)

2.5
(5.5)

$

(2.4) $

(3.0)

$

$
(0.1)

6.3
(0.1)

$

(0.1) $

6.2

10/1/2019 $
10/1/2019
10/1/2019

(0.1) $
3.8
0.8

(0.1)
5.0
-

Mansion Tax - Home Sales above $2.5M additional 1%
Exempt properties with crumbling foundations

7/1/2020
7/1/2019

Subtotal Real Estate Conveyance
Alcoholic Beverages

96.9

Reinstate PEGPETIA Transfers starting in FY 2022

Subtotal Cigarette Tax
Real Estate Conveyance

Fiscal
Fiscal
2020
2021
$
3.9 $
7.9
8.0
8.0
(5.0)
(5.0)
90.0
90.0

Reduce alcohol beverage excise taxes at craft breweries by 50%
Increase Excise Tax by 10% on Alcohol - Except Beer
Alcohol Beverage Floor Tax
Subtotal Alcoholic Beverages

$

4.5

$

4.9

Admissions and Dues

34.

19-117

354

Exempt Certain Venues

7/1/2019

$

Health Provider Taxes

35.
36.

19-117
19-117

356
357

Maintain Hospital User Fee at FY 2019 level of $900 million
Technical fix to intermediate care facilities (ICF) user fee

7/1/2019
7/1/2019

$

516.0
0.1

$

516.0
0.1

$

516.1

$

516.1

Subtotal Health Provider Taxes
Miscellaneous Taxes

37.

19-117

355

Refunds of Taxes

38.
39.

19-117
19-117

335
333,334

(0.8) $

(1.6)

Surcharge on Plastic Bags of 10 cents

8/1/2019

$

27.7

$

26.8

Maintain Eligibility Limits on Property Tax Credits for IY 2019 & 2020
Reduce Pass Through Entity Tax Credit from 93.01% to 87.5%

1/1/2019
1/1/2019

$

53.0
50.0

$

53.0
50.0

$

103.0

$

103.0

Subtotal Refunds of Taxes
Transfers Special Revenue

40.

19-117

358,359

Reflect enhanced OTB enforcement

10/1/2019 $

2.0

$

2.0

License, Permit and Fees

41.
42.
43.
44.
45.
46.
47.
48.
49.

19-117
19-3
19-117
19-117
19-13
19-117
19-117
19-117
19-117

344-346
1
148
360
3,5
361
368
369
191-206

Increase annual filing fee for LLC's and LLP's from $20 to $80
Fees for Industrial hemp Program
Include recommended tests in Newborn Screening Panel
Increase Ridesharing Services Fee from 25 cents to 30 cents
Raise the Age for Cigarettes - Dealer Fee Increase
Increase from $35 to $100 fee for automobile trade-ins
Increase Fees per OPM Report
Transfer from the Banking Fund to the General Fund
Impose $100 licenses for each nail techs, estheticians, and eyelash techs

7/1/2020

$

0.1
0.1
4.5
0.8
7.4
5.2
0.4

$

12.0
0.3
0.1
4.6
1.2
9.8
50.0
5.2
0.5

$

18.5

$

83.7

Subtotal License, Permit and Fees

12

Passage
7/1/2019
7/1/2020
10/1/2019
Passage
7/1/2019
1/1/2020

 Final 2019 Legislation
General Fund
(In Millions)

Tax Type
Federal Grants

#

PA

50.
51.
52.

19-117
19-117
19-117

Sec.

Eff.
Date

Legislative Proposals
Maintain Supplemental Payments at FY 2019 level
Net Appropriate for Care 4 Kids/Child Care Development Fund
Increase in revenue attributable to Medicaid changes

7/1/2019
7/1/2019
7/1/2019

Subtotal Federal Grants
Transfers - Other Funds

53.
54.
55.
56.
57.
58.
59.
60.

19-117
19-117
19-117
19-117
19-117
19-117
19-117
19-117

374
372
186
93-95
373
350,370
3

Fund Higher Education Alternative Retirement Plan
Adjust the Amortization of Historical GAAP Deficit
Transfer FY 2020 Revenue for use in FY 2021
Transfer to the Philanthropic Match Account (Dalio)
Transfer excess funds from the CHEAPR account
Paid Family Medical Leave - Initial Implementation
Increase PEGPETIA Transfer to $7.0 million in FY 2020
Transfer to Mashantucket/Pequot Fund

61.

19-117

347

Extend/Expand the Angel Investor Tax credit program

215.4 $
(67.6)
(23.6)

214.0
(67.6)
(23.7)

$

124.2

$

122.7

35.0 $
(85.0)
(20.0)
1.2
(5.1)
(7.0)
6.6

32.8
75.7
85.0
5.5
6.6

(74.3) $

205.6

7/1/2019
$
7/1/2019

TOTAL GENERAL FUND REVENUE

Fiscal
2021

$

7/1/2019 $
Passage
7/1/2019
7/1/2019
10/1/2019

Subtotal Transfers - Other Funds
Volatility Cap Adjustment

Fiscal
2020

$

5.0

$ 1,059.7

Revenue Cap
Revenue Cap Deduction

$

$ 1,458.4

99.50%
(5.3)

TOTAL AVAILABLE GENERAL FUND REVENUE

$ 1,054.4

5.0

99.25%
(10.9)
$ 1,447.5

Special Transportation Fund
(In Millions)

Tax Type
Sales and Use Tax

62.
63.

19-117
19-117

317,318
Var.

Legislative Proposals
Adjust diversion of the car sales tax to the STF at 17% and 25%
Sales tax attribution of sales tax expansions

Eff.
Fiscal
Fiscal
Date
2020
2021
7/1/2019 $ (58.2) $ (113.4)
10/1/2019
3.6
5.5

Subtotal Sales and Use Tax
Motor Vehicle Receipts

64.
65.

HB 7201
HB 7201

Var.
Var.

$

Increase Operator Regisrations from 2 to 3 years
Increase Operator Licenses from 6 to 8 years

1/1/2020
1/2/2020

Subtotal Motor Vehicle Receipts

Transfers - Other Funds

64.

19-117

371

Transfer FY 2020 revenue for use in FY 2021

7/1/2019

TOTAL SPECIAL TRANSPORTATION FUND

(54.6) $ (107.9)

$

22.4
3.3

$

46.2
3.3

$

25.7

$

49.5

(30.0) $

30.0

$
$

Revenue Cap
Revenue Cap Deduction

(58.9) $
99.50%
0.3

TOTAL AVAILABLE SPECIAL TRANSPORTATION FUND REVENUE

$

(28.4)
99.25%
0.2

(58.6) $

(28.2)

Banking Fund
(In Millions)

Tax Type
License, Permit and Fees

65.

19-117

369

Legislative Proposals
Transfer from the Banking Fund to the General Fund

Eff.
Date

TOTAL BANKING FUND

Fiscal
Fiscal
2020
2021
$
(5.2) $
(5.2)
$

(5.2) $

(5.2)

Debt-Free College Fund
(In Millions)

Tax Type
Transfers Special Revenue

66.

19-117

362,364

Legislative Proposals
Authorize online ilottery draw games (ilottery)
TOTAL DEBT-FREE COLLEGE FUND

13

Eff.
Date

Fiscal
2020
$
1.2

Fiscal
2021
$
5.6

$

$

1.2

5.6

 Final 2019 Legislation
General Fund
(In Millions)

Tax Type
Other Items

#

PA
19-117
19-117
19-117
19-117
19-117
19-117
SB 1
19-117
19-117
19-117
19-117
19-117

Sec.
35
82-90
59-66
78
385
92
Spc. Sess.
386
91
34
375
348

Legislative Proposals
Use of FY 2019 Surplus/Hospital Settlement
Teachers' Retirement POB-SCRF
Deficiency Bill
Bond Premiums - Delay use by 2 years
Payroll Tax Study
Tax Incidence Delay - Two Years
Bond Package
Paid Family Medical Leave
Revenue Schedule
Fiscal Accountability Report (FAR) - Delay reporting date
Probate Court - Suspend transfer to G.F. of balance over 15%
STO Bond Cap - Remove limitation
Small Business Contractor - Raise threshold from $15M to $20M

14

Eff.
Date

Fiscal
2020

Fiscal
2021

 State of Connecticut
One-time Items included in the Budget
and Impact in FY 2022
(in millions)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Tax Types
Personal Income Tax
Personal Income Tax
Sales and Use Tax
Sales and Use Tax
Corporation Tax
Corporation Tax
Inheritance and Estate Tax
Real Estate Conveyance
Miscellaneous Taxes
Refunds of Taxes
License, Permit and Fees
Transfers - Other Funds
Transfers - Other Funds
Transfers - Other Funds
Transfers - Other Funds
Expenditure

Item
Cap teachers' pension exemption at 25% for 2 years, rises to 50% in FY 2022
Pension and Annuity Phase In by 1/1/2025 (PA 17-2 JSS)
Adjust diversion of the car sales tax to the STF at 17% and 25%, rises to 75% in FY 2022
Municipal Revenue Sharing Account comes online in FY 2022 (PA 17-2 JSS)
Maintain current 10% surcharge for 2 years, no surcharge in FY 2022
Phase-Out Capital Stock Tax by 1/1/2024
Phase in Federal Exemption level by 1/1/2023 (PA 18-81)
Mansion Tax Credit begins in FY 2022
Plastic Bag Fee - Ban Plastic Bags July 1, 2021
Maintain Eligibility Limits on Property Tax Credits for IY 2019 & 2020, expire in IY 2021
Banking Fund Transfer ends in FY 2022
Transfer FY 2020 Revenue for use in FY 2021
Transfer to Mashantucket/Pequot Fund
Use of Surplus for potential Hospital Litigation Resolution
GAAP - Restore Funding for Cumulative GAAP Deficit
Debt issuance premium directed toward capital projects delay for 2 years

One-Time
Fiscal
Fiscal
2020
2021
$
8.0 $
8.0
58.2
113.4
60.0
37.5
27.7
26.8
53.0
53.0
5.2
5.2
(85.0)
85.0
6.6
6.6
95.0
95.0
75.0
46.0
93.3

Ongoing
Fiscal
2022
$
(8.0)
(16.4)
(184.3)
(356.3)
(37.5)
(9.5)
(13.2)
(1.0)
(26.8)
(53.0)
(5.2)
(85.0)
(6.6)
(95.0)
(85.1)
(120.0)

Total - All Items

$ 148.5

$ (1,102.9)

One-time as a Percent of Revenue

0.8%

$ 439.9
2.2%

5.6%

*Items totaling $753.8 million already reflected in April 30, 2019 Consensus Revenue Estimates. Should these policies be maintained into the next biennium, the ongoing
total would be reduced by an equivalent amount.

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