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CT SB01461

CT SB01461
An Act Concerning The Treasurer's Recommendation For The Paydown Of Special Tax Obligation Indebtedness.


summary

Introduced
03/06/2025
In Committee
05/08/2025
Crossed Over
Passed
Dead
06/04/2025

Introduced Session

2025 General Assembly

Bill Summary

To dedicate a portion of the remaining balance of the Special Transportation Fund, for each fiscal year that such balance exceeds a certain threshold, to pay down special tax obligation indebtedness.

AI Summary

This bill modifies how excess funds in the Special Transportation Fund (STF) are used, establishing a new mechanism for reducing special tax obligation indebtedness. Starting in fiscal year 2025, if the STF balance exceeds 18% of its annual net appropriations, the Treasurer can use the excess funds to reduce state debt through four specific methods: (1) redeeming special tax obligation indebtedness before maturity, (2) purchasing outstanding debt in the open market, (3) defeasing debt by placing funds in an escrow account to cover future principal and interest payments, or (4) using a combination of these methods. The bill requires that any debt reduction strategy must result in a predictable decrease in projected debt service over the next ten fiscal years, with the reduction amount not varying significantly between years. Additionally, the Treasurer must include details about these debt reduction actions in their annual report to provide transparency. The bill amends existing statutes related to the Special Transportation Fund and the Treasurer's annual reporting requirements, aiming to provide a structured approach to managing state transportation-related debt and ensuring fiscal responsibility.

Committee Categories

Budget and Finance

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Finance, Revenue and Bonding Committee (J)

Last Action

File Number 850 (on 05/08/2025)

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