§ 3-21 — Bond limitation. Debt certification. Bond issuance limitation. Allotment limitation.

Connecticut § 3-21

• Jurisdiction: Connecticut
• Title 3: State Elective Officers
• Ch. 32: Treasurer

Text

(a)(1) No bonds, notes or other evidences of indebtedness for borrowed money payable from General Fund tax receipts of the state shall be authorized by the General Assembly or issued except such as shall not cause the aggregate amount of the total amount of bonds, notes or other evidences of indebtedness payable from General Fund tax receipts authorized by the General Assembly but which have not been issued and the total amount of such indebtedness which has been issued and remains outstanding to exceed one and six-tenths times the total General Fund tax receipts of the state for the fiscal year in which any such authorization will become effective or in which such indebtedness is issued, as estimated for such fiscal year by the joint standing committee of the General Assembly having cognizance of finance, revenue and bonding in accordance with section 2-35. Credit revenue bonds issued pursuant to section 3-20j shall be considered as payable from General Fund tax receipts of the state for purposes of this subsection. (2) In computing the amount of outstanding indebtedness, only the accreted value of any capital appreciation obligation or any zero coupon obligation that has accreted and been added to the stated initial value of such obligation as of the date of any computation shall be included and in computing the aggregate amount of indebtedness at any time, there shall be excluded or deducted, as the case may be: (A) The principal amount of all such obligations as may be certified by the Treasurer (i) as issued in anticipation of revenues to be received by the state during the period of twelve calendar months next following their issuance and to be paid by application of such revenue, or (ii) as having been refunded or replaced by other indebtedness the proceeds and projected earnings on which or other funds are held in escrow to pay and are sufficient to pay the principal, interest and any redemption premium until maturity or earlier planned redemption of such indebtedness, or (iii) as issued and outstanding in anticipation of particular bonds then unissued but fully authorized to be issued in the manner provided by law for such authorization, provided, as long as any of such obligations are outstanding, the entire principal amount of such particular bonds thus authorized shall be deemed to be outstanding and be included in such aggregate amount of indebtedness, or (iv) as payable solely from revenues of particular public improvements; (B) The amount that may be certified by the Treasurer as the aggregate value of cash and securities in debt retirement funds of the state to be used to meet principal of outstanding obligations included in such aggregate amount of indebtedness; (C) Every such amount as may be certified by the Secretary of the Office of Policy and Management as the estimated payments on account of the costs of any public work or improvement thereafter to be received by the state from the United States or agencies thereof and to be used, in conformity with applicable federal law, to meet principal of obligations included in such aggregate amount of indebtedness; (D) All authorized and issued indebtedness to fund any budget deficits of the state for any fiscal year; (E) All authorized indebtedness to fund the program created pursuant to section 32-285 ; (F) All indebtedness authorized and issued pursuant to section 1 of public act 03-1 of the September 8 special session*; (G) All authorized indebtedness issued pursuant to section 3-62h ; (H) Any indebtedness represented by any agreement entered into pursuant to subsection (b) or (c) of section 3-20a as certified by the Treasurer, provided the indebtedness in connection with which such agreements were entered into shall be included in such aggregate amount of indebtedness; (I) Any accumulated deficit as determined on the basis of generally accepted accounting principles, as prescribed by the Governmental Accounting Standards Board; (J) Any indebtedness authorized pursuant to any section of the general statutes or any public or special act that is by its terms not in effect until a future date, provided such indebtedness shall be included from the date such authorization is in effect; and (K) All indebtedness authorized and issued pursuant to a declaration by the Governor of an emergency or the existence of extraordinary circumstances and for which at least three-fifths of the members of each house of the General Assembly has voted to authorize such indebtedness. (b) The foregoing limitation on the aggregate amount of indebtedness of the state shall not prevent the issuance of (1) obligations to refund or replace any such indebtedness existing at any time in an amount not exceeding such existing indebtedness, or (2) obligations in anticipation of revenues to be received by the state during the period of twelve calendar months next following their issuance, or (3) obligations payable solely from revenues of particular public improvements. (c) For the purposes of this section, but subject to the exclusions or deductions herein provided for, the state shall be deemed to be indebted upon, and to issue, all bonds and notes issued or guaranteed by it and payable from General Fund tax receipts. To the extent necessary because of the debt limitation herein provided, priorities with respect to the issuance or guaranteeing of bonds or notes by the state shall be determined by the State Bond Commission. (d) The General Assembly shall not approve any bill that authorizes the issuance of any bonds, notes or other evidences of indebtedness unless such bill has attached to it a certification by the Treasurer that the amount of authorizations within the bill will not cause the total amount of indebtedness calculated in accordance with this section to exceed the limit for indebtedness set forth in this section. The president pro tempore of the Senate or the speaker of the House of Representatives, or their designees, shall notify the Treasurer prior to consideration of such bill in the first chamber. (e) The State Bond Commission shall not adopt any resolution that authorizes the issuance of any bonds, notes or other evidences of indebtedness unless such resolution has attached to it a certification by the Treasurer that the amount of such authorization will not cause the total amount of indebtedness calculated in accordance with this section to exceed the limit for indebtedness set forth in this section. (f) (1) (A) On and after July 1, 2018, and prior to July 1, 2023, the Treasurer may not issue general obligation bonds or notes pursuant to section 3-20 or credit revenue bonds pursuant to section 3-20j that exceed in the aggregate one billion nine hundred million dollars in any fiscal year. Commencing July 1, 2019, and through June 30, 2023, the aggregate limit shall be adjusted in accordance with any change in the consumer price index for all urban consumers for the preceding calendar year, less food and energy, as published by the United States Department of Labor, Bureau of Labor Statistics. (B) For the fiscal year commencing July 1, 2023, and for each fiscal year thereafter, the Treasurer may not issue general obligation bonds or notes pursuant to section 3-20 or credit revenue bonds pursuant to section 3-20j that exceed in the aggregate of two billion four hundred million dollars in the aggregate in any fiscal year. Commencing July 1, 2024, and each fiscal year thereafter, the aggregate limit shall be adjusted in accordance with any change in the consumer price index for all urban consumers for the preceding calendar year, less food and energy, as published by the United States Department of Labor, Bureau of Labor Statistics. (2) Any calculation made pursuant to subdivision (1) of this subsection shall not include (A) any general obligation bonds issued as part of CSCU 2020, as defined in subdivision (3) of section 10a-91c , or UConn 2000, as defined in subdivision (25) of section 10a-109c , (B) any bonds, notes or other evidences of indebtedness for borrowed money which are issued for the purpose of refunding other bonds, notes or other evidences of indebtedness, or (C) obligations in anticipation of revenues to be received by the state during the twelve calendar months next following their issuance. (3) Notwithstanding the provisions of section 4-85 , the Governor shall not approve allotment requisitions pursuant to said section of general obligation bonds or notes or credit revenue bonds in an amount greater than the issuance limit set forth in subdivision (1) of this subsection. (g) The provisions of this section shall not apply to any bonds, notes or other evidences of indebtedness for borrowed money which are issued for the purpose of: (1) Meeting cash flow needs; (2) covering emergency needs in times of natural disaster; or (3) funding any budget deficits of the state for any fiscal year. *Note: Section 1 of public act 03-1 of the September 8 special session is special in nature and therefore has not been codified but remains in full force and effect according to its terms.

Legislative History

(1957, P.A. 640; 1959, P.A. 132, S. 14; P.A. 77-614, S. 19, 610; P.A. 78-366, S. 2, 4; June Sp. Sess. P.A. 91-3, S. 129, 168; P.A. 92-236, S. 47, 48; P.A. 98-124, S. 4, 12; May 9 Sp. Sess. P.A. 02-5, S. 25; P.A. 04-3, S. 8; 04-216, S. 62; P.A. 06-196, S. 24; June Sp. Sess. P.A. 09-2, S. 3; P.A. 14-81, S. 1; June Sp. Sess. P.A. 17-2, S. 712, 716; P.A. 18-178, S. 16, 43; P.A. 23-1, S. 18.) History: 1959 act substituted reference to “bonds, notes or other evidences of indebtedness” from references to term “indebtedness”; in Subsec. (a), specified that fiscal year as to which limitation applies be that which ended not less than three nor more than 15 months prior to issuance, provided, in Subdivs. (1) and (2) that indebtedness be certified by treasurer, deleted requirement in Subdiv. (2) that cash and security be “required by agreement of the state with its creditors” to be so used, and added Subdiv. (1)(D) and Subdiv. (3); changed technical language of Subparas. (A) to (C) of Subsec. (a)(1), of Subsec. (a)(2) and of Subsec. (c); and added Subsec. (b); P.A. 77-614 substituted secretary of the office of policy and management for commissioner of finance and control; P.A. 78-366 specified general fund tax receipts as determinator of bond limitation; June Sp. Sess. P.A. 91-3 amended Subsec. (a) to reduce the multiplier from four and one-half times tax receipts to one and six-tenths times, to change the basis from debt issued to debt authorized by the general assembly, to change the measure of such receipts from actual receipts from a prior year to the current estimates under Sec. 2-35, to add Subdiv. (4) to exclude debt for budget deficits prior to July 1, 1991, and to set a valuation method for capital appreciation obligations and zero coupon obligations, amended Subsecs. (a) and (c) to clarify that the section is applicable only to obligations payable from general fund receipts, and added Subsecs. (d), limiting authorizations of the general assembly, (e), limiting authorizations of the state bond commission, and (f), exempting obligations issued for cash flow needs or emergency needs in times of natural disaster; P.A. 92-236 added Subsec. (a)(5) excluding indebtedness to fund program created pursuant to Sec. 32-285; P.A. 98-124 added Subdiv. (6) re agreements pursuant to Sec. 3-20a(b) or (c) and made technical changes, effective May 27, 1998; May 9 Sp. Sess. P.A. 02-5 made technical changes and added provision excluding deficit funding bonds for the fiscal year ending June 30, 2002, from the limitations of section, effective August 15, 2002; P.A. 04-3 amended Subsec. (a) to add exclusion for certain deficit-financing notes issued for 2003 fiscal year, effective March 11, 2004; P.A. 04-216 amended Subsec. (a) to exempt abandoned property fund bonds from the bond cap, effective May 6, 2004; P.A. 06-196 made technical changes in Subsec. (a), effective June 7, 2006; June Sp. Sess. P.A. 09-2 amended Subsec. (a) by adding Subdiv. (10) re indebtedness authorized and issued pursuant to Sec. 3-20g, effective September 1, 2009; P.A. 14-81 amended Subsec. (d) to require notification of Treasurer by president pro tempore or speaker, or their designees, prior to consideration of bills authorizing issuance of bonds, notes or other evidence of indebtedness; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by adding provision re credit revenue bonds, added new Subsec. (f) re issuance of general obligation bonds or notes on and after July 1, 2018, and redesignated existing Subsec. (f) as Subsec. (g), effective October 31, 2017; P.A. 18-178 amended Subsec. (a) by adding Subdiv. (11) re indebtedness authorized pursuant to Sec. 3-21aa and amended Subsec. (f) by designating existing provisions re bonds issued as part of CSCU 2020 or UConn 2000 as Subdiv. (1)(B)(i), adding Subdivs. (1)(B)(ii) to (1)(B)(iv) re items not included in calculation made pursuant to Subdiv. (1)(A), designating existing provisions re bonds issued as part of CSCU 2020 or UConn 2000 as Subdiv. (2)(C)(i) and adding Subdivs. (2)(C)(ii) to (2)(C)(iv) re items not included in calculation made pursuant to Subdiv. (2)(B), effective July 1, 2018; P.A. 23-1 substantially revised Subsec. (a) re exclusions and deductions in computing aggregate amount of indebtedness, amended Subsecs. (d) and (e) by making a technical change, amended Subsec. (f) by specifying application of Subpara. (A) to prior to July 1, 2023, adding new Subpara. (B) re bond issuance limits for fiscal year commencing July 1, 2023, and each fiscal year thereafter, redesignating existing Subpara. (B) as Subdiv. (2) and deleting reference to indebtedness authorized pursuant to Sec. 3-21aa, and making conforming changes in Subdiv. (1), deleting former Subdiv. (2) re list of allocated but unissued bonds, allotment requisition limit and exclusions from such limit, and adding Subdiv. (3) re allotment requisition limit, and amended Subsec. (g) by adding Subdiv. (3) re borrowed money for funding budget deficits of the state, effective July 1, 2023 (Revisor's note: In Subsec. (f)(3), a reference to “of subsection (f) of this section” was changed editorially by the Revisors to “of this subsection” for accuracy).