Bill Text: CT SB00779 | 2017 | General Assembly | Introduced
Bill Title: An Act Eliminating The Municipal Spending Cap.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-02-17 - Public Hearing 02/22 [SB00779 Detail]
Download: Connecticut-2017-SB00779-Introduced.html
General Assembly |
Raised Bill No. 779 | ||
January Session, 2017 |
LCO No. 3519 | ||
*03519_______PD_* | |||
Referred to Committee on PLANNING AND DEVELOPMENT |
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Introduced by: |
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(PD) |
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AN ACT ELIMINATING THE MUNICIPAL SPENDING CAP.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 4-66l of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) For the purposes of this section:
(1) "FY 15 mill rate" means the mill rate a municipality uses during the fiscal year ending June 30, 2015;
(2) "Mill rate" means, unless otherwise specified, the mill rate a municipality uses to calculate tax bills for motor vehicles;
(3) "Municipality" means any town, city, consolidated town and city or consolidated town and borough. "Municipality" includes a district for the purposes of subdivision (1) of subsection (d) of this section;
(4) "Municipal spending" means:
T1 |
Municipal spending for the fiscal year prior to the current fiscal |
– |
Municipal spending for the fiscal year two years prior to the |
||
T2 |
|||||
T3 |
|||||
T4 |
|||||
T5 |
|||||
T6 |
year |
current year |
X 100 |
= Municipal spending; | |
T7 |
______________________________ | ||||
T8 |
Municipal spending for the fiscal | ||||
T9 |
year two years prior to the |
||||
T10 |
current year |
||||
(5) "Per capita distribution" means:
T11 |
Municipal population ___________________ |
X Sales tax revenue |
= Per capita distribution; |
T12 | |||
T13 | |||
T14 |
Total state population |
(6) "Pro rata distribution" means:
T15 |
Municipal weighted mill rate calculation |
X Sales tax revenue |
= Pro rata distribution; |
T16 | |||
T17 | |||
T18 |
____________________ | ||
T19 |
Sum of all municipal weighted mill rate calculations combined | ||
T20 | |||
T21 |
(7) "Regional council of governments" means any such council organized under the provisions of sections 4-124i to 4-124p, inclusive;
(8) "Municipal population" means the number of persons in a municipality according to the most recent estimate of the Department of Public Health;
(9) "Total state population" means the number of persons in this state according to the most recent estimate published by the Department of Public Health;
(10) "Weighted mill rate" means a municipality's FY 15 mill rate divided by the average of all municipalities' FY 15 mill rate;
(11) "Weighted mill rate calculation" means per capita distribution multiplied by a municipality's weighted mill rate;
(12) "Sales tax revenue" means the moneys in the account remaining for distribution pursuant to subdivision (6) of subsection (b) of this section;
(13) "District" means any district, as defined in section 7-324; and
(14) "Secretary" means the Secretary of the Office of Policy and Management.
(b) There is established an account to be known as the "municipal revenue sharing account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. The secretary shall set aside and ensure availability of moneys in the account in the following order of priority and shall transfer or disburse such moneys as follows:
(1) Ten million dollars for the fiscal year ending June 30, 2016, shall be transferred not later than April fifteenth for the purposes of grants under section 10-262h;
(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys sufficient to make motor vehicle property tax grants payable to municipalities pursuant to subsection (c) of this section shall be expended not later than August first annually by the secretary;
(3) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, moneys sufficient to make the grants payable from the select payment in lieu of taxes grant account established pursuant to section 12-18c shall annually be transferred to the select payment in lieu of taxes account in the Office of Policy and Management;
(4) For the fiscal years ending June 30, 2018, and June 30, 2019, moneys sufficient to make the municipal revenue sharing grants payable to municipalities pursuant to subdivision (2) of subsection (d) of this section shall be expended not later than October thirty-first annually by the secretary;
(5) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, seven million dollars shall be expended for the purposes of the regional services grants pursuant to subsection (e) of this section to the regional councils of governments; and
(6) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, moneys in the account remaining shall be expended annually by the secretary for the purposes of the municipal revenue sharing grants established pursuant to subsection (f) of this section. Any such moneys deposited in the account for municipal revenue sharing grants between October first and June thirtieth shall be distributed to municipalities on the following October first and any such moneys deposited in the account between July first and September thirtieth shall be distributed to municipalities on the following January thirty-first. Any municipality may apply to the Office of Policy and Management on or after July first for early disbursement of a portion of such grant. The Office of Policy and Management may approve such an application if it finds that early disbursement is required in order for a municipality to meet its cash flow needs. No early disbursement approved by said office may be issued later than September thirtieth.
(c) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, motor vehicle property tax grants to municipalities that impose mill rates on real property and personal property other than motor vehicles greater than 32 mills or that, when combined with the mill rate of any district located within the municipality, impose mill rates greater than 32 mills, shall be made in an amount equal to the difference between the amount of property taxes levied by the municipality and any district located within the municipality on motor vehicles for the assessment year commencing October 1, 2013, and the amount such levy would have been if the mill rate on motor vehicles for said assessment year was 32 mills. Not later than fifteen calendar days after receiving a property tax grant pursuant to this section, the municipality shall disburse to any district located within the municipality the amount of any such property tax grant that is attributable to the district.
(d) (1) For the fiscal year ending June 30, 2017, each municipality shall receive a municipal revenue sharing grant, which shall be payable August 1, 2016, from the Municipal Revenue Sharing Fund established in section 4-66p. The total amount of the grant payable is as follows:
T22 |
Municipality |
Grant Amount |
T23 |
Andover |
66,705 |
T24 |
Ansonia |
605,442 |
T25 |
Ashford |
87,248 |
T26 |
Avon |
374,711 |
T27 |
Barkhamsted |
76,324 |
T28 |
Beacon Falls |
123,341 |
T29 |
Berlin |
843,048 |
T30 |
Bethany |
114,329 |
T31 |
Bethel |
392,605 |
T32 |
Bethlehem |
42,762 |
T33 |
Bloomfield |
438,458 |
T34 |
Bolton |
106,449 |
T35 |
Bozrah |
53,783 |
T36 |
Branford |
570,402 |
T37 |
Bridgeport |
14,476,283 |
T38 |
Bridgewater |
15,670 |
T39 |
Bristol |
1,276,119 |
T40 |
Brookfield |
343,611 |
T41 |
Brooklyn |
103,910 |
T42 |
Burlington |
193,490 |
T43 |
Canaan |
14,793 |
T44 |
Canterbury |
58,684 |
T45 |
Canton |
211,078 |
T46 |
Chaplin |
48,563 |
T47 |
Cheshire |
594,084 |
T48 |
Chester |
57,736 |
T49 |
Clinton |
268,611 |
T50 |
Colchester |
330,363 |
T51 |
Colebrook |
29,694 |
T52 |
Columbia |
111,276 |
T53 |
Cornwall |
11,269 |
T54 |
Coventry |
252,939 |
T55 |
Cromwell |
288,951 |
T56 |
Danbury |
2,079,675 |
T57 |
Darien |
171,485 |
T58 |
Deep River |
93,525 |
T59 |
Derby |
462,718 |
T60 |
Durham |
150,019 |
T61 |
East Granby |
106,222 |
T62 |
East Haddam |
186,418 |
T63 |
East Hampton |
263,149 |
T64 |
East Hartford |
3,877,281 |
T65 |
East Haven |
593,493 |
T66 |
East Lyme |
243,736 |
T67 |
East Windsor |
232,457 |
T68 |
Eastford |
23,060 |
T69 |
Easton |
155,216 |
T70 |
Ellington |
321,722 |
T71 |
Enfield |
911,974 |
T72 |
Essex |
74,572 |
T73 |
Fairfield |
795,318 |
T74 |
Farmington |
335,287 |
T75 |
Franklin |
26,309 |
T76 |
Glastonbury |
754,546 |
T77 |
Goshen |
30,286 |
T78 |
Granby |
244,839 |
T79 |
Greenwich |
366,588 |
T80 |
Griswold |
243,727 |
T81 |
Groton |
433,177 |
T82 |
Guilford |
456,863 |
T83 |
Haddam |
170,440 |
T84 |
Hamden |
4,491,337 |
T85 |
Hampton |
38,070 |
T86 |
Hartford |
13,908,437 |
T87 |
Hartland |
27,964 |
T88 |
Harwinton |
113,987 |
T89 |
Hebron |
208,666 |
T90 |
Kent |
26,808 |
T91 |
Killingly |
351,213 |
T92 |
Killingworth |
85,270 |
T93 |
Lebanon |
149,163 |
T94 |
Ledyard |
307,619 |
T95 |
Lisbon |
45,413 |
T96 |
Litchfield |
169,828 |
T97 |
Lyme |
21,862 |
T98 |
Madison |
372,897 |
T99 |
Manchester |
1,972,491 |
T100 |
Mansfield |
525,280 |
T101 |
Marlborough |
131,065 |
T102 |
Meriden |
1,315,347 |
T103 |
Middlebury |
154,299 |
T104 |
Middlefield |
91,372 |
T105 |
Middletown |
964,657 |
T106 |
Milford |
1,880,830 |
T107 |
Monroe |
404,221 |
T108 |
Montville |
401,756 |
T109 |
Morris |
28,110 |
T110 |
Naugatuck |
2,405,660 |
T111 |
New Britain |
5,781,991 |
T112 |
New Canaan |
168,106 |
T113 |
New Fairfield |
288,278 |
T114 |
New Hartford |
140,338 |
T115 |
New Haven |
2,118,290 |
T116 |
New London |
750,249 |
T117 |
New Milford |
565,898 |
T118 |
Newington |
651,000 |
T119 |
Newtown |
572,949 |
T120 |
Norfolk |
20,141 |
T121 |
North Branford |
292,517 |
T122 |
North Canaan |
66,052 |
T123 |
North Haven |
487,882 |
T124 |
North Stonington |
107,832 |
T125 |
Norwalk |
3,401,590 |
T126 |
Norwich |
1,309,943 |
T127 |
Old Lyme |
79,946 |
T128 |
Old Saybrook |
101,527 |
T129 |
Orange |
284,365 |
T130 |
Oxford |
171,492 |
T131 |
Plainfield |
310,350 |
T132 |
Plainville |
363,176 |
T133 |
Plymouth |
255,581 |
T134 |
Pomfret |
54,257 |
T135 |
Portland |
192,715 |
T136 |
Preston |
58,934 |
T137 |
Prospect |
197,097 |
T138 |
Putnam |
76,399 |
T139 |
Redding |
189,781 |
T140 |
Ridgefield |
512,848 |
T141 |
Rocky Hill |
405,872 |
T142 |
Roxbury |
15,998 |
T143 |
Salem |
85,617 |
T144 |
Salisbury |
20,769 |
T145 |
Scotland |
36,200 |
T146 |
Seymour |
343,388 |
T147 |
Sharon |
19,467 |
T148 |
Shelton |
706,038 |
T149 |
Sherman |
39,000 |
T150 |
Simsbury |
567,460 |
T151 |
Somers |
141,697 |
T152 |
South Windsor |
558,715 |
T153 |
Southbury |
404,731 |
T154 |
Southington |
889,821 |
T155 |
Sprague |
89,456 |
T156 |
Stafford |
243,095 |
T157 |
Stamford |
2,372,358 |
T158 |
Sterling |
77,037 |
T159 |
Stonington |
202,888 |
T160 |
Stratford |
1,130,316 |
T161 |
Suffield |
321,763 |
T162 |
Thomaston |
158,888 |
T163 |
Thompson |
114,582 |
T164 |
Tolland |
303,971 |
T165 |
Torrington |
2,435,109 |
T166 |
Trumbull |
745,325 |
T167 |
Union |
17,283 |
T168 |
Vernon |
641,027 |
T169 |
Voluntown |
33,914 |
T170 |
Wallingford |
919,984 |
T171 |
Warren |
11,006 |
T172 |
Washington |
25,496 |
T173 |
Waterbury |
13,438,542 |
T174 |
Waterford |
259,091 |
T175 |
Watertown |
453,012 |
T176 |
West Hartford |
1,614,320 |
T177 |
West Haven |
1,121,850 |
T178 |
Westbrook |
80,601 |
T179 |
Weston |
211,384 |
T180 |
Westport |
262,402 |
T181 |
Wethersfield |
940,267 |
T182 |
Willington |
121,568 |
T183 |
Wilton |
380,234 |
T184 |
Winchester |
224,447 |
T185 |
Windham |
513,847 |
T186 |
Windsor |
593,921 |
T187 |
Windsor Locks |
256,241 |
T188 |
Wolcott |
340,859 |
T189 |
Woodbridge |
247,758 |
T190 |
Woodbury |
200,175 |
T191 |
Woodstock |
97,708 |
T192 |
Borough of Danielson |
- |
T193 |
Borough of Litchfield |
- |
T194 |
Bloomfield, Blue Hills FD |
92,961 |
T195 |
Enfield Thompsonville FD #2 |
354,311 |
T196 |
Manchester - Eighth Utility District |
436,718 |
T197 |
Middletown - City Fire |
910,442 |
T198 |
Middletown So Fire |
413,961 |
T199 |
Norwich CCD |
552,565 |
T200 |
Norwich TCD |
62,849 |
T201 |
Simsbury FD |
221,536 |
T202 |
Plainfield Fire District |
- |
T203 |
Windham, Special Service District #2 |
640,000 |
T204 |
Windham 1st Taxing District |
- |
T205 |
Windham First |
|
T206 |
West Haven First Center (D1) |
1,039,843 |
T207 |
West Haven: Allingtown FD (D3) |
483,505 |
T208 |
West Haven: West Shore FD (D2) |
654,640 |
(2) For the fiscal years ending June 30, 2018, and June 30, 2019, each municipality shall receive a municipal sharing grant payable not later than October thirty-first of each year. The total amount of the grant payable is as follows:
T209 |
Municipality |
Grant Amount |
T210 |
Andover |
96,020 |
T211 |
Ansonia |
643,519 |
T212 |
Ashford |
125,591 |
T213 |
Avon |
539,387 |
T214 |
Barkhamsted |
109,867 |
T215 |
Beacon Falls |
177,547 |
T216 |
Berlin |
1,213,548 |
T217 |
Bethany |
164,574 |
T218 |
Bethel |
565,146 |
T219 |
Bethlehem |
61,554 |
T220 |
Bloomfield |
631,150 |
T221 |
Bolton |
153,231 |
T222 |
Bozrah |
77,420 |
T223 |
Branford |
821,080 |
T224 |
Bridgeport |
9,758,441 |
T225 |
Bridgewater |
22,557 |
T226 |
Bristol |
1,836,944 |
T227 |
Brookfield |
494,620 |
T228 |
Brooklyn |
149,576 |
T229 |
Burlington |
278,524 |
T230 |
Canaan |
21,294 |
T231 |
Canterbury |
84,475 |
T232 |
Canton |
303,842 |
T233 |
Chaplin |
69,906 |
T234 |
Cheshire |
855,170 |
T235 |
Chester |
83,109 |
T236 |
Clinton |
386,660 |
T237 |
Colchester |
475,551 |
T238 |
Colebrook |
42,744 |
T239 |
Columbia |
160,179 |
T240 |
Cornwall |
16,221 |
T241 |
Coventry |
364,100 |
T242 |
Cromwell |
415,938 |
T243 |
Danbury |
2,993,644 |
T244 |
Darien |
246,849 |
T245 |
Deep River |
134,627 |
T246 |
Derby |
400,912 |
T247 |
Durham |
215,949 |
T248 |
East Granby |
152,904 |
T249 |
East Haddam |
268,344 |
T250 |
East Hampton |
378,798 |
T251 |
East Hartford |
2,036,894 |
T252 |
East Haven |
854,319 |
T253 |
East Lyme |
350,852 |
T254 |
East Windsor |
334,616 |
T255 |
Eastford |
33,194 |
T256 |
Easton |
223,430 |
T257 |
Ellington |
463,112 |
T258 |
Enfield |
1,312,766 |
T259 |
Essex |
107,345 |
T260 |
Fairfield |
1,144,842 |
T261 |
Farmington |
482,637 |
T262 |
Franklin |
37,871 |
T263 |
Glastonbury |
1,086,151 |
T264 |
Goshen |
43,596 |
T265 |
Granby |
352,440 |
T266 |
Greenwich |
527,695 |
T267 |
Griswold |
350,840 |
T268 |
Groton |
623,548 |
T269 |
Guilford |
657,644 |
T270 |
Haddam |
245,344 |
T271 |
Hamden |
2,155,661 |
T272 |
Hampton |
54,801 |
T273 |
Hartford |
1,498,643 |
T274 |
Hartland |
40,254 |
T275 |
Harwinton |
164,081 |
T276 |
Hebron |
300,369 |
T277 |
Kent |
38,590 |
T278 |
Killingly |
505,562 |
T279 |
Killingworth |
122,744 |
T280 |
Lebanon |
214,717 |
T281 |
Ledyard |
442,811 |
T282 |
Lisbon |
65,371 |
T283 |
Litchfield |
244,464 |
T284 |
Lyme |
31,470 |
T285 |
Madison |
536,777 |
T286 |
Manchester |
1,971,540 |
T287 |
Mansfield |
756,128 |
T288 |
Marlborough |
188,665 |
T289 |
Meriden |
1,893,412 |
T290 |
Middlebury |
222,109 |
T291 |
Middlefield |
131,529 |
T292 |
Middletown |
1,388,602 |
T293 |
Milford |
2,707,412 |
T294 |
Monroe |
581,867 |
T295 |
Montville |
578,318 |
T296 |
Morris |
40,463 |
T297 |
Naugatuck |
1,251,980 |
T298 |
New Britain |
3,131,893 |
T299 |
New Canaan |
241,985 |
T300 |
New Fairfield |
414,970 |
T301 |
New Hartford |
202,014 |
T302 |
New Haven |
114,863 |
T303 |
New London |
917,228 |
T304 |
New Milford |
814,597 |
T305 |
Newington |
937,100 |
T306 |
Newtown |
824,747 |
T307 |
Norfolk |
28,993 |
T308 |
North Branford |
421,072 |
T309 |
North Canaan |
95,081 |
T310 |
North Haven |
702,295 |
T311 |
North Stonington |
155,222 |
T312 |
Norwalk |
4,896,511 |
T313 |
Norwich |
1,362,971 |
T314 |
Old Lyme |
115,080 |
T315 |
Old Saybrook |
146,146 |
T316 |
Orange |
409,337 |
T317 |
Oxford |
246,859 |
T318 |
Plainfield |
446,742 |
T319 |
Plainville |
522,783 |
T320 |
Plymouth |
367,902 |
T321 |
Pomfret |
78,101 |
T322 |
Portland |
277,409 |
T323 |
Preston |
84,835 |
T324 |
Prospect |
283,717 |
T325 |
Putnam |
109,975 |
T326 |
Redding |
273,185 |
T327 |
Ridgefield |
738,233 |
T328 |
Rocky Hill |
584,244 |
T329 |
Roxbury |
23,029 |
T330 |
Salem |
123,244 |
T331 |
Salisbury |
29,897 |
T332 |
Scotland |
52,109 |
T333 |
Seymour |
494,298 |
T334 |
Sharon |
28,022 |
T335 |
Shelton |
1,016,326 |
T336 |
Sherman |
56,139 |
T337 |
Simsbury |
775,368 |
T338 |
Somers |
203,969 |
T339 |
South Windsor |
804,258 |
T340 |
Southbury |
582,601 |
T341 |
Southington |
1,280,877 |
T342 |
Sprague |
128,769 |
T343 |
Stafford |
349,930 |
T344 |
Stamford |
3,414,955 |
T345 |
Sterling |
110,893 |
T346 |
Stonington |
292,053 |
T347 |
Stratford |
1,627,064 |
T348 |
Suffield |
463,170 |
T349 |
Thomaston |
228,716 |
T350 |
Thompson |
164,939 |
T351 |
Tolland |
437,559 |
T352 |
Torrington |
1,133,394 |
T353 |
Trumbull |
1,072,878 |
T354 |
Union |
24,878 |
T355 |
Vernon |
922,743 |
T356 |
Voluntown |
48,818 |
T357 |
Wallingford |
1,324,296 |
T358 |
Warren |
15,842 |
T359 |
Washington |
36,701 |
T360 |
Waterbury |
5,595,448 |
T361 |
Waterford |
372,956 |
T362 |
Watertown |
652,100 |
T363 |
West Hartford |
2,075,223 |
T364 |
West Haven |
1,614,877 |
T365 |
Westbrook |
116,023 |
T366 |
Weston |
304,282 |
T367 |
Westport |
377,722 |
T368 |
Wethersfield |
1,353,493 |
T369 |
Willington |
174,995 |
T370 |
Wilton |
547,338 |
T371 |
Winchester |
323,087 |
T372 |
Windham |
739,671 |
T373 |
Windsor |
854,935 |
T374 |
Windsor Locks |
368,853 |
T375 |
Wolcott |
490,659 |
T376 |
Woodbridge |
274,418 |
T377 |
Woodbury |
288,147 |
T378 |
Woodstock |
140,648 |
(e) For the fiscal year ending June 30, 2017, and each fiscal year thereafter, each regional council of governments shall receive a regional services grant, the amount of which will be based on a formula to be determined by the secretary, except that, for the fiscal year ending June 30, 2018, and each fiscal year thereafter, thirty-five per cent of such grant moneys shall be awarded to regional councils of governments for the purpose of assisting regional education service centers in merging their human resource, finance or technology services with such services provided by municipalities within the region. For the fiscal year ending June 30, 2017, three million dollars shall be expended by the secretary from the Municipal Revenue Sharing Fund established in section 4-66p for the purpose of the regional services grant. No such council shall receive a grant for the fiscal year ending June 30, 2018, or any fiscal year thereafter, unless the secretary approves a spending plan for such grant moneys submitted by such council to the secretary on or before July 1, 2017, and annually thereafter. The regional councils of governments shall use such grants for planning purposes and to achieve efficiencies in the delivery of municipal services by regionalizing such services, including, but not limited to, region-wide consolidation of such services. Such efficiencies shall not diminish the quality of such services. A unanimous vote of the representatives of such council shall be required for approval of any expenditure from such grant. On or before October 1, 2017, and biennially thereafter, each such council shall submit a report, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding. Such report shall summarize the expenditure of such grants and provide recommendations concerning the expansion, reduction or modification of such grants.
(f) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, each municipality shall receive a municipal revenue sharing grant as follows:
(1) (A) A municipality having a mill rate at or above twenty-five shall receive the per capita distribution or pro rata distribution, whichever is higher for such municipality.
(B) Such grants shall be increased by a percentage calculated as follows:
T379 |
Sum of per capita distribution amount |
||
T380 |
for all municipalities having a mill rate |
||
T381 |
below twenty-five – pro rata distribution |
||
T382 |
amount for all municipalities |
||
T383 |
having a mill rate below twenty-five |
||
T384 |
_______________________________________ |
||
T385 |
Sum of all grants to municipalities |
||
T386 |
calculated pursuant to subparagraph (A) |
||
T387 |
of subdivision (1) of this subsection. |
(C) Notwithstanding the provisions of subparagraphs (A) and (B) of this subdivision, Hartford shall receive not more than 5.2 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; Bridgeport shall receive not more than 4.5 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; New Haven shall receive not more than 2.0 per cent of the municipal revenue sharing grants distributed pursuant to this subsection and Stamford shall receive not more than 2.8 per cent of the equalization grants distributed pursuant to this subsection. Any excess funds remaining after such reductions in payments to Hartford, Bridgeport, New Haven and Stamford shall be distributed to all other municipalities having a mill rate at or above twenty-five on a pro rata basis according to the payment they receive pursuant to this subdivision; and
(2) A municipality having a mill rate below twenty-five shall receive the per capita distribution or pro rata distribution, whichever is less for such municipality.
(3) For the purposes of this subsection, "mill rate" means the mill rate for real property and personal property other than motor vehicles.
(g) Except as provided in subsection (c) of this section, a municipality may disburse any municipal revenue sharing grant funds to a district within such municipality.
[(h) (1) Except as provided in subdivision (2) of this subsection, for the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall be reduced if such municipality increases its adopted budget expenditures for such fiscal year above a cap equal to the amount of adopted budget expenditures authorized for the previous fiscal year by 2.5 per cent or more or the rate of inflation, whichever is greater. Such reduction shall be in an amount equal to fifty cents for every dollar expended over the cap set forth in this subsection. For the purposes of this section, (A) "municipal spending" does not include expenditures for debt service, special education, implementation of court orders or arbitration awards, expenditures associated with a major disaster or emergency declaration by the President of the United States, a disaster emergency declaration issued by the Governor pursuant to chapter 517 or any disbursement made to a district pursuant to subsection (c) or (g) of this section, budgeting for an audited deficit, nonrecurring grants, capital expenditures or payments on unfunded pension liabilities, (B) "adopted budget expenditures" includes expenditures from a municipality's general fund and expenditures from any nonbudgeted funds, and (C) "capital expenditure" means a nonrecurring capital expenditure of one hundred thousand dollars or more. Each municipality shall annually certify to the secretary, on a form prescribed by said secretary, whether such municipality has exceeded the cap set forth in this subsection and if so the amount by which the cap was exceeded.
(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) or (f) of this section shall not be reduced in the case of a municipality whose adopted budget expenditures exceed the cap set forth in subdivision (1) of this subsection by an amount proportionate to any increase to its municipal population from the previous fiscal year, as determined by the secretary.]
[(i)] (h) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (f) of this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount available for such grants in the municipal revenue sharing account established pursuant to subsection (b) of this section.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
July 1, 2017 |
4-66l |
Statement of Purpose:
To eliminate the municipal spending cap.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]