OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
http: //www.cga.ct.gov/ofa
sSB-33
AN ACT CONCERNING DEPARTMENT OF TRANSPORTATION PROJECT DELIVERY.
AMENDMENT
LCO No.: 5194
File Copy No.: 157
House Calendar No.: 487
Senate Calendar No.: 170
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 13 $ |
FY 14 $ |
Department of Transportation |
TFBonds - See Below |
See Below |
See Below |
Department of Transportation |
FF - See Below |
See Below |
See Below |
Note: TFBonds=Transportation Fund bonds; FF=Federal Funds
Explanation
The amendment requires the Department of Transportation (DOT) to stop all construction and work on the New Britain to Hartford busway project and redirect all unexpended funds to state road and bridge projects.
The table below details the allocations and expenditures as of March 1, 2012 for the project:
Current Status of funds allocated for the New Britain to Hartford busway project ($ in millions) | |||
Funding Source |
Allocation |
Expenditures as of 3/1/12 |
Funds Remaining |
Federal |
$454.9 |
$77.8 |
$377.1 |
State |
$112.2 |
$18.8 |
$93.4 |
Total Development and Construction |
$567.1 |
$96.6 |
$470.5 |
As of March 1, 2012 a total of $93.4 million in STO bond funds have not been expended, which would be redirected by the amendment for state road and bridge projects. Additionally, a total of $341.9 million of federal funds are earmarked for the busway project leaving $113 million in federal funds to be redirected by the amendment for state road and bridge projects. The amendment would result in a loss of $341.9 million in federal funds that are earmarked for the busway project. It is uncertain if the state would be required to pay back the $77.8 million of federal funds expended.
State Bond Funds and Federal Funds earmarked for the New Britain to Hartford busway project ($ in millions) | |||
Funding Source |
Allocation |
Earmarked for busway |
Funds to be redirected |
Federal |
$454.9 |
$341.9 |
$113 |
State |
$112.2 |
0 |
$93.4 |
Total Development and Construction |
$567.1 |
$341.9 |
$206.4 |
To date, 5 contracts have been awarded for the project totaling $192.3 million, which represents the low bid amounts. It is uncertain the cost of penalties and litigation to the state to break these contracts.
It is anticipated that $8 million of state subsidy in FY 15 will be avoided due to DOT ceasing construction of the New Britain to Hartford busway project. The subsidy would inflate 3-3.5% each year.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.