CT HB05394

Increases the Budget Reserve Fund threshold from ten percent to fifteen percent of net General Fund appropriations for the fiscal year in progress, effective July 1, 2010.

Unappropriated surplus exceeding the Budget Reserve Fund cap is allocated to the State Employees Retirement Fund (up to five percent of unfunded past service liability) and debt reduction purposes.

Authorizes use of surplus funds for redeeming or purchasing outstanding state debt, defeasance of indebtedness through escrow arrangements, or combinations thereof.

Permits investment of surplus amounts pending debt payment in U.S. Treasury obligations, U.S. government-guaranteed securities, and government-backed collateralized securities.