CT HB06352

Replaces Section 2-33a of Connecticut General Statutes to regulate general budget expenditure increases for fiscal years.

Limits annual budget expenditure increases to the greater of personal income growth (five-year average) or inflation rate, unless Governor declares emergency or extraordinary circumstances with three-fifths legislative approval.

Defines "increase in personal income" as average annual increase over preceding five years per U.S. Bureau of Economic Analysis data and "increase in inflation" as consumer price index change per U.S. Bureau of Labor Statistics data.

Excludes from expenditure caps: debt service payments, statutory grants to distressed municipalities in effect as of July 1, 1991, federal mandates, and 100% federally-funded programs (including programs expanded to full federal funding after July 1, 2013).

Adds that annual required contributions for unfunded accrued liability portions of teachers' retirement system and state employees retirement system are treated as debt service for expenditure cap purposes.