CT SB01116

Increases the Budget Reserve Fund threshold from 10% to 15% of net General Fund appropriations before surplus revenues are redirected to other purposes.

Establishes automatic transfers to the Budget Reserve Fund from: net General Fund revenues exceeding the budget estimate (by January 15), surplus state property sales, additional revenue gains (by April 30), and year-end unappropriated surplus.

Directs surplus amounts exceeding the 15% threshold to the State Employees Retirement Fund (up to 5% of unfunded past service liability) and debt reduction through redemption, open market purchase, or defeasance.

Allows the Secretary of the Office of Policy and Management to direct court settlement payments to the postemployment benefits trust fund, State Employees Retirement Fund, or Teachers' Retirement Fund at their discretion.

Changes the condition for higher education grant appropriations to only begin when the Budget Reserve Fund reaches 15% (increased from 10%) of net General Fund appropriations, with grants capped at $25 million annually.