CT HB05031

Increases the Budget Reserve Fund threshold from 10 percent to 15 percent of net General Fund appropriations for the fiscal year in progress, effective July 1, 2015.

Allows surplus funds exceeding the Budget Reserve Fund cap to be allocated to the State Employees Retirement Fund (up to 5 percent of unfunded past service liability), debt reduction, or debt defeasance.

Restricts appropriations for higher education grants under sections 10a-77a, 10a-99a, 10a-109i, and 10a-143a until the Budget Reserve Fund reaches 15 percent of net General Fund appropriations.

Caps annual higher education grant appropriations at $25 million and requires proportional reduction if available funds are insufficient.

Both amendments take effect July 1, 2015.