Senate Bill 1601 Summary

• Authorizes the Secretary of the Office of Policy and Management to reduce allotments across state agencies for fiscal years 2016 and 2017 to achieve specified budget savings, including $93.1 million from the executive branch and $2 million each from legislative and judicial branches.

• Implements structural changes to Connecticut's tax code including modifications to corporate income tax apportionment rules, combined unitary tax filing requirements, and credits; establishes caps on tax credit utilization phased from 50.01% to 70% of tax liability between 2015 and 2019.

• Transfers $6.1 billion from higher education institutional operating funds and establishes a municipal revenue sharing account funded by sales tax deposits, with distributions for grants, motor vehicle property tax relief, and regional services through fiscal year 2019 and beyond.

• Modifies nonresident income taxation to exclude compensation from personal services when employees are present in Connecticut 15 days or fewer annually; adjusts petroleum product tax exemptions and propane fuel sales tax treatment.

• Creates two new commissions: a spending cap commission to define constitutional budget expenditure limits and an efficiency planning task force to evaluate state services costing over $250,000 per recipient annually.