Summary of SB 7321

• Establishes a new credit revenue bond program allowing the state to issue bonds secured by withholding tax revenues instead of general obligation bonds, providing an alternative financing mechanism for authorized state projects.

• Creates a statutory pledge of withholding taxes to secure credit revenue bonds, with pledged revenues directed to collection accounts held separate from other state funds until debt service requirements are satisfied.

• Requires the Treasurer to determine estimated savings from issuing credit revenue bonds versus general obligation bonds and transfer that amount annually to the Budget Reserve Fund during the period bonds are outstanding.

• Permits existing general obligation bonds authorized under any statute to be issued as either general obligation or credit revenue bonds, provided total principal does not exceed authorized amounts.

• Designates credit revenue bonds as payable from General Fund tax receipts for purposes of Connecticut's debt limit calculations under existing bonding law.