Raised Bill No. 779 - Municipal Spending Cap Elimination

• Establishes a "municipal revenue sharing account" within the General Fund to distribute state sales tax revenue to municipalities through motor vehicle property tax grants and revenue sharing grants.

• Creates grant programs for fiscal years 2016-2019 with specific dollar amounts allocated to each Connecticut municipality, ranging from small towns to major cities like Hartford ($13.9 million FY2017), Bridgeport ($14.5 million FY2017), and Waterbury ($13.4 million FY2017).

• Allocates $7 million annually beginning FY2018 for regional services grants to regional councils of governments to support service consolidation and efficiencies.

• Starting FY2020, establishes ongoing revenue sharing grants based on municipal mill rates, with per capita or pro rata distribution formulas, and caps grant percentages for Hartford (5.2%), Bridgeport (4.5%), New Haven (2.0%), and Stamford (2.8%).

• Eliminates the municipal spending cap (originally reducing grants by 50 cents per dollar spent over a 2.5% annual increase limit) effective July 1, 2017.