SB 423 Summary

• Repeals the municipal spending cap that previously limited municipal budget increases to 2.5% or the rate of inflation, whichever is greater, effective July 1, 2018.

• Establishes a municipal revenue sharing account and distributes grants to municipalities based on mill rates, with specific grant amounts listed for fiscal years 2017 and 2018-2019.

• For fiscal year 2020 and beyond, municipalities with mill rates at or above 25 mills receive the higher of per capita or pro rata distribution; municipalities below 25 mills receive the lower amount.

• Caps grant percentages for Hartford (5.2%), Bridgeport (4.5%), New Haven (2.0%), and Stamford (2.8%), with excess funds redistributed to other municipalities.

• Authorizes $7 million annually for regional council of governments grants to support municipal service consolidation and efficiency improvements.