SB 872 Summary

• Requires the Commissioner of Revenue Services to submit biennial tax incidence reports by February 15, 2022, and biennially thereafter, analyzing income tax, sales and excise taxes, corporation business tax, and property tax burdens by income classes and business characteristics.

• Modifies department head authority in Section 4-8 to use gender-neutral language and clarify powers regarding organizational structure, regulation-making, and contractual agreements including interstate compacts.

• Increases the Budget Reserve Fund threshold from ten percent to fifteen percent of net General Fund appropriations before higher education grants can be appropriated, with a cap of $25 million annually.

• Raises the transfer authority of constituent unit boards of trustees from fifty thousand dollars to one hundred seventy-five thousand dollars without Finance Advisory Committee consent.

• Establishes municipal transition grants for fiscal years 2020-2021 to municipalities with mill rates exceeding 45 mills based on the difference between motor vehicle and real property tax levies for specific assessment years.

• Modifies unemployment insurance benefit year calculations to require consecutive work quarters for individuals receiving workers' compensation, and adjusts fraud penalties and overpayment recovery procedures.

• Authorizes pension cost recovery deposits exceeding actuarially determined employer contributions to the State Employees Retirement Fund as of July 1, 2019.