2023 Connecticut General Statutes
Title 4 - Management of State Agencies
Chapter 50 - Office of Policy and Management: General Provisions; Budget and Appropriations; State Planning
Section 4-66l. - Municipal revenue sharing account. Grants.

(a) For the purposes of this section:

(1) “FY 15 mill rate” means the mill rate a municipality used during the fiscal year ending June 30, 2015;

(2) “Mill rate” means, unless otherwise specified, the mill rate a municipality uses to calculate tax bills for motor vehicles;

(3) “Municipality” means any town, city, consolidated town and city or consolidated town and borough;

(4) “Municipal spending” means:

(8) “Municipal population” means the number of persons in a municipality according to the most recent estimate of the Department of Public Health;

(9) “Total state population” means the number of persons in this state according to the most recent estimate published by the Department of Public Health;

(10) “Weighted mill rate” means a municipality's FY 15 mill rate divided by the average of all municipalities' FY 15 mill rate;

(11) “Weighted mill rate calculation” means per capita distribution multiplied by a municipality's weighted mill rate;

(12) “Sales tax revenue” means the moneys in the account remaining for distribution pursuant to subdivision (3) of subsection (b) of this section;

(13) “District” means any district, as defined in section 7-324; and

(14) “Secretary” means the Secretary of the Office of Policy and Management.

(b) There is established an account to be known as the “municipal revenue sharing account” which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. The secretary shall set aside and ensure availability of moneys in the account in the following order of priority and shall transfer or disburse such moneys as follows:

(1) For the fiscal year ending June 30, 2022, and each fiscal year thereafter, moneys sufficient to make motor vehicle property tax grants payable to municipalities pursuant to subsection (c) of this section shall be expended not later than August first annually by the secretary;

(2) For the fiscal year ending June 30, 2022, and each fiscal year thereafter, moneys sufficient to make the grants payable pursuant to subsection (d) of section 12-18b, subdivisions (1) and (3) of subsection (e) of section 12-18b, subsection (b) of section 12-19b and subsections (b) and (c) of section 12-20b shall be expended by the secretary; and

(3) For the fiscal year ending June 30, 2022, and each fiscal year thereafter, moneys in the account remaining shall be expended annually by the secretary for the purposes of the municipal revenue sharing grants established pursuant to subsection (d) of this section. Any such moneys deposited in the account for municipal revenue sharing grants between October first and June thirtieth shall be distributed to municipalities on the following October first and any such moneys deposited in the account between July first and September thirtieth shall be distributed to municipalities on the following January thirty-first. Any municipality may apply to the Office of Policy and Management on or after July first for early disbursement of a portion of such grant. The Office of Policy and Management may approve such an application if it finds that early disbursement is required in order for a municipality to meet its cash flow needs. No early disbursement approved by said office may be issued later than September thirtieth.

(c) (1) For the fiscal year ending June 30, 2022, and each fiscal year thereafter, motor vehicle property tax grants to municipalities that impose mill rates on real property and personal property other than motor vehicles greater than 45 mills or that, when combined with the mill rate of any district located within the municipality, impose mill rates greater than 45 mills, shall be made in an amount equal to the difference between the amount of property taxes levied by the municipality and any district located within the municipality on motor vehicles for the assessment year commencing October 1, 2017, and the amount such levy would have been if the mill rate on motor vehicles for said assessment year was equal to the mill rate imposed by such municipality and any district located within the municipality on real property and personal property other than motor vehicles.

(2) Not later than fifteen calendar days after receiving a property tax grant pursuant to this section, the municipality shall disburse to any district located within the municipality the amount of any such property tax grant that is attributable to the district.

(d) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, each municipality shall receive a municipal revenue sharing grant as follows:

(1) (A) A municipality having a mill rate at or above twenty-five shall receive the per capita distribution or pro rata distribution, whichever is higher for such municipality.

(B) Such grants shall be increased by a percentage calculated as follows:

(C) Notwithstanding the provisions of subparagraphs (A) and (B) of this subdivision, Hartford shall receive not more than 5.2 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; Bridgeport shall receive not more than 4.5 per cent of the municipal revenue sharing grants distributed pursuant to this subsection; New Haven shall receive not more than 2.0 per cent of the municipal revenue sharing grants distributed pursuant to this subsection and Stamford shall receive not more than 2.8 per cent of the equalization grants distributed pursuant to this subsection. Any excess funds remaining after such reductions in payments to Hartford, Bridgeport, New Haven and Stamford shall be distributed to all other municipalities having a mill rate at or above twenty-five on a pro rata basis according to the payment they receive pursuant to this subdivision; and

(2) A municipality having a mill rate below twenty-five shall receive the per capita distribution or pro rata distribution, whichever is less for such municipality.

(3) For the purposes of this subsection, “mill rate” means the mill rate for real property and personal property other than motor vehicles.

(e) Except as provided in subsection (c) of this section, a municipality may disburse any municipal revenue sharing grant funds to a district within such municipality.

(f) (1) Except as provided in subdivision (2) of this subsection, for the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) of this section shall be reduced if such municipality increases its adopted budget expenditures for such fiscal year above a cap equal to the amount of adopted budget expenditures authorized for the previous fiscal year by 2.5 per cent or more or the rate of inflation, whichever is greater. Such reduction shall be in an amount equal to fifty cents for every dollar expended over the cap set forth in this subsection. For the purposes of this section, (A) “municipal spending” does not include expenditures for debt service, special education, implementation of court orders or arbitration awards, expenditures associated with a major disaster or emergency declaration by the President of the United States, a disaster emergency declaration issued by the Governor pursuant to chapter 517 or any disbursement made to a district pursuant to subsection (c) or (e) of this section, budgeting for an audited deficit, nonrecurring grants, capital expenditures or payments on unfunded pension liabilities, (B) “adopted budget expenditures” includes expenditures from a municipality's general fund and expenditures from any nonbudgeted funds, and (C) “capital expenditure” means a nonrecurring capital expenditure of one hundred thousand dollars or more. Each municipality shall annually certify to the secretary, on a form prescribed by said secretary, whether such municipality has exceeded the cap set forth in this subsection and if so the amount by which the cap was exceeded.

(2) For the fiscal year ending June 30, 2018, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) of this section shall not be reduced in the case of a municipality whose adopted budget expenditures exceed the cap set forth in subdivision (1) of this subsection by an amount proportionate to any increase to its municipal population from the previous fiscal year, as determined by the secretary.

(g) For the fiscal year ending June 30, 2020, and each fiscal year thereafter, the amount of the grant payable to a municipality in any year in accordance with subsection (d) of this section shall be reduced proportionately in the event that the total of such grants in such year exceeds the amount available for such grants in the municipal revenue sharing account established pursuant to subsection (b) of this section.

(P.A. 11-6, S. 96; 11-61, S. 44; 11-239, S. 17; P.A. 12-104, S. 10; P.A. 15-244, S. 207; June Sp. Sess. P.A. 15-5, S. 110, 111, 494; Dec. Sp. Sess. P.A. 15-1, S. 31; May Sp. Sess. P.A. 16-2, S. 42; May Sp. Sess. P.A. 16-3, S. 189; June Sp. Sess. P.A. 17-2, S. 700; June Sp. Sess. P.A. 17-4, S. 21; P.A. 18-81, S. 24; P.A. 21-3, S. 6; June Sp. Sess. P.A. 21-2, S. 181, 444.)

History: P.A. 11-6 effective July 1, 2011; P.A. 11-61 designated existing Subsec. (b) as Subsec. (b)(1) and amended same by removing reference to Sec. 32-9s and replacing general provision re grants with list of grant amounts to each municipality, added Subsec. (b)(2) re reduction of grant amounts, added Subsec. (b)(3) re treatment of overpayments and amended Subsec. (c) to specify sources of numbers to be used in the formula under Sec. 3-55j(e), effective July 1, 2011; P.A. 11-239 amended Subsec. (b)(3) to change reference to Sec. 12-94b to the revision of 1958, revised to January 1, 2011, effective July 1, 2011; P.A. 12-104 amended Subsec. (b) to change grant payment to Franklin from $413,545 to $18,317 and grand total from $50,271,099 to $49,875,871 in Subdiv. (1) and to add Subdiv. (4) re additional payments to Ledyard and Montville, effective June 8, 2012; P.A. 15-244 added new Subsec. (a) re definitions, redesignated existing Subsec. (a) as new Subsec. (b) and amended same by establishing order for disbursement of account moneys, deleted former Subsec. (b) re manufacturing transition grants, deleted former Subsec. (c) re distribution of moneys remaining in account, added new Subsec. (c) re motor vehicle property tax grants, added Subsec. (d) re municipal revenue sharing grants for fiscal year ending June 30, 2017, added Subsec. (e) re regional services grants, added Subsec. (f) re municipal revenue sharing grants for fiscal year ending June 30, 2018, and each fiscal year thereafter, added Subsec. (g) re disbursement of municipal revenue sharing grants to districts, added Subsec. (h) re reduction of municipal revenue sharing grants when municipality exceeds spending cap and added Subsec. (i) re proportionate reduction of municipal revenue sharing grants when grant total exceeds amount available in account; June Sp. Sess. P.A. 15-5 amended Subsec. (a) by adding Subdiv. (13) defining “district”, amended Subsec. (b) by making provisions applicable to fiscal year ending June 30, 2018, in Subdiv. (4), by deleting provisions re distribution of moneys for regional services grants on a per capita basis in Subdiv. (5) and by making provisions applicable to fiscal year ending June 30, 2019, and each fiscal year thereafter in Subdiv. (6), amended Subsec. (c) by making provisions applicable to combined mill rate of municipality and any district located within the municipality and requiring municipality to disburse district's share not later than 15 calendar days after receiving property tax grant, amended Subsec. (d) by making provisions applicable to fiscal year ending June 30, 2018, and replacing list of grant amounts, amended Subsec. (e) by adding provision re grants to regional councils of governments to be calculated by formula determined by secretary, amended Subsec. (f) by making provisions applicable to fiscal year ending June 30, 2019, amended Subsec. (h) by redefining “municipal spending”, and made conforming and technical changes throughout; Dec. Sp. Sess. P.A. 15-1 amended Subsec. (a) by adding Subdiv. (14) defining “secretary”, amended Subsec. (b) by adding provision re secretary to set aside and ensure availability of moneys in the account in order of priority, deleting provision re amount for fiscal year ending June 30, 2017, and adding provision re transfer not later than April 15th in Subdiv. (1), deleting former Subdiv. (2) re transfers for fiscal year ending June 30, 2017, and each fiscal year thereafter, redesignating existing Subdiv. (3) as Subdiv. (2) and amending same by adding “payable” and “not later than August first”, adding new Subdiv. (3) re transfers for fiscal year ending June 30, 2017, and each fiscal year thereafter, adding reference to June 30, 2019, and provision re expenditure not later than October 31st annually in Subdiv. (4), adding new Subdiv. (5) re transfer of $10,000,000 for fiscal year ending June 30, 2017, redesignating existing Subdiv. (5) as Subdiv. (6), and redesignating existing Subdiv. (6) as Subdiv. (7) and amending same by changing “2019” to “2020”, amended Subsec. (d) by adding reference to June 30, 2019, amended Subsec. (f) by changing “2019” to “2020”, amended Subsec. (h) by adding reference to Subsec. (d), amended Subsec. (i) by adding “For the fiscal year ending June 30, 2020, and each fiscal year thereafter,” and deleting reference to Subsec. (d), and made conforming and technical changes, effective December 29, 2015; May Sp. Sess. P.A. 16-2 amended Subsec. (a) by adding “, unless otherwise specified,” in Subdiv. (2), redefining “municipality” in Subdiv. (3), replacing references to town with references to municipal in Subdivs. (5) and (8), and making a conforming change in Subdiv. (12), amended Subsec. (b) by replacing “June 30, 2017” with “June 30, 2018” in Subdivs. (2) and (3), deleting “June 30, 2017,” and adding “subdivision (2) of” in Subdiv. (4), deleting former Subdiv. (5) re transfer of $10,000,000 for fiscal year ending June 30, 2017, deleting former Subdiv. (6)(A) re expenditure of $3,000,000 for fiscal year ending June 30, 2017, redesignating existing Subdiv. (6)(B) as new Subdiv. (5), redesignating existing Subdiv. (7) as new Subdiv. (6) and amending same by replacing “town” with “municipality”, amended Subsec. (c) by deleting Subdiv. (1) designator, replacing “June 30, 2017” with “June 30, 2018, and each fiscal year thereafter” and adding “on real property and personal property other than motor vehicles” in provision re mill rates, deleting former Subdiv. (2) re motor vehicle property tax grants to municipalities for fiscal year ending June 30, 2018, and each fiscal year thereafter, substantially revised Subsec. (d) re municipal revenue sharing grants, and amended Subsec. (e) by adding provision re expenditure of $3,000,000 for fiscal year ending June 30, 2017, and making a technical change, effective July 1, 2016; May Sp. Sess. P.A. 16-3 amended Subsec. (e) by adding provision re 35 per cent of grant moneys awarded to regional councils of governments for regional education service center purposes for fiscal year ending June 30, 2018, and each fiscal year thereafter and making a technical change, amended Subsec. (f) by adding Subdiv. (3) defining “mill rate”, and amended Subsec. (h) by designating existing provisions as Subdiv. (1) and amending same by replacing “For” with “Except as provided in subdivision (2) of this subsection, for”, replacing “general budget expenditures” with “adopted budget expenditures”, designating existing provision re exclusions from municipal spending as Subpara. (A) and adding “budgeting for an audited deficit, nonrecurring grants, capital expenditures or payments on unfunded pension liabilities”, adding Subparas. (B) and (C) defining “adopted budget expenditures” and “capital expenditure”, respectively, and adding Subdiv. (2) re grant reduction prohibition for certain municipalities for fiscal year ending June 30, 2018, and each fiscal year thereafter, effective July 1, 2016; June Sp. Sess. P.A. 17-2 amended Subsec. (c) by designating existing provisions re motor vehicle property tax grants to municipalities that impose mill rates on real property and personal property other than motor vehicles greater than the maximum mill rate as Subdiv. (1) and amending same by replacing maximum mill rate of 32 mills to maximum mill rate of 39 mills and deleting “and each fiscal year thereafter,”, adding Subdiv. (2) re motor vehicle property grants for fiscal year ending June 30, 2019, and each fiscal year thereafter, and designating existing provision re disbursement of property tax grant pursuant to this section as Subdiv. (3), effective October 31, 2017; June Sp. Sess. P.A. 17-4 amended Subsec. (b) by adding new Subdiv. (6) re supplemental motor vehicle property tax grants and redesignating existing Subdiv. (6) as Subdiv. (7), amended Subsec. (c) by adding new Subdiv. (3) re supplemental motor vehicle property tax grant requirements and redesignating existing Subdiv. (3) as Subdiv. (4), and made technical and conforming changes, effective November 21, 2017; P.A. 18-81 amended Subsec. (c) by replacing “2019” and “2013” with “2020” and “2016”, respectively, in Subdiv. (2) and deleting “and each fiscal year thereafter,” in Subdiv. (3), effective July 1, 2018; P.A. 21-3 amended Subsec. (b)(3) by replacing “2018” with “2022”, deleting reference to select payment in lieu of taxes grant account and adding reference to Sec. 12-18b(d) re moneys to be expended for grants, effective July 1, 2021; June Sp. Sess. P.A. 21-2, S. 181 amended Subsec. (b) by deleting former Subdiv. (5) re regional services grants for fiscal year ending June 30, 2018 and each fiscal year thereafter and redesignating existing Subdivs. (6) and (7) as Subdivs. (5) and (6), deleted former Subsec. (d) re municipal revenue sharing grants for fiscal year ending June 30, 2017 and municipal sharing grants for fiscal years ending June 30, 2018 and June 30, 2019, deleted former Subsec. (e) re regional services grants for fiscal year ending June 30, 2017 and each fiscal year thereafter, use of such grants, approval of expenditures from such grants, and submission of biennial reports, redesignated existing Subsecs. (f) to (i) as Subsecs. (d) to (g), and S. 444 substantially revised Subsec. (b) re transfer or disbursement of moneys from account, amended Subsec. (c) by deleting former Subdiv. (1) re motor vehicle property tax grants for fiscal year ending June 30, 2018, redesignating existing Subdiv. (2) as Subdiv. (1) and amending same to replace “2020” with “2022”, “2016” with “2017”, and “45 mills” with provision re mill rate imposed on real property and personal property other than motor vehicles, deleting former Subdiv. (3) re municipality that imposed mill rate for real and personal property of more than 39 mills during fiscal year ending June 30, 2017, and redesignating Subdiv. (4) as Subdiv. (2), deleted former Subsec. (d) and redesignated existing Subsecs. (e) to (i) as Subsecs. (d) to (h) (codified by the Revisors as Subsecs. (d) to (g) per S. 181), and made conforming changes, effective July 1, 2021.