University of Connecticut General Obligation Bonds 2023 Series A and Refunding Series A slide image

University of Connecticut General Obligation Bonds 2023 Series A and Refunding Series A

State of Connecticut's Debt Service Commitment (General Fund) Key Credit Strengths Strong Financial Performance Debt Limitation Balanced Budget Requirement UCONN STATE OF CONNECTICUT BUSTINET LOUI TRANSTULIT TREASURER'S OFFICE ■ The State has experienced significant increases in the General Fund, with operating surpluses realized every year since FY 2019 ■ The State has consistently met its required actuarially determined employer contributions over the last five years and made an additional $4 billion combined contribution to SERS and TRS for FY 2022 By statute, the State may not authorize General Obligation (“GO”) debt > 1.6x General Fund tax receipts, subject to statutory exceptions ■ The amount of debt available for issuance for the UConn 2000 program is limited by State statute ■ State Constitution requires a balanced budget (i.e., general budget expenditures authorized for any fiscal year cannot exceed the estimated amount of revenue for such year) ■ State law requires passage of a biennial budget Budget Reserve Fund ("BRF") ■ The State has both a constitutional and a statutory regime for funding the BRF ■ Amounts in excess of 15% must be used to pay down pension obligations or outstanding debt Spending Cap Regular Revenue Forecasting & Monitoring Tools Prohibited by the State Constitution from increasing expenditures from year to year by a percentage exceeding the greater of the percentage increase in personal income or the percentage increase in inflation, with certain exceptions Regular revenue forecasting, monitoring of fiscal progress and multi-year planning tools in place Monthly reports are required from the Comptroller and the Office of Policy and Management and periodic reports are required from other entities, including the Legislature's Office of Fiscal Analysis Source: POS Appendix A University of Connecticut | State of Connecticut 5
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