Connecticut Treasurer Russell Announces Major Savings with Early Retirement of State Transportation Debt
Date: May 20, 2025
Hartford, Connecticut – In a significant move for financial management, Treasurer Erick Russell has revealed that Connecticut has successfully retired an additional $176 million in transportation-related debt. This development boosts the total early debt pay-off to $570 million, a strategic initiative made possible by legislative changes introduced in 2024, supported by both Treasurer Russell and Governor Ned Lamont. The early elimination of this debt is set to yield substantial savings for taxpayers, totaling $726 million over the next decade.
The Impact of Early Debt Retirement
“Retiring state transportation debt early is a boon for Connecticut taxpayers,” stated Treasurer Russell. “It alleviates the debt burden while we ensure funding for essential transportation projects that the public relies on.” By efficiently utilizing surplus funds from the Special Transportation Fund, the state has managed to save $45 million in the current fiscal year and anticipates annual savings of $68 million from 2026 to 2035.
This proactive approach to fiscal management has emerged as one of the standout successes of the 2024 legislative session. “I am optimistic that the legislature will take action this year to make this practice a permanent fixture, benefiting Connecticut residents well into the future,” Russell added.
Strategic Use of the Special Transportation Fund
In recent years, the reserves within the Special Transportation Fund (STF) have seen considerable growth. According to Treasurer Russell and the Lamont Administration, funds exceeding 18% of operating expenses were recommended for debt pay-off, a proposal that received legislative approval for the current fiscal year only. “Employing surplus reserves to eliminate debt enhances the long-term viability of the STF by minimizing future principal and interest obligations, known as debt service,” Russell explained.
Legislation is currently under consideration that would enable the ongoing use of excess funds in the STF for settling outstanding transportation-related bonds. Senate Bill 1461, titled “An Act Concerning the Treasurer’s Recommendation for the Paydown of Special Tax Obligation Indebtedness,” has garnered broad bipartisan support, emerging from the Finance, Revenue, and Bonding Committee.
Recent Progress in Debt Redemption
Earlier this year, the Office of the Treasurer successfully redeemed $394 million in Special Tax Obligation (STO) Transportation Infrastructure bonds eligible for pre-payment. Today, an additional $176 million of bonds have been discharged, with funds being deposited with the Bond Trustee for redemption on August 1, 2025, when they become eligible for pre-payment.
Besides the utilization of excess STF amounts, an extra $34 million sourced from bond reserves—no longer required due to these early payoffs—was also earmarked for debt elimination.
For further details about Connecticut’s bonding programs, please visit www.buyctbonds.com.
About the Office of the Treasurer
The Office of the Treasurer plays a pivotal role in safeguarding Connecticut’s financial resources through diligent cash and debt management. Led by State Treasurer Erick Russell—the first Black out LGBTQ person elected to statewide office in American history—the office functions as the principal fiduciary for six state pension and twelve state trust funds. Beyond debt management, the office actively promotes financial literacy and college savings initiatives, while partnering with businesses to advance the state’s social priorities, including fighting against gun violence and environmental protection.
To learn more, visit the Connecticut Office of the Treasurer.
For media inquiries, contact:
Brett Cody
Email: brett.cody@ct.gov
Phone: (959) 529-2468
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