Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 BASIC FINANCIAL STATEMENTS - Notes To Financial Statements - Note 16

The following is a summary of changes in long-term debt of the primary government for the year ended June 30, 2015, (amounts in thousands):

	Beginning			Ending	Amounts due
Governmental Activities	Balance	Additions	Reductions	Balance	within one year
Bonds:
General Obligation	$ 15,281,579	$ 2,736,220	$ 1,615,262	$ 16,402,537	$ 1,212,674
Transportation	3,771,260	731,545	413,265	4,089,540	256,845
	19,052,839	3,467,765	2,028,527	20,492,077	1,469,519
Plus/(Less) Premiums	1,195,127	386,856	164,811	1,417,172	150,488
Total Bonds	20,247,966	3,854,621	2,193,338	21,909,249	1,620,007
Long-Term Notes	580,775	461,610	522,110	520,275	167,690
Other L/T Liabilities: 1
Net Pension Liability (Note 11) 2	27,773,383	4,362,297	5,964,849	26,170,831	-
Net Pension Obligation	2,559,621		2,559,621	-	-
Net OPEB Obligation	7,763,060	1,659,843	439,977	8,982,926	-
Compensated Absences	513,333	32,233	46,562	499,004	42,414
Workers' Compensation	619,578	137,770	106,164	651,184	103,675
Capital Leases	37,820	3,036	5,488	35,368	6,060
Claims and Judgments	46,151	38,576	9,140	75,587	31,149
Landfill Post Closure Care	35,751	8,009	8,575	35,185	-
Liability on Interest Rate Swaps	8,700	-	5,339	3,361	-
Contracts Payable & Other	705	-	-	705	-
Total Other Liabilities	39,358,102	6,241,764	9,145,715	36,454,151	183,298
Governmental Activities Long-Term
Liabilities 2	$ 60,186,843	$10,557,995	$ 11,861,163	$ 58,883,675	$ 1,970,995
1. In prior years, the General and Transportation funds have been used to liquidate other liabilities.
2. The beginning totals are restated by the effect of roll-back procedures pertaining to reporting the net pension
liability following the guidance of GASB No. 68 as of the June 30, 2014 measurement date.
Business-Type Activities
Revenue Bonds	$ 1,212,681	$ 265,696	$ 121,598	$ 1,356,779	$ 110,096
Plus/(Less) Premiums and Discounts	84,548	27,731	1,542	110,737	1,486
Total Revenue Bonds	1,297,229	293,427	123,140	1,467,516	111,582
Compensated Absences	166,577	59,666	40,153	186,090	55,533
Federal Loans Payable	433,569	60,606	391,121	103,054	-
Other	301,886	60,423	11,678	350,631	13,719
Total Other Liabilities	902,032	180,695	442,952	639,775	69,252
Business-Type Long-Term Liabilities	$ 2,199,261	$ 474,122	$ 566,092	$ 2,107,291	$ 180,834

The liability for claims and judgments (Governmental Activities) includes a pollution remediation liability of approximately $34.9 million. This liability represents the State's share of the cost of cleaning up certain polluted sites in the state under federal and state superfund regulations. The liability was estimated using the cash flow technique and could change over time due to changes in costs of goods and services, changes in remediation technology, or changes in laws and regulations governing the remediation effort. In addition, there are other polluted sites in the state that require remedial action by the State that will result in additional cleanup costs. The State did not recognize a liability for these costs at year end because it could not be reasonably estimated.

As of June 30, 2015, long-term debt of component units consisted of the following (amounts in thousands):

Long-Term	Balance	Amounts due
Debt	June 30, 2015	within year
Bonds Payable	$ 4,532,155	$ 356,199
Escrow Deposits	189,900	47,520
Closure of Landfills	-	-
Annuities Payable	130,652	11,255
Rate swap liability	183,246	-
Net Pension Liability	148,982	-
Other	30,624	898
Total	$ 5,215,559	$ 415,872

Landfill Closure and Postclosure Care
Public Act 13-247 and section 99 of Public Act 13-184 required the Materials Innovation and Recycling Authority to transfer all legally required reserves and obligations resulting from the closure of the authority's landfills located in Hartford, Ellington, Waterbury, Wallingford and Shelton to the State Department of Energy and Environmental Protection (DEEP). The transfer of legal obligations resulting from the closure of landfills was addressed by a memorandum of understanding ("MOU") between the Authority and DEEP. The MOU became effective April 24, 2014 at which point in time DEEP began reimbursing the Authority for all postclosure care and maintenance work at all landfills other than the Hartford landfill and the parties began a transition process to assign vendor contracts for the performance of landfill postclosure care work to DEEP and to assign federal and state licenses, permits, and orders ("Authorizations") related to the landfills to DEEP.

During the year ended June 30, 2015, all work associated with the closure of the Hartford landfill was completed. DEEP assumed the obligation to reimburse the authority for all postclosure care work for the Hartford landfill upon the landfill being certified as closed. All landfill expense reimbursements paid by DEEP totaled $112,000 in FY2015.

GASB Statement No.18 Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Cost applies to closure and postclosure care costs that are paid near or after the date a landfill stops accepting waste. The State recognizes landfill expenditures and related General Fund liabilities using the modified accrual basis of accounting. DEEP estimates the State's landfill liability for closure and postclosure costs based on landfill capacity. Increases or decreases in such estimates are reported as additions or reductions in this line item of the State's long-term liabilities. The liability for these estimated costs is reduced when the costs are actually paid. Actual costs may be higher than estimated due to inflation or changes in permitted capacity, technology or regulation. As of June 30, 2013, all five of the landfills had no capacity available since 100 percent of their capacity had been used.