Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2003 Basic FINANCIAL STATEMENTS - Notes To Financial Statements - Note 24 - Special and Extraordinary Items

State of Connecticut

Note 24 Special and Extraordinary Items

Special items are significant transactions or other events within management's control that are either unusal in nature or infrequent in occurrence. Extraordinary items are transactions or events that are both unusual in nature and infrequent in occurrence. At the beginning of the fiscal year new State law was enacted to reduce the accumulated General fund deficit. The act required the one time transfer of resources from three of the State's Component Units to the benefit of the General fund. The transfers to the General fund were as follows (amounts in million):

Connecticut Housing Finance Authority $85.0
Connecticut Innovations, Incorporated 7.5
Connecticut Development Authority  7.5

The $85 million from the Connecticut Housing Finance Authority was paid in April 2003, four months after the year-end for this Component Unit.

During the fiscal year, the State, also, transferred $127.3 million from its Anthem Demutualization Fund (an Agency fund) to reduce the General fund deficit. These resources originated from the sale of shares received from Anthem Blue Cross and Blue Shield, after the company converted its ownership from being a mutual company owned by its participating policyholders to a stock company owed by stockholders.

During the year, the Second Injury fund (an Enterprise fund) used $33.8 million in excess cash to retire $29.8 million of its special revenue bonds.