STATE BUDGETS; STATE OFFICERS AND EMPLOYEES;

BUDGET, STATE;

You asked for a summary of provisions in the state budget or the budget implementer acts that affect state employees.

We reviewed the state budget act (PA 03-1, June 30 Special Session (JSS)), the general budget and revenue implementer (PA 03-6, JSS), and the health and human services implementer (PA 03-3, JSS) to complete this report. We looked for provisions that could (1) reduce the number of state employees, (2) change the working situation of certain state employees (such as through agency mergers), or (3) in some other way alter the nature of certain employees’ jobs.

The first section of this report deals with the budget act and the second section addresses the general implementer (there were no parts of the health and human services implementer that were identified as affecting state employees).

BUDGET ACT (PA 03-1, JSS)

Table 1 shows three types of major funding reductions for state personnel. While the layoffs and early retirements took place in FY 2003, this table shows the funding reductions in the new biennial budget that correspond to those changes.

Table 1. Major Budgetary Impacts Upon State Employees Contained within PA 03-1, June 30 Special Session (HB 6802)

Legislative Commissions

In both FY 2004 and FY 2005 no vacancy that occurs in a legislative commission (African-American Affairs Commission, Commission on Children, Permanent Commission on the Status of Women, Latino and Puerto Rican Affairs Commission) may be refilled unless the Legislative Management Committee deems the position critical to the operation of such commission.

State Fleet Maintenance

The budget act includes a bottom line fleet reduction of $ 5 million in both FY 04 and FY 05. To help achieve savings, the Department of Administrative Services (DAS) is currently in the process of privatizing maintenance of the state fleet. Last month DAS sent layoff notices to 56 employees (44 of whom are union members). Due to privatization provisions in collective bargaining contracts, these employees will not actually be laid off, rather they will be offered comparable positions in other state agencies or other positions within DAS.

PROVISIONS FROM THE GENERAL BUDGET AND REVENUE IMPLEMENTERS (PA 03-6, JSS)

All provisions shown below are effective upon passage.

Agriculture/Consumer Protection Merger (§§ 146-148)

This act merges the Department of Consumer Protection and the Department of Agriculture into a new agency, the Department of Agriculture and Consumer Protection, under a single commissioner, whom the governor appoints.

Out-of-State Inmates (§§ 156 & 157)

The act authorizes the Department of Correction (DOC) commissioner to enter into contracts with government or private vendors to supervise up to an additional 2,000 inmates out-of- state. The act gives DOC this authority during the next two fiscal years (ending June 30, 2005). The 2,000 inmates are in addition to the 500 inmates that the law already authorizes for transfer for out-of-state supervision under a contract with a government or private vendor. This authority is also in addition to the commissioner’s powers under the Interstate Corrections Compact.

The act allows DOC to enter a contract, without following the competitive bidding or negotiations requirements, with any government vendor who, on the act's effective date, has a contract with DOC under its authority to send up to 500 inmates out-of-state. DOC had a contract with the Virginia Department of Corrections on that date. The new contract can be for any number of the additional 2,000 inmates that the vendor is willing to accept. DOC currently has a contract with. If Virginia does not accept additional inmates or does not accept all 2,000 inmates, the act allows the commissioner to enter contracts with any government or private vendor to supervise all or some of the remaining inmates.

The act requires a vendor under a new contract to agree to the provisions of the Interstate Corrections Compact and any facility that receives inmates under the contract must be in a state that has adopted the Interstate Corrections Compact.

The act authorizes the Office of Policy and Management (OPM) to transfer funds appropriated to DOC in June 30 Special Session, PA 03-1 without the Finance Advisory Committee’s prior approval as needed during the two fiscal years for this purpose.

Board of Pardons and Board of Parole Into DOC (§§ 160 & 161)

The act places the Board of Pardons within DOC. Under prior law, it was an autonomous body in DOC for administrative purposes only. The act does not otherwise change the statutes governing the board's authority or operation.

The act also places the Board of Parole within DOC, eliminates the chairman’s role as the executive and administrative head of the board, and gives the DOC commissioner many of the responsibilities of the board's chairman. The act transfers the following duties of the chairman to the DOC commissioner:

1. directing and supervising the board's administrative affairs;

2. preparing the budget and annual operation plan, in consultation with the board;

3. assigning staff to parole panels, regions, and supervision offices (although the chairman continues to have authority and responsibility to assign members to panels under another provision);

4. organizing parole hearing calendars for the timely and efficient processing of cases;

5. implementing a uniform case filing and processing system;

6. setting policy in all areas of parole including decision making, release criteria, and supervision standards;

7. creating specialized parole units as needed;

8. entering contracts, in consultation with the board, with service providers, community programs, and consultants for the proper function of parole and community supervision;

9. creating programs for staff and board member development, training, and education;

10. creating, developing, and maintaining non-institutional, community-based service programs; and

11. signing and issuing subpoenas to compel witnesses to attend and testify at parole hearings.

The act also removes the requirement that the board's two vice-chairmen devote their entire time to their duties with the board. It changes their pay from an amount set by the Department of Administrative Services to a per diem rate of $ 110 plus necessary expenses, the rate paid to members other than the chairman.

DRUG COURTS (§ 164)

The act requires the chief court administrator to establish, within available appropriations, one or more drug courts for hearing criminal or juvenile cases involving drug-dependent defendants who could benefit from placement in a substance abuse program. The Judicial Department operated four drug courts until late 2002 when they were forced to close due to budget rescissions.

The law already allows the administrator to establish these drug courts in all criminal and juvenile courts. But the act removes a special requirement that the courts be available to defendants aged 16 to 21 who could benefit from placement in a substance abuse program.

State Police Personnel (§ 174)

The act suspends, until January 1, 2006, the requirement for the State Police to maintain a minimum of 1,248 sworn police officers. The current number is below 1,248.

Higher Education Graduate Assistants (§§ 200 & 201)

The act eliminates the specific provision that graduate assistants at the University of Connecticut and the Connecticut State University are eligible for health insurance benefits under the state plan if they are employed at least half time, as defined by their respective boards of trustees.

Early Retirement Employee Refill Formula (§ 206)

The act revises the Early Retirement Incentive Program employee refill formula established by PA 03-2 by eliminating the requirement that (1) at least 70% of the refills be in positions classified as essential and (2) not more than 30% be in positions classified as non-essential. The act does not change the overall 80% refill rate for FYs 2004 and 2005 for the total number of employees who took the ERIP (approximately 4,650).

Tourism (§§ 210-239, 241)

The act creates a commission incorporating the current tourism, culture, arts, and film commissions into one entity, transferring their duties and responsibilities to the new commission. It gives this new commission planning, budgeting, financing, and managing responsibilities for various aspects of these activities. It consolidates the current 11 regional tourism districts into five, and requires the commission to review and ultimately approve their annual budgets.

For FYs 2003-04 and 2004-05, the act earmarks $ 20 million in lodging tax receipts to fund the commission, the districts, other specified organizations, and specified projects. It supplements these funds with a $ 4 million appropriation in each of these years. In subsequent fiscal years, the commission must be funded out of general appropriations.

Connecticut Commission On Arts, Tourism, Culture, History, and Film

The act establishes this 29-member commission and specifies its mission regarding arts, tourism, culture, history, and film, which is similar to that of the existing Arts, Historical, and Film commissions; the Tourism Council and the Tourism Office; and the Film Office, all of which the act eliminates. In doing so, the act designates the commission as the successor to all of these organizations and makes conforming technical changes.

The act requires the Connecticut Humanities Council and the Connecticut Trust for Historic Preservation, two nonprofit entities, to operate in conjunction with the commission for strategic planning and financial reporting purposes.

As Table 2 shows, the act specifies the commission's planning, financing, and management duties.

Table 2: Commission’s Planning, Financing, and Management Duties

Commission Governance

Membership. The commission consists of 24 voting and five nonvoting ex officio members. The governor and legislative leaders appoint the voting members based on the act's criteria. The appointed members terms are coterminous with those of their respective appointing authorities. The act bans members of the tourism district boards of directors from serving on the commission.

Executive Director. The governor appoints the commission's executive director, subject to approval by the General Assembly, who must run the commission under the commissioners' supervision. The act specifies his duties and responsibilities.

Tourism District Budgets

The act requires each district to prepare and approve a proposed budget for the next fiscal year and submit it to the commission for review and approval by June 1. A district cannot spend funds unless the commission approved its budget or adopts an interim budget.

Commission Duties

The act requires the commission to:

1. develop, annually update, and implement a strategic plan to market Connecticut nationally and internationally as a tourism destination;

2. develop a strategic plan for new tourism products and attractions;

3. provide marketing and other assistance to the tourism industry;

4. ensure cooperation among regional tourism districts;

5. maintain, operate, and manage visitor welcome centers;

6. develop and administer a challenge grant program to encourage innovation and job development, provide incentives for coordinated activities consistent with its strategic marketing plan, and stimulate private tourism promotion funding; and

7. assist towns affected by local tourist attractions or those in nearby towns, subject to available funds.

General Fund Tourism Fund

The act creates a separate, nonlapsing Connecticut Commission on Arts, Tourism, Culture, History, and Film account in the General Fund to hold funds dedicated to it from the funding stream it establishes.

Tourism Funding Stream And Allocations

The act requires the revenue services commissioner to segregate $ 20 million in lodgings tax revenue in FYs 2003-04 and 2004-05 to fund the commission, the districts and several other specified organizations, and the projects it specifies. Prior law requires her to segregate and distribute this revenue to the districts and other entities based on a statutory formula. The act also appropriates an additional $ 4. 48 million for the commission.

Visitor Centers

The act shifts to the commission the Department of Economic and Community Development's (DECD) Tourism Office's responsibilities for visitor welcome centers, which it shares with the Transportation Department (DOT), makes several changes to those responsibilities, and eliminates several obsolete requirements.

It requires the commission to hire full- and part-time supervisors and assistant supervisors for various welcome centers, eliminating the provision that this be done subject to the availability of funds. It eliminates the requirement for such supervision at the Windsor Locks center and two Bradley Airport centers.

It eliminates DOT’s responsibility to maintain the visitor centers it owns and provide housekeeping services at others. It requires revenues the centers generate from the electronic information systems and no-cost lodging reservation services they are required to have be deposited in the General Fund. Under prior law, they were deposited in a tourism account.

Arts Activities

The act shifts to the commission the Connecticut Commission on the Arts' powers and duties for promoting the arts. These include providing grants and loans to individuals, organizations, and institutions; administering a state art collection; contracting for services; and accepting funds and holding property. It requires any state, federal, or private funds the commission receives for its activities to be deposited in the account the act creates. Under prior law, they went into the General Fund.

Historical Activities

The act shifts to the commission most of the Connecticut Historical Commission's powers and duties. These include operating several historic sites; administering the state and national register of historic places and historic home rehabilitation tax credit programs; maintaining historical, architectural, and archaeological research and development programs; working with state and local officials for a variety of purposes; reviewing and deciding on requests by historic properties owners for rehabilitation work on sacred or archaeological sites where the commission holds a preservation easement; requesting the attorney general's assistance to prevent unreasonable destruction of historic properties; and placing and maintaining historic markers, memorials, or monuments.

The act creates a 12-member Historic Preservation Council within the commission to advise it about historic preservation matters. The council's appointment, composition, and terms and conditions of office are the same as that of the Connecticut Historical Commission previously: The governor appoints the members, two of whom must be the State Historian and State Archaeologist. The council must meet monthly.

Film Activities

The act eliminates the Connecticut Film Commission and DECD's Film Office and its executive director position and shifts its responsibilities to the commission. In doing so, it eliminates:

1. the authorization to create advisory councils;

2. the requirement for the director to report annually on the office’s activities and the effects of film, video, audio, and other media production on the state’s economy; and

3. the requirement that DECD provide staff and resources to support the Film office and commission.

Repealers (§ 244)

The act repeals provisions:

1. requiring the Connecticut Historical Commission to appoint a director;

2. establishing the State Commission on the Arts, providing for its office and staff, and requiring it to make annual reports and adopt regulations;

3. transferring the Connecticut Foundation for the Arts to the State Commission on the Arts;

4. finding that the state needs a permanent office to promote the development of a viable film, video, and media industry;

5. establishing a Connecticut Film, Video, and Media Commission, stating its duties, and requiring it to make an annual report and adopt regulations; and

6. establishing an Office of Tourism, a Connecticut Tourism Council, and 11 tourism districts.

JM: CR/eh