OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

http: //www. cga. ct. gov/ofa

sHB-5814

AN ACT CONCERNING THE BONDING PROCESS.

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill requires various agencies, for which the Bond Commission authorizes a bond, to file a statement with the commission as to the full cost of the project or purpose when completed and the estimated operating cost for any structure, equipment or facility to be constructed or acquired. Whereas, most agencies currently prepare such an analysis, most agencies will not incur any costs. The Office of Policy and Management (OPM) may incur costs to develop these cost estimates for changes in private provider rates resulting from non-profit entities receiving bond funds. It is anticipated that OPM will require no more than one half-time staff person with an annual salary of $30,000. It should be noted that sHB 5007, the budget bill, as favorably reported by the Appropriations Committee contains $335,000 for additional staff. It is uncertain if these funds would be available for this purpose.

The bill requires OPM to report on all outstanding bond allocations, which results in no fiscal impact on the agency as such information is monitored by the agency. The bill makes a variety of other changes that have no fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.