OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

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

sSB-373

AN ACT CONCERNING TECHNICAL HIGH SCHOOL WIRING FOR TECHNOLOGY AND HEALTHY FOOD AND BEVERAGES IN SCHOOLS.

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact:

Explanation

This bill may result in a net revenue loss to local and regional school districts and the state's technical high schools. The net revenue loss would be due to decreased revenue from the sale of certain beverages and food items coupled with a potential revenue gain of ten cents per meal in school nutrition funding from the state. A total of $4. 7 million is provided in the FY 07 budget as passed by the Appropriations Committee for this purpose. The net revenue loss is potentially short term as students and others may adjust their behavior and purchase allowable items at rates that generate revenue not unlike that experienced prior to the banning of specific beverages and food items. Initial revenue losses in a few school districts may be of a significant enough nature as to require an increase in revenue from other sources and/or expenditure reductions. However, most districts would likely see a minimal net revenue loss during any adjustment period.

It is anticipated that in FY 07 the full $4. 7 million appropriated for the purposes of the bill will not be expended as some districts may not choose to participate in the nutritional standards required to receive the additional ten cents or they may not have sufficient time to adjust their purchasing to meet the standards which are to be published by August 1, 2006.

The bill will have no fiscal impact to the Board of Education and Services for the Blind (BESB). Currently, BESB receives commission from vending machines in state and municipal buildings (other than schools). BESB allows the schools to retain their commission/revenue from vending machines for student activity funds. This bill will not impact the current revenue BESB receives from vending machines.

Finally the bill would provide a portion of bond funds allocated for school technology wiring to the state's technical high schools. This in effect results in a revenue loss to local and regional school districts as the pot of available funds would be spread over a greater number of participants.

The Out Years

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