AN ACT CONCERNING THE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2013.

OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ↓ (860) 240-0200

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HB-6701

AN ACT CONCERNING THE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2013.

AMENDMENT

LCO No.: 8771

Agency Affected	Fund-Effect	FY 12 $	FY 13 $
Net State Impact	GF - None	None	None

Municipalities	Effect	FY 12 $	FY 13 $
Various Municipalities	Revenue Loss	See Below	See Below

Explanation

The amendment repeals several sales tax increases that are due to take effect July 1, 2011. These changes reduce state General Fund revenue by $312.4 million in FY 12 and $326.6 million in FY 13. These revenue losses are offset by revenue enhancements and savings that the amendment makes including: 1) elimination of the state Earned Income Tax Credit; 2) transfer of current and future Citizens' Election Fund revenues and elimination of the program; 3) budgeted savings through enhanced enforcement of Medicaid fraud; 4) carry forward of FY 11 surplus; and 4) the use of budgeted surplus funds in FY 12 and FY 13.

In addition to the state fiscal impact indicated above, the amendment reduces municipal revenue estimated to be $56.6 million in FY 12 and $59.0 million in FY 13 due to repeal of the sales tax increase of 0.10% scheduled to go into effect July 1, 2011.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.