OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-1182

AN ACT CONCERNING ADMINISTRATIVE PROCEDURES OF THE DEPARTMENT OF PUBLIC WORKS, AUDITING OF LARGE CONSTRUCTION CONTRACTS, ENVIRONMENTAL REVIEW OF CERTAIN LAND TRANSFERS, GRANT PAYMENTS TO MUNICIPALITIES, ADVERTISING ON STATE BUILDINGS AND CERTAIN EXEMPTIONS TO THE FREEDOM OF INFORMATION ACT.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 08 $

FY 09 $

Treasurer, Debt Serv.

GF - Cost

See Below

See Below

Note: GF=General Fund

Municipal Impact: None

Explanation

Section 8 requires the Auditors of Public Accounts to appoint a professional engineer inspector to monitor each state construction or reconstruction project in excess of $50 million. The anticipated cost for the inspector is $100,000 per year for 5 years (the average duration of this type of project), which will increase the cost of each project by about $500,000.  Since building construction of this size is financed with General Obligation (GO) bond funds, any increase in the cost of the project will result in an increase in General Fund debt service costs.

Section 6: Under current law, no less than 1% of a state building's construction, reconstruction or remodeling costs are earmarked for artwork. The bill expands the cost basis on which the 1% earmark is calculated by adding the cost to design the project to the construction costs. This will increase the total cost of such projects, which will be reflected in higher General Fund debt service costs.

Section 16 requires the Department of Public Works (DPW) to make recommendations by 2/1/08 to the Government Administration and Elections Committee regarding placing commercial advertisements on state buildings and granting naming rights for state facilities. The cost to DPW to hire a consultant to do a study and prepare the recommendations is anticipated to be $150,000 in FY 08.

Section 9: Assuming that the Department of Environmental Protection (DEP) can review the notices and make recommendations utilizing the same process the agency currently uses for its land acquisition programs, any workload increase would be within normal budgetary resources. It is anticipated that any workload increase to the Council on Environmental Quality for publishing reviews in the Environmental Monitor will be handled within the routine duties of the Council. To the degree that this section increases the workload of the other state agencies that are involved with the sale or transfer of state-owned land, including DPW, the Department of Transportation, and the Office of Policy and Management, there may be a need for additional staff in the future.

Section 10 establishes the 'Environmental Review Account', a non-lapsing account in the General Fund. The amount of funds that would be diverted to this account from the General Fund for the uses specified is not known at this time. Since the account value cannot exceed $100,000, it is anticipated to be minimal.

Sections 11 through 14 make changes to the timing of grant payments that have no fiscal impact on the Comptroller's Office or the Office of the State Treasurer.

Section 15 creates the classification of assistant comptroller in the Comptroller's Office and results in no costs to the agency.

Sections 1 through 5, 7 and 17 have no fiscal impact.

The Out Years

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