OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5438

AN ACT CONCERNING MAKING PERMANENT THE UNEMPLOYMENT BENEFITS FOR MILITARY SPOUSES.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 09 $

FY 10 $

Labor Dept.

Unemployment Compensation Fund - Cost

140,000

140,000

Comptroller Miscellaneous Accounts (Unemployment Benefits)

GF - Cost

Minimal

Minimal

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 09 $

FY 10 $

All Municipalities

Cost

Minimal

Minimal

Explanation

The bill will result in a cost to the Department of Labor's Unemployment Compensation Fund. Current law allows an individual, whose spouse is on active duty and is required by the armed forces of the United States to relocate, to apply for unemployment compensation benefits between July 1, 2007 and June 30, 2008. By removing the sunset date of June 30, 2008, these individuals will permanently be eligible to apply for benefits. Based on activity to date, the annual cost to the fund is estimated to be $140,000. 1

The portion of unemployment claims attributable to state employees (. 74%) is paid from the unemployment compensation account administered by the State Comptroller and is estimated to be $1,100 annually. The portion of unemployment claims made by municipalities (2. 0%) is estimated to be $2,800 annually.

The Out Years

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

1 Four individuals filed for benefits in the first quarter, and seven individuals filed for benefits in the second quarter.