OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-5861

AN ACT CONCERNING THE PROCESSING OF MUNICIPAL APPLICATIONS FOR STATE PERMITS.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 10 $

FY 11 $

Department of Environmental Protection

GF - Cost

110,000

110,000

Public Health, Dept.

GF - Cost

67,518

67,752

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill would result in a cost to the Department of Environmental Protection (DEP) for an Environmental Analyst II position at a cost of $60,000 per year, and an administrative position at a cost of about $50,000 per year plus fringe benefits1, since it creates a new, time sensitive requirement for the agency.

Under the provisions of the bill, DEP would need to perform a full review of municipal permit applications within sixty days, including technical merit and sufficiency review. In addition, DEP would have to identify, in writing, all technical standards that any municipal application failed to address. This is also a new requirement for the agency under the bill that did not previously exist.

This bill also results in costs to the Department of Public Health (DPH) as it requires within its Drinking Water Section (DWS) an Environmental Analyst and related other expenses, other current expenses, and equipment for a total cost of $67,518 in FY 10 and $67,752 in FY 11 (see below):

Item:

FY 10 ($)

FY 11 ($)

Personal Services

61,274

63,112

Other Expenses

1,000

1,040

Equipment

1,500

0

Other Current Expenses

3,744

3,600

Total

67,518

67,752

DWS currently oversees permitting of 341 municipal water systems. The provisions of this bill would expand their authority beyond permitting to address any formal request from municipalities related to drinking water. It is expected that the increase in requests due to the provisions in the bill will necessitate a new staff position and related costs to DPH.

The Out Years

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

1 The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller on an actual cost basis. The following is provided for estimated costs associated with additional personnel. The estimated non-pension fringe benefit rate as a percentage of payroll is 25. 43%. Fringe benefit costs for new positions do not initially include pension costs as the state's pension contribution is based upon the 6/30/08 actuarial valuation for the State Employees Retirement System (SERS) which certifies the contribution for FY 10 and FY 11. Therefore, new positions will not impact the state's pension contribution until FY 12 after the next scheduled certification on 6/30/2010.