OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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sSB-312

AN ACT MANDATING THE REGIONALIZATION OF PUBLIC SAFETY EMERGENCY TELECOMMUNICATION CENTERS AND A STUDY OF CONSOLIDATION.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 11 $

FY 12 $

Public Safety, Dept.

Division of Fire, Emergency and Building Services

E 9-1-1 Fund - Cost

200,000 – 250,000

Potential

Municipal Impact:

Municipalities

Effect

FY 11 $

FY 12 $

Various Municipalities

STATE MANDATE - Cost

Potential

Potential

Explanation

Section 1 requires municipalities to join regional Public Safety Answering Points (PSAPs) by July 1, 2016, to continue receiving subsidies for services, training, equipment enhancements and potential capital expenses through the E 9-1-1 Telecommunications Fund (E 9-1-1 Fund). 1 The potential reduction to the annual subsidy of any municipality that does not join a PSAP in accordance with the bill would vary according to the size of the municipality, but could range from $19,000 to over $100,000. Municipalities that are currently not part of a regional PSAP could incur transition costs, which may be reimbursed in full provided that the Office of State-Wide Emergency Telecommunications (OSET) makes sufficient funds available from the E 9-1-1 Fund. (The potential fiscal impacts on the E 9-1-1 Fund and municipalities are described in more detail below. )

Section 3 results in an estimated one-time cost of $200,000 to $250,000 by requiring OSET to conduct a comprehensive study of regionalizing PSAPs. The study would be paid out of the E 9-1-1 Fund. The projected FY 10 balance of the E-9-1-1 Fund will sufficiently cover the cost of the study.

Impact on the E 9-1-1 Fund in 2016

Scenario A: All municipalities regionalize.

This will result in an overall cost to the E 9-1-1 Fund. The regional PSAP subsidy would be extended to all newly eligible municipalities for an annual cost of up to $2. 9 million. In addition, OSET can approve reimbursements to be paid by the E 9-1-1 Fund for transition costs incurred by municipalities. 2 The current FY 10 budget allows for $1. 25 million for the transition grant program, but is limited in availability. The $2. 9 million cost to extend the PSAP subsidy would be partially offset by annual savings estimated to be $744,000, plus the cost of unneeded new equipment, due to a reduction in the number of local PSAPs.

Scenario B: No new municipalities regionalize.

This will result in savings to the E 9-1-1 Fund due to the elimination of funding to non-regionalized municipalities. The total potential savings is estimated to be $6. 8 million.

Scenario C: Some new municipalities regionalize.

It is uncertain what effect this will have on the E 9-1-1 Fund. There are potential costs in new subsidies and transition funding but also potential savings from fewer local PSAPs and from the funding ineligibility of non-regionalized municipalities. The fiscal impact will vary depending upon how many municipalities regionalize (see Municipal Impact).

Municipal Impact

Impact from Regionalizing

(1) Transition Grants: Municipalities that join a regional PSAP can apply for a reimbursement from the E 9-1-1 Fund for certain expenses incurred due to the transition. A municipality may still incur a cost in transitioning due to the limited availability of transition grants which are also subject to approval by OSET.

(2) Regional PSAP Subsidy: A stand-alone municipality that regionalizes will receive a new per capita regional subsidy. 3 For example, a municipality with a 20,000 capita would receive approximately $48,400 in new subsidies. 4 All funding for which the municipality is eligible will be directed towards their new regional PSAP.

Impact from Not Regionalizing

(1) Municipal PSAP Per Capita Subsidies: Any municipality that does not join a regional PSAP by July 1, 2016, will lose funding for the Coordinated Emergency Medical Direction (CMED) services subsidy and the PSAP training subsidy. This would cost a municipality of 20,000 capita approximately $8,000, and will vary depending on the population size. 5

(2) Equipment Funding: Any municipality that does not join a regional PSAP by July 1, 2016 will lose funding for equipment enhancement. The cost is approximately $11,100 per municipality, plus the cost of any necessary new equipment.

(3) City/Multi-Town Subsidies: Any municipality that does not join a regional PSAP by July 1, 2016 which has a population in excess of 40,000 or is part of a multi-town PSAP would lose a subsidy stemming from these qualities in addition to the equipment and subsidy funding outlined above. For example, a municipality that has a population of 40,000 and therefore received a subsidy based on population size will lose approximately $96,800. 6

(4) Capital Expense Subsidy: Cities that do not join a regional PSAP by July 1, 2016 will lose access to capital expense subsidies offered by the E 9-1-1 Fund.

The Out Years

The ongoing potential municipal cost described above would continue beyond 2016, subject to inflation.

Sources:

Office of State-Wide Emergency Telecommunications Annual Reports to the General Assembly (2005- 2009)

1 The E 9-1-1 Fund is a non-appropriated state fund that generates funding by a monthly surcharge on all phone lines (CGS 28-30a). The Fund is administered by the Office of Statewide Emergency Telecommunications (OSET). According to the OSET Annual Report 2009 the estimated FY 10 operating budget is $45,271,595, which is partially covered by a $24,746,790 carryover from FY 09.

2 Transition grants are one-time only funds that are limited in availability and subject to approval by OSET.

3 Any municipality that has a population in excess of 40,000 or is part of a multi-town PSAP already receives a subsidy comparable to the regional PSAP subsidy per Conn. Agencies Regs. 28-24-3 et seq.

4 This calculation is projected using the formula in Conn. Agencies Regs. 28-24-3.

5 Currently the CMED subsidy is $0. 30 per capita while the PSAP training subsidy is $0. 10 per capita.

6 This calculation is projected using the formula in Conn. Agencies Regs. 28-24-3.