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.

As Amended by Senate "A" (LCO 4100)

House Calendar No. : 449

Senate Calendar No. : 98

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

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 11 $

FY 12 $

Various Municipalities

STATE MANDATE - Cost

Potential

Potential

Explanation

Sections 1 and 2 require municipalities with a population of less than 40,000 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 up to $110,000. 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 would 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 $600,000, plus the cost of unneeded new equipment, due to a reduction in the number of local PSAPs.

Scenario B: No new municipalities regionalize.

This would result in savings to the E 9-1-1 Fund due to the elimination of funding to non-regionalized municipalities, excluding municipalities with a population over 40,000. The total potential savings is estimated to be $2. 0 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: Municipalities in a stand-alone PSAP that join a regional PSAP would 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: Municipalities with a population of less than 40,000 that do 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: Municipalities with a population of less than 40,000 that do 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) Multi-Town Subsidies: Municipalities with a population of less than 40,000 which are part of a multi-town PSAP and do not join a regional PSAP by July 1, 2016 would lose the multi-town subsidy in addition to the equipment and subsidy funding outlined above. For example, a municipality in a multi-town PSAP with a population of 20,000 will lose an additional $44,000 in associated subsidies. 6 The total subsidy loss for the municipality in this scenario would be $63,000 all together.

Senate “A” altered the original bill by allowing municipalities with a population of 40,000 or more that have not regionalized by 2016 to remain eligible for PSAP subsidies.

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)

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.

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 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.