OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-494

AN ACT MAKING ADJUSTMENTS TO STATE EXPENDITURES FOR THE FISCAL YEAR ENDING JUNE 30, 2011.

AMENDMENT

LCO No.: 5742

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The amendment strikes the underlying bill and its associated fiscal impact.

The amendment makes a number of revenue and appropriations adjustments to the FY 11 budget. The various changes will result in revenues exceeding appropriations by $24.1 million in the FY 11 General Fund budget. In the Transportation Fund, revenues exceed appropriations by $10.5 million in FY 11. The table below provides an overview:

Fund Balance

 

(in millions)

General Fund

FY 11

Revenue

17, 483.7

Appropriations

17, 459.6

Difference

24.1

 

 

Transportation Fund

 

Revenue

1, 178.5

Appropriations

1, 168.0

Difference

10.5

Sections 1 – 9 result in various revisions to the appropriations for agencies and accounts. The table below compares the FY 11 revised appropriations (as revised by PA 10-3, AAC Deficit Mitigation for the Fiscal Year Ending June 30, 2010) to the amendment's FY 11 appropriations.

FUND SUMMARY

GROSS APPROPRIATIONS

     

Fund

FY 11 Revised (by PA 10-3)

Amendment

Difference

General Fund

18, 004, 761, 465

18, 011, 894, 904

7, 133, 439

Special Transportation Fund

1, 201, 979, 612

1, 179, 007, 275

(22, 972, 337)

Banking Fund

23, 923, 068

20, 644, 701

(3, 278, 367)

Insurance Fund

26, 617, 652

26, 163, 552

(454, 100)

Consumer Counsel and Public Utility Control Fund

23, 957, 386

24, 499, 419

542, 033

Workers' Compensation Fund

23, 072, 391

22, 227, 678

(844, 713)

Mashantucket Pequot and Mohegan Fund

61, 779, 907

61, 779, 907

-

Soldiers, Sailors and Marines' Fund

2, 997, 543

2, 993, 404

(4, 139)

Regional Market Operation Fund

957, 073

950, 974

(6, 099)

Criminal Injuries Compensation Fund

3, 408, 598

3, 408, 598

-

GROSS TOTALS

19, 373, 454, 695

19, 353, 570, 412

(19, 884, 283)

       

Lapses

FY 11 Revised (by PA 10-3)

Amendment

Difference

DoIT Lapse

(31, 718, 598)

 

31, 718, 598

DOIT Lapse - Legislative Agencies

 

(25, 175)

(25, 175)

Enhance Agency Outcomes

(50, 000, 000)

(50, 000, 000)

-

Estimated Unallocated Lapses

(87, 780, 000)

(87, 780, 000)

-

General Other Expenses Reductions

(11, 000, 000)

(11, 000, 000)

-

General Personal Services Reduction

(14, 000, 000)

(14, 000, 000)

-

Legislative Unallocated Lapses

(2, 700, 000)

(2, 700, 000)

-

Management Reduction

(12, 500, 000)

 

12, 500, 000

Personal Services Reductions

(193, 664, 492)

 

193, 664, 492

Personal Svcs Rdctns - Exec Branch Comm

 

(87, 237)

(87, 237)

Reduce Other Expenses to FY 07 Levels

(32, 000, 000)

(32, 000, 000)

-

Reduce Outside Consultant Contracts

(95, 000, 000)

(95, 000, 000)

-

Government Efficiencies

-

(109, 742, 087)

(109, 742, 087)

State Employee Concessions

-

(150, 000, 000)

(150, 000, 000)

GENERAL FUND LAPSES

(530, 363, 090)

(552, 334, 499)

(21, 971, 409)

 

 

 

 

Estimated Unallocated Lapses

(11, 000, 000)

(11, 000, 000)

-

Personal Services Reductions

(10, 413, 528)

 

10, 413, 528

TRANSPORTATION FUND LAPSES

(21, 413, 528)

(11, 000, 000)

10, 413, 528

       

NET APPROPRIATIONS

   

General Fund

17, 474, 398, 375

17, 459, 560, 405

(14, 837, 970)

Special Transportation Fund

1, 180, 566, 084

1, 168, 007, 275

(12, 558, 809)

Banking Fund

23, 923, 068

20, 644, 701

(3, 278, 367)

Insurance Fund

26, 617, 652

26, 163, 552

(454, 100)

Consumer Counsel and Public Utility Control Fund

23, 957, 386

24, 499, 419

542, 033

Workers' Compensation Fund

23, 072, 391

22, 227, 678

(844, 713)

Mashantucket Pequot and Mohegan Fund

61, 779, 907

61, 779, 907

-

Soldiers, Sailors and Marines' Fund

2, 997, 543

2, 993, 404

(4, 139)

Regional Market Operation Fund

957, 073

950, 974

(6, 099)

Criminal Injuries Compensation Fund

3, 408, 598

3, 408, 598

-

NET TOTALS

18, 821, 678, 077

18, 790, 235, 913

(31, 442, 164)

The amendment makes appropriations, revenue, and other budget related changes as identified below for FY 11:

Sections 10 - 29 and 121 repeal the increase in the age of juvenile jurisdiction that occurred on 1/1/10. On that date the age was increased to include sixteen year olds. This will result in significant cost avoidance for DCF. Approximately $5.2 million in FY 11 was included under DCF's budget within PA 09-3 JSS (the FY 10-11 Biennial Budget Act) to support services for additional juvenile justice clients. The Judicial Department will also experience a significant cost avoidance in FY 11. Approximately $3 million was budgeted within PA 09-3 JSS to support its enhanced services for the “raise the age” cohort. These savings are reflected in section 1.

Section 30 and Section 31 have no fiscal impact. Section 30 requires the Office of Policy and Management (OPM) to annually review certain bond authorizations. Section 31 requires Finance Committee to develop criteria for items included in general obligation bond authorizations.

Agency Consolidations (Sections 32-42) – Savings Reflected in Section 1

Please note that job security provisions through FY 11 apply to all state employee labor units which have agreed to contracts in accordance with the SEBAC 2009 Agreement. This does not preclude the State from restructuring and/or eliminating positions provided those affected are transferred to another comparable job. Savings could only occur from eliminations if those eliminated state employees take state jobs that would otherwise have been filled with individuals new to state employment.

Therefore, the analysis is based on the micro level view of each consolidation and calculates the savings associated with the elimination of job duplication and overhead. It is uncertain whether there are jobs available for those eliminated under consolidation, and thus whether savings will actually occur in the budget. Impacts of proposals involving the merger of state agencies assume no resulting change in federal funding received by the state. However, in certain instances, transitioning oversight of a federally funded program from one agency to another may result in dislocation and disruption in the flow of federal funds to the state as well as generate additional short-term administrative costs. Neither of these factors is quantified in this analysis.

Section 32 consolidates the six legislative commissions into one Commission for Minority and Protected Class Citizens. The annualized savings would be $1, 132, 500 ($875, 000 for Personal Services and Other Expenses and $257, 500 for the associated fringe benefits) .

Section 33 consolidates the Division of Special Revenue into the Department of Revenue Services in FY 11. The annualized PS savings would be $497, 000.

Section 34 consolidates the Department of Public Works and DOT into one agency to be named the Department of Transportation and Infrastructure. The annualized PS savings would be $1, 674, 000.

Section 35 and 90 consolidates DEP, the Department of Agriculture, and the Board of Firearms Permit Examiners into one agency named the Department of Environmental Protection and Agriculture. The annualized PS savings would be $175, 000.

Section 36 consolidates the departments of Public Health, Social Services, Mental Health and Addiction Services, Developmental Services and Children and Families, the Psychiatric Security Review Board, and the Commission on Deaf and Hearing Impaired into one agency to be named the Department of Human Services. This is estimated to result in annualized savings of approximately $8.5 million. These savings would be achieved by eliminating duplicative positions and achievement of other operating efficiencies.

Section 37 consolidates the Departments of Education (SDE) and Higher Education (DHE) , the Board of Education and Services for the Blind (BESB) , the Commission for Educational Technology, and the State Library Board into one agency to be named the Department of Education. This consolidation would eliminate eight positions and result in $515, 000 in gross PS savings. However, the PS consolidation savings would be offset by increased salaries and wages for personnel transferring into SDE as current SDE employees' salaries are higher than those in BESB, DHE, and the State Library. Thus, it is anticipated that this consolidation could result in a net cost to the state.

Section 38 consolidates the Teachers' Retirement Board into the Office of the State Treasurer. The annualized PS savings would be $284, 000.

Section 39 consolidates the Department of Administrative Services (DAS) , the Commission on Human Rights and Opportunities (CHRO) , the Workers' Compensation Commission, and the State Contracting Standards Board into one agency to be named the Department of Administrative Services. The annualized PS savings would be $383, 000.

Section 40 consolidates the Departments of Public Safety (DPS) and Emergency Management and Homeland Security (DEMHS) , the Commission on Medicolegal Investigations, the Office of the Victim Advocate, and the Commission on Child Protection into one agency to be named the Department of Public Safety. The total annualized PS savings would be $1, 359, 000.

Section 41 consolidates Connecticut Innovations, Incorporated (CII) , the Connecticut Development Authority (CDA) , the Connecticut Housing Finance Authority (CHFA) , DECD and the Labor Department (DOL) into one agency to be named the Department of Economic Development (DED) . The total annualized savings are estimated to be $1.26 million (broken out as follows) : consolidating DECD, CII, CDA, and CHFA results in a net annualized savings of $287, 700; consolidating DOL into DED is anticipated to result in an annualized PS savings of $970, 000.

Section 42 consolidates the State Board of Accountancy into the Department of Consumer Protection (DCP) . This would result in an annualized PS savings of $103, 000.

Section 43 requires that the agency consolidations in sections 32 - 42 achieve a savings of $10.0 million in FY 11. These savings are reflected in section 1. The annualized savings from the agency consolidations in sections 32 – 42 are estimated to be in excess of $16.0 million.

Section 44 requires the Comptroller to pay all wages to state employees using a direct deposit system as of FY 11. It also requires all wage, tax and benefit information required by state or federal law to be provided to state employees on a secure Internet web site. The direct deposit requirement may be waived for temporary or seasonal employees, and in other extraordinary circumstances. An estimated $100, 000 in savings is anticipated to result from the implementation of a paperless payroll system. The savings figure does not factor in up-front costs (yet to be determined) resulting from development of the web-based data system for employee wage information. These savings are reflected in section 1.

Section 45 requires all active and retired non-union state employees to be subject to the health care coverage provisions contained in the SEBAC 2009 Agreement. Special Act 09-6 made active non-union employees subject to the SEBAC 2009 health care coverage provisions. The potential savings resulting from expansion to non-union retirees cannot be determined at this time.

Section 46 establishes an Early Retirement Incentive Program (ERIP) offered to active full-time and part-time employees who are at least 52 years of age on January 1, 2010 and have at least 10 years of actual state service; active full-time hazardous duty employees with at least 20 years of service; active members of the Teachers Retirement System who are at least 52 years of age; and active members of the Alternate Retirement Program who are at least 55 years of age on January 1, 2010 and have at least 10 years of actual state service. Eligible employees who are members of the state employees retirement system who retire in accordance with the terms of the Early Retirement Incentive Program shall be permitted to add up to three years of age. It is estimated that the General Fund and Special Transportation Fund savings resulting from the ERIP will be $64 million in FY 11. These savings are reflected in section 1.

Section 47 requires DAS, in consultation with the State Comptroller, to report on participation and savings realized from the implementation of the Early Retirement Incentive Program.

Section 48 requires DAS, in consultation with each state agency, to study the feasibility of implementing a four-day work week, provided employees continue to work the same total number of hours per week. If proven feasible, agencies can implement a four-day work week. This would result in a savings associated with utility costs and janitorial service costs. However, janitorial services are under contract and would need to be renegotiated. It is uncertain at this time which state agencies would implement a four-day work week; thus the statewide savings cannot be determined at this time.

Section 49 requires the Chief Information Officer of the Department of Information Technology to develop and implement a plan to save $5.0 million in information technology costs in the current biennium through the consolidation of information technology functions. Any savings to an appropriated fund other than the General Fund are to be transferred and credited to the resources of the General Fund for the fiscal year in which such savings are achieved. These savings are reflected in section 1.

Section 50 requires the Commissioner of DPW and the Secretary of OPM to develop and implement a plan to reduce the state cost for leasing office space for all state agencies by $6.4 million in the current biennium by: (1) renegotiating leases and (2) consolidating state employees, facilities and equipment to achieve efficiencies. Any savings to an appropriated fund other than the General Fund are to be transferred and credited to the resources of the General Fund for the fiscal year in which such savings are achieved. These savings are reflected in section 1.

Section 51 accelerates the reporting timeline, from December 31, 2010 to July 1, 2010, for the Commission on Enhancing Agency Outcomes (CEAO) . This does not result in a fiscal impact.

Section 52(a) and 52(b) (1) privatizes customer service for several Department of Motor Vehicle (DMV) services, such as licensing and registration. The estimated Personal Service and fringe benefit savings to the Transportation Fund from closing all branch and satellite offices is $17.6 million in FY 11 ($13.1 million in PS and $4.5 million in fringe benefits) . The estimate is based on the elimination of 264 positions located in DMV branch and satellite offices effective July 1, 2010. This estimate does not include liquidation of state property, cancellation of long term leases, and other building maintenance expenses.

Section 52(b) (2) may result in a net savings of approximately $2.3 million in FY 11 from outsourcing state park maintenance. It will cost DEP about $11.7 million in FY 11 to maintain the state's 106 parks. It is estimated that a 20% savings ($2.3 million) could be realized by contracting with outside entities to maintain the parks.

Section 52(b) (3) privatizes services in DDS and DCF. Achieving savings through privatization is currently limited by the language of the 2009 SEBAC agreement, which prevents state employee layoffs during FY 10 and FY 11. To the extent that changes are made that would allow for public sector workforce reductions and the conversion of services to private providers, potential savings could be achieved under various scenarios. Given the lead time required to RFP for the privatization of services, a full year of savings in FY 11 is not expected. In DCF, privatizing Connecticut Children's Place, Connecticut Juvenile Training School, and Riverview Hospital for Children and Youth would result in an annualized savings of approximately $26.6 million (if private sector costs are lower than the state by 30%) . In the DDS, privatizing Community Living Arrangement (CLAs) , Supported Living Services, and Day programs would result in an annualized savings of approximately $33 million (if private sector costs are lower than the state by 30%) .

Section 52(c) requires that privatization of the above services and contracting for supervision of inmates outside the state (see section 106) reduce expenditures by $20 million in FY 11. These savings are reflected in section 1. The annualized privatization savings associated with section 52(b) and section 106 is estimated to be $81.5 million.

Section 53 eliminates the annual Connecticut Independent College Student Grant (CICSG) appropriation to any independent college or university with a general endowment fund of over $150.0 million. There are currently six colleges or universities meeting this criteria, including: Connecticut College, Fairfield University, Quinnipiac University, Trinity College, Wesleyan University, and Yale University. It is anticipated that this will result in a savings of approximately $6.1 million in FY 11. These savings are reflected in section 1.

Section 54 provides an additional $10, 575, 000 to the rail subsidy account to offset projected shortfalls in the Metro North/New Haven Line operations, which is anticipated to prevent unscheduled fare increases for FY 11. Under current law, all fares originating or terminating in Connecticut are scheduled to increase as follows: (1) 1.25% in 2010 and (2) 1% annual increases between 2011 and 2016. The revenue generated from these increases are earmarked for debt service and capital investments associated with rail car purchases for the New Haven Line. This is reflected in section 2.

Section 55(a) requires the state to negotiate additional concessions from SEBAC totaling $150 million or more that may include, but not be limited to, (1) additional furlough days, (2) elimination of longevity payments, (3) layoffs resulting from the consolidation, merger, closure or elimination of state agencies, offices, departments or programs, (4) increases in copayments for prescription drugs, office visits and hospitalizations, (5) increased contributions for health insurance, (6) conversion of the defined benefit state employees' pension plan to a defined contribution pension plan, (7) substitution of health savings accounts for current insurance plans, (8) reduction in the number of paid holidays, (9) reduction in the number of allowable accrued vacation days, (10) a wage freeze, and (11) wage reductions pursuant to section V of the SEBAC 2009 Agreement. The savings would be contingent on the outcome of negotiations between the State and SEBAC. These savings are reflected in section 1.

Section 55(b) states that if the SEBAC concessions are less than $150 million, the state's contribution to the state employees retirement system may be reduced by $150 million in FY 11. This provision would be contingent on the outcome of negotiations between the State and SEBAC.

Section 56 limits the number of Deputy Commissioners a state agency can have to one. This would result in 3 positions being eliminated with an estimated savings of $442, 087 in FY 11. The savings reflect total wage savings including fringe benefits. These savings are reflected in section 1.

Section 57 entitles only the Governor to a driver at state expense. This section has no fiscal impact as the Governor is the only state employee who has a driver (who is a member of the Governor's security detail) . There may be other state employees who perform driving duties for certain public officials; however those employees are assigned other full-time duties and are not being compensated for time spent driving.

Section 58 reduces the salary of members and officers of the General Assembly, constitutional officers, commissioners of state agencies, and executive directors of boards and commissions by 10% in FY 11. This would result in an estimated savings of $1.1 million in FY 11. These savings are reflected in section 1.

Section 59 eliminates transportation allowances, reimbursement for conference expenses, and related travel expenses for members of the General Assembly and legislative employees. This results in a savings of $1, 240, 000 in FY 11. These savings are reflected in section 1.

Section 60 eliminates unsolicited mailings by legislators and results in a savings of $1, 400, 000 in FY 11. These savings are reflected in section 1.

Section 61 expands the use of on-line reverse auctions to award certain outside service contracts.1 By design, the real-time auction process is administratively efficient and encourages bidders to offer the lowest price by immediately awarding the contract to the lowest bidder at the close of the auction. The state, its political subdivisions, and school districts are expected to achieve savings to the extent that the expanded reverse auction authority provided by the amendment is utilized. It should be noted that unlike purchasing goods and supplies, reverse auctions may not always be the ideal method in awarding contracts for service when factors in addition to price must also be considered.

Section 62 expands the scope by which the Commissioner of DAS may serve as a contracting agent for a group of three or more municipalities to include purchase of services. This arrangement would only be permitted if the municipalities would achieve a savings greater than the administrative costs to the state. It is anticipated that municipalities would achieve savings to the extent that the expanded purchasing is utilized.

Section 63 of the amendment delays, from FY 11 to FY 12, the law limiting out-of-school suspensions, which may have resulted in school districts having to provide alternative in-school programs that are not currently utilized. This results in a cost avoidance for FY 11 for the state technical high school system as well as local and regional school districts, as it delays the need for a potential increase in staff, which most likely would have been minimal, although larger school districts with numerous suspensions may have seen costs which could have been considered significant.

Section 64 exempts municipalities from having to post public meeting minutes on their websites. This may result in a minimal savings to certain municipalities.

Section 65 may result in a savings to various municipalities, as it requires a two-thirds vote by the House and Senate for the General Assembly to enact any bill that creates or enlarges a state mandate to local governments. This may result in fewer such mandates being enacted or enlarged, which would reduce potential future state mandate costs to municipalities.

Sections 66 - 72 make various changes to statutory language regarding the sale of state real property until July 1, 2015. These changes will result in an increase to General Fund revenue to the degree that they expedite the sale of such property.

Sections 73 and 74 result in a potential fiscal impact to the state. The potential cost would depend on a number of factors for those cases where telecommuting is determined to be cost effective: 1) the number of additional state employees who are authorized to telecommute; 2) how much, if any, additional equipment must be purchased by the state to facilitate a telecommuting arrangement; and 3) increased workers' compensation liability arising out of at-home work station injuries. If the state has to purchase an additional computer, printer, security software, internet access, and designated phone line, the average cost per employee could exceed $3, 000. To the extent that an employee has their own equipment, deemed safe and secure by the state, the cost may be less.

Sections 75 - 89 and 124 streamline the current process of filing affirmative action plans by 1) requiring electronic submittal, 2) reducing filing frequency, and 3) allowing a federal affirmative action plan to be filed instead of a second separate state plan. It is anticipated that various state agencies may achieve potential savings associated with the elimination of job duplication and administrative overhead.

There are currently 47 affirmative action or equal employment opportunity positions statewide with an average annual salary of $75, 000.2 Savings would result to the extent that streamlining the affirmative action plan process results in the elimination of these or other associated positions. Job security provisions through FY 11 apply to all state employee labor units which have agreed to contracts in accordance with the SEBAC 2009 Agreement. This does not preclude the State from restructuring and/or eliminating non-union positions or from eliminating union positions, provided those union positions affected are transferred to another comparable job. These savings would be offset by unemployment compensation benefits costs and accrual payouts.

The amendment also removes CHRO from a number of aspects of the state's supplier diversity (set-aside) program. Responsibility is transferred for reviewing, approving, and monitoring of affirmative action plans from CHRO to DAS. It is anticipated that there would be a net transfer of positions from CHRO to DAS as a result of these provisions.

Section 91 reduces the transfer between the General Fund and Special Transportation Fund. This results in a net revenue gain to the General Fund and revenue loss to the Transportation Fund of $16.05 million in FY 11. This is reflected in the revised revenue estimates in sections 117-120. The table below breaks down the fiscal impact.

Transfer from General Fund (GF) to Special Transportation Fund (STF)

 

FY 10

FY 11

PA 09-8 SSS

$81, 200, 000

$126, 000, 000

PA 10-3 (4/20/10)

($10, 000, 000)

($1, 950, 000)

New Law

$71, 200, 000

$124, 050, 000

     

Amendment

$71, 200, 000

$108, 000, 000

     

Net Impact GF

$0

$16, 050, 000

     

Net Impact STF

$0

($16, 050, 000)

Section 92 and 93 will result in the transfer of approximately $44 million from the Citizens' Election Fund (CEF) to the General Fund in FY 11. This amount represents the current balance of $43 million in addition to $1 million in revenue scheduled to be transferred from the GF to the CEF in FY 11. Note that the $1 million is the balance of planned transfers in FY 11: $18 million total (per CGS 3-69a) less $17 million already taken in the biennial budget as amended by HB 5455. This is reflected in the revised revenue estimates in sections 117-120.

Section 94 transfers $5 million from the Stem Cell Fund to the General Fund, which will reduce possible FY 11 grant awards. Under CGS 4-28e, $10 million dollars is disbursed from the Tobacco Settlement Fund to the Stem Cell Research Fund each fiscal year for grants-in-aid to eligible institutions for the purpose of conducting embryonic or human adult stem cell research. As of 4/13/10, the balance in the Stem Cell Fund was approximately $11.9 million. Approximately $6.9 million would remain in the Stem Cell Fund after the transfer. This is reflected in the revised revenue estimates in sections 117-120.

Section 95 requires the appropriations for the University of Connecticut and the Connecticut State University education block grants for the fiscal year ending June 30, 2012 be the same as the appropriations for the fiscal year ending June 30, 2011. The FY 11 appropriations for the University of Connecticut and the Connecticut State University are $235.7 million and $163.1 million respectively.

Sections 96 - 99 eliminate the automatic authorization and allocation of $686.5 million in General Obligation (GO) bonds for the UConn 21st Century Infrastructure Improvement program effective July 1, 2010. This will require the University of Connecticut to go through the State Bond Commission to obtain the funds to continue the program, which could result in a delay in the construction of some of the projects. The fiscal impact of any delay is unclear because of current economic conditions in the construction industry.3

Sections 100 - 103 and 123 (repealer) eliminate the automatic authorization and allocation of $665 million in General Obligation (GO) bonds for the CSUS 2020 Infrastructure Improvement program effective July 1, 2010. This will require the Connecticut State University System to go through the State Bond Commission to obtain the funds to continue the program, which could result in a delay in the construction of some of the projects. The fiscal impact of any delay is unclear because of current economic conditions in the construction industry.

Section 104 requires that any savings realized under sections 33 to 43, 45 to 47, 52 and 55 of this act, to an appropriated fund other than the General Fund, be transferred and credited to the resources of the General Fund in FY 11. This is reflected in the fiscal note.

Section 105 transfers $9.0 million from the Banking Fund to the General Fund. This is reflected in the revised revenue estimates in sections 117-120.

Section 106 makes a clarifying change to statute authorizing the commission of correction to contract for supervision of up to 500 inmates outside Connecticut. On an annualized basis, it is projected that approximately $2 million would be saved should 500 inmates be served outside the state.

Section 107 requires a report concerning integrated pest management by DEP and changes compliance dates concerning lawn pesticides at schools. This section has no fiscal impact.

Sections 108 – 116 authorize the sale of Bradley International Airport and Hartford-Brainard Airport. Section 116(b) requires that the sale of these airports is to be completed so as to achieve $800 million in revenue in FY 11. This is reflected in the revised revenue estimates in sections 117-120.

Sections 117 – 120 reflect the revised revenue estimates. The total revenue for the General Fund in FY 11 is $17, 483, 700, 000. The total revenue for the Transportation Fund in FY 11 is $1, 178, 500, 000.

Section 122 repeals section 24 of PA 10-3. This section clarified the Department of Social Services' current authority to request the lowest price offered to private pharmaceutical purchasers. This “most favored nation” provision was anticipated to result in a net savings of $6 million in FY 11. The repeal is reflected in section 1 and in the revised revenue estimates in sections 117-120.

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 Under current law, the state, municipalities and school districts may use a reverse auction to award contracts for goods and supplies.

2 Of these 47 positions, 2 are currently union and 45 are non-union. These positions do not include administrative staff that may support these functions.

3 Generally, the cost of construction would be expected to increase due to inflation if a project is delayed but the current economic downturn has caused construction costs to decline.