OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

EMERGENCY CERTIFICATION

HB-6651

AN ACT IMPLEMENTING PROVISIONS OF THE BUDGET CONCERNING GENERAL GOVERNMENT.

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

This bill implements provisions of PA 11-6 (the biennial budget) and makes various other changes.

GENERAL GOVERNMENT

Section 1 creates a medical exception from the provision that Medicaid clients may only get one pair of glasses every two years. It is not known how many Medicaid clients may meet this exception. PA 11-6 (the biennial budget act) contained savings of $825,000 in FY 12 and $950,000 in FY 13 from restricting eyeglasses to one pair every two years.

Section 2 makes a technical change related to the establishment of the Bureau of Rehabilitative Services and does not result a fiscal impact.

Section 3 makes a technical change and does not result in a fiscal impact.

Section 4 makes a technical change and does not result in a fiscal impact.

Section 5 directs that $100,000 of the Operation Fuel funds appropriated to the Department of Energy and Environmental Protection (DEEP) is to be used for Operation Fuel's administration of the emergency energy program.

Section 6 carries forward an estimated $100,000 in Other Expenses for the Department of Banking into FY 12 for a software upgrade.

Section 7 carries forward an estimated $15,000 in Equipment funding for the Department of Banking into FY 12 for a software upgrade.

Section 8 carries forward an estimated $300,000 in Equipment for the Department of Motor Vehicles (DMV) into FY 12 and FY 13 to replace the roof at the DMV Enfield office.

Section 9 carries forward an estimated $100,000 in Other Expenses for the DMV into FY 12 and FY 13 to replace the roof at the DMV Enfield office.

Sections 10-11 clarify the timelines and payment procedures for assessments paid by banks and credit unions to the Department of Banking.

Sections 12-13 transfer the Executive Director of the Capital City Economic Development Authority (CCEDA), with an annual salary of $143,550, from the Office of Policy and Management's payroll, to CCEDA. PA 11-6 (the biennial budget) contains $6. 3 million in FY 12 and FY 13 for CCEDA, it is anticipated that these resources will be sufficient to handle this transfer.

Section 14 makes the Office of Policy and Management (OPM) responsible for the planning functions for the state's information and telecommunications systems. PA 11-6 (the biennial budget) transfers three positions and associated funding of $300,412 in FY 12 and $289,437 in FY 13 from the Department of Information Technology to OPM to implement these provisions.

Section 15 requires interest earned on the Soldiers Sailors and Marines Fund (SSMF) to be transferred to the General Fund under the following conditions:

1. the interest income earned exceeds the expenditure level required by the SSMF; and

2. there remains a cumulative balance to be repaid to the General Fund from any appropriations made on or after July 1, 2002.

The Office of State Comptroller estimates that approximately $4 million in total were appropriated from the General Fund to the SSMF since FY 03. To the extent that the interest earned on the SSMF exceeds expenditure levels required by the agency, there could be a potential revenue gain of up to $4 million to the General Fund. The payment is dependent upon the investment performance of the SSMF. Any future appropriations from the General Fund to the SSMF are also required to be repaid under the conditions listed above.

Section 16 results in a potential revenue gain for the Military Department by allowing certain nonprofit corporations to hold fundraisers supporting the Governor's Horse Guards and their respective facilities. The revenue gain is dependent upon the number of fundraisers conducted as a result of the provision.

Section 17 permits the Auditors of Public Accounts (APA) to reject a whistleblower complaint or refer it to another entity and requires them to submit a joint report to the legislature on how they have modified the whistleblower process. This could result in staff hour savings approximate to one full-time employee (the average salary of an auditor is approximately $84,000, not including fringe benefits). However, it is anticipated that APA would shift staff resources from performing approximately 126 whistleblower complaint cases per year to other duties, such as state agency performance audits and compliance audits of eight quasi-public entities.

Section 18 requires the Legislative Program Review and Investigations (PRI) Committee to submit a report concerning certain recommendations made to the Attorney General and Auditors of Public Accounts on or before February 1, 2012.    There is no fiscal impact associated with this provision.

Section 19 prohibits any appointed Auditor of Public Accounts from receiving mileage reimbursement in FY 12 and FY 13. Savings of $23,000 in both FY 12 and FY 13 implements the budget and is included in PA 11-6 (the biennial budget), for this for this purpose.  

Section 20 requires the Commission on Human Rights and Opportunities (CHRO), in consultation with the Department of Administrative Services (DAS), to conduct a disparity study concerning the state's current set-aside program for minority businesses and contractors and will result in a one-time cost in the range of $500,000 to $1 million. PA 11-6 (the biennial budget) includes $500,000 in both FY 12 and FY 13 for a disparity study.

Disparity studies of the state's procurement and contracting practices would determine the level of utilization of minority and woman-owned businesses when compared to their availability within the state. These studies are based on statistical, legal, historical, and economic data, as well as interviews with business owners. The findings provide evidence of past discrimination that the U. S. Supreme Court deems necessary to validate Minority and Women-owned Business Enterprise (M/WBE) programs throughout the country.

Section 21 may result in a potential cost of up to $180,000 to the Department of Public Safety (DPS) by allowing the Commissioner of DPS to appoint up to 12 Majors as classified service employees. The cost is dependent upon the Commissioner's decision to appoint additional Troopers to the rank of Major. Currently there are four ranking Majors in the Department. Assuming eight Captains are promoted to Major, the resulting cost could be up to $180,000 in associated annual salary increases.

Section 22 requires the constituent units of higher education to fully utilize the CORE-CT system. This results in no fiscal impact as the section requires best efforts to achieve the requirements.

Section 23 carries forward an estimated $200,000 in the Connecticut Impaired Driving Records Information System (CIDRIS) account for the Office of Policy and Management into FY 12 and FY 13 to support the implementation and integration of the CIDRIS.

Section 24 transfers an estimated $60,000 in the Other Expenses account to the newly created Criminal Justice Information System/Connecticut Information Sharing System account within the Office of Policy and Management. These funds were carried forwarded in PA 11-6 (the biennial budget) and are used for the design and implementation of the Criminal Justice Information System.

Sections 25-26 authorize municipalities and other taxing districts to issue temporary motor vehicle registrations to persons making full payment of (1) delinquent property taxes, or (2) more than five unpaid parking violation fines. It is anticipated that any municipality or taxing district choosing to do so would incur costs to the extent that local resources allow. A revenue gain would ensue as the municipalities/districts would retain the fee for any such temporary registration. Current fees for each ten-day period are: $20 for a non-commercial motor vehicle; $25 for a commercial vehicle having a gross weight of 6,000 lbs. or less; and $46 for a commercial vehicle having a gross weight of more than 6,000 lbs. It is anticipated that the Department of Motor Vehicles could adopt regulations without incurring unbudgeted costs.

Section 27 implements the budget by eliminating the vision screening program. Funding is not provided in the budget act (PA 11-06) for this program.

Section 28 adds email to the list of personal information that cannot be disclosed, which results in no fiscal impact.

Section 29 requires the Secretary of the State to establish an electronic business portal including registration and licensing information and links to other state agencies and quasi-public agencies. The cost to establish this portal is approximately $900,000 in FY 12.

It is assumed that funding for the electronic business portal project would be provided through the $5. 5 million General Obligation (GO) bond authorization to the Secretary of the State in SB 1008, An Act Authorizing Bonds of the State for Capital Improvements and Other Purposes.

Section 30 establishes a task force to study the distribution of funds to municipalities. The Office of Legislative Management would incur minimal FY 12 costs, estimated to be less than $5,000, associated with mileage reimbursement of 51 cents per mile for legislators (who seek such reimbursement) participating on the task force.

Sections 31-33 eliminate the section numbering for certain parts of the Governor's Recommended budget documents the Office of Policy and Management is required to prepare. This results in no fiscal impact. Additionally, these sections make procedural changes concerning the Governor's recommended appropriations for Judicial Branch agencies, which will not result in a fiscal impact. Specifically, it clarifies that the appropriations recommended for the Judicial Department, not judicial branch agencies, shall be the department's estimates submitted to the Office of Policy and Management as part of their budget request package.

Sections 34-36 require state employee wages and retiree pension benefits to be paid by direct deposit rather than paper check. The direct deposit requirement may be waived at an employee's or retiree's request. PA 11-6 (the biennial budget) includes reduced funding of $18,500 in FY 12 and $86,000 in FY 13 to reflect savings anticipated to result from implementation of mandatory direct deposit.

Section 37 consolidates the Board of Accountancy into the Office of the Secretary of the State as a separate line item within the Secretary of the State budget. Funding of $350,000 is provided in PA 11-6 (the biennial budget act) in both FY 12 and FY 13.

Section 38 requires effective October 1, 2012, that all health care institutions caring for newborns to test infants for Severe Combined Immunodeficiency Disease (SCID). This results in a total cost of $166,285 in FY 12 and an annualized cost of $221,713 in FY 13. It is anticipated that the Commissioner of Public Health will exercise her authority under CGS Sec. 19a-55a and increase the newborn screening fee to cover this increased cost.

Section 39 increases the transfer of funding from newborn screening fee receipts to the Department of Public Health from $900,000 in FY 12 and FY 13 to $1,121,713 in FY 12 and FY 13 to support costs associated with Section 38 of the bill.

Section 40 makes changes to the membership of the Teachers' Retirement Board that have no fiscal impact.

Section 41 carries forward $150,000, of which $75,000 in each FY 12 and FY 13 in the Environmental Quality account within the Department of Environmental Protection for the Long Island Sound Assembly (LISA).

Section 42 transfers funding of $50,000 in FY 12 and FY 13 from the Probate Court Administration Fund surplus to the Judicial Department, which will be used for a grant to the Child Advocates of Connecticut in order to provide child advocacy services in Stamford and Danbury. Section 42 also increases the amount of funds transferred from the Probate Court Administration Fund surplus to the Judicial Department by $15,000 for the expansion of the Child in Placement, Inc. program in the Danbury probate court.

Sections 43-49 implement certain Generally Accepted Accounting Principle (GAAP) procedures. These sections will put the state on a GAAP basis starting in FY 14 and sets aside funds in FY 12 and FY 13 to prevent further increase in the GAAP deficit which currently stands at about $1. 5 billion. These sections also authorize the paying down of the accumulated GAAP deficit over 15 years, which would be about $100 million per year, beginning in FY 14. These GAAP changes have the effect of reducing available surplus funding that exist or would exist under the modified cash basis of accounting that the state currently uses.

Section 50 establishes a voluntary regional consolidation grant pool for two or more regional planning organizations that choose to merge. PA 11-6 (the biennial budget) contains $300,000 in both FY 12 and FY 13 for this purpose.

INTERLOCK DEVICES (51-57)

Sections 51 to 57 result in (a) a penalty diversion of federal funds to the Department of Transportation's (DOT) construction programs, (b) a programming cost to the Department of Motor Vehicles (DMV), and (c) a potential revenue gain to the Interlock Administrative Account. Detailed impacts are described below.

Department of Transportation

Connecticut receives approximately $204 million per year in federal highway construction funds. States are subject to federal restrictions on the use of these funds. If a state does not enact a repeat intoxicated driver law (23 CFR 1275), which requires at least a one year license suspension or restricting driving privileges for anyone convicted of a second or subsequent DWI or DUI offense, a portion of the highway construction funds must be diverted to highway safety programs.

For repeat offenders, the amendment reduces the mandatory license and driving privileges suspension time period from one year to 45 days. This change is anticipated to put Connecticut out of compliance with federal law and trigger a 3% penalty diversion (approximately $6. 1 million per year) of federal highway funds from construction projects to highway safety programs beginning in FY 13.

Department of Motor Vehicles (DMV)

There is a one-time cost of $50,000 in FY 12 to the DMV for development and programming of a database for tracking individual ignition interlock devise user sobriety results and reprogramming the interface system between the Driver History System and the Judicial Department.

There is a potential revenue gain of less than $100,000 annually to the Interlock Administrative Account as a result of the possible increase in the number of ignition interlock devises installed and $100 application fee. This account was established by PA 10-110 specifically for the DMV to cover costs associated with administering the interlock device program. Therefore, it is anticipated that any additional funds collected will be fully expensed in the fiscal year deposits are made. The account is not anticipated to have a remaining balance by the end of each fiscal year due to the fact that it is used to cover the costs of administering the program.

Judicial Department and DMV Supervision

Section 52 requires the Court Support Services Division (CSSD) of the Judicial Department to supervise persons who are required to install an ignition interlock devise while they are subject to probation. It is expected that an estimated 1,000 offenders would be supervised by CSSD pursuant to the amendment. As these offenders are already being supervised under probation, the Judicial Department would not incur additional costs.

There is no cost to the DMV related to supervision of persons required to install an ignition interlock devise. It is expected that the period that offenders are subject to an ignition interlock devise will coincide with the terms of their probation. As a result, CSSD will supervise these offenders for the length of time in which they are subject to an ignition interlock devise. On average, a first conviction for driving under the influence of alcohol results in a probationary period of 18 months, and subsequent convictions on average result in a probationary period of up to five years.

Reporting Requirement

Section 57 creates reporting requirements that would not result in additional costs to the DMV or CSSD

OFFICE OF GOVERNMENTAL ACCOUNTABILITY (58-76)

Sections 58-76 establish the Office of Governmental Accountability (OGA). Funding of $9,298,852 in FY 12 and $9,028,241 in FY 13 and 86 positions for OGA were provided in PA 11-6 (the biennial budget). The positions and funding of the following agencies and programs are transferred into OGA as follows:

The consolidation results in a reduction of 23 positions and reduces funding of $1. 5 million in FY 12 and $1. 8 million in FY 13. The bill establishes an executive administrator position to oversee the back office functions of OGA.

ECONOMIC DEVELOPMENT (77-173)

Sections 78, 96–101,104– 120, 125 – 132, 136 – 173 implement the budget by consolidating the Commission on Culture and Tourism (CCCT) into the Department of Economic and Community Development (DECD). These sections transfer the functions of CCCT into DECD and make various other technical changes. There are no associated savings related to this merger.

Sections 77, 81-83, 85, 87-95 implement the budget by consolidating the Office of Workforce Competitiveness (OWC) into the Department of Labor.

Sections 102-103 require that the funding of $1,495,596 in the Department of Economic and Community Development for the tourism districts be divided evenly among the three statewide districts.

Section 80 requires the Department of Economic and Community Development to prepare a two-year strategic plan to implement the culture and tourism-related statutory function. It is anticipated that the DECD can prepare this plan at no cost.

Nanotech/SBIR

Sections 84 and 86 transfers programs associated with the Nanotechnology grant and the Small Business Innovation Research matching grant from the Office of Workforce Competitiveness into the Department of Economic and Community Development.

Other Items

Section 116 requires owners of historic structures who seek financial assistance in preserving such structures to file with the municipality a covenant guaranteeing the preservation of the historical quality of the structure. This codifies current practice and therefore results in no fiscal impact.

Sections 121 – 122 expand certain historic preservation tax credits, which results in a revenue loss to the state to the extent that these expanded credits result in increased utilization. Section 121 establishes municipalities as eligible owners under the historic preservation tax credit program, which would allow them to earn and transfer credits under this program. To the extent this occurs, there is a potential revenue gain to various municipalities.

The tax credit in Section 121 is subject to a $15 million credit cap per fiscal year, with no more than $2. 7 million in credits allowable per eligible rehabilitation. There have been no claims to date for this program as of December 2010.

The tax credit in Section 122 is subject to a $50 million cap in credit vouchers from the period beginning July 1, 2008 and ending June 30, 2011. There were no claims for this program in FY 10.

Sections 123-124 make the Department of Economic and Community Development commissioner the chairperson of the Connecticut Development Authority and Connecticut Innovations, Inc. There is no associated fiscal impact.

Community Investment Act

Sections 133-135 remove the sunset date of July 1, 2011 for termination of the current structure of CIA payments to four state agencies for various purposes: (1) the Connecticut Commission on Culture and Tourism (CCCT), (2) the Connecticut Housing Finance Housing Authority (CHFA), (3) the Department of Environmental Protection (DEP), and (4) the Department of Agriculture (DAG).   The amendment makes the amount of the land recording fee permanent at $40 for each document, with $36 of each transaction remitted to the state.   Municipalities would retain $4 of each transaction.  

These sections also change the structure of the CIA payment remitted to the DAG and CCCT.   Under the amendment, (1) DAG would receive $10 of each land recording fee collected for the agricultural sustainability account and (2) CCCT would receive 25% of the remaining funds.  

In addition, the amendment provides allocations from DAG's share of CIA revenues for the following purposes: (1) $47,500 annually for the Seafood Advisory Council, (2) $47,500 annually for the CT Farm Wine Development Council, and $25,000 annually for the CT Food Policy Council.  

These sections also make various changes to the community investment act (CIA) statutes including (1) changing the name of the program from the land protection, affordable housing and historic preservation account to the community investment account (CIA), and (2) clarifying when the Commissioner of Agriculture would determine the average baseline cost of milk production in a New England state based on certain data.  

EDUCATION (174-210)

Sections 174-182 extend the caps for various grants within the State Department of Education (SDE) through FY 13. Without such caps, the state would be obligated to pay additional funds to municipalities totaling $76. 6 million in FY 12 and $96. 9 million in FY 13. The table below illustrates the amount for each grant that is included in the budget and the amount that is saved as a result of extending the cap:

 

Funding Included in the Budget

Resulting Savings due to Extending Cap

Grant

FY 12 ($)

FY 13 ($)

Savings 12 ($)

Savings 13 ($)

Health Services for Private Schools

4,297,500

4,297,500

(3,049,758)

(3,560,392)

Public Transportation

25,784,748

24,884,748

(40,784,594)

(46,180,509)

Non Public Transportation

3,595,500

3,595,500

(1,384,762)

(1,578,971)

Adult Education

21,032,980

21,025,690

(1,321,202)

(2,008,452)

Bilingual Education

1,916,130

1,916,130

0

0

RESC Operations

1,434,613

1,384,613

0

0

Excess Cost

139,805,731

139,805,731

(30,046,534)

(43,566,774)

Total

197,867,202

196,909,912

(76,586,850)

(96,895,098)


Section 183
maintains the per-pupil grants at Interdistrict Magnet Schools at the FY 11 level, through FY 13
. This provisions implements the magnet school appropriation of $215. 9 million in FY 12 and $235. 4 million in FY 13, which are contained in PA 11-6 (the biennial budget).

Section 184 does not allow the Hartford school district to charge tuition for any student enrolled at an interdistrict magnet school. This will preclude a revenue gain to the City of Hartford and result in a potential savings to any sending district that has students attending a Hartford interdistrict magnet school. The scope of the precluded revenue gain is indeterminate and would be dependent upon tuition rates.

Section 185 requires the Regional Education Service Center (RESC) Alliance to study issues related to regional school transportation and a uniform school calendar. PA 11-6 (the biennial budget) contains $50,000 in FY 12 within SDE to provide resources for the RESC Alliance to study statewide transportation issues and a uniform school calendar. Correspondingly, the budget contains a $1 million reduction in the Public Transportation grant in FY 13 associated with transportation related savings achieved as a result of the recommendations by the RESC Alliance.

Section 186 requires the Commissioners of Education and Social Services to develop a plan to integrate child day care services into the school readiness program. This study is not anticipated to result in a fiscal impact. However, PA 11-6 (the biennial budget) transfers one position and $16. 4 million in both FY 12 and FY 13 associated with the Social Services Child Day Care Program, from the Department of Social Services (DSS) to SDE. Additionally, the budget contains an additional $1. 97 million in both FY 12 and FY 13 in SDE to increase the DSS school readiness slots to be at the same level as the SDE rates ($5,346 full day, full year). Lastly, $1. 1 million is transferred in both FY 12 and FY 13 from DSS to SDE associated with the School Readiness Enhancement grant.

Section 187 requires that any unused funds appropriated in the budget for FY 12 to SDE for child care services continue to be available for school readiness programs in FY 13. This redistribution of funds would reduce the lapse total for the state.

Section 188 makes various changes to the OPEN Choice program. Beginning in FY 12 the bill increases state grants to a receiving district for each out-of-district student from $2,500 to $3,000 (where OPEN Choice students are less than 2% of the district's total population), from $2,500 to $4,000 (for districts with 2-3% OPEN Choice enrollment), and from $2,500 to $6,000 (with at least 3% OPEN Choice enrollment). The bill states that grants to receiving districts be done within available appropriations. PA 11-6 contains $19. 8 million for the OPEN Choice program for FY 12 and $22. 1 million for FY 13.

Additionally, Section 188 establishes a new supplemental grant associated with the OPEN choice program. If there are additional funds available after receiving district grant payments are made, and the first $500,000 in supplemental grants are issued, the bill allocates an additional $500,000 to be given to various districts that enrolled more OPEN Choice students than they did the year before.

Lastly, Section 188 allows the Commissioner of Education to use any excess funds to increase OPEN Choice enrollment rather than having the excess funds used for interdistrict cooperative grants. This is not anticipated to have an impact on the interdistrict cooperative grant as no lapsing funds have been used for this purpose.

Section 189 establishes a taskforce to study the Education Cost Sharing (ECS) formula. Agencies would incur minimal costs, estimated to be less than $5,000, associated with mileage reimbursement of 51 cents per mile for legislators and agency staff (who seek such reimbursement) participating on the task force.

Section 190 establishes the minimum budget requirement. For FY 12 districts must budget at least the amount they budgeted in FY 11 plus any reduction made to offset for ARRA funds paid directly to boards of education. There are a number of specified exceptions that would allow a municipality to reduce their budgeted appropriation. However, if a municipality does not qualify for one of the exceptions, the municipality would be precluded from making any downward adjustments to their local education budgets.

Section 191 establishes a taskforce to study issues related to the vocational-technical schools. Agencies would incur minimal costs, estimated to be less than $5,000, associated with mileage reimbursement of 51 cents per mile for legislators and agency staff (who seek such reimbursement) participating on the task force.

Section 192 and 193 authorizes the Office of Policy and Management to adjust its equalized net grand list (ENGL) calculation for towns opting to phase in an increase in assessed values for real property after a revaluation. This adjustment will prevent towns from appearing artificially poorer. This will result in towns continuing to receive state grants in amounts they otherwise would have received without the phase-in.

Section 194 extends, through FY 13 SDE's authority to retain $198,200 of the school readiness grant appropriation for coordination, program evaluation, and administration. This is not anticipated to result in a fiscal impact as it is extending current practice.

Section 195 allows the education commissioner to transfer funds from the Sheff Settlement account to: (1) the vocational-technical school, (2) the interdistrict grant program, (3) charter schools, (4) OPEN Choice program, and (5) magnet schools. This allows for greater flexibility between the accounts and allows SDE to optimize participation in programs that will help to meet the goals required under the Sheff court order.

Sections 196 and 210 (1) extends the $2,000 transportation grant for magnet schools helping to meet the Sheff goals, through FY 13, and (2) allows the commissioner of education to provide supplemental transportation grants to Regional Education Service Centers (RESCs). It is anticipated that there are approximately $5 million in costs to cover these supplemental payments in FY 11. This provisions implements the magnet school appropriation of $215. 9 million in FY 12 and $235. 4 million in FY 13, which are contained in PA 11-6 (the biennial budget).

Section 197 does not result in a fiscal impact.

Section 198 which reduces the threshold to qualify as a severe need school for the state school breakfast grant, is anticipated to result in an additional cost of at least $586,196, which is included in PA 11-6 (the biennial budget).

There are two factors that increase the cost of the grant: (1) the base entitlement and (2) the per meal reimbursement.

BASE ENTITLEMENT:

The base entitlement provides each participating school a grant of $3,000.

The base entitlement for the districts currently participating in the program would increase by $252,000 (84 additional schools). In addition to the districts already participating, it is estimated that an additional 105 schools would now be eligible, which would result in an additional cost of $315,000.

PER MEAL REIMBURSEMENT:

The per meal reimbursement is currently funded at 2. 78 cents per meal.

It is anticipated that the additional 84 new schools, located in the districts that are currently participating, would result in an additional 690,213 meals, which results in an additional cost of $19,196.

What is unknown is how many additional meals would result from the 105 new schools that are not currently participating in the program. Each additional 100,000 meals equates to an additional $2,780.

Section 199 carries forward $405,000 of an FY 11 appropriation to SDE for Magnet School Administration and $405,000 of an FY 11 appropriation to SDE for Charter Schools; (2) transfers both amounts to the Sheff Settlement Account; and (3) makes them available for developing magnet school programs at the River Academy at Goodwin College in East Hartford during FY 12 and FY 13, respectively.

Section 200 increases the per pupil grant amount for students attending state charter schools from $9,300 to $9,400. This is anticipated to result in an additional cost of $607,100 in FY 12 and $645,100 in FY 13 (this additional funding is contained in PA 11-6, the biennial budget).

Section 201 extends through FY 13, an existing allocation of $2,610,798 in supplemental priority school district grants to the three largest school districts (Bridgeport, Hartford, and New Haven).

Section 202 and 203 impact the grant amounts given to vocational agriculture schools. Section 202 extends the current $9,687 foundation for the ECS formula, which is tied to the vocational agriculture formula, and freezes the maximum tuition amount that a center can charge for another year. This provisions implements the vocational agriculture appropriation of $5. 1 million in FY 12 and FY 13, which are contained in PA 11-6 (the biennial budget).

Additionally, Section 203 allocates an additional $500,000 in FY 12 and FY 13 to be distributed among all vocational agriculture schools. This additional funding is contained in PA 11-6 (the biennial budget).

Sections 204 and 205 create a college transition pilot program that is anticipated to result in an additional cost of approximately $320,000. The pilot program will be offered at three adult education program locations, and will target 25 individuals per program. It is anticipated that each of the pilot locations will require $90,000, and this funding will provide for counseling, instructors and instructional supplies for each of the 25 students. Additionally, $50,000 is required for the State Department of Education (SDE) for administrative and evaluation expenses, including: developing an RFP, administering the grants, and monitoring and evaluating student performance.

Additionally, the bill creates a college transition pilot program at James Hillhouse High School in collaboration with Gateway Community College. It is anticipated that this program will cost $90,000 with an additional $10,000 needed for administrative and evaluation expenses.

PA 11-6, (the biennial budget) contains the $420,000 in FY 12 and FY 13 required for the four new programs.

Sections 206-207 transfer the Neighborhood Youth Centers and Leadership, Education, and Athletics in Partnership (LEAP) grants from the Office of Policy and Management to SDE. Funds of $2,337,000 are transferred in both FY 12 and FY 13, in PA 11-6, $850,000 from LEAP and $1,487,000 for Neighborhood Youth Centers1.

Section 208 places a moratorium for FY 12 and FY 13 on new students receiving financial assistance under the Capitol Scholarship grant program. In addition to the moratorium, grants are proportionately reduced in order to be in line with the total appropriation for the program, which is $4. 5 million in both FY 12 and FY 13.

Section 209 extends a requirement through FY 13, that a public library must not reduce its annual tax levy or appropriation below the average amount for the proceeding three years, in order to meet the maintenance of effort (MOE) requirements to be eligible for a state library operating grant. This provision could result in a revenue gain to municipalities who otherwise would not have met the MOE requirements.

HIGHER EDUCATION (211-285)

Sections 211-285 create and specify the responsibilities of the Board of Regents for Higher Education (BOR) and the Office of Financial and Academic Affairs for Higher Education (OFAA). This will require a transfer between these agencies of $1. 6 million in FY12 and $1. 7 million in FY 13. Total funding of $315. 7 million in FY 12 and $307. 9 million in FY 13 for the operations of the BOR and $57. 9 million in FY 12 and $55. 8 million in FY 13 for the OFAA are required.

CAMPAIGN FINANCE (286-301)

Sections 286-301 make changes to campaign finances laws that do not result in a fiscal impact.

OTHER CHANGES & REPEALERS (302-310)

Section 302 repeals the advisory committees to the Office of the Victim Advocate and the Office of the Child Advocate. This will not result in a fiscal impact, as these advisory committees do not receive funding from the state.

Section 303 repeals obsolete Office of Workforce Competitiveness statutes that result in no fiscal impact.

Section 304 repeals obsolete higher education statutes that result in no fiscal impact.

Section 305 removes Section 164 of SB 1240 of the current session, which restricted the placement of children under the age of six in congregate child care facilities.

Section 306 repeals an obsolete statute and has no fiscal impact.

Section 307 repeals the alcohol and drug education requirement does not result in a fiscal impact since this section is not required under provision of the new ignition interlock device program implemented in sections 51 through 57 of the bill.

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 two grants are transferred and then correspondingly reduced by 10%.