OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-913

AN ACT MANDATING EMPLOYERS PROVIDE PAID SICK LEAVE TO EMPLOYEES.

AMENDMENT

LCO No.: 7903

File Copy No.: 76

House Calendar No.: 555

Senate Calendar No.: 97

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Department of Revenue Services

GF - Revenue Loss

$40.5 million

$40.5 million

Comptroller Misc. Accounts (Unemployment Benefits)

GF - See Below

See Below

See Below

Labor Dept.

GF - Cost

65, 000

65, 000

Comptroller Misc. Accounts (Fringe Benefits) 1

GF - Cost

15, 444

15, 444

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment segregates revenue from the Business Entity Tax for the purposes of: 1) establishing a “Paid Sick Leave Reimbursement Fund”, and 2) the payment of federal unemployment compensation obligations which are estimated at $809, 875, 582 as of May 25, 2011. This results in a General Fund revenue loss of approximately $40.5 million annually and a reduction of $20.25 million annually in the state's federal liability for the insolvency of the unemployment compensation fund.

The Department of Labor will incur costs of $65, 000, plus fringe benefits of $15, 444, to administer reimbursements from the “Paid Sick Leave Reimbursement Fund” to employers for the wages of a replacement worker who is performing the work normally performed by a service worker using sick leave.

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 fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated non-pension fringe benefit cost associated with personnel changes is 23.76% of payroll in FY 12 and FY 13. In addition, there could be an impact to potential liability for the applicable state pension funds.