OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-1239

AN ACT CONCERNING THE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2013.

AMENDMENT

LCO No.: 5811

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The amendment includes the following: 1) sections 1-10 reflects appropriations totaling $18.2 billion in FY 12 and $19.0 billion in FY 13; 2) sections 11 to 97 includes provisions to implement the budget amendment; and 3) sections 98 and 126 contain various revenue policy changes that yield net increases of $123.1 million in FY 12 and $43.3 million in FY 13.

APPROPRIATIONS

Sections 1-10 include appropriations in ten funds totaling $18.3 billion and $19.1 billion in FY 13 as summarized in the tables below.

FY 12 All Funds Appropriations

Fund

FY 12 Gross Appropriations

Less: Lapse & Other Reductions

FY 12 Net Appropriations

General Fund

$18, 33, 408, 102

($1, 376, 133, 633)

$16, 857, 374, 469

Transportation

1, 223, 939, 075

(11, 000, 000)

1, 212, 939, 075

Banking

26, 127, 810

(254, 913)

25, 872, 897

Insurance

26, 853, 786

 

26, 853, 786

Con. Counsel & Public Util. Control

26, 347, 373

 

26, 347, 373

Workers' Compensation

22, 512, 798

 

22, 512, 798

Mash. Pequot & Mohegan

61, 779, 907

 

61, 779, 907

Soldiers, Sailors and Marines

3, 116, 981

 

3, 116, 981

Regional Market Operation

972, 913

 

972, 913

Criminal Injuries Comp.

3, 493, 813

 

3, 493, 813

TOTAL

$19628, 652, 558

($1, 387, 388, 546)

$18, 241, 264, 012

FY 12 General Fund Lapses Identified Above:

General Other Expenses Reductions - Executive

($9, 066, 200)

General Other Expenses Reductions - Legislative

(374, 000)

General Personal Services Reduction - Executive

(11, 538, 800)

General Personal Services Reduction - Legislative

(476, 000)

Labor-Management Savings

(1, 000, 000, 000)

Unallocated Lapse

(89, 510, 000)

Unallocated Lapse - Judicial

(3, 545, 000)

Unallocated Lapse - Legislative

(2, 700, 000)

Saving Target- Legislative Branch

(10, 058, 047)

Savings Target – Public Defenders

(2, 496, 562)

Watchdog Agency Lapse

(9, 423, 218)

Savings – Creation of Dept. Human Services

(8, 300, 000)

Suspend Longevity Payments

(14, 000, 000)

Reduction in Gubernatorial Appointees

(5, 077, 940)

10% Salary Reduction for Elected/Directors

(1, 300, 000)

Hard Hiring Freeze

(12, 100, 000)

Workers Compensation Reduction

(5, 000, 000)

Workforce Reduction Savings

(170, 350, 000)

Elimination of All Funded Vacancies

(10, 817, 866)

Higher Education Central Office Reduction

(10, 000, 000)

   

TOTAL - GF Lapse

($1, 376, 133, 633)

FY 13 All Funds Appropriations

Fund

FY 13 Gross Appropriations

Less: Lapse & Other Reductions

FY 13 Net Appropriations

General Fund

$18, 988, 012, 668

($1, 413, 495, 216)

$17, 574, 517, 452

Transportation

1, 245, 745, 700

(11, 000, 000)

1, 234, 745, 700

Banking

22, 167, 967

(63, 729)

22, 104, 238

Insurance

26, 391, 154

 

26, 391, 154

Con. Counsel & Public Util. Control

25, 982, 815

 

25, 982, 815

Workers' Compensation

22, 469, 405

22, 469, 405

Mash. Pequot & Mohegan

61, 779, 907

 

61, 779, 907

Soldiers, Sailors and Marines

3, 193, 033

 

3, 193, 033

Regional Market Operation

952, 438

 

952, 438

Criminal Injuries Comp.

3, 602, 121

 

3, 602, 121

TOTAL

$20, 400, 297, 208

($1, 424, 558, 945)

$18, 975, 738, 263

FY 13 General Fund Lapses Identified Above:

General Other Expenses Reductions - Executive

($9, 066, 200)

General Other Expenses Reductions - Legislative

(374, 000)

General Personal Services Reduction - Executive

(11, 538, 800)

General Personal Services Reduction - Legislative

(476, 000)

Labor-Management Savings

(1, 000, 000, 000)

Unallocated Lapse

(89, 510, 000)

Unallocated Lapse - Judicial

(3, 545, 000)

Unallocated Lapse - Legislative

(2, 700, 000)

Saving Target- Legislative Branch

(11, 829, 989)

Savings Target – Public Defenders

(2, 166, 192)

Watchdog Agency Lapse

(9, 344, 509)

Savings – Creation of Dept. Human Services

(8, 500, 000)

Suspend Longevity Payments

(14, 000, 000)

Reduction in Gubernatorial Appointees

(5, 077, 940)

10% Salary Reduction for Elected/Directors

(1, 300, 000)

Hard Hiring Freeze

(19, 300, 000)

Workers Compensation Reduction

(5, 000, 000)

Workforce Reduction Savings

(198, 948, 720)

Elimination of All Funded Vacancies

(10, 817, 866)

Higher Education Central Office Reduction

(10, 000, 000)

   

TOTAL - GF Lapse

($1, 413, 495, 216)

Spending Cap

The budget amendment is under the spending cap by $1.6 billion in FY 12 and $85.1 million in FY 13.

Growth Rate

The growth rate for all appropriated funds is 5.25% under FY 11 estimated expenditures in FY 12 and 4.49% in FY 13 compared to FY 12 expenditures.

Growth Rates to Appropriations under the Amendment

               
 

FY 11 Est. Exp *

FY 12 Approp

FY 12 Change

FY 13 Approp

FY 13 Change

     

$

%

 

$

%

General Fund

18, 068.5

16, 857.4

(1, 211.1)

-6.70%

17, 574.5

717.1

4.25%

Transportation Fund

1, 178.2

1, 303.9

125.7

10.67%

1, 334.2

30.3

2.32%

Other Approp. Funds

162.8

170.9

8.1

4.98%

169.3

-1.6

-0.94%

 

19, 409.5

18, 332.2

(1, 077.3)

-5.55%

19, 217.0

745.8

4.07%

               

* The General Fund estimate is per OFA's Monthly Statement (March 25, 2011) ; Transportation and Other Fund

 

estimates are per OFA's November 2010 Statement.

 

 

 

 

 

Sections 11 -97, 100-103, and 127-129 are identified below:

Section

Agency

Description/Impact

11(a)

OPM/All

OPM shall recommend reductions of $12 million in expenditures for Personal Services (PS) for FY 12 & FY 13.

11(b)

OPM/All

OPM shall recommend reductions of $9.4 million in expenditures for Other Expenses for FY 12 & FY 13.

12

OPM/All

Includes various provisions regarding $1 billion achievement of the labor management savings in FY 12 & FY 13.

13(a)

OPM/All

Allows OPM to transfer from agencies' PS to the Reserve for Salary Adjustment (RSA) account to reflect accurate impact of collective bargaining costs.

13(b)

OPM/All

Allows OPM to transfer from RSA to any agency for the purpose of salary related costs including accrual payments.

14(a)

OPM/All

Carries forward the FY 11 unexpended funds related to collective bargaining agreements and related costs into FY 12 and FY 13.

14(b)

OPM/All

Carries forward the FY 12 unexpended funds related to collective bargaining agreements and related costs into FY 13.

15

OPM

Carries forward the unexpended balance of funds for the Criminal Justice Information System into FY 12 and FY 13.

Impact: Estimated amount carried forward is $60, 000.

16

All

Agencies' filled positions can't exceed the number included in the OFA Budget Book (except upon FAC approval) .

17

DMV

Carries forward the unexpended balance of funds for Commercial Vehicle Information System and Networks Projects for FY 12 & FY 13.

Impact: Estimated amount carried forward in the Transportation Fund up to is $200, 000.

18a

DMV

Carries forward the unexpended balance of funds for DMV's registration & drivers license data processing systems for FY 12 & FY 13.

Impact: Estimated amount carried forward in the Transportation Fund is up to $300, 000.

18b

DMV

Carries forward up to $7 million of the unexpended balance of funds previously appropriated to DOT for Personal Services and transferred to the DMV reflective license plates account for registration & drivers license data system for FY 12 & FY 13.

Impact: Estimated amount carried forward in the Transportation Fund is up to $6, 700, 000.

18c

DMV

Carries forward up to $8.5 million of the unexpended balance of funds previously appropriated for Debt Service and transfers this amount to the DMV reflective license plates account for registration and license data system for FY 12 & FY 13.

Impact: Estimated amount carried forward is up to $6, 700, 000.

19

OPM

Carries forward the unexpended balance of Other Expenses in OPM for a health care and pension consulting contract for FY 12 & FY 13.

Impact: Estimated amount carried forward is $180, 000.

20(a)

OPM

Carries forward up to $178, 828 of the unexpended balance in Other Expenses to prevent base closures and transfers this amount to the litigation/settlement account.

Impact: Estimated amount carried forward is $178, 828.

20(b)

OPM

Carries forward up to $400, 000 of the unexpended balance for Tax Relief for Elderly Renters and transfers this amount to the litigation/settlement account.

Impact: Estimated amount carried forward is $400, 000.

21

Various

Any General Fund appropriation may be transferred between agencies with FAC approval. Funds generated through transfer may be used to reimburse GF expenditures or expand programs as determined by Governor and with FAC approval.

22

Various

Any General Fund appropriation may be adjusted by the Governor with FAC approval in order to maximize federal stimulus funding. Governor shall present a plan for any such transfer.

23

DPH

For each of FY 12 and FY 13, $900, 000 collected from newborn screening fees shall be credited to the newborn screening account to purchase upgrades to newborn screening technology and testing expenses.

Impact: Increases the transfer of funding from newborn screening fee receipts from $500, 000 to $900, 000 in FY 12 and FY 13 to accommodate increased cost of testing. A reduction of General Fund revenue of $400, 000 in FY 12 and FY 13 would result from this transfer.

24

DPH

For FY 12 and FY 13 up to $200, 000 from the Stem Cell Research Fund may be used by DPH for administrative expenses.

25(a)

DMHAS

Up to $1.1 million made available for Pre-Trial Alcohol Substance Abuse Program shall be available for the Regional Action Councils (RAC's) for FY 12 and FY 13.

Impact: Directs funding from the nonappropriated Pre-Trial account to the RACs. FY 10 total available in the account was approximately $9.4 million.

25(b)

DMHAS

Up to $510, 000 available for Pre-Trial Alcohol Substance Abuse is made available for the Governor's Partnership to Protect Connecticut's Workforce for FY 12 and FY 13.

Impact: Directs funding from the nonappropriated Pre-Trial account to the Governor's Partnership. FY 10 total available in the account was approximately $9.4 million.

26

DDS

Requires the full 100% cost settlement balance to be returned to DDS by the private providers under contract.

Impact: DDS will retain 100% of any cost settlement balance across various provider accounts estimated at $1.3 million. Currently, DDS allows certain providers to retain up to 50% of cost settlement balances. The employment and day services and community residential services accounts are reduced to reflect these savings in the budget.

27

DDS

Carries forward up to $125, 000 of the unexpended balance of the Pilot Program for Autism Services to be available to study the issues related to needs of persons with autism spectrum disorder during FY 12.

Impact. Reduces the estimated FY 11 lapse in the Pilot Program for Autism Services by $125, 000.

28

DCF

Suspends the rate adjustments for DCF-funded private residential treatment centers in FY 12 and FY 13.

Impact. By suspending Single Cost Accounting System (SCAS regulations in FY 12 and FY 13, scheduled rate adjustments that would otherwise be provided to private residential treatment facilities July 1st would not occur, resulting in a savings of $3, 926, 418 in FY 12 and an additional $3, 397, 762 (for a cumulative total of $7, 324, 144) in FY 13. These savings are included in the Budget.

29

DSS

Directs DSS to establish a receivable for anticipated federal reimbursement from the development of a data warehouse in FY 12 and FY 13.

30

DSS

Directs DSS to establish a receivable for anticipated cost of modifications necessary to comply with the Health Insurance Portability and Accountability Act's electronic standards in FY 12.

31

DSS

Permits DSS to make advance payments to nursing home facilities.

Impact: This allows DSS to assist homes in managing cash flow (has no net fiscal impact to state) .

32

UCHC/DSS

Permits UCHC appropriations to be transferred to DSH - Medical Emergency Assistance account within DSS to maximize federal reimbursement.

Impact: This allows DSS to maximize federal revenue under DSH & other federal matching programs but does not alter the intent of the original appropriation of funds.

33

DMHAS/DSS

Directs DSS to make Disproportionate Share (DSH) payments to hospitals in DMHAS for operating expenses and related fringe benefits.

Impact: This allows DSS to maximize federal revenue under DSH & other federal matching programs but does not alter the intent of the original appropriation of funds.

34

DVA/DSS

Permits DVA appropriations to be transferred to the DSH - Medical Emergency Assistance account within DSS to maximize federal reimbursement.

Impact: This allows DSS to maximize federal revenue under DSH & other federal matching programs but does not alter the intent of the original appropriation of funds.

35

DDS/SDE

For FY 12 and FY 13, transfer $1 million of the Part B Individuals with Disabilities Act (IDEA) federal funding from SDE to DDS Birth-to-Three program.

Impact: Provides $1 million in federal funding for the Birth-to-Three program in FY 12 and FY 13.

36(a) , (b)

SDE

Provides for the distribution of the Priority School District grant by the four programs in FY 12 and FY 13.

37

SDE

Provides a town by town distribution of the education equalization grant in FY 12 and FY 13.

Impact: Distributes approximately $1.9 billion to municipalities for the purposes of education cost sharing.

38

SDE

Allows SDE to provide grants not to exceed $2, 500 per pupil to local and regional boards of education that transport students who previously attended or accepted for enrollment at Wright Technical School to Abbott Technical High School.

Impact: Reallocates approximately $25, 000 from the Public School Transportation account for this purpose, which results in a minimal revenue loss to other local and regional school districts that are eligible for the grant.

39

DHE

The amount of funds available for expenditure from the student protection account shall be $301, 000 in FY 12 and $310, 000 in FY 13.

Impact: These funds support the three staff members who provide oversight to the 91 private occupational schools enrolling nearly 27, 000 students and generating $175 million in net tuition revenue.

40

DHE

This section delays payment to Yale for the biennium. Additionally, this section requires the Department of Higher Education to study the formula for the CICSG grant and report back to the committee with recommendations for revising the formula.

Impact: This supports the funding level included in the budget for the CT Independent College Student Grant and delays the payment of approximately $500, 000 in FY 12 and FY 13 to Yale.

41

JUD

Delays raising the age of juvenile jurisdiction for 17 year olds to FY 15. This would result in FY 13 savings of $7 million to Judicial and $3.7 million to DCF, for a total FY 13 savings of $10.7 million.

42

OLM

This provision would save approximately $927, 000 in FY 12 and $1.1 million in FY 13. The consolidated commission would employ 14 staff members, including one Executive Director. The six commissions currently employ 23 staff members.

43

DOT DMV

The estimated Personal Services savings to the Special Transportation Fund (STF) from merging DMV with DOT is $6.3 million in FY 12 and $6.5 million in FY 13. The estimate is based on the elimination of 105 positions 100% STF funded, effective 7/1/11.

44

Human Services

Merges DCF, DPH, DDS, DMHAS and DSS. This is estimated to result in a PS savings of approximately $8.3 million in FY 12 and $8.5 million in FY 13. These savings would be achieved by eliminating 119 duplicative positions and the achievement of other operating efficiencies.

45

SDE DHE

Consolidates the Departments of Education (SDE) and Higher Education (DHE) , the Commission for Educational Technology, and the State Library Board into one agency to be named the Department of Education. This consolidation would eliminate approximately less than ten positions and result in approximately $500, 000 in gross PS savings. However, the PS consolidation savings could be offset by increased salaries and wages for personnel transferring into SDE as current SDE employees' salaries are higher than those in DHE, and the State Library. Thus, it is anticipated that this consolidation could result in a net cost to the state.

46

DAS /DPW

The estimated Personal Service savings from merging DPW with DAS is $497, 000 in FY 12 and $514, 395 in FY 13. The estimate is based on the elimination of 10 managerial and administrative positions in DPW that appear to duplicate the job duties of positions that currently exist in DAS.

47

DPS/DEMHS Bd. Firearms

Results in a potential savings of $1, 150, 000 in FY 12 and $1, 200, 000 in FY 13 by consolidating the Department of Public Safety (DPS) , the Department of Emergency Management and Homeland Security (DEMHS) , and the Board of Firearm Permit Examiners (FPE) . The savings assume the elimination of 22 duplicative positions amongst DPS and DEMHS, as well as the elimination of the one position at FPE.

48

DECD/DOL/ CII /CHFA CDA

Results in potential savings of $1, 700, 000 in FY 12 and $1, 766, 000 in FY 13 by consolidating the Department of Economic and Community Development (DECD) , Labor Department (DOL) , Connecticut Innovations, Incorporated (CII) , the Connecticut Development Authority (CDA) , and the Connecticut Housing Finance Authority (CHFA) as one state agency to be named the Department of Economic Development (DED) . The savings assume the elimination of 19 positions amongst DECD and DOL.

It is assumed that the quasi-state agencies (CII, CDA, CHFA) , which currently do not receive appropriations from the state for operations, would retain their autonomous funding. However, if these quasi-state agencies become fully-funded by the state as a result of this consolidation, then there would be a significant cost to the state.

49

OGA

Creates the Office of Governmental Accountability by consolidating the Contracting Standards Board, State Elections Enforcement Commission, Freedom of Information Commission, Office of State Ethics, and Judicial Review Council. This will result in savings of approximately $1.9 million in FY 12 and $2 million in FY 13, and eliminate 18 positions.

50

OAG/OCA OVA/CHRO

Consolidates the Commission on Human Rights and Opportunities (CHRO) , the Office of the Victim Advocate (OVA) and the Office of the Child Advocate (OCA)  into the Office of the Attorney General (OAG) . The total annualized savings are estimated to be $860, 000 per year.

51

OFA

The Legislative Commissioners' Office shall make the necessary technical and conforming changes to carry out the agency consolidations in sections 42 - 50.

52

Comptroller

Requires the Comptroller to pay all wages to state employees using a direct deposit system as of FY 12. 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 $18, 575 in annual savings is anticipated to result from the implementation of 100% direct deposit participation of state employees.  It should be noted, however, that requiring direct deposit is considered a change in working conditions and would require collective bargaining agreement. An additional pro-rated savings of $78, 620 in FY 12 (as self-service time entry not achievable for all employees as of July 1st) and annualized savings of $157, 235 as of FY 13 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.  Additional savings may also be achieved by reduced payroll staffing.

53

Privatization

Sec. 53 requires DCF, DMV, DEP, DSS, DOT, and DOC to prepare a privatization plan for various state services.

54

Constitutional Officers, Legislators, etc.

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 12. This would result in an estimated savings of $1.1 million in FY 12.

55

SDE

Suspends the law limiting out-of-school suspensions. This law went into effect on July 1, 2010. This suspension could result in a cost avoidance for FY 12 and for FY 13 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 could have costs considered to be significant.

56-62

DOT/OPM

Makes various changes to statutory language regarding the sale of state real property until July 1, 2016. These changes will result in an increase to General Fund revenue to the degree that they expedite the sale of such property.

63

Bd. Firearms DEMHS

Results in a savings by consolidating the Board of Firearms Permit Examiners into the Department of Emergency Management and Homeland Security. The savings are listed under section 47 of this note.

64

DPS/DOI

Requires DPS and DOI to develop and implement automated vehicle insurance identification and enforcement system. The costs of such system are anticipated to be greater than $1 million. The future revenue gain from this system is anticipated to be greater than $5 million.

65

SDE

Allows a local or regional board of education to delay various in-service training programs. This could result in a potential minimal savings to various local and regional school districts that opt to delay the training. The potential minimal savings is associated with expenses corresponding to staff in-service days, such as speaker fees, materials, and consulting fees. Some districts may be required, contractually, to offer in-service training, so these districts would not incur a fiscal impact.

66

OPM

Expands the Governor's rescission authority by; 1) increasing the amount that can rescinded from a line item from 5% to 10%, 2) increasing the amount that can be rescinded from a fund from 3% to 5%, and 3) allowing the Governor to make rescissions to municipal aid. These changes may result in additional future savings.

67(a)

DOT

Transfers unexpended balance from TSB to resources of GF. This results in a $600, 000 revenue gain to GF.

67(b)

DOT

Reduce annual transfer from $15.3 million to $15 million. This results in a $300, 000 revenue gain to STF in FY 12 & FY 13.

68

CIA

Transfers the unexpended balance of funds in the community investment act (CIA) to the resources of the General Fund.  This would result in a revenue gain of approximately $37 million in FY 12 to the General Fund.  It is uncertain what future commitments made against these funds would have on the unexpended balance.   

69

THTF

Funds in the amount of $12 million from the Tobacco and Health Trust Fund are to be transferred to the General Fund in FY 12 and FY 13.

70

FY 11 Surplus

Carries forward the FY 11 surplus to FY 12.

71

OFA

Requires that any savings, realized under sections 43 – 50, to an appropriated fund other than the General Fund, be transferred and credited to resources of the General Fund in FY 12. This is reflected in the fiscal note.

72

SDE

Delineates the $19.3 million in additional grant amounts provided to the Excess Cost grant through the Transportation of Public School Children account, in order to meet federal maintenance of effort requirements for special education. This transfer was included in the FY 11 Budget (and continued in the FY 12 – FY 13 Budget) . The language will retain the same distribution.

73

Constituent Units of Higher Ed.

Provides for caps on the percentage of expenditures the constituent units of higher education may spend for central office and overall administration in FY 12 and FY 13.

74

OLM

Carries forward the unexpended balance of funds for Redistricting in Legislative Management from FY 11 into FY 12. Estimated amount carried forward is $1, 325, 000.

75

WCC

Directs the Workers Compensation Commission to conduct a study of the feasibility of consolidating its eight district offices to achieve administrative efficiencies.

76

SDE

Extends (for FY 12 and FY 13)  the increased per pupil amount for students attending the Edison Magnet School in Meriden. Meriden students will continue to receive $3, 833 (rather than $3, 000) . It is anticipated that there will be approximately 600 Meriden students attending Edison in FY 12 and FY 13, resulting in an additional cost of approximately $499, 800. The funding is included in the magnet school appropriation for both FY 12 and FY 13.

77

Various

Authorizes DSS, DMHAS, OPM and CSSD to develop a plan for supportive housing services and enter into MOUs to reallocate resources as necessary. This supports the Frequent User Service Enhancement (FUSE) program, which identifies individuals who frequently use services in both jails and homeless shelters. Supportive housing service providers in Bridgeport, Hartford, New Haven, Norwich, and Waterbury help to connect identified individuals with appropriate assistance.

78

UConn

Requires UConn to report to the Higher Education and Appropriations Committees on efficiencies and cost savings measures at UConn and the UCHC by January 1, 2012.

79

SDE

Provides for the distribution of the Priority School District grant by the four programs in FY 12 and FY 13.

80

Municipal

Prohibits an arbitration panel from considering a municipality's budget reserve fund balance, if it equals ten percent or less, when calculating a municipal employer's financial capability. To the extent that this change may reduce the cost of employee contracts, municipal savings would result.

81

DPW DAS

Increases the threshold at which the payment of prevailing wages to construction workers is required, from $400, 000 up to $1 million for new construction projects and from $100, 000 up to $500, 000 for renovation and remodeling projects. This is expected to results in a savings to the state and municipalities for new construction projects and for renovation projects valued between these amounts. The savings will primarily be in bond funds (debt service payments) because most construction and renovation projects are funded with General Obligation (GO) or Special Tax Obligation (STO) bonds.

82-85

Municipal, STF

Any municipality with population > 60, 000 would be authorized to implement an automated traffic enforcement safety device program. A fine not to exceed $100 may be established at the municipality's discretion.

Local costs would be incurred to (a) procure cameras ($50, 000 - $75, 000 each) ; (b) support police officers to review recorded images, issue citations and appear at hearings upon request (at an annual salary of approximately $60, 000 each) ; (c) post signs where cameras are used ($75 - $125 per sign) ; (d) appoint one or more traffic control signal violation hearing officers (at an annual cost of up to $40, 000) ; and (e) support other expenses, such as postage and supplies. Actual costs would vary with the number of cameras put into use in a given community.

One-half of collected fines will be deposited to the municipality's general fund, and one-half will be deposited to the state's Special Transportation Fund. Additional local revenues would be generated from payment of penalties and costs or fees as provided by municipal ordinance.

Enactment may result in a revenue loss to the state as some of the violations that would be enforced via the red-light camera system would displace citations currently issued by law enforcement officers. The potential General Fund revenue loss would depend upon the number of devices installed. A loss in excess of $100, 000 would be expected if multiple communities adopt large scale programs.

86

Municipal Collective Bargaining

Authorizes the legislative body of a local school district (or regional school district, if a participating town) to reject a stipulated agreement between a board of education and a collective bargaining unit by a two-thirds majority vote. To the extent that the contracts produced from the second arbitration process may be less costly, municipal savings would result.

87

DPUC

Transfers $2 million from the public, educational and governmental programming and education technology investment account (PEGPETIA) to the GF in FY 12 and FY 13. The estimated FY 11 year end balance of PEGPETIA is approximately $1.5 million. The account will receive approximately $3 million in revenue in FY 12 and FY 13. The proposed $2 million sweep will result in fewer grants to towns and public access channels.

88-92

SDE

Delays the effective dates for the new graduation requirements, including: additional courses, expanded reporting requirements, and end-of-course exams, will result in a significant cost savings for local and regional school districts. It is anticipated that local and regional school districts would have incurred costs, beginning in FY 13, ranging from $14 million to $21 million (statewide) to implement the expanded high school graduation requirements. These costs will be delayed for two years.

Additionally, the delay will result in a cost savings to the State Department of Education (SDE) . It is anticipated that SDE would have incurred costs ranging from $3.4 million to $6 million, beginning in FY 13 to develop the model curriculum and prepare local and regional school districts for the change in curriculum. These costs will be delayed for two years.

Additionally, the amendment delays the requirement that SDE provide grants to local and regional school districts to assist with the implementation of the new high school graduation requirements, will result in a significant cost savings to the state and a corresponding revenue loss to municipalities. SDE would have been required, beginning in FY 13 and within available appropriations, to provide grants to local and regional boards of education to begin implementation of the expanded high school graduation requirements. It is anticipated that these grants would be significant, as local and regional boards of education will require additional staffing, professional development, and equipment needs in order to meet the new requirements.

93

DPW/OPM

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.

94

DAS

Expands the use of on-line reverse auctions to award certain outside service contracts. 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.

95

Muni

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.

96

Various

The amendment eliminates non-unionized employee longevity payments. This would result in annual savings of approximately $14 million in FY 12 and FY 13. In addition, the amendment prohibits longevity payments to be included in future contracts negotiated with collective bargaining units. Assuming collective bargaining approval, this could result in additional savings as contracts are being negotiated in the future. Longevity payments to unionized employees totaled approximately $26.1 million in FY 11.

97

Various

Requires the General Assembly to vote in the affirmative or the negative on the concession agreement between the state and the State Employees Bargaining Agent Coalition (SEBAC) . Should the agreement fail to be approved, the underlying bill still requires adoption of $1 billion in comparable budget savings in FY 12 and FY 13 and therefore is not anticipated to result in a fiscal impact.

100

OST

Eliminates the issuance of GO bonds in FY 12 for the CSUS 2020 infrastructure renewal program and extends the program by one year. This would result in debt service savings of $2.3 million in FY 12 and $9.4 million in FY 13. The estimates assume that the bonds would have been issued before December 2012 so there would have been one debt service payment in FY 12 and two payments in FY 13. The debt service estimates assume that the bonds are issued at a 5.0% interest rate for a term of 20 years. It should be noted that there is no change the total amount of General Obligation (GO) bonds authorized for the program.

101

OST

Prohibits the University of Connecticut from expending any bond funds from the UConn 2000 infrastructure improvement program for the University of Connecticut Health Center. Under current law, the University is scheduled to This has no fiscal impact because it does not change the total amount of General Obligation (GO) bonds authorized for this purpose.

102

OST

Eliminates the issuance of GO bonds in FY 12 for the UConn 2000 infrastructure renewal program by one year and extends the program by one year. FY 12 and FY 13 would result in debt service savings of $3.9 million in FY 12 and $15.5 million in FY 13. The estimates assume that the bonds would have been issued before December 2012 so there would have been one debt service payment in FY 12 and two payments in FY 13. The debt service estimates assume that the bonds are issued at a 5.0% interest rate for a term of 20 years. It should be noted that there is no change the total amount of General Obligation (GO) bonds authorized for the program.

103

OST

No fiscal impact of this section.

127

Repealer

Repeals the 27th payroll account and a provision in DHE's CT Independent College Student Grant distribution and the fuel oil conservation board.

Impact: Implements the budget.

128

Repealer

Repeals the EDT tax credit. This implements the budget.

129

Repealer

Delays bikeway access; may result in a potential savings.

REVENUE

Sections 98, 99 and 104-126 are identified below:

General Fund Revenue Changes

 

 

 

 

 

FY 12 $

FY 13 $

Personal Income Tax

           

$ - Millions

 

- Department of Revenue Services (DRS) Risk Based Scoring Decision System

1.3

2.6

 

Total Personal Income Tax

1.3

2.6

Sales Tax

             

 

 

 

-Increased Sales Tax collections

3.3

3.3

 

- DRS Risk Based Scoring Decision System

1.3

2.6

 

               

4.6

5.9

Corporation Tax

             

 

 

 

- Film Tax Credit transferability revision -50% IY 2011, 25% IY 2012 and beyond

6.1

3.0

 

- EDP Tax Credit Program Elimination

13.0

13.0

 

- Removal of Tax Credit Preference for Dual Turbine Facility

5.0

5.0

 

- DRS Risk Based Scoring Decision System

1.3

2.6

 

Total Corporation Tax

25.4

23.6

Insurance Companies Tax

           

 

 

 

- EDP Tax Credit Program Elimination

13.4

13.4

 

- Film Tax Credit transferability revision -50% IY 2011, 25% IY 2012 and beyond

9.4

4.7

 

Total Insurance Companies Tax

22.8

18.1

Oil Companies Tax

           

 

 

 

- Implement a maximum cap on the average wholesale gas price

- -

- -

 

- Eliminate transfer to the Fuel Oil Conservation Board

5.0

5.0

 

Total Oil Companies Tax

5.0

5.0

Licenses, Permits and Fees

 

 

 

- Diversion of fines from the Banking Fund

1.5

1.5

 

- Loss of revenue from eliminating the regulation of charitable games

(0.9)

(0.9)

 

- Continuing Education Fees

0.3

0.3

 

- Transfer Community Investment Act monies to the General Fund

15.0

15.0

 

- Initiation of an automated vehicle insurance identification and enforcement system

150.0

150.0

 

Total License, Permits and Fees

165.9

165.9

Rents, Fines and Escheats

       

 

 

 

- Eliminate Revenue Intercept to the Citizen's Election Fund

18.0

18.0

 

               

 

 

Transfers - Other

             

 

 

 

- Tax Amnesty

25.0

(5.0)

 

- Increase collection from 11 new DRS Collections and Enforcement Staff

5.5

11.0

 

- Transfer balance in Transportation Strategy Board account

0.6

-

 

- Transfer annual Tobacco Settlement monies to the General Fund

12.0

12.0

 

- Sweep balance of the Citizens Election Fund to the General Fund

8.2

8.2

 

- Transfer monies from the Public Education Government Programming Account

2.0

2.0

 

- Mashantucket Pequot/Mohegan Fund

73.2

73.2

 

Total Transfers - Other

126.5

101.4

Federal Revenue

             

 

 

 

- Revenue Loss from Changes to Federal Reimbursable Programs

(246.7)

(297.5)

 

Total Federal Revenue Loss

(246.7)

(297.5)

Total General Fund Revenue Changes

$122.8

$43.0

             

Special Transportation Fund Revenue Changes

 

 

 

 

FY 12 $

FY 13 $

Transfers-Other

           

 

 

 

 

- Eliminate transfer to Transportation Strategy Board

 

 

 

0.3

0.3

Total Special Transportation Fund Tax Changes

$0.3

$0.3

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.