OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-5377

AN ACT IMPLEMENTING THE RECOMMENDATIONS OF THE LEGISLATIVE PROGRAM REVIEW AND INVESTIGATIONS COMMITTEE ON THE REEMPLOYMENT OF OLDER WORKERS AS THEY RELATE TO THE LABOR DEPARTMENT.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Labor Dept.

GF - Potential Cost

Up to 15,000

Up to 20,000

Municipal Impact: None

Explanation

The bill contains a number of provisions regarding the Department of Labor (DOL) as it relates to unemployed older workers and the Subsidized Training and Employment Program (STEP UP). This results in potential cost of up to $15,000 in FY 15 and up to $20,000 in FY 16 and annually thereafter.

Section 1 requires the Connecticut Employment and Training Commission (CETC) within DOL to coordinate an electronic state hiring campaign to encourage the reemployment of older workers through the DOL website, and submit a report on the status of the campaign to the Labor Committee by January 1, 2015. This does not result in any fiscal impact as it is anticipated that CETC could provide the information required by the campaign and produce the report without additional staffing or outside expertise.

Section 2 requires DOL to develop a one-page quick-reference guide describing existing resources for unemployed older workers, and make that information available through the 2-1-1 Infoline program. There is no cost to develop the quick-reference guide; however there is an estimated cost of up to $20,000 annually to ensure that the information is accessible through the 2-1-1 Infoline program. This estimate is based on the cost to agencies to provide similar referral services through 2-1-1.

It should be noted that the bill requires DOL to ensure the information is accessible through the 2-1-1 Infoline program within available resources. It does not appear that this mandates that the agency perform the activity regardless of available funding, therefore the cost described above is potential.

Section 3 requires DOL to promote the state's apprenticeship programs through job centers throughout the state. This does not result in any fiscal impact as information regarding the program is currently available, and could be provided to job centers at no cost to the agency.

Section 4 requires DOL to convene a working group to consider whether certain individuals providing resume writing assistance should require certification. This does not result in any fiscal impact.

Section 5 expands eligibility for STEP UP program, which is funded through bond funds. sSB 29, the bond bill, as favorably reported by the Finance, Revenue and Bonding Committee, authorizes $10 million in General Obligation (GO) bonds in FY 15 for the STEP UP program.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.