OFA Fiscal Note
OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5387
AN ACT CONCERNING KENO.
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 15 $ |
FY 16 $ |
Connecticut Lottery Corporation (Quasi-Public Agency) |
GF - Revenue Loss |
13.5 million |
27.0 million |
Connecticut Lottery Corporation (Quasi-Public Agency) |
Lottery Enterprise Fund - Savings |
6.7 million |
2.5 million |
Explanation
The bill repeals the authorization for the Connecticut Lottery Corporation (CLC) to operate keno. This results in an estimated revenue loss of approximately $13.5 million in FY 15 and $27.0 million annually thereafter. This also results in a savings of $6.7 million to CLC in FY 15 and approximately $2.5 million annually thereafter attributable to avoiding costs for the necessary equipment, materials, and ongoing operating expenses necessary to implement keno in the state.
Background
The biennial budget included revenue of approximately $3.8 million in FY 14 and $27.0 million in FY 15 and annually thereafter from Keno. Following adoption of the budget, projected revenues from keno have been reduced to zero in FY 14, $13.5 million in FY 15, and $27.0 million in FY 16 and annually thereafter. These adjustments, which were included in the January 15, 2014 Consensus Revenue report, are based on the assumption that keno would not be fully implemented until the second half of FY 15.
The Out Years
The annualized ongoing revenue impact identified above would continue into the future.
Sources: |
Connecticut Lottery Corporation |