OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-24

AN ACT CONCERNING THE GOVERNOR'S RECOMMENDATIONS REGARDING ELECTRONIC NICOTINE DELIVERY SYSTEMS AND YOUTH SMOKING PREVENTION.

AMENDMENT

LCO No.: 3349

File Copy No.: 165

Senate Calendar No.: 129


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 14 $

FY 15 $

Resources of the General Fund

GF - Potential Revenue Loss

9.5 million

6 million

Municipal Impact: None

Explanation

This amendment alters the statutory distribution from the Tobacco Settlement Fund (TSF) to the Tobacco and Health Trust Fund (THTF) to $12 million annually, as opposed to the $6 million disbursement in both FY 14 and FY 15, included in the FY 14 and FY 15 Biennial Budget.  This results in a potential General Fund (GF) revenue loss of $6 million in each of FY 14 and FY 15.  The revenue loss is potential as it is unclear whether the increase in the disbursement would be recognized in the amount identified as “Transfer from Tobacco Settlement Fund” in the GF revenue schedule adopted by the General Assembly. The amendment eliminates the transfer of funding from the THTF to the GF in FY 14, which results in a potential revenue loss of an additional $3.5 million in FY 14.  The revenue loss is potential because the transfer has already occurred, according to a report from the Treasurer's Office, and it is unclear if passage of the amendment would require that transfer be undone.  The projected FY 14 GF surplus is currently approximately $500 million.

The amendment will also increase the amount that the THTF Board can recommend to the Public Health and Appropriations Committees for award under the bill.  The projected unobligated FY 15 THTF balance, post a $6 million deposit from the TSF, is approximately $10 million.  The projected unobligated FY 15 THTF balance, post a $12 million deposit from the TSF, is approximately $16 million.

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.