OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-956

AN ACT EXPANDING THE CARE 4 KIDS PROGRAM.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 16 $

FY 17 $

Early Childhood, Off.

GF - Cost

Potential Significant

Potential Significant

Municipal Impact: None

Explanation

The bill will result in a cost to the Office of Early Childhood associated with 1) increasing eligibility redeterminations from every eight months to every twelve months, and 2) expanding eligibility for Care4Kids subsidies to parents attending certain higher education institutions.

The cost associated with extending redeterminations by four months would be determined by the number of individuals who would otherwise be found ineligible at the eight month redetermination. Currently, an average of 300 families do not submit for redetermination each month. For purposes of an example, if 100 families would have been found ineligible at the eight month redetermination, it would result in a cost of $166,400 for those four months of additional eligibility, or $499,200 annually.1

The cost associated with expanding eligibility is dependent on the number of people who would be income eligible and attend a public or private Connecticut college or university. Based on national percentages, approximately 7,100 people in Connecticut with incomes under $30,000 could be eligible for the Care4Kids program under the bill.2 This would result in additional monthly costs of $3 million, or $36 million annually.

The Out Years

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

1 Assumes a monthly average cost per child of $416.

2 U.S. Department of Education, National Center for Education Statistics, 2011–12 National Postsecondary Student Aid Study.