OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-7061

AN ACT CONCERNING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017, AND MAKING APPROPRIATIONS THEREFOR, AND OTHER PROVISIONS RELATED TO REVENUE, DEFICIENCY APPROPRIATIONS AND TAX FAIRNESS AND ECONOMIC DEVELOPMENT.

AMENDMENT

LCO No.: 9329


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 16 $

FY 17 $

Department of Revenue Services

GF - Revenue Loss

None

40,000,000

State Total (includes various state agencies)

GF - Savings

15,800,000

25,500,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment increases the savings from state employee salaries from $7.1 million to $22.9 million in FY 16 and from $12.8 million to $38.3 million in FY 17. This results in a savings of $15.8 million in FY 16 and $25.5 million in FY 17. The amendment requires such savings to be credited to the General Fund and for the savings in FY 16 to be carried forward into FY 17.

The amendment also eliminates the Business Entity Tax. This results in a revenue loss of $40 million in FY 17 and each year thereafter.

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.

Sources:

Core-CT Financial Accounting System