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.: 9352


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 16 $

FY 17 $

Department of Revenue Services

GF - Revenue Loss

242,800,000

344,600,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment eliminates the changes to the property tax credit and sales tax free week included in the bill. This reduces the revenue gain identified in the fiscal note on the underlying bill by $53 million in FY 16 and $101 million in FY 17.

The amendment precludes a revenue gain of (1) $52 million in FY 16 and $100 million in FY 17 by maintaining the property tax credit as in current law (2) $1 million in FY 16 and FY 17 by maintaining the sales tax holiday at $300 and (3) $136.8 million in FY 16 and $142.6 million by maintaining the exemption for clothing and footwear under $50.

Section 501 states that the Governor shall negotiate with the State Employees' Bargaining Agent Coalition to develop a plan to identify and collect $253 million in savings and credit the savings to the resources of the General Fund. There is no fiscal impact to negotiations and any savings are subject to the outcome of such negotiations.

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.