OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
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.
LCO No.: 9355
OFA Fiscal Note
The amendment precludes revenue gains to the General Fund of (1) $39.9 million in FY 16 and $83.1 million in FY 17 by maintaining the computer and data processing tax at 1% (2) $7.8 million in FY 16 and $21.6 million in FY 17 by reducing the sales tax rate on the world wide web to 1% in lieu of 2% in FY 16 and 3% in FY 17 and (3) $38.6 million in FY 16 and $23.7 million in FY 17 by eliminating the unitary tax.
Section 501 requires the Office of Policy and Management to recommend reductions in overtime expenditures in the General Fund by $75 million in FY 16 and $80 million in FY 17 to achieve savings.
Section 501 also reduces the appropriation to the Statewide Marketing account in the Department of Economic and Community Development by $5 million in FY 16 and by $5 million in FY 17.
Lastly, subsection c of section 501 will result in an annual savings of approximately $9 million to the Office of the State Comptroller Social Security account by allowing temporary, part-time, and seasonal state employees to enroll in a specialized deferred compensation program which exempts them from Social Security coverage. The savings will accrue to the state on or before July 1, 2017. To the extent that some employees in these classifications are eligible to enroll in the State Employees' Retirement System (SER) there may be additional savings to SERS from requiring them to enroll in the new program. Any savings to SERS will be reflected in future actuarial valuations; FY 18 at the earliest. Savings from the provisions of this section may be contingent on agreement between the state and the State Bargaining Agent Coalitions (SEBAC).
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.