OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-5044

AN ACT MAKING ADJUSTMENTS TO STATE EXPENDITURES FOR THE FISCAL YEAR ENDING JUNE 30, 2017.

OFA Fiscal Note

State & Municipal Impact: See Below

Explanation

The bill contains a revised spending package for FY 17, which includes:

1. Net reductions to original FY 17 appropriations in all funds of $540.4 million,

2. Net reductions to original FY 17 General Fund appropriations of $569.5 million,

3. Carry forward funding of $200,000, and

4. Provisions to implement the budget.

Sections 1 - 7 include modifications to the original FY 17 appropriations that result in a reduction of $540.4 million across all appropriated funds and authorize total revised appropriations of $19.9 billion. The table below presents the FY 17 original, revised, and difference in appropriated levels for each fund.

Revised FY 17 Appropriations

Item

Original $

Committee $

Difference $

Gross Appropriations

General Fund

18,916,880,389

18,246,589,299

(670,291,090)

Special Transportation Fund

1,508,138,933

1,537,476,777

29,337,844

Banking Fund

29,889,297

30,066,200

176,903

Insurance Fund

81,351,940

84,129,509

2,777,569

Consumer Counsel and Public Utility Control Fund

26,953,593

27,378,485

424,892

Workers' Compensation Fund

26,982,874

26,917,168

(65,706)

Mashantucket Pequot and Mohegan Fund

61,779,907

58,227,562

(3,552,345)

Regional Market Operation Fund

1,067,306

1,067,306

-

Criminal Injuries Compensation Fund

2,934,088

2,934,088

-

Total Gross Appropriations

20,655,978,327

20,014,786,394

(641,191,933)

General Fund (GF) Lapses

Unallocated Lapse

(94,476,192)

(94,476,192)

-

Unallocated Lapse - Legislative

(3,028,105)

(3,028,105)

-

Unallocated Lapse - Judicial

(7,400,672)

(7,400,672)

-

General Employee Lapse

(12,816,745)

-

12,816,745

General Lapse - Legislative

(39,492)

-

39,492

General Lapse - Judicial

(282,192)

-

282,192

General Lapse - Executive

(9,678,316)

-

9,678,316

Municipal Opportunities and Regional Efficiencies

(20,000,000)

-

20,000,000

Overtime Savings

(10,500,000)

-

10,500,000

Statewide Hiring Reduction - Executive

(30,920,000)

-

30,920,000

Statewide Hiring Reduction - Judicial

(3,310,000)

-

3,310,000

Statewide Hiring Reduction - Legislative

(770,000)

-

770,000

Targeted Savings

(12,500,000)

-

12,500,000

Total GF Lapses

(205,721,714)

(104,904,969)

100,816,745

Special Transportation Fund (STF) Lapses

Unallocated Lapse

(12,000,000)

(12,000,000)

-

Total STF Lapses

(12,000,000)

(12,000,000)

-

Net Appropriations

General Fund

18,711,158,675

18,141,684,330

(569,474,345)

Special Transportation Fund

1,496,138,933

1,525,476,777

29,337,844

Banking Fund

29,889,297

30,066,200

176,903

Insurance Fund

81,351,940

84,129,509

2,777,569

Consumer Counsel and Public Utility Control Fund

26,953,593

27,378,485

424,892

Workers' Compensation Fund

26,982,874

26,917,168

(65,706)

Mashantucket Pequot and Mohegan Fund

61,779,907

58,227,562

(3,552,345)

Regional Market Operation Fund

1,067,306

1,067,306

-

Criminal Injuries Compensation Fund

2,934,088

2,934,088

-

TOTAL NET APPROPRIATIONS

20,438,256,613

19,897,881,425

(540,375,188)

Spending Cap

The Revised FY 17 Budget is under the statutory spending cap by $551.3 million, which is $445.1 million further from the cap than the original FY 17 budget.  Pursuant to Section 35 of PA 15-244, these calculations reflect a five-year personal income growth rate calculated on a calendar year rather than a fiscal year basis, and assume that appropriations for the unfunded liabilities of the State Employees' Retirement System (SRS), Judges, Family Support Magistrates and Compensation Commissioners' Retirement System (JRS), and Teachers' Retirement System (TRS) are exempt from being counted as general budget expenditures under the spending cap for FY 15 through FY 17.

Growth Rate

The Committee's Revised FY 17 Budget growth rate for all appropriated funds is 1.1% over FY 16 estimated expenditures. See table below for details.

Growth Rate by Appropriations (by fund – in millions)

Fund

FY 16 Est. Expenditures $

FY 17 Original $

FY 17

Revised $

Change From FY 16 Est. to FY 17

Revised

$

%

General

18,060.9

18,711.2

18,141.7

80.8

0.4%

Transportation

1,388.8

1,496.1

1,525.5

136.7

9.8%

Other Appropriated

229.6

231.0

230.7

1.1

0.5%

TOTAL

19,679.3

20,438.3

19,897.9

218.6

1.1%

Sections 8 - 15 relate to specific budget actions identified below.

Section

Agency

Description

8

DORS

Requires that up to $200,000 of the unexpended balance in the Department of Rehabilitation Services (DORS) Part-Time Interpreters account to be carried forward and transferred to Personal Services.  Funding in the DORS Personal Services account was reduced by $200,000 in FY 17 in anticipation of this transfer. 

9

DPH

Requires the Department of Public Health to reduce, on a pro rata basis, payments to full-time municipal and district health departments in an aggregate amount equal to $310,636 in FY 17.

10

DPH

Requires DPH to report to various committees concerning the expenditures necessary to ensure the continued administration of safe drinking water standards, among other requirements, does not result in a fiscal impact to the agency. DPH is anticipated to be able to complete the report with staff expertise by 1/15/17 (approximately six months' time).

11(a) & 12(a)

DPH

Eliminates the transfer in FY 17 from the Tobacco and Health Trust Fund (THTF) to DPH for grants totaling $550,000 for: (1) a children's Easy Breathing program - $250,000, (2) an adult Easy Breathing program - $150,000, and (3) an Asthma Outreach and Education Program - $150,000. In concert with this change. Section 13(a) Transfers $700,000 from the THTF to the resources of the General Fund in FY 17. This reflects the $550,000 that was authorized for transfer to DPH in FY 17 for these grants, as well an additional $150,000 that was intended for the Asthma Outreach and Education Program in FY 16 that will not be expended.

11(b)

DPH

Eliminates the transfer of $750,000 from the THTF to the Department of Developmental Services in FY 17 for the implementation of a study to enhance and improve the services and supports for individuals with autism and their families. Instead, Sec. 13(b) authorizes $750,000 from THTF to the Department of Social Services for this purpose.

12(b)

DSS

Transfers $750,000 from the Tobacco Health Trust Fund to the Department of Social Services to implement the recommendations of section 27 of PA 11-6.  The FY 16- FY 17 Budget transferred the funds to the Department of Developmental Services. 

13

SDE

Specifies the payment of approximately $2,028.1 million Education Equalization grant (ECS) payments. This reflects a reduction, from the original FY 17 appropriation, of $41.6 million in ECS funding to municipalities.

14

OPM

Specify the payment of approximately $67.3 million in State Property PILOT payments. This reflects a reduction, from the original FY 17 appropriation, of $16.4 million in State Property PILOT funding to municipalities.

15

OPM

Specify the payment of approximately $ $115.9 million in Hospital PILOT payments. This reflects a reduction, from the original FY 17 appropriation, of $9.6 million in Hospital PILOT funding to municipalities.

The Out Years

The table below reflects the projected expenditures utilizing a current service methodology for FY 18 - FY 20 based on the FY 17 revised budget.

Projected Expenditures FY 17- FY 20 (in millions)

Fund

Appropriated

Projected

 

FY 17$

FY 18$

FY 19$

FY 20$

General

18,141.7

19,388.6

19,999.8

20,633.9

Special Transportation

1,525.5

1,707.2

1,806.1

1,906.0

Other Appropriated

230.7

237.2

240.4

240.4

Total

19,897.9

21,333.0

22,046.3

22,780.3

Growth Rates

(0.19%)

7.2%

3.3%

3.3%

Over/(Under) Spending Cap1

(551.3)

(225.8)

55.2

(8.6)

1 Section 35 of PA 15-244 specified that the spending cap calculation reflect a five-year personal income growth rate calculated on a calendar year rather than a fiscal year basis, and treat appropriations for the unfunded liabilities of the State Employees' Retirement System (SRS), Judges, Family Support Magistrates and Compensation Commissioners' Retirement System (JRS), and Teachers' Retirement System (TRS) as exempt from being counted as general budget expenditures under the spending cap for FY 15 through FY 17.