OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-19

AN ACT ESTABLISHING THE TRANSIT CORRIDOR DEVELOPMENT ASSISTANCE AUTHORITY.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Comptroller Misc. Accounts (Fringe Benefits)1

TF - Potential Cost

Potential

Potential

Note: TF=Transportation Fund

Municipal Impact: None

Explanation

This bill creates the Transit Corridor Development Assistance Authority (TCDAA) as a quasi-public agency. It allows the TCDAA, after entering into a memorandum of understanding (MOU) with an affected municipality, to develop property and manage facilities in certain developments.

The bill may result in a cost to the state for fringe benefits, including but not limited to health insurance, group life insurance, and retirement benefits through the State Employees' Retirement System (SERS) for new employees; currently estimated to be approximately 39.94% of salary. The bill classifies the employees of the authority as state employees for the purpose of fringe benefits. The bill does not specify how the authority will be funded, to the extent the authority is funded by non-state resources, the cost of fringe benefits may be reimbursed to the state out of the authority's resources. The impact to SERS will not be realized until FY 18, as the FY 17 actuarially determined employer contribution was established in the SERS valuation as of June 30, 2014. Lastly, to the extent existing Department of Transportation employees staff the authority, the state may continue to support the fringe benefits for these employees, or a portion thereof, as the state does for the Connecticut Airport Authority. Therefore the fringe benefits for existing employees would not represent a new cost to the Transportation Fund.

The bill also allows the TCDAA and the Capital Region Development Authority (CRDA) to enter into a memorandum of understanding (MOU) that will allow CRDA to provide administrative support to the authority. The bill allows the MOU to include terms for reimbursement by the authority to CRDA for such services and so there is no fiscal impact to CRDA.

The Out Years

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

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 39.94% of payroll in FY 17 and FY 18.