OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

EMERGENCY CERTIFICATION

SB-501

AN ACT ADJUSTING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017.

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The bill contains a revised budget package for FY 17, spending adjustments for FY 16 and various revenue changes for FY 17.

The bill includes:

1. Net reductions to Original FY 17 appropriations in all funds of $673.5 million;

2. Net reductions in Original FY 17 General Fund appropriations of $821.0 million;

3. Carry forward funding provisions totaling $771,534;

4. Provisions to implement the budget;

5. Deficiency funding of $66.4 million in FY 16 for various agencies;

6. Various policy changes that yield General Fund net revenue increases of $140.2 million in FY 17; and

7. Revenue estimates as adopted by the Finance, Revenue and Bonding Committee on 5/4/16.

FY 17 Revised Fund Balance (in millions)

Fund

Revenue $

Appropriations $

Surplus/

(Deficit) $

General

17,890.6

17,890.1

0.5

Transportation

1,464.4

1,462.8

1.6

Other Appropriated

424.9

411.8

13.1

TOTAL

19,779.9

19,764.8

15.2

APPROPRIATIONS

Sections 1 - 7 include the FY 17 changes to the original appropriations resulting in a reduction of $673.5 million, for total appropriations of $19,764.8 billion for the ten appropriated funds. The table below summarizes the appropriations by fund.

FY 17 Revised Appropriations

Fund

Original Appropriation FY 17

Revised

FY 17

Revised - Original

General Fund

18,916,880,389

18,079,478,008

(837,402,381)

Special Transportation Fund

1,508,138,933

1,474,831,691

(33,307,242)

Banking Fund

29,889,297

30,066,200

176,903

Insurance Fund

81,351,940

80,448,042

(903,898)

Consumer Counsel and Public Utility Control Fund

26,953,593

27,308,485

354,892

Workers' Compensation Fund

26,982,874

26,917,168

(65,706)

Mashantucket Pequot and Mohegan Fund

61,779,907

58,076,612

(3,703,295)

Regional Market Operation Fund

1,067,306

1,067,306

-

Criminal Injuries Compensation Fund

2,934,088

2,934,088

-

Municipal Revenue Sharing Fund

-

185,000,000

185,000,000

Total Gross Appropriations

20,655,978,327

19,966,127,600

(689,850,727)

General Fund 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)

(15,075,000)

(14,792,808)

General Lapse - Executive

(9,678,316)

-

9,678,316

Municipal Opportunities and Regional Efficiencies Program

(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)

(68,848,968)

(56,348,968)

Arts and Tourism Lapse

-

(500,000)

(500,000)

General Fund Total Lapses

(205,721,714)

(189,328,937)

16,392,777

Special Transportation Fund Lapses

 

 

 

Unallocated Lapse

(12,000,000)

(12,000,000)

-

Special Transportation Fund Total Lapses

(12,000,000)

(12,000,000)

-

   

General Fund

18,711,158,675

17,890,149,071

(821,009,604)

Special Transportation Fund

1,496,138,933

1,462,831,691

(33,307,242)

Banking Fund

29,889,297

30,066,200

176,903

Insurance Fund

81,351,940

80,448,042

(903,898)

Consumer Counsel and Public Utility Control Fund

26,953,593

27,308,485

354,892

Workers' Compensation Fund

26,982,874

26,917,168

(65,706)

Mashantucket Pequot and Mohegan Fund

61,779,907

58,076,612

(3,703,295)

Regional Market Operation Fund

1,067,306

1,067,306

-

Criminal Injuries Compensation Fund

2,934,088

2,934,088

-

Municipal Revenue Sharing Fund

-

185,000,000

185,000,000

Total Net Appropriations

20,438,256,613

19,764,798,663

(673,457,950)


Spending Cap

The bill is under the spending cap by $58 million in FY 16 and $609.7 million in FY 17. The bill is $35 million further from the cap than the original FY 16 budget due to the net impact of the deficiency provisions, which include a $35 million increase to Debt Service (which is exempt from the cap). The bill is also $586.7 million further from the cap in FY 17.1

Growth Rate

The FY 17 Revised Budget growth rate for the General Fund is -1.0% and for all appropriated funds is 0.4% over FY 16 estimated expenditures. See the table below for details.

Growth Rate of Appropriations (by fund – in millions)

Fund

FY 16 Estimated Expenditures $

FY 17 Original Appropriation $

FY 17 Revised

Change From FY 16 Estimated to FY 17 Revised

$

%

General

18,060.9

18,711.2

17,890.1

(170.8)

-1.0%

Transportation

1,388.8

1,496.1

1,462.8

74.0

5.3%

Other Appropriated

229.6

231.0

411.8

182.2

79.4%

TOTAL

19,679.3

20,438.3

19,764.8

85.5

0.4%

The FY 17 Revised Budget growth rate for the General Fund is -4.4% and for all appropriated funds is -3.3% over FY 17 Original Appropriations. See the table below for details.

Fund

FY 17 Original Appropriation $

FY 17

Revised

$

Change From FY 17 Original to FY 17 Revised

$

%

General

18,711.2

17,890.1

(821.0)

-4.4%

Transportation

1,496.1

1,462.8

(33.3)

-2.2%

Other Appropriated

231.0

411.8

180.8

78.2%

TOTAL

20,438.3

19,764.8

(673.5)

-3.3%


Sections 9 – 47
relate to specific budget actions identified below.

Section

Agency

Description

9(a)

DPH

Transfers $5.9 million of the Biomedical Research Trust Fund current unobligated balance to the General Fund in FY 17.

9(b)

Various

Distributes the remaining balance of the unobligated funds in the Biomedical Research Trust Fund equally to three entities: (1) The University of Connecticut Health Center, 1/2 of which is for the Clinical and Translational Breast Program and 1/2 of which is for the Bladder Cancer Institute, (2) Yale School of Medicine for the Children's Diabetes Research Program, and (3) Griffin Hospital for the Multiple Sclerosis Treatment Center. Each entity is anticipated to receive approximately $1.3 million each. It is anticipated that the necessary revenue for the Biomedical Research Trust Fund will be addressed in the bond bill.

10

DPH/TSF

Credits the Tobacco Settlement Fund's $4 million FY 16 surplus to the General Fund in FY 17.

11

DPH

Eliminates future transfers from the Tobacco Settlement Fund to the Biomedical Research Trust Fund (beginning in FY 17) and credits them to the General Fund, instead.

12

CIA/Various

Transfers $1 million, proportionately from the accounts within the Community Investment Act (CIA) in CGS section 4-66aa, for the fiscal year ending June 30, 2017. After the transfer, the estimated balance remaining in the CIA is approximately $21 million.

13

DMV

Transfers $1.6 million of the fund balance from the Emissions Enterprise Fund to the General Fund for FY 17. PA 15-1 DSS, transferred $8 million from the Emissions Enterprise Fund to the General Fund for FY 16.

14

DCP

Transfers $500,000 from the defunct Betting Taxes Account to the General Fund in FY 17.

15

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. 

16

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 $517,114 in FY 17.

17

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).

18(a) & 19(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 18(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.

18(b)& 19(b)

DDS/DSS

Sec. 18(b) 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, pursuant to Section 27 of PA 11-6. Instead, Sec. 19b authorizes $750,000 from THTF to the Department of Social Services for this purpose.

20

SDE

Specifies the payment of approximately $2,037.6 million Education Equalization grant (ECS) payments. This reflects a reduction, from the original FY 17 appropriation, of $32.1 million in ECS funding to municipalities.

21

OPM

Specify the payment of approximately $66.7 million in State Property PILOT payments. This reflects a reduction, from the original FY 17 appropriation, of $16.9 million in State Property PILOT funding to municipalities.

22

OPM

Specify the payment of approximately $115.0 million in Hospital PILOT payments. This reflects a reduction, from the original FY 17 appropriation, of $10.5 million in Hospital PILOT funding to municipalities.

23

OPM

Specifies the FY 17 distribution of grants from the Pequot Fund. This represents a reduction of about $3.7 million from the original appropriation.

24

SOTS

Carries forward $300,000 into FY 17 in the Commercial Recording Division to be expended as follows: $60,000 for the reprogramming of the CONCORD business database necessitated by changes governing limited liability companies; and the remainder to support the E-Regulations program.

25(a)

OLM

Allows for up to $7,500 in Other Expenses to be carried forward for the National Center for Higher Education Management Systems to be used in FY 17 to continue the contract obligations for higher education studies.

25(b)

OLM

Allows for up to $264,034 in Other Expenses to be carried forward into FY 17 for various engineering and architectural studies.

26

OPM/DECD

Requires OPM to implement a $500,000 reduction proportionally across all tourism, arts, and youth development-related grants funded under DECD. This clarifies the implementation of the $500,000 General Fund appropriation reduction included in Section 1 and has no additional fiscal impact.

27

OPM

Transfers $2 million from the Municipal Video Competition Account to the General Fund in FY 17.

28

DMV

Transfers $2 million of the fund balance from the School Bus Seatbelt account to the General Fund in FY 17. PA 15-1 DSS, transferred $2 million from the School Bus Seatbelt account to the General Fund in FY 16. The funding for this account is from a $50 deposit of the total $175 fee associated with restoring an operator's license or registration.

29

DOL

Transfers $200,000 from the Individual Development Account within the Labor Department to the resources of the General Fund in FY 17.

30

DOL

Transfers $200,000 from the Wage and Workplace Standards Penalty Fund account within the Labor Department to the resources of the General Fund in FY 17.

31 & 32

Various

Detailed write-ups on the Deficiency appropriations and reductions are reflected below this table.

33

Various

Increases the FAC approval for transfer amount from $50,000 to $175,000.

     

34(a)(b)

OPM

OPM may recommend executive branch reductions in order to achieve a General Fund targeted savings lapse of $68.9 million. However, these reductions cannot be to Education Equalization Grants or Hospital Supplemental Payments.

35(d)

OPM

OPM may recommend executive branch reductions in order to achieve a General Fund budget savings of $94.5 million. However, these reductions cannot be: 1) to municipal aid, or 2) more than 1% of any appropriation.

35(e)

OPM/LEG

OPM may recommend reductions in legislative branch expenditures in FY 17 by $3 million.

35(f)

OPM/JUD

OPM may recommend reductions in judicial branch expenditures in FY 17 by $22.5 million.

36

OPM/Various

Eliminates the General Fund Employee Lapse of $12.8 million in FY 17.

37-39

SDE

Ensures that money appropriated for the Priority School District grant in FY 16 and FY 17 is spent in the appropriate year, and through the appropriate sub-grant. This allows eligible school districts to receive funding. The sections also make technical changes to the priority school district grant.

40-44, 46

OPM

See Municipal Revenue Sharing Account section below.

45

STF

Transfers $50 million from Special Transportation Fund to the General Fund for FY 17. This section reduces the monthly General Fund transfer from the Sales and Use Tax, which will result in revenue loss to the STF of $50 million and a corresponding revenue increase to the General Fund.

47

Various

Repeals certain expenditure reductions in the executive, judicial and legislative branches. It is replaced by sections 34 and 35 above.

Municipal Revenue Sharing Account - Revenue Changes

Sections 40, 41, 44 and 46 make the following changes with regard to the Municipal Revenue Sharing Account/Fund (MRSA). The net impact to the General Fund from these changes is a $49.9 million revenue gain.

MRSA Revenue Changes (in millions)

Sec.

Action(s)

Fund

FY 17 $

40

Eliminate Sales Tax Diversion to Municipal Revenue Sharing Account  for FY 17 Only1

General Fund

212.1

Municipal Revenue Sharing Account

(212.1)

44

Transfer FY 16 MRSA Balance to General Fund in FY 17

General Fund

22.8

Municipal Revenue Sharing Account

(22.8)

46

Transfer Out Resources of the General Fund to the Municipal Revenue Sharing Fund for FY 17 Only

General Fund

(185.0)

Municipal Revenue Sharing Fund

185.0

Total General Fund

49.9

Total Municipal Revenue Sharing Account/Fund

(49.9)

1This reflects the estimated FY 17 MRSA diversion per the April 30, 2016 Consensus Estimates.

The Municipal Revenue Sharing Fund will receive $185.0 million in FY 17. This results in a revenue loss of about $61.4 million to municipalities from the original FY 17 budget for MRSA payments.

The table below compares the grants to be paid out in FY 17 from MRSA, and grants to be paid out from MRSF under the bill's provisions. The bill combines the Additional Sales Tax grant and the Car Tax grant into one, and specifies the town by town distribution of the combined grant. For comparative purposes, the Additional Sales Tax Grant and the Car Tax grant are shown separately.

MRSA Expenditure Changes1

Grant

Current Law

SB 501

Difference

Supplemental PILOT

46,101,081

44,101,081

(2,000,000)

Additional Sales Tax

109,267,687

75,907,908

(33,359,779)

Car Tax Grants

78,000,000

51,943,900

(26,056,100)

ECS

10,000,000

10,000,000

-

COGs

3,000,000

3,000,000

-

GROSS TOTAL

246,368,768

184,952,889

(61,415,879)

1Current law expenditures do not reflect the impact of consensus revenue on MRSA grant payments.

FY 16 DEFICIENCY APPROPRIATIONS

Sections 31 and 32 make various FY 16 appropriation increases and reductions that result in no net impact to the General Fund. The General Fund increases of $66.4 million are offset by reductions in appropriations to various agencies and accounts.

The bill is under the spending cap by $58 million in FY 16. The bill is $35 million further from the cap than the original FY 16 budget due to the net impact of the deficiency provisions, which include a $35 million increase to Debt Service (which is exempt from the cap). The table below shows the changes in agency appropriations contained in these sections.

FY 16 Deficiency - Changes in Appropriations (in millions)

Agency

FY 16 $

Section 1 General Fund Increases:

Office of the Chief Medical Examiner

.5

Office of Early Childhood

6.3

Public Defender Services Commission

4.6

State Treasurer – Debt Service

35.0

State Comptroller – Miscellaneous

20.0

Total - General Fund Increases

66.4

Section 2 General Fund Reductions:

Legislative Management

(2.0)

Department of Developmental Services

(11.8)

Department of Mental Health & Addiction Services

(5.6)

State Comptroller - Fringe Benefits

(47.0)

Total - General Fund Reductions

(66.4)

Section 31 increases the General Fund appropriations to various agencies and accounts by $66.4 million in FY 16. Below is the explanation of the General Fund agency's deficiency appropriations needs:

Office of the Chief Medical Examiner (CME) – $465,000

The FY 16 appropriation included in the bill for this agency is composed of:

● $225,000 in Personal Services (PS), and

● $240,000 in Other Expenses (OE).

The $225,000 shortfall in PS represents 4.7% of the FY 16 appropriation in the account. The $240,000 shortfall in OE represents 17.9% of the FY 16 appropriation in the account. The shortfall in PS predominantly reflects overtime expenses. Expenditures in OE are projected to be 28.7% greater in FY 16 ($1.6 million) than in FY 15 ($1.2 million). Primary cost drivers for OE are laboratory services, body transportation, and medical supplies. CME's overall caseload continues to rise. From FY 14 to FY 15, autopsies increased by more than 33% from 1,488 to 1,993. Current projections for FY 16 place a two-fiscal-year increase in autopsies at over 58%. The Office is open 24 hours a day, every day of the year. It is charged to investigate all human deaths that fall into the following categories: 1) violent (whether apparently homicidal, suicidal, or accidental), 2) sudden, or unexpected, that are not caused by a readily recognizable disease, 3) under suspicious circumstances, 4) related to disease resulting from employment, 5) related to disease that might constitute a threat to public health, and 6) the bodies of the deceased to be cremated.2

Office of Early Childhood (OEC) - $6.3 million

The agency's projected FY 16 budget shortfall is composed of:

● $6.3 million in Early Intervention

The $6.3 million projected shortfall (25.5% of the FY 16 appropriation) in the Early Intervention account, commonly known as Birth to Three, is due to several factors: (1) underfunding of the Birth-to-Three program over the past three years, (2) an increase in the number of children served, and (3) an increase in the number of children requiring more intensive services.

The Early Intervention account expenditures have been increasing over the past three years, from $35.4 million in FY 13 to $42.1 million in FY 15. This has resulted in a transfer of funding from other accounts (via an FAC transfer) to cover the shortfalls. In FY 13, Department of Developmental Services (DDS) transferred $497,000 from the Employment Opportunities and Day Services to the Early Intervention account to support the Birth-to-Three program, while in FY 15 DDS transferred $2.9 million from Personal Services. The FY 16 and FY 17 Budget transferred the Birth-to-Three Program from DDS to OEC. The amount transferred to OEC for the reallocation of the program did not include supplemental funds to cover the full program costs. Additionally, the FY 16 expenditure requirements include $500,000 in unpaid FY 15 invoices, resulting in a total cost of $3.4 million over budget.

The number of children in the Birth-to-Three program has also increased above original projections by 2.1% or an average increase of 115 children per month, resulting in a cost of approximately $1.8 million.

The number of children requiring intensive services (primarily those diagnosed with an autism spectrum disorder) has also increased by 9.5% or an average increase of 40 children per month, resulting in a cost of approximately $1 million.

Public Defender Services Commission - $4.6 million

The FY 16 appropriation included in the bill for this agency is composed of:

● $2.5 million in Personal Services

● $2.0 million in Assigned Counsel; and

● $0.1 million in Expert Witnesses.

A total projected shortfall of $4.6 million is due to a deficiency of $2.5 million (5.7% of the appropriation) in the Personal Services account, $2.0 million (9.1% of the appropriation) in the Assigned Counsel account, and $0.1 million (3.3% of the appropriation) in the Expert Witnesses account.

The Personal Services deficiency of $2.5 million is due to the agency's inability to meet the assigned deficit mitigation amount of $2.5 million in this account. In addition to the deficit mitigation reduction, the Personal Services account also included a holdback of $562,000.

The Assigned Counsel deficiency of $2.0 million is due to: (1) an increase in child protection cases ($1.2 million); and (2) an increase in habeas cases ($820,000). In child protection cases, the Division of Public Defender Services is required to provide counsel for all children whose parents are deemed indigent and for any party where the court orders counsel. In FY 14 there were a total of 8,364 child protection cases (697 per month) and in FY 15 there were a total of 10,307 cases (859 per month). It is anticipated that there will be a total of approximately 12,000 cases in FY 16. From July through October of FY 16 they have averaged approximately 1,203 cases each month. While the number of child protection cases has increased significantly since FY 14, the funding level has remained the same at $7.6 million. Child protection cases are assigned to outside counsel and are paid through the Assigned Counsel account at a flat rate of $500 per case (attorneys can also petition for an hourly rate). The estimated 3,600 additional cases in FY 16 will require approximately $1.2 million in additional funding.

In addition to the deficiency due to the child protection increases, PA 12-115, An Act Concerning Habeas Reform, reduced the time in which a habeas petition can be filed, and resulted in an influx of habeas petitions received by the agency. Habeas petitions have doubled since the legislation passed. Previous to the legislation, the agency averaged 25 petitions per month, or 300 per year. Since the legislation passed, the agency has averaged 50 petitions per month, or 600 per year. In FY 16 to date, the agency has been averaging approximately 54 petitions per month, or 648 per year. The cost per case can vary significantly depending on the complexity of the appeal but on average costs approximately $11,000 per case. The additional 48 cases in FY 16 will require approximately $820,000 additional funding in FY 16.

Funds in the Expert Witnesses account are used, in part, to support habeas cases, which have increased significantly, as explained above. The cost per case is, on average, approximately $2,083 per case.

Office of the State Treasurer - General Fund Debt Service - $35 million

The agency's projected FY 16 budget shortfall is composed of:

● $35 million in Debt Service.

The projected $35 million shortfall in the General Fund Debt Service account is due to a lower level of premium income related to the issuance of General Obligation bonds. This shortfall represents 2.4% of the FY 16 appropriation. The FY 16 budget included a reduction of $142.8 million below the level requested by the Office of the State Treasurer primarily due to the anticipated receipt of premiums on bond issuances in the current fiscal year. Throughout the year, net premiums realized on issuances have not achieved budgeted levels.

Office of the State Comptroller - Miscellaneous - $20 million

The FY 16 appropriation included in the bill for this agency is composed of:

● $20 million in Adjudicated Claims.

The projected shortfall in the Adjudicated Claims account is due to higher than budgeted normal claims costs, including four, $4.2 million settlements against the state for individuals who were wrongly incarcerated (totaling $16.8 million). Average normal claims experience over the past 10 years, after adjusting for large settlements, has been approximately $8 million annually. Normal claims experience for FY 16 is projected to be $11.2 million, $7.1 million greater than the historical $4.1 million appropriation.

The total FY 16 appropriation included $20.8 million for FY 16 settlement costs associated with the State Employees' Bargaining Agent Coalition (SEBAC) versus the State (commonly referred to as the Rowland settlement).

Section 32 reduces General Fund appropriations to various agencies and accounts by $66.4 million in FY 16. The following provides additional detail on the appropriation reductions.

Legislative Management - $2 million

Funding is reduced in the following account:

$2 million in Personal Services

Funding is available in the Personal Services account due to holding nonpartisan positions vacant, savings from employee turnover, and continuing the practice of releasing most of the sessional assistant clerks two weeks after the Joint Favorable deadline while maintaining caucus savings.

Department of Developmental Services (DDS) - $11,800,000

Funding is reduced in the following account:

$11,800,000 in Personal Services.

Turnover, in combination with a hiring freeze, contribute to a projected $10,000,000 lapse in Personal Services. As of the end of March 2016, there are approximately 185 full-time funded vacancies in DDS.

Department of Mental Health and Addiction Services - $5.6 million

Funding is reduced in the following account:

$5.6 million in Personal Services

Funding is available in the Personal Services line item due to the partial release of the holdback of $7.5 million.

Office of the State Comptroller - Fringe Benefits - $47 million

Funding is reduced in the following accounts:

● $30 million in Retired State Employees Health Service Cost;

● $8.6 million in Employers' Social Security Tax;

● $6.5 million in Higher Education Alternative Retirement System; and

● $1.9 million in Unemployment Compensation.

Funding is available in the Retired State Employees' Health Services Cost account due to expenditures and population being less than budgeted. The budget assumed a 6% increase in population, however actual growth is trending closer to 3%. In addition projected Medicare Part B premium increases of approximately 51.9% (an increase of approximately $54 per Medicare member per month did not materialize, the actual increase was 16.1% (or approximately $17 per Medicare member per month)).

Funding is available in the Employers' Social Security Tax due to statewide payroll information reflecting lower than anticipated hiring and other personnel costs across state agencies funded by the General Fund. Average General Fund social security trends are 3.4% less than anticipated.

Funding is available in the Higher Education Alternate Retirement System predominately due to the distribution of General Fund funded employees and expenditures being less than was anticipated, due to a shift to funding SERS higher education employees versus ARP employees out of the General Fund.

Funding is available in the Unemployment Compensation due to average monthly unemployment benefit costs being 30.4% less than anticipated (average month benefits are $424,960).

REVENUE

The table below contains the revenue estimates adopted by the Finance, Revenue and Bonding Committee on 5/4/16. Section 9 of this bill transfers the unobligated funds in the Biomedical Research Trust Fund to the General Fund in FY 17. This results in a General Fund increase of $3.9 million over the revenue estimates adopted by the Finance, Revenue and Bonding Committee on 5/4/16. This results in total FY 17 General Fund revenue of $17,890.6 million.

Finance, Revenue and Bonding Committee Revenue Estimates, as Adjusted (in thousands)

Item

FY 17 $
Original
Estimates

FY 17 $
Revised
Estimates

Taxes

Personal Income Tax

10,357,200

9,519,000

Sales & Use Tax

4,084,665

4,328,700

Corporation Tax

910,700

839,300

Public Service Tax

316,500

283,900

Inheritance & Estate Tax

174,700

174,600

Insurance Companies Tax

246,000

245,400

Cigarettes Tax

363,300

371,100

Real Estate Conveyance Tax

200,800

201,800

Alcoholic Beverages Tax

62,100

62,200

Admissions & Dues Tax

39,600

39,000

Health Provider Tax

683,900

683,400

Miscellaneous Tax

21,300

20,100

Subtotal - Taxes

17,460,765

16,768,500

Less Refunds

(1,103,100)

(1,106,500)

Less Earned Income Tax Credit

(133,900)

(133,600)

Less R&D Credit Exchange

(7,400)

(8,500)

Net - Taxes

16,216,365

15,519,900

Other Revenue

Transfers - Special Revenue

369,300

355,500

Indian Gaming Payments

252,400

267,000

Licenses, Permits and Fees

290,775

269,200

Sales of Commodities

39,100

42,600

Rents, Fines and Escheats

128,000

128,000

Investment Income

5,600

3,800

Miscellaneous

173,400

219,000

Less Refunds of Payments

(75,100)

(66,100)

Net - Other Revenue

1,183,475

1,219,000

Other Sources

Federal Grants

1,252,687

1,257,600

Transfer From Tobacco Settlement

104,500

108,500

Transfers (To)/From Other Funds

(43,400)

(218,300)

Net - Other Sources

1,313,787

1,147,800

GF TOTAL

18,713,627

17,886,700

 

Special Transportation Fund (STF)

Taxes

Motor Fuels Tax

502,300

503,700

Oil Companies Tax

359,700

268,400

Sales & Use Tax

260,600

202,900

Sales Tax- DMV

85,000

90,300

Less Refunds

(7,500)

(14,500)

Net - Taxes

1,200,100

1,050,800

Other Sources

Motor Vehicle Receipts

246,600

261,800

Licenses, Permits and Fees

139,900

141,500

Interest Income

8,500

8,500

Federal Grants

12,100

12,100

Transfers From/(To) Other Funds

(6,500)

(6,500)

Refunds of Payments

(3,800)

(3,800)

Net - Other Sources

396,800

413,600

STF TOTAL

1,596,900

1,464,400

 

Mashantucket Pequot and Mohegan Fund (MP&MF)

Transfers from General Fund

61,800

58,100

MP&MF TOTAL

61,800

58,100

 
 

Regional Market Operating Fund (RMOF)

Rentals and Investment Income

1,100

1,100

RMOF TOTAL

1,100

1,100

 

Banking Fund

Fees and Assessments

30,200

30,200

BANKING FUND TOTAL

30,200

30,200

 

Insurance Fund

Fees and Assessments

81,400

84,130

INSURANCE FUND TOTAL

81,400

84,130

 

Consumer Counsel and Public Utility Control Fund (CC&PUCF)

Fees and Assessments

27,300

27,500

CC&PUCF TOTAL

27,300

27,500

 

Workers' Compensation Fund (WCF)

Fees and Assessments

28,122

28,162

Use of Fund Balance from Prior Years

12,516

11,198

WCF TOTAL

40,638

39,360

 

Criminal Injuries Compensation Fund (CICF)

Restitutions

3,000

3,000

CICF TOTAL

3,000

3,000

 

Municipal Revenue Sharing Fund

Transfers from General Fund

-

185,000

MRSF TOTAL

-

185,000

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 18 - FY 20 (in millions)

Fund

Revised

Projected

FY 17 $

FY 18 $

FY 19 $

FY 20 $

General

17,890.1

19,132.2

19,739.2

20,368.9

Special Transportation

1,462.8

1,643.8

1,742.0

1,841.2

Other Appropriated

411.8

233.3

236.5

236.5

TOTAL

19,764.8

21,009.3

21,717.7

22,446.6

Growth Rates

       

Over/(Under) Spending Cap

(609.7)

(388.0)

60.0

3.1

The table below compares revenue estimates to projected expenditures for FY 18 - FY 20 based on the FY 17 Revised Budget.

Fund Balance FY 18 - FY 20 (in millions)

Fund

FY 18 $

FY 19 $

FY 20 $

Approp.

Revenue

Surplus/
(Deficit)

Approp.

Revenue

Surplus/
(Deficit)

Approp.

Revenue

Surplus/
(Deficit)

General

19,132.2

17,858.9

(1,273.3)

19,739.2

18,311.3

(1,427.9)

20,368.9

18,838.7

(1,530.2)

Special
Transportation

1,643.8

1,648.6

4.8

1,742.0

1,696.2

(45.8)

1,841.2

1,749.2

(92.0)

Other
Appropriated

233.3

239.9

6.6

236.5

239.9

3.4

236.5

239.9

3.4

TOTAL

21,009.2

19,747.4

(1,261.9)

21,717.5

20,247.4

(1,470.3)

22,446.3

20,827.8

(1,618.8)


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.

1 Pursuant to Section 35 of PA 15-244, the FY 17 Revised Budget reflects 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 through FY 17.

2 There is a $150 fee for this investigation and the associated certificate, which is usually handled through the funeral director of the family's choice. The revenue from the fee ($2.3 million in FY 15) is deposited into the General Fund.