OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-501

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

AMENDMENT

LCO No.: 6466

OFA Fiscal Note

SEE BELOW

Section 501 requires the Office of Policy and Management to conduct a study concerning the impact of requiring state employees to work a forty hour workweek. This has no fiscal impact as it is anticipated that OPM has the expertise to complete the study.

Section 502 limits the amount of bonds that can be authorized for issuance by the State Bond Commission each fiscal year. Reducing issuance levels results in a significant future and on-going reduction of debt service costs.

Section 503 requires the Government and Administration committee to make recommendations to reduce the number of legislative committees to not more that sixteen, including a joint standing committee on way and means. This will not result in a fiscal impact.

Section 504 requires that each state agency address the recommendations contained in reports issued by the Auditors of Public Accounts and hold a public hearing requiring the commissioner of said agency to testify in response to the concerns outlined in the reports. This will not result in a fiscal impact.

Section 505 establishes a long-term fiscal planning working group. There may be an annual cost of less than $1,000 to those agencies participating in the task force to reimburse legislators and agency staff for mileage expenses for those participating in the working group.

Section 506 of the amendment does not result in a fiscal impact to the state in FY 17 and FY 18 as current pension benefits are governed by a collective bargaining agreement between the state and the State Employee Bargaining Agent Coalition (SEBAC) which is in effect until 2022.

The fiscal impact in 2022 will depend on whether or not a defined contribution plan is implemented for state employees and what the cost or savings to the state is from implementing the new retirement plan.

Under current law when an agreement is in conflict with statute, the provisions of the agreement supersede statute (CGS Sec. 5-278(e)). The provisions of the current agreement are in place until a subsequent agreement is negotiated.

In addition, Section 5-278 (f) codified provisions of the Pension Agreement first agreed to in 1989, which included the requirement that the state and SEBAC negotiate pension benefits. Therefore the provisions of the amendment would have to collectively bargained in order to align the provisions of the amendment with what is currently collective bargained.

Sections 507, 508 and 509 of the amendment require the appropriations committee to recommend approval or disapproval with regards to all collective bargaining agreements. It also requires that all collective bargaining agreements, arbitration awards, changes to the state employees retirement system, or stipulated agreements cannot take effect or be deemed approved unless approved by the General Assembly.

This amendment may cause the delay or rejection of certain collective bargaining contracts. A delay is not anticipated to result in a fiscal impact as those contracts approved would be subject to retroactive payments. A rejection of a collective bargaining contract would mean the particular bargaining unit would continue to work under the terms of the existing contract. The fiscal impact of a rejected contract is indeterminate pending the terms of the new contract.

Section 510 The amendment requires the General Assembly to define certain terms related to the state spending cap, and implements legislative salary and other reductions in the eventuality that the General Assembly fails to so by March 1, 2017. This results in a potential savings to the Office of Legislative Management.

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.