OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5590

AN ACT CREATING A TASK FORCE TO IMPROVE THE WORKFORCE DEVELOPMENT SYSTEM IN THE STATE OF CONNECTICUT.

As Amended by House "A" (LCO 8658)

House Calendar No.: 166

Senate Calendar No.: 599


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Labor Dept.

GF - Potential Cost

Under 1,000

Under 1,000

Education, Dept.; Labor Dept.; Office of Early Childhood; Board of Regents for Higher Education; UConn

GF - Potential Cost

Potential

Potential

Board of Regents for Higher Education

Various - Cost

51,780

69,040

Labor Dept.

Workforce Training Authority Fund - Potential Cost

Potential Significant

Potential Significant

Note: GF=General Fund; Various=Various

Municipal Impact: None

Explanation

The bill results in multiple fiscal impacts to the state, as described below.

Section 1 of the bill allows the Labor Commissioner to establish a working group to review business support services in the state.  There may be a cost of less than $1,000 to those agencies participating in the working group to reimburse members for mileage expenses, currently at 53.5 cents/mile.

Section 2 requires the Labor Commissioner to develop a universal intake form to track data on people utilizing agency American Job Center or Workforce Development Board facilities and report annually to the legislature.  This does not result in any fiscal impact as the Department of Labor's (DOL) CT Hires system and Workforce Investment and Opportunities Act annual report currently track and report this information, respectively.

Section 3 requires the Labor Department to issue a request for proposals (RFP) regarding the development and implementation of a soft skills program within the hospitality industry. This does not result in any fiscal impact as it is anticipated the RFP could be executed utilizing an existing agency Staff Attorney.

Section 4 of the bill establishes the Connecticut Preschool through Twenty and Workforce Information Network, or CP20 WIN, in statute, and assigns to it several duties.  The P20 WIN currently exists through a series of agreements through involved state agencies and other entities: the Departments of Education and Labor, the Office of Early Childhood Education, the higher education constituent units excluding for the UConn Health Center, and the Connecticut Conference of Independent Colleges.  There are no dedicated staff.  To the extent that the duties are executed, there may be a potential cost within one or multiple involved state agencies. 

Section 5 of the bill requires the Connecticut Employment and Training Commission (CETC) to develop a Connecticut Early College Opportunity program, a partnership among a district's high schools, a local community college, and a business.  It is anticipated that the program partners and CETC have sufficient expertise to develop such a program.

Section 6 of the bill requires the Connecticut State Colleges and Universities to establish an outreach coordinator position.  As the system currently does not have a single person to liaise with businesses, it is anticipated a half-time outreach position will be created.  The position's total cost is anticipated to be approximately $51,780 in FY 18 (as the position is established on October 1) and $69,040 in FY 19 and annually thereafter.  The cost consists of a $50,000 annual salary for the half-time position and fringe benefits of $19,040 (38.08% of salary).

Sections 7 through 9 establish a Workforce Training Authority and Workforce Training Authority Fund (WTAF), to be administered by DOL, and enumerate the allowable uses of the WTAF.  It is unclear how the WTAF would be funded under the bill; to the extent state funds are utilized there is a significant cost to the state.

Section 10 requires a Department of Labor report, which has no fiscal impact as the department has sufficient expertise to complete this requirement.

House “A” strikes the underlying bill and the associated fiscal impact, and replaces it with the fiscal impact described above.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the extent of implementation.

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.