OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-873

AN ACT CONCERNING A TWO-GENERATIONAL INITIATIVE.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Labor Dept.

GF - Cost

1.6 million

1.6 million

Various State Agencies

Various - Potential Cost

Less than 1,000

Less than 1,000

Note: GF=General Fund; Various=Various

Municipal Impact: None

Explanation

The bill makes permanent the two-generational initiative pilot program and expands it to additional communities. This results in a cost to the General Fund of approximately $1.6 million annually beginning in FY 18, and a potential cost to various agencies of less than $1,000 annually beginning in FY 18.

The $1.6 million cost estimate is based on the current cost of the pilot initiative (which expires on June 30, 2017 under current law), and is assumed to be borne by the Labor Department.1 It is estimated that expanding the program to the additional communities specified in the bill would result in a cost of approximately $316,000 annually. This is based on the average, annualized per-community cost of approximately $157,800 under the pilot program.

The bill makes the reporting requirements of the working group an annual requirement beginning by January 15, 2018. There may be an annual cost of less than $1,000 to those agencies participating in the working group to reimburse legislators and agency staff for mileage expenses, currently at 53.5 cents/mile.

The bill also specifies that the initiative will leverage interagency funds including Temporary Assistance to Needy Families (TANF) block grant funds. Currently, the state fully expends available TANF block grant funding of $266.8 million.

The Out Years

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

1 Although the bill does not specify a lead agency, approximately $1.3 million in FY 17 funding for the current pilot program is appropriated to the 2Gen-TANF line item within the Labor Department's budget.