OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-6461

AN ACT CONCERNING UNEMPLOYMENT COMPENSATION.

AMENDMENT

LCO No.: 8814

File Copy No.: 258

House Calendar No.: 198


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Labor Dept.

UCF - Revenue Gain

Potential

Potential

Labor Dept.

UCF - Savings

Up to 44.3 million

Up to 59 million

Note: UCF=Unemployment Compensation Fund

Municipal Impact: None

Explanation

The amendment strikes the underlying bill and associated fiscal impact.

The amendment provides additional flexibility to the Department of Labor (DOL) to enforce collection of outstanding taxes, interest, and penalties under state unemployment tax law. This results in a potential revenue gain to the Unemployment Compensation Fund beginning as early as FY 18.

The amendment also expands circumstances under which a claimant is prohibited from receiving unemployment benefits concurrently with severance pay results in an estimated annualized savings of up to $59 million. This is based on the number of dismissal pay issues adjudicated by the DOL in 2016.

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.