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.: 8826

File Copy No.: 258

House Calendar No.: 198


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Labor Dept.

UCF - See Below

See Below

See Below

Labor Dept.

Employment Security Administration Fund - See Below

See Below

See Below

Note: UCF=Unemployment Compensation Fund

Municipal Impact: None

Explanation

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 (UCF) beginning as early as FY 18.

The amendment also reduces the increase in minimum base period earnings required to qualify for unemployment benefits under the bill, which reduces the $1.2 million savings to the UCF identified in the fiscal note on the underlying bill.

Finally, the amendment removes the provisions of the bill: 1) modifying the unemployment benefit calculation based on average wages over three quarters for all workers, and 2) freezing the maximum unemployment benefit at the current value of $616 until the average high cost multiple (ACHM) of the UCF is at least 0.7. This reduces the savings to the UCF and cost to the Employment Security Administration Fund identified in the fiscal note on the underlying bill.

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.