OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-7295

AN ACT CONCERNING MINOR REVISIONS TO THE RENTERS REBATE PROGRAM.

AMENDMENT

LCO No.: 7738

File Copy No.: 713

House Calendar No.: 375


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 18 $

FY 19 $

Various Municipalities

Potential Savings

Significant

Significant

Explanation

There is a potentially significant savings associated with the amendment, which shields municipal reserve fund balances of 15% or less from consideration for payment resulting from an arbitration decision with municipal employees.

Using the most recent data available, 117 municipalities currently have an unassigned fund balance (which represents total fund balance, less any sums designated for future purposes) of 15% or less.

The savings associated with the amendment would vary depending on the municipality's ability to pay such award based on other financial and labor factors an arbitration panel must take into consideration. The amendment is expected to shield municipalities to the extent that arbitration awards are often significant sums (about 2% of wages on average), and the amendment removes a significant factor from a municipality's ability to pay.

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.

Sources:

Department of Labor Office of Arbitration