OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-353

AN ACT CONCERNING THE CREATION OF THE CONNECTICUT HOPE SCHOLARSHIP PROGRAM.

AMENDMENT

LCO No.: 4324

File Copy No.: 221

Senate Calendar No.: 146


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Higher Ed., Off.

GF - Potential Cost

None

None

Board of Regents for Higher Education

Tuition - Potential Revenue Gain

None

None

UConn

Tuition - Potential Revenue Gain

None

None

State Comptroller - Fringe Benefits1

GF - Potential Cost

None

None

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment moves the bill's potential costs to FY 21 and beyond, as it changes the effective date of the bill to July 1, 2020. The amendment eliminates the bill's potential costs in FY 19 and FY 20. The amendment also requires an Office of Higher Education (OHE) study of potential funding sources for the Connecticut Hope Scholarship, which results in no cost as OHE has sufficient expertise to complete the study.

To the extent the OHE study discovers non-General Fund sources of Hope Scholarship funding, and these methods are used to implement the scholarship, the potential OHE scholarship costs identified in the bill's fiscal note may be borne by sources other than the General Fund.

The Out Years

State Impact:

Agency Affected

Fund-Effect

FY 21 $

FY 22 $

FY 23 $

Higher Ed., Off.

GF - Potential Cost

127.6 million to 133.6 million

145.4 million to 151.8 million

Significant

Board of Regents for Higher Education

Tuition - Potential Revenue Gain

Minimal

At least 7.4 million

Significant

UConn

Tuition - Potential Revenue Gain

None

See Below

See Below

State Comptroller - Fringe Benefits

GF - Potential Cost

19,274 to 85,839

19,274 to 97,559

See Below

Note: GF=General Fund

As described above, the amendment moves the fiscal impact of the underlying bill to FY 21 and beyond. The FY 23 potential costs associated with the scholarship and OHE administration are anticipated to increase beyond FY 22 for the reasons described in the underlying bill's fiscal note: (1) tuition and fee increases, (2) increased student participation, (3) increased rate of student eligibility, and (4) more student awareness of the scholarship.

Municipal Impact: None

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.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 36.33% of payroll in FY 19 and FY 20.