Connecticut House Bill HB05552

Connecticut 2011 Regular Session

• Introduced: 1/20/11
• Refer: 1/20/11

Caption

An Act Requiring A Cost-benefit Analysis Of State Tax Expenditures.

Impact

The implementation of HB 05552 is expected to have substantial implications for state law, particularly in how tax expenditures are reviewed and justified. This bill could lead to more rigorous scrutiny of tax breaks and incentives, potentially influencing future legislative decisions regarding new or existing tax expenditures based on their cost-effectiveness. Regular analyses could ensure that taxpayers are not losing revenue unnecessarily and may encourage more strategic financial planning within the government. There is a potential for reallocating resources towards programs that demonstrate higher returns on investment.

Summary

House Bill 05552 introduces a requirement for a periodic cost-benefit analysis of state tax expenditures to be conducted by the Office of Policy and Management and the Legislative Office of Fiscal Analysis. This analysis is to be performed every five years, starting from fiscal year 2012, with findings submitted to both the Governor and the legislature. The intent of this bill is to promote fiscal responsibility and ensure that tax expenditures are yielding the expected benefits to the state and its residents. By mandating a structured analysis, the bill aims to improve transparency in the management of state finances and the evaluation of tax incentives.

Contention

Notably, discussions around HB 05552 may bring up concerns regarding the practicality of conducting comprehensive analyses for all state tax expenditures. Critics might argue that the cost and resources required for these analyses could outweigh the benefits, particularly if they lead to delays in implementing important tax relief measures. Furthermore, there could be debates centered on which tax expenditures deserve focus in analyses, raising questions about political influence and bias in the evaluation process. The bill could ignite discussions around government prioritization and fiscal policy effectiveness, reflecting broader concerns about transparency and accountability in state governance.