OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5668
AN ACT REQUIRING THE OFFICE OF HIGHER EDUCATION TO
ESTABLISH A MICROCREDENTIAL PILOT PROGRAM.
Primary Analyst: SB 4/7/21
Contributing Analyst(s): JS
Reviewer: JS
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Higher Ed., Off. GF - Cost 888,443 138,443
State Comptroller - Fringe
Benefits
1
GF - Cost 57,177 57,177
Higher Ed., Off. GF - Revenue
Gain
None Indeterminate
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill requires the Office of Higher Education (OHE) to establish a
pilot program, by January 1, 2022, to develop a virtual platform for
state residents to earn or renew a microcredential. The bill is
anticipated to result in costs to OHE that total $888,443 in FY 22 and
$138,443 in FY 23, along with fringe benefit costs of $57,177 in both
years.
The bill is anticipated to result in additional, annual staff costs to
OHE of $138,443, and corresponding fringe benefit costs of $57,177,
associated with hiring two full-time Senior Consultants. The two
additional staff members would be responsible for monitoring
microcredential registration, fee collection, and survey analysis.
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 41.3% of payroll in FY 22 and FY 23. 2021HB-05668-R000335-FN.DOCX Page 2 of 2
In addition to staffing costs, OHE would require funding to develop
the virtual platform. It is anticipated, based on third party providers
who have developed similar platforms in other states, that OHE would
incur one-time FY 22 development costs of approximately $500,000,
with an additional $200,000 in one-time connection costs to integrate
the platform into OHE's Academic Affairs database. It is also
anticipated that OHE would require staff training and marketing
development in FY 22, totaling approximately $50,000.
The bill creates a non-lapsing "microcredential account." Employers
posting job opportunities on the virtual platform are required to
submit a fee in the amount OHE establishes, and any fee must be
deposited into the account. This will result in a revenue gain,
beginning in FY 23 (as the platform must be developed before any
revenue is collected) to the General Fund. The scope of the net revenue
gain is indeterminate and will vary based on the fee set by OHE, the
number of employers posting job opportunities on the virtual
platform, and the expenditures from the fund by OHE in support of
the microcredential program, in the ways specified in the bill.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
Sources: https://www.midaseducation.com/