OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-824 AN ACT REQUIRING TRAINING FOR THE MEMBERS OF THE GOVERNING BOARDS OF INSTITUTIONS OF HIGHER EDUCATION AND CONCERNING THE CONNECTICUT STATE COLLEGES AND UNIVERSITIES' BUDGET AND AUTHORITY TO MERGE OR CLOSE INSTITUTIONS. Primary Analyst: JS 4/5/21 Contributing Analyst(s): Reviewer: SB OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 22 $ FY 23 $ Board of Regents for Higher Education Various - See Below See Below See Below Note: Various=Various Municipal Impact: None Explanation The bill requires specific training for new college and university governing board members, which results in no fiscal impact to the constituent units, and makes some changes regarding the Board of Regents, which may result in a fiscal impact to the board. Section 2 requires the University of Connecticut's Board of Trustees and the Board of Regents to ensure that new board members complete training in numerous specified topics. This section results in no fiscal impact to the constituent units because any topics not currently covered in new member orientations can be added, using existing resources. Sections 3 through 5 result in no fiscal impact to the Board of Regents as it makes procedural, technical, and conforming changes to statutes involving the board. Among other changes, the bill requires the BOR to include the Connecticut State Colleges and Universities 2021SB-00824-R000280-FN.DOCX Page 2 of 2 (CSCU) central office (i.e., system office) in their budget request submitted to the Office of Policy and Management. The central office is primarily funded by General Fund and other revenues received by the colleges and universities in the CSCU system, which is unchanged by the bill. Section 6 may prevent or delay for up to 12 to 16 months any savings or costs anticipated to result from any college or university merger or closure approved by the Board of Regents. The bill requires an affirmative vote of the General Assembly within a specified timeframe equal to 12 to 16 months in order for the merger or closure to proceed (or the proposal is deemed accepted), which delays any anticipated costs or savings. The length of the delay would be equal to the amount of time between the General Assembly receiving merger or closure notice and the date of an affirmative vote (or deemed acceptance). If within the voting timeframe one chamber of the General Assembly rejects the merger or closure, the merger or closure will be halted, which prevents the realization of any savings or costs that would have resulted. The Out Years The annualized ongoing fiscal impact identified above would continue into the future. The fiscal impact depends on the length of delay described above and the amount of any one-time or annual savings or costs anticipated to result from a merger or closure.