OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-996
AN ACT CONCERNING FUNDRAISING BY THE FOUNDATION OF
THE UNIVERSITY OF CONNECTICUT.
AMENDMENT
LCO No.: 8424
File Copy No.: 195
Senate Calendar No.: 157
Primary Analyst: JS 5/12/21
Contributing Analyst(s): ()
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
UConn Various - See
Below
See Below See Below
Note: Various=Various
Municipal Impact: None
Explanation
The amendment conditions the decrease in UConn support to the
foundation (under certain circumstances) that is allowed by the bill, on
the UConn Foundation providing at least 50 percent of its annual total
gifts and commitments for the reduction of in-state tuition at UConn.
If the foundation does not provide this assistance in reducing in-state
tuition, then UConn cannot decrease its support to the foundation as
allowed in the underlying bill. In this scenario, the amendment
eliminates the bill's cost to UConn of $1 million in both FY 22 and FY 23
as well as costs in the out years.
If the foundation does provide such assistance, then UConn may
decrease its support to the foundation. If this is the outcome, then the
amendment would not change the fiscal impact of the underlying bill.
There is no additional impact to UConn (beyond the bill) because tuition 2021SB-00996-R00LCO08424-FNA.DOCX Page 2 of 2
revenues lost through any in-state tuition reduction will be replaced by
UConn Foundation funds. (The foundation is not a state entity.) Given
the endowment withdrawal rate that would likely be needed to comply
with the amendment's in-state tuition reduction option, it is unlikely
that the foundation would choose to provide the tuition reduction
assistance as in the amendment.
In FY 20, UConn Foundation gifts and commitments totaled
approximately $89.5 million. This figure includes estate commitments,
which involve funds that are not immediately available to the
foundation but are included in the amendment.
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.