OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
EMERGENCY CERTIFICATION
SB-1202
AN ACT CONCERNING PROVISIONS RELATED TO REVENUE
AND OTHER ITEMS TO IMPLEMENT THE STATE BUDGET FOR
THE BIENNIUM ENDING JUNE 30, 2023.
Primary Analyst: NA/LW 6/15/21
Contributing Analyst(s):
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Various State Agencies Various - See
Below
See Below See Below
Note: Various=Various
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
All Municipalities See Below See Below See Below
Explanation
Section 1 requires the Department of Housing (DOH) to convert a
loan, made to the Community Development Financial Institution
Alliance with state bond funds approved in 2002, into a grant-in-
aid. This reduces future loan repayments to DOH by up to $1.5
million.
Section 2 delays a requirement that bond premium be used for
projects, rather than debt service, until FY 24, which results in debt
service savings in the biennium and potential increased costs in the out
years.
Sections 3 - 5 implement the budget by requiring the labor
commissioner to establish a domestic workers education and training 2021SB-01202-R00-FN.docx Page 2 of 41
grant program to provide grants to qualified organizations.
Administration of the grant program results in an estimated cost of
$73,906 in FY 22 and $81,777 in FY 23 including salary and fringe
benefit costs and associated overhead costs (computers, office supplies,
etc.). HB 6689, the FY 22 – FY 23 budget bill, includes funding for
these administrative costs, as well as funding of $200,000 for the grant
itself.
Section 6 establishes notice requirements for certain call centers that
relocate out of state and enacts certain in-state requirements for state
contractors who perform state-business-related call center and
customer service work, results in a potential General Fund cost of
$86,817 (partial year funding) in FY 22 and $129,889 in FY 23 to the
Department of Labor (DOL), as well as a potential minimal revenue
gain from civil penalties. HB 6689, the FY 22 - FY 23 budget bill,
includes funding for these costs.
The provisions of this section apply to relocations of call center
facilities or operations that comprise at least 30% of a call center’s or
operating unit’s average total call volume over the previous 12
months. Therefore, any investigations would require the DOL to
examine and affirm the call volume of affected entities over the
specified 12-month period. To the extent there are a substantial
number of investigations, there is a cost of $86,817 in FY 22 and
$129,889 in FY 23 associated with the salary and fringe benefits of one
Wage Enforcement Agent.
As of the third quarter of 2020, there were 158 call center locations
in the state that are categorized by the Quarterly Census of
Employment and Wages with North American Industry Classification
System (NAICS) codes that would include call centers.
Section 7 requires the Family and Medical Leave Insurance
Program to reimburse, in accordance with a schedule to be determined
by the Secretary of the Office of Policy and Management (OPM), the
General Fund beginning in FY 23 for bonds previously authorized. 2021SB-01202-R00-FN.docx Page 3 of 41
This results in a revenue gain of $12.2 million to the General Fund, the
timing of which is subject to the terms of the repayment schedule
established in accordance with this section.
Section 8 requires the Board of Regents to annually report to the
General Assembly beginning in FY 22 regarding various funding and
staffing matters.
Section 9 requires the state to award grants to distressed
municipalities with volunteer fire departments for the purposes of
covering costs for Firefighter 1 training. Funding of $70,000 is
provided for these grants in HB 6689, the FY 22 – FY 23 budget bill.
This section also results in a potential savings of up to $70,000 in FY 22
and FY 23 to distressed municipalities with volunteer fire departments
to the extent these municipalities previously funded Firefighter 1
training for their volunteer firefighters.
Section 10 requires that actuarial valuations conducted for the State
Employees Retirement System (SERS) reflect any recent transfers from
the Budget Reserve Fund before being approved by the Retirement
Commission. To the extent that additional deposits are expediently
reflected in valuations, there is a corresponding savings to the State’s
employer contribution in future fiscal years. The June 30, 2021
valuation determines the State’s FY 23 contribution.
Sections 11 - 14 results in a cost to the General Fund (GF), Probate
Court Administration Fund (PCAF), and the Workers' Compensation
Fund (WCF) for a 4.5% salary increase in FY 22 to all judges (201
positions), family support magistrates (9 positions), a per diem
increase to referees, probate judges, and workers' compensation
commissioners. The actual cost will be dependent on the number of
filled positions.
The budget includes $2.2 million in FY 22 and $2.3 million in FY 23
in the Judicial Department and $123,057 in FY 22 and FY 23 in the
Workers' Compensation Commission. 2021SB-01202-R00-FN.docx Page 4 of 41
Sections 15 - 19 establish the Covered Connecticut program in the
Office of Health Strategy (OHS) to support fully-subsidized coverage
through the Connecticut Health Insurance Exchange (“exchange”) for
(1) certain parents and needy caretaker relatives and eligible
dependents with incomes up to 175% of the federal poverty level
(FPL), effective July 1, 2021, and (2) parents and needy caretaker
relatives and certain nonpregnant low-income adults with incomes up
to 175% FPL, effective July 1, 2022. Associated funding of $8 million in
FY 22 and $15.6 million in FY 23 is provided in the OHS budget.
Funding of $1.7 million is provided in the DSS budget in FY 23 to
reflect the state share of dental and nonemergency medical
transportation (NEMT) benefits for individuals enrolled in the
Covered Connecticut program. Estimates assume approximately
31,000 individuals enroll by the end of FY 23. FY 23 figures also
assume 50% federal reimbursement through an approved 1115 waiver
and the continuation of the American Rescue Plan Act subsidies. FY 23
costs are estimated to be approximately 10% higher if Congress does
not act to extend the increased health insurance subsidies available for
2021 and 2022 to enrollees in qualified health plans on the exchange.
Section 16 also allows, but does not require, OHS to seek a 1332
waiver, which could result in additional contract costs to the extent the
agency pursues the waiver.
Sections 20 and 21 increase grants-in-aid by $0.75 per capita for: (1)
full-time, municipal health departments (CGS Sec. 19a-20), from $1.18
to $1.93 per capita, and (2) district health departments (CGS Sec. 19a-
20), from $1.85 to $2.60 per capita, resulting in a cost to DPH of
$2,708,515 in both fiscal years.
Sections 22 - 27 transfer the Institute for Municipal and Regional
Policy (IMRP) from Central Connecticut State University (CCSU) to the
University of Connecticut (UConn), as of October 1, 2021, and make
conforming changes. These sections align with HB 6689, the FY 22 –
FY 23 budget bill, transfers of General Fund IMRP funding from CCSU
within the Board of Regents, to UConn. 2021SB-01202-R00-FN.docx Page 5 of 41
Section 28 reestablishes a DPH Loan Repayment Program to
provide three-year grants to community-based providers of primary
care services, to support these providers in repaying their student
loans. Federal American Rescue Plan Act of 2021 (ARP) funding of
$500,000 in both FY 22 and FY 23 is allocated for this purpose,
pursuant to Sec. 41 of HB 6689, the FY 22 – FY 23 budget bill and this
section of the bill.
Sections 29 - 31 establish DPH licensure of the Albert J. Solnit
Children’s Center, operated by DCF. Funding of $879,754 in FY 22 and
$906,147 in FY 23 (to hire ten additional nurses and a psychologist) is
provided to DCF to meet anticipated licensure requirements.
Section 32, which requires the labor commissioner to establish the
Office of the Unemployed Workers' Advocate, results in a potential
cost of up to $598,858 in FY 22 and up to $819,123 in FY 23. This
section requires the designation of an "unemployed workers' advocate"
to manage the office's daily activities and duties, as well as appoint
and employ the assistants, employees, and personnel needed to
effectively and efficiently administer the office’s activities. HB 6689,
the FY 22 – FY 23 budget bill, includes funding for these costs.
Section 33 requires DECD to pay previously authorized and
allocated bond funds to the town of Preston, which results in no new
fiscal impact.
Section 34 allows funds in the minority advancement program and
the open educational resource coordinating council to carryforward
and not lapse. This allows the programs to expend funds in the
following fiscal year, rather than lapsing funds that would have been
returned to the General Fund.
Section 35 requires the Office of Policy and Management, the
constituent unit governing boards, and the Chief Court Administrator
to report quarterly beginning October 1, 2021 on the use of the
American Rescue Plan Act funds allocated under HB 6689, the FY 22 –
FY 23 budget bill, which is not expected to result in a fiscal impact. 2021SB-01202-R00-FN.docx Page 6 of 41
Sections 36 and 37 require DPH to establish a Community Health
Worker (CHW) Grant Program to distribute funding to Community
Action Agencies, which employ CHWs providing a range of services
to persons adversely affected by the COVID-19 pandemic. Federal
American Rescue Plan Act of 2021 (ARP) funding of $8 million in FY
22 and $3 million FY 23 is allocated for the CHW Grant Program,
pursuant to Sec. 41 of HB 6689, the FY 22 – FY 23 budget bill and Sec.
37 of this bill.
Section 38 temporarily prohibits DEEP from requiring a permittee
to relocate an air emission emitting stack for a cremation chamber
under certain circumstances. It also requires certain permittees to
replace the retort (cremation chamber) by October 1, 2023, which has
no fiscal impact to the state or municipalities in either FY 22 or FY 23.
Section 39 allows the Attorney General to enter into agreements
concerning any state-wide opioid claim, including an agreement to
compromise, release, waive or otherwise settle these claims, on behalf
of the state. This is anticipated to result in a significant revenue gain to
the state in FY 22.
Sections 40 – 50 expands the authority of the Department of Energy
and Environmental Protection (DEEP) to regulate radiation sources,
requiring DEEP to adopt regulations on sources of ionizing radiation
and radioactive materials and establish fees that are sufficient to
administer, implement, and enforce an ionizing radiation program.
This results in an estimated revenue gain to DEEP of $1,275,000
annually associated with the newly established fees. Under the newly
established state program, currently managed by the Nuclear
Regulatory Commission (NRC), the regulated entities would remit fees
to DEEP instead of the NRC. The establishment of the new program
would require DEEP to hire four additional staff to oversee the new
licensing program, including a Supervising Radiation Control
Physicist, an Environmental Analyst, and two Environmental
Compliance Specialists. This results in costs to DEEP of $307,724 in FY
22 and $316,956 in FY 23, and associated fringe benefit costs of $127,090 2021SB-01202-R00-FN.docx Page 7 of 41
and $130,903 respectively. Additionally, these provisions result in a
savings of $115,900 since various state agencies (the Agricultural
Experiment Station, DEEP, The Departments of Public Health,
Transportation, and the University of Connecticut Health Center)
currently pay $115,900 in aggregate to NRC each year for radioactive
material license fees. Under this section's provisions, these fees will be
transferred to DEEP. These sections may result in a revenue gain
associated with penalties as it: (1) expands current existing penalties
for violations of the state’s radioactive materials laws to currently
prohibited acts, and (2) makes negligible or intentional violations of
the radiation and radioactive materials law’s prohibited acts. It
additionally authorizes DEEP to take necessary actions to protect
human health and the environment under certain circumstances and
allows the agency to contract with anyone to address hazards,
pollution, or contamination. To the extent DEEP chooses to contract
with outside consultants, there may be costs for this purpose, which
are expected to be covered by fees yielded under the bill.
Section 51 makes a change in voting requirements for the Redding
Special Taxing District. This has no fiscal impact.
Sections 52 - 53 require the Department of Correction (DOC) to
provide telephone services for inmates free of charge beginning July 1,
2022 and results in various costs to the DOC, the Judicial Department,
and the Department of Emergency Services and Public
Protection. Funding of $11.4 million is provided in FY 23 of HB 6689,
the FY 22 and FY 23 budget bill to fund the associated costs. There is
also a potential cost to the extent DOC adds video communication and
electronic mail services for inmates.
Sections 54 - 57 prohibit the constituent units from charging a
graduation fee, which results in an estimated annual revenue loss in
fees of $95,000 to $140,000 to Charter Oak State College beginning in
FY 22. (The other constituent unit institutions do not charge a
graduation fee.) HB 6689, the FY 22 – FY 23 budget bill, provides
$140,000 to the college in both FY 22 and FY 23 from the FY 21 General 2021SB-01202-R00-FN.docx Page 8 of 41
Fund surplus carry-forward funds to offset the anticipated fee revenue
loss.
Section 58 removes a requirement that the non-voting member of
the board of directors of the captive insurance company established
pursuant to Section 38a-91vv of the general statutes that is appointed
by the governor be an ex-officio member. This provision has no fiscal
impact.
Sections 59 - 60, which make technical changes to the specified
geological reports and quarry operational plans required to be
submitted to the State Geologist and the Department of Energy and
Environmental Protection (DEEP), have no fiscal impact.
Section 61 authorizes the Legislative Commissioners Office to make
technical and grammatical changes to the bill as necessary and has no
fiscal impact.
Section 62 requires OPM to study existing federal and state housing
programs in the state to analyze the impact of such programs on
economic and racial segregation. If OPM does not have the expertise to
conduct this study, it may need to hire an outside consultant to
conduct this. Such cost would depend on the scope and length of the
study.
Section 63 beginning in FY 22 precludes a municipality, with some
exceptions, from receiving a Pequot grant if any school in such
municipality's district uses a Native American mascot for an
intramural or interscholastic athletic team. To the extent that a
municipality violates this provision, there would be a revenue loss.
Section 64 makes technical changes that preclude a revenue loss to
the Short Term Investment Fund and/or municipalities.
Section 65 establishes a beverage container recycling grant program
account to be used by DEEP to provide forgivable grants in urban
centers and environmental justice communities in accordance with the
beverage container recycling grant program established under PA 21- 2021SB-01202-R00-FN.docx Page 9 of 41
58, “AAC Solid Waste Management.” Section 29 (15) of HB 6689, the
FY 22 – FY 23 budget bill, carries forward up to $5 million in FY 22 for
this purpose.
Section 66 - 77 requires the Office of the Attorney General (OAG) to
hire additional staff to handle the provisions of these sections. This
includes two Assistant Attorneys General II's, at a starting salary of
$201,170, and a Legal Investigator, at a starting salary of $77,971. This
cost totals $139,571 in FY 22 and $287,515 in FY 23 to OAG, not
including associated fringe benefit costs of $41,542 and $118,744,
respectively. Additional requirements of these provisions anticipate
one-time costs to OAG of approximately $100,000 in FY 22 to contract
with outside privacy experts.
Section 78 permits for residential and commercial zoning use of any
proposed building, structure, development, or use located in a
floodplain in certain areas of Norwich. This may result in a revenue
gain to the City of Norwich associated with additional building permit
fees.
Section 79 requires the distribution of a DDS report (currently
required under existing statute) to the Appropriations and Public
Health Committees, which does not result in a fiscal impact to the
agency.
Section 80 establishes a level of need assessment system advisory
committee to advise the DDS Commissioner on matters relating to the
system and does not result in a fiscal impact to the agency.
Sections 81 - 86 require the Connecticut Lottery Corporation (CLC)
to establish an online lottery ticket sales fund and to transfer any net
revenues from online ticket sales to the General Fund in FY 22 and FY
23. This biennial General Fund revenue gain is reflected in the revenue
estimates adopted by the Finance, Revenue, and Bonding Committee
pursuant to CGS Sec. 2-35. In FY 24 and annually thereafter, net
revenues from online ticket sales will first be transferred to the Board
of Regents’ debt-free community college account, up to $14 million 2021SB-01202-R00-FN.docx Page 10 of 41
annually, and then the remainder to the General Fund, resulting in a
revenue gain to the Board of Regents and a revenue loss to the General
Fund.
Section 87 expands the CRISIS Pilot Program and results in a cost to
the Department of Mental Health and Addiction Services (DMHAS)
for an additional social worker and a cost to the Department of
Emergency Services and Public Protection (DESPP) for
training. Funding of $200,000 is provided via carryforwards in HB
6689, the FY 22 – FY 23 budget bill, to expand the CRISIS Program to
one additional Troop.
Section 88 establishes a task force to study the costs and benefits of
expanding the CRISIS initiative program resulting in no fiscal impact
to the state.
Section 89 requires the Board of Regents and the University of
Connecticut to establish an annual "Fee-Free Day," during which in-
state high school students or graduates who have completed the
federal financial aid application can apply for admission at no
cost. This section is anticipated to result in an annual revenue loss in
application fees to the Connecticut state universities, Charter Oak State
College, and to UConn. However, the revenue loss at the state
universities and Charter Oak may be offset to some extent by increased
tuition and fees, if Fee-Free Day results in higher enrollment.
Sections 90 - 92 require the Office of Policy and Management to
create a Geographic Information Systems (GIS) Office, headed by GIS
Officer. HB 6689, the FY 22 – FY 23 budget bill, FY 22 adds three
positions and $125,000 in FY 22 and $250,000 in FY 23 for the OPM for
this purpose.
Section 93 of the bill requires the CHRO, in consultation with DAS
and OPM, to develop and issue a request for a proposal to hire a
national consultant with expertise in qualitative and quantitative
research to assist in conducting a disparity and equity study. Not later
than February 1, 2022, CHRO, DAS and OPM will evaluate the 2021SB-01202-R00-FN.docx Page 11 of 41
proposals and select the consultant. The national consultant selected
could result in a potential cost to the state in FY 22 and FY 23.
Section 94 exempts any renewable energy projects under contract
and approved by relevant regulatory agencies prior to January 1, 2022
from the bill's prevailing wage and community benefit agreement
provisions and does not result in a fiscal impact.
Section 95 makes various technical changes to a manufacturer
permit for spirits resulting in no fiscal impact to the state.
Section 96 makes changes to the provisions which must be included
in contracts between health carriers and participating healthcare
providers, which is not anticipated to have a fiscal impact on the state
or municipalities.
Section 97 exempts volunteer fire departments, volunteer
ambulance services, and certain applicants applying for a pardon from
the fees for criminal history records checks resulting in a potential
revenue loss to the General Fund and the Applicant Fingerprint Card
Submission Account and potential savings to municipalities to the
extent these background checks are conducted.
Section 98 makes clarifying changes regarding attorneys conducting
real estate closings resulting in no fiscal impact to the state.
Section 99 requires any municipality with a population of at least
140,000 to have an election monitor for the 2021 municipal election and
the 2022 state election. This section requires that the Secretary of the
State (SOS) to contract with such monitor until December 31, 2022,
unless such contract is terminated prior to said date. It also requires
such municipality to provide the monitor with office space, supplies,
equipment, and services necessary to carry out duties and
responsibilities. Based on the 2018 Annual Town and County
Population for Connecticut produced by the Department of Public
Health, only Bridgeport meets such population threshold. It is
estimated that the cost for an election monitor for two elections would 2021SB-01202-R00-FN.docx Page 12 of 41
be $150,000 based on the Secretary of State's experience in hiring an
election monitor for Bridgeport for the 2020 election. Sec 29(b)(30) of
HB 6689, the FY 22 – FY 23 budget bill, carries forward up to $150,000
for this purpose.
Section 100 clarifies that the General Assembly can make a partial
allocation of ARP funding under Special Act 21-1. It further
establishes a procedure for OPM to report if the federal government
disallows an ARP allocation authorized by the legislature. There is no
anticipated fiscal impact from this section.
Sections 101 – 105 requires the Department of Motor Vehicles
(DMV), voter registration agencies, and public higher education
institutions to use a Secretary of the State-approved electronic system
to automatically transmit voter registration applications for qualified
applicants to registrars of voters unless the applicants decline to apply
for admission. The cost
1
for this electronic system will depend on the
technology selected and the RFP process.
Section 106 requires the Secretary of the State to develop and
implement one or more systems through which she may allow
individuals to submit an electronic signature to sign elections-related
forms and applications, other than those for campaign finance
purposes. The cost
1
for this electronic signature system will depend on
the technology selected and the RFP process.
Section 107 requires registrars of voters to distribute to public high
schools voter eligibility information. Each town registrar and each
public high school principal must determine the best means of
distributing the voter information. This has no fiscal impact.
Section 108 requires employers to give an employee two hours of
unpaid time off from his or her regularly-scheduled work on the day
of a regular state election to vote if the employee requests it in
1On April 16, 2021, The Office of the Secretary of the State was allocated $4 million on bond
funds from the IT Capital Investment program for various election technology upgrades.
2021SB-01202-R00-FN.docx Page 13 of 41
advance. There may be a state or municipal cost (including local and
regional boards of education) with providing unpaid time off for
certain positions (for example; state troopers, correction officers, or
municipal police officers). The state and municipalities may incur
overtime costs to cover these types of positions. The extent of the state
and municipal costs depends on the number of employees requesting
unpaid time off to vote.
Sections 110 – 112 make various changes affecting elections,
including the forfeiture and restoration of electoral privileges for
certain individuals convicted of a felony, voter registration, and
polling place challengers. Under current law, an individual
imprisoned for a felony regains the right to vote and accompanying
electoral privileges after paying all fines and completing any required
prison and parole time. The bill will result in an indeterminate revenue
loss from the reduced collection of criminal fines and penalties.
Section 113 and 114 allow town clerks to publish certain election
information on town websites. This has no fiscal impact.
Section 115 allows individuals to apply to the Secretary of the State
for an absentee ballot using an online system she must establish and
maintain for that purpose. To use the system, an applicant’s signature
must be obtained from a state or federal agency’s database, another
state’s voter registration database, or the e-signature system
established in Section 106 and imported into the online system. The
Secretary of the State will incur significant costs to create this absentee
ballot application online system.
2
Section 116 allows voters, for a state or municipal election, primary,
or referendum, to return completed absentee ballots in secure drop
boxes designated by their town clerk for that purpose. Beginning 29
days before a primary, election, or referendum, and each weekday
thereafter until the polls close, the bill requires town clerks to retrieve
2
On April 16, 2021, The Office of the Secretary of the State was allocated $4 million on bond
funds from the IT Capital Investment program for various election technology upgrades 2021SB-01202-R00-FN.docx Page 14 of 41
absentee ballots from the secure drop boxes. Certain municipalities
may incur minimal costs if town staff cannot handle this requirement
with current staffing levels.
Section 117 makes changes with regard to absentee voting for an
elector suffering from a long-term illness. This has no fiscal impact.
Section 118 limits disclosure of a voter’s date of birth maintained
under state election law to year of birth unless the information is
requested and used for a governmental purpose, as determined by the
Secretary of the State. This has no fiscal impact.
Sections 119 and 120 makes changes to nominations by major
parties to fill certain vacancies. This has no fiscal impact.
Sections 121 and 122 makes changes to absentee ballot statutes that
have no fiscal impact.
Sections 123 and 124 concern changes regarding visually impaired
electors and electors who need assistance by disability or inability to
read or write. These changes have no fiscal impact.
Sections 125 - 128, which make changes to election challengers and
checkers, have no fiscal impact.
Section 129 requires the Secretary of the State to study the
technological and staffing capabilities of various state agencies in
providing an electronic system that distributes mail voter registration
applications. There is no cost to conduct this study.
Sections 130 - 135 require each municipality after January 1, 2022, to
hold its biennial municipal election on the Tuesday after the first
Monday in November of odd-numbered years unless its legislative
body votes by a three-fourths majority to hold the election on the first
Monday in May of odd-numbered years. Under the bill, a municipality
that opts for a May election date using this procedure may
subsequently move its election date to November through a majority
vote of its legislative body. These provisions have no fiscal impact as it 2021SB-01202-R00-FN.docx Page 15 of 41
shifts election costs from May to November in odd-numbered years.
Section 136 establishes a task force to study the feasibility of
utilizing one envelope, instead of two, for the return of absentee
ballots. This provision has no fiscal impact.
Section 137 establishes a working group to examine employing risk-
limiting audits to determine the accuracy of election results. This
provision has no fiscal impact.
Section 138, which changes the date regarding certain election
filings with the Secretary of the State, has no fiscal impact.
Section 139 makes technical changes to the Council on Sexual
Misconduct Climate Assessments established by sHB 6374, resulting in
no fiscal impact to the state.
Section 140, which makes changes to certain town committee
membership rules, has no fiscal impact.
Section 141 expands the reasons for which an elector may vote by
absentee ballot for any election, primary, or referendum occurring
before November 3, 2021 to include the sickness of COVID-19. It is
anticipated there will be an increase in absentee ballot applications as a
result of this provision.
Sections 142 and 143 require the absentee ballot inner envelope
statement be updated to include "the sickness of COVID-19" and allow
the Secretary of the State (SOS) to make changes to absentee voting
forms and materials. No fiscal impact is anticipated as a result of such
modifications. The bill also expands violations that constitute a false
statement which results in a potential minimal revenue gain of less
than $5,000 in FY 21. In FY 19 there was one violation of false
statement by absentee voting, which resulted in no fines collected.
Section 144 allows the SOS to approve and select a third-party
vendor for town clerks' use in mailing absentee voting sets for
elections prior to November 3, 2021. It is expected that the SOS will not 2021SB-01202-R00-FN.docx Page 16 of 41
be contracting with a third-party vendor for 2021 municipal election
absentee ballots. Thus, this provision has no fiscal impact on the SOS.
Certain municipalities will incur increased costs, as the bill expands
the reasons for which electors may vote by absentee ballot to include
COVID-19. The cost increase will vary by municipality and is
dependent on the number of additional absentee ballots printed and
mailed.
Section 145 permits absentee ballots to be deposited into a secure
drop box for elections prior to November 3, 2021. As drop boxes were
ordered for absentee ballots for the 2020 primary election, no
additional costs are anticipated as a result of this provision.
3
Additionally, this section requires municipal clerks to retrieve
absentee ballots deposited to such drop boxes beginning twenty-nine
days before the election and each weekday thereafter until the polls
close. If said drop box is located outside of a building other than where
the clerk's office is located, the clerk, or their designee, must be
escorted by a police officer. Minimal costs may be incurred if town
staff and local police departments cannot handle this provision with
current staffing levels.
Section 146 allows town clerks to deliver sorted and checked
absentee ballots to registrars of voters before election day to begin
certain pre-counting procedures. No fiscal impact is anticipated as a
result of this provision.
Sections 147 – 152 authorizes municipalities to conduct certain
absentee ballot pre-counting procedures. No fiscal impact is
anticipated as a result of these provisions.
Sections 153 – 157 extends numerous deadlines and timeframes
associated with processing absentee ballots and canvassing and reports
the returns. No fiscal impact is anticipated as a result of these
provisions.
3
The SOS ordered 200 drop boxes at a total cost of approximately $365,000, including
shipping. Costs were supported by federal CARES Act funding. 2021SB-01202-R00-FN.docx Page 17 of 41
Section 158 requires the SOS to establish a pilot program to
manually or electronically verify signatures on the inner envelopes for
returned absentee ballots at the 2022 state election. The SOS must
randomly select five municipalities to participate in the program,
based on their population. A municipality may incur minimal costs to
take part in the pilot program; however, as the pilot program is
voluntary it is assumed that a municipality would participate only to
the extent it has available resources.
Section 159 requires DPH to provide the COVID-19 vaccination
status of individuals to those individuals, or to a parent/guardian,
upon request.
Section 160 allows student athletes to earn certain compensation
under specified conditions, beginning January 1, 2022, and directs
higher education institutions to adopt or update related policies by the
same date. This is not anticipated to result in a fiscal impact to the
constituent units of higher education.
Sections 161 to 196 make a variety of changes regarding the process
of state and local governance and regionalization.
The bill requires that municipalities and state agencies provide
electronic access to members of the public when holding meetings
under the Freedom of Information Act. This results in a potential cost
to state agencies to the extent that information technology equipment
and software licensing will need to be purchased to ensure that the
public have access to meetings. The Freedom of Information
Commission (FOIC) will need funding of approximately $110,000
annually for a Staff Attorney position to handle an increased caseload.
There is a cost to municipalities to provide websites for online
payment of fees to the extent that they do not already have the
capability to do so. There is also a savings from permitting
municipalities to post certain notices on their website instead of in
local newspapers. 2021SB-01202-R00-FN.docx Page 18 of 41
The bill changes the current distribution formula of $4.1 million in
regional services grants-in-aid to COGs. The total amount of funding
for such grants is not anticipated to change. The bill removes a
provision of $7 million in funding to councils of government from the
Municipal Revenue Sharing Account. This increases the amount of
funding distributed via MRSA to municipalities by $7 million.
The bill allows COGs to submit proposals to OPM, as part of the
Regional Performance Incentive Program, to redistribute certain types
of grant funding. The impact of this would depend on the provisions
of such proposals and the extent to which OPM chooses to implement
them.
These sections make several other changes which have no fiscal
impact.
Section 197 clarifies discrepancies between annual payment
amounts and a change from two-year to three-year registration
duration for certain vehicles for the greenhouse gas reduction
program. There is no expected fiscal impact because it conforms to
current annual rates
Section 198 makes a change concerning the charter revision process
in the Town of Columbia. This has no fiscal impact.
Sections 199 to 200 outlines exercises for designated days, weeks,
and months, may result in minimal costs to various state agencies and
municipalities. The costs to affected agencies and municipalities will be
dependent upon the location, nature, and size of the exercises.
Sections 201 and 202 make technical corrections to previously
authorized road namings and have no fiscal impact.
Section 203 establishes a twenty-member task force to study the
state workforce and retiring state employees. Such study shall include
an examination of adequate succession planning for state employees in
order to recruit and maintain the best talent in the state workforce, as
well as a review of barriers to managerial recruitment. This bill has no 2021SB-01202-R00-FN.docx Page 19 of 41
fiscal impact as PA 17-236 prohibits transportation allowances for task
force members.
Section 204 states that DAS shall compile a list of companies
domiciled in this state that changed its' business model to produce
personal protective equipment (PPE) in response to the public health and
civil preparedness emergencies declared by the Governor due to COVID-
19.
Any state agency purchasing PPE shall make reasonable efforts to
purchase not less than twenty-five percent of such personal protective
equipment from companies on such list.
Section 205 allows the Banking Commissioner to permit activity
licensed by the department to be conducted from a location other than
an office location licensed on the Nationwide Mortgage Licensing
System and has no fiscal impact.
Section 206 allows up to $15 million of energy consumption and
environmental impact leases to be entered into for state building
projects that reduce energy consumption, which results in a potential
cost commensurate to the increase in the state's level of indebtedness
and future debt service costs.
Sections 207 - 220 make various changes to the operations of the
Office of the State Treasurer, including aligning state and quasi-public
bonding practices with updated federal requirements, which precludes
increased cost or foregone revenue.
Section 221 alters the powers, duties and responsibilities of
department heads with respect to entering into contractual agreements
directly with other states.
Section 222 amends section 16a-38k of the CGS to conform with the
standards of the administrative matters, geotechnical and weather-
related state building construction portions of CGS 29-252. This has no
fiscal impact. 2021SB-01202-R00-FN.docx Page 20 of 41
Section 223 empowers the DAS commissioner to issue orders that
provide non-union executive or judicial department employees be
granted rights and benefits not less than those granted to employees in
the classified service or covered under contractual agreements. The
Reserve for Salary Adjustment account has adequate funding for these
potential increases.
Section 224 eliminates the requirement that the Office of Policy and
Management produce a monthly deficiency letter. This has no fiscal
impact.
Section 225 which clarifies the conditions under which a Harbor
Master may be named, has no fiscal impact.
Sections 226 – 229 allow writs of election to be delivered
electronically. These provisions may result in a savings associated with
reduced printing and mailing costs.
Section 230 - 231 repeals the Higher Education Coordinating
Council, which has no fiscal impact.
Section 232 increases, for FY 22, the administrative allowance the
Office of Higher Education may retain from the Roberta Willis
Scholarship program from $100,000 to $350,000. The additional funds
are required to upgrade and improve software.
Sections 233 and 234 increase the license renewal fee for physician
assistants by $5, from $150 to $155 annually, and direct the revenue
from this increase be deposited into the professional assistance
program account, which supports the Health Assistance InterVention
Education Network (HAVEN).
Section 235 of the bill reduces the appropriations for the
Contracting Standards Board to $175,870 in FY 22 and $182,674 in FY
23.
Section 236 changes the designation of two grants under the
Judicial Department Youth Services Prevention account and does not 2021SB-01202-R00-FN.docx Page 21 of 41
result in a fiscal impact.
Sections 237 – 290 eliminate the Office of Workforce
Competitiveness and replace it with an Office of Workforce Strategy
(OWS) in the Office of the Governor for administrative purposes only.
These sections make various technical and conforming changes related
to the OWS, the Governor's Workforce Council, and other workforce
training and higher education entities and programs which do not
result in a fiscal impact except as noted below.
Section 239 establishes an "Office of Workforce Strategy account" as
a non-appropriated account within the General Fund to support
workforce training programs.
Section 289 redirects an appropriation of $250,000 in FY 22 and FY
23 to the Office of the Governor to support the functions of the OWS.
The appropriation was originally provided to the Department of
Economic and Community Development under HB 6689, the FY 22 –
23 budget bill, for the same purpose.
Section 290 allows the OWS to receive federal funding from the
American Rescue Plan Act to support workforce training initiatives.
Sections 291 - 292 direct the Board of Regents to establish, by April
1, 2022, the Connecticut Automatic Admissions Program to bachelor's
degree programs for in-state high school seniors who meet academic
thresholds. The program is required for the four Connecticut state
universities while private nonprofit institutions may opt in. As a
condition of participation, institutions admitting students through the
program cannot charge application fees. This results in an annual
revenue loss beginning in FY 23 to the Board of Regents
universities. The extent of the revenue loss depends on the number of
student applicants to the program who would have applied to the
universities without the program. The program may also result in
potential lower enrollment, and therefore reduced tuition and fees
revenue, to the community colleges, and potential higher enrollment at
the Connecticut state universities. 2021SB-01202-R00-FN.docx Page 22 of 41
Section 293 requires the Department of Transportation (DOT) to
establish the CTpass program by January 1, 2022, to allow individuals
in an approved class for an eligible organization to use certain public
transit services without cost or at a reduced cost. To the extent that
agreements with eligible organizations are structured to prevent
additional DOT transit or administrative costs, as required in the bill,
this section is not expected to result in a cost to DOT.
Section 294 requires certain employers to report to their employees
about whether the employer offers Education Assistance Program
benefits, which is not anticipated to alter the utilization rate and
therefore does not result in any fiscal impact to the state or
municipalities.
Section 295 requires the University of Connecticut to take certain
steps regarding prerequisites for and increasing access to its Early
College Experience courses, which are not anticipated to result in a
fiscal impact to the university.
Section 296 requires each constituent unit governing board to
submit a report by February 1, 2022 regarding course credits earned
during high school.
Section 297 concerns data privacy for student admissions and
financial aid data and is not expected to result in a fiscal impact to the
state or municipalities.
Section 298 requires the Office of Higher Education to establish, by
January 1, 2023, a credentials database, which the office has sufficient
expertise and other resources to create and maintain.
Sections 299 - 303 adjust Office of Higher Education program
approval and reporting requirements, which is not anticipated to
result in a fiscal impact to the office or the constituent units.
Section 304 establishes new reporting requirements for businesses
subject to the state's unemployment insurance (UI) law. This results in
a cost to the Department of Labor of $345,203 in FY 23, $255,402 in FY 2021SB-01202-R00-FN.docx Page 23 of 41
24, and $481,947 in FY 25. These costs include a one-time cost of
$235,000 in FY 23 for necessary technical upgrades to the UI
administration system, salary and fringe benefits for various positions
for the project, and associated overhead costs.
Sections 305 - 306 establish requirements for state entity data-
sharing agreements.
Sections 307 - 308 expand, beginning in FY 23, Connecticut Higher
Education Supplemental Loan Authority (CHESLA) loan eligibility to
enrollment in a high-value certificate program that is noncredit and
sub-baccalaureate. To the extent that this provision results in an
enrollment increase for these programs, the Board of Regents may
experience a potential increase in tuition and fee revenue.
Sections 309 - 315, clarify the appeals and hearing process under the
state’s family medical leave law (including paid family medical leave),
as well as clarify that such provisions apply to the state. As it is
assumed that the state would be in compliance with those provisions,
this does not result in any fiscal impact.
Section 316 makes clarifying changes to the Governor's authority
over volunteer troops and results in no fiscal impact to the state.
Sections 317 to 320 make changes to the Small Business Express
program that could result in increased or more rapid use of funds
authorized for the Small Business Express program. The program is
funded through a combination of General Obligation (GO) bond funds
and revenues from repayment of loans previously issued under the
program. Future General Fund debt service costs may be incurred
sooner under the bill to the degree that it causes authorized GO bond
funds to be expended or to be expended more rapidly than they
otherwise would have been.
Background: As of May 1, 2021, the unallocated bond balance
available under the relevant authorizations is $9 million. The bill does
not change GO bond authorizations relevant to the program. 2021SB-01202-R00-FN.docx Page 24 of 41
HB 6690, the FY 22 and FY 23 Bond Bill, authorizes $50 million of
General Obligation bonds (as $25 million in each of FY 22 and FY 23)
for the Small Business Express program.
Section 321 makes various technical and reporting requirements for
the Department of Correction regarding contact visits resulting in no
fiscal impact to the state.
Section 322 requires DEEP to implement a program for various
solid waste purposes. This has no fiscal impact as the agency has
expertise for this purpose.
Sections 323 - 325 establish the Connecticut Essential Workers
COVID-19 Assistance Program. The program offers assistance to
affected eligible persons, provided no assistance shall be paid to any
affected person after June 30, 2024. Associated costs for the program
will be paid out of the Connecticut Essential Workers COVID-19
Assistance Fund. Carryforward funding of $34 million is provided in
the budget for this purpose.
Sections 326 - 327 allow municipalities to place their pension fund
assets in trust funds invested by the State Treasurer. To the extent that
the bill provides municipalities access to investment classes with lower
administrative fees, there is a potential savings to municipalities that
opt to pool their funds with the Treasurer. While it is anticipated that
the bill will also provide such municipalities with access to more
investment classes, resulting in more diversification and less risk, it is
unknown how choosing this option would impact investment returns.
Section 328 requires the Connecticut Health Insurance Exchange
fund the Office of Health Strategy’s (OHS’) All Payer Claims Database
(APCD) through an increase of its assessment on health carriers, or by
charging health carriers user fees, generating revenue of $650,000 in
both FY 22 and FY 23 for the APCD.
Section 329 requires that the Insurance Fund assessment that
partially supports OHS’ operating expenses be reduced by the amount 2021SB-01202-R00-FN.docx Page 25 of 41
of federal Medicaid revenue that will be received by the state as
reimbursement for the agency’s Health Information Exchange (HIE)
efforts. This provision results in an Insurance Fund revenue loss of
$462,500 in FY 22 and $925,000 in FY 23.
Sections 330 through 339 allow the Department of Transportation
(DOT) to establish a highway work zone speed camera pilot program,
ending by December 31, 2022, at not more than three locations in the
state. To the extent DOT establishes the program, the department will
incur costs to install, operate, and maintain the camera systems,
resulting in a cost to the STF. To the extent speeding violations occur,
the State Police will have to review the footage and issue citations
resulting in potential overtime costs to the General Fund for State
Troopers and a potential revenue gain to the STF due to citations
issued.
Section 340 adjusts federal American Rescue Plan Act allocations in
HB 6689, the FY 22 – FY 23 budget bill, by a net $214.9 million across
FY 22 – FY 24.
Section 341 adjusts allocations of federal funds designated to the
state pursuant to the American Rescue Plan Act as follows: In FY 22,
$9.5 million to the Office of Policy and Management for statewide GIS,
$10.0 million each to the Department of Energy and Environmental
Protection and Department of Administrative Services for statewide
broadband; and in FY 23, $25.0 million to the Office of Policy and
Management for Internet conectivity for health and mental health
organizations.
Section 342 adjusts allocations of FY 21 carry-forward funds within
HB 6689 as follows: (1) for the University of Connecticut’s block grant,
up to $6,087,251 is provided in FY 23 (and no funding in FY 22), a
reduction compared to HB 6689, the FY 22 and FY 23 budget bill; (2)
for the Department of Economic and Community Development, for
Statewide Marketing, up to $7,893,000 is provided in FY 22 (and no 2021SB-01202-R00-FN.docx Page 26 of 41
funding in FY 22 as in HB 6689, the FY 22 and FY 23 budget bill), a
reduction; (3) up to $34 million to the State Comptroller for Other
Expenses for FY 22 is no longer designated as Workers’ Compensation
Claims funding, which has no impact on total carry-forward funds
allocated to the State Comptroller; (4) up to $500,000 for the Insurance
Department for Other Expenses for FY 22 is no longer provided; (5) up
to $1.1 million to the Department of Education for Other Expenses is
provided for FY 22, which is an increase to the department; (6) up to
$11 million to the Department of Energy and Environmental Protection
for Other Expenses for FY 22 for specified grants, an increase to the
department; and (7) up to $5,007,000 to the Department of Economic
and Community Development, for Other Expenses, for FY 22 for
specified grants, an increase to the department.
Section 343 defines the Connecticut Port Authority (CPA), through
FY 26, as a state contracting agency and subject to the authority of the
State Contracting Standards Board. Minimal fiscal impact is expected
given current contract levels.
Section 344 makes changes related to the provision of different
types of Medigap policies by insurers and has no fiscal impact.
Section 345 extends the sunset date for the personal risk insurance
“flex rating” law by four years, which has no fiscal impact to the
Insurance Department as it extends current practice.
Section 346 adds a new reporting requirement for the Insurance
Department (DOI) that may result in a cost to the Insurance Fund. DOI
must report by April 1, 2022 and biennially thereafter, on the agency's
progress in taking actions related to climate-related risks and
greenhouse gas emissions, and on the agency's actions to bolster the
resilience of insurers to the physical impacts of climate change. To the
extent that DOI requires outside expertise to help establish the
reporting, the agency may incur a cost for consultant services in FY 22.
Section 347 requires health carriers and third-party administrators
that issue insurance cards to put a prominently displayed statement on 2021SB-01202-R00-FN.docx Page 27 of 41
the card indicating whether the insurance coverage is fully-insured or
self-insured and allows DOI to adopt implementing regulations. This
has no anticipated fiscal impact.
Sections 348 - 349 increase the timeframe in which an insured must
notify an insurer of the birth of a child and does not result in a fiscal
impact.
Section 350 limits the number of Teachers' Retirement System (TRS)
members who may be impacted by the 2019 change to the Plan N
death benefit calculation to those members that vest in TRS on or after
July 1, 2019. This change will be reflected in that next actuarial
valuation of the TRS (June 30, 2022) which establishes the state's
annual required contribution for FY 24 and FY 25. This change is
estimated to increase the state's retirement contribution by
approximately $8 million, annually, beginning in FY 24.
Section 351 requires any person offering fantasy contests be
licensed resulting in a potential revenue gain to the state to the extent
additional licenses are applied for and any potential increase in gross
receipts tax revenue is received.
Section 352 carries forward up to $500,000 in FY 21 Personal
Services funding to support one-time technology upgrades at the
Insurance Department in FY 22 in the Other Expenses account.
Sections 353 – 354 increase the personal needs allowance from $60
to $75 per month. Associated funding of $1.5 million in both FY 22 and
FY 23 is provided in the DSS budget.
Section 355 prohibits inflationary increases for nursing homes in FY
22 and FY 23. Associated Medicaid savings of $11.1 million in FY 22
and $24.3 million in FY 23 is reflected in the DSS budget.
Sections 356 and 359 increase rates for the purpose of wage and
health benefit enhancements for employees of nursing homes and
intermediate care facilities (ICFs). Associated state Medicaid funding
of $22 million in FY 22 and $51.1 million in FY 23 for nursing homes 2021SB-01202-R00-FN.docx Page 28 of 41
and $700,000 in FY 22 and $1.5 million in FY 23 for ICFs is included in
the DSS budget in HB 6689, the FY 22 – FY 23 budget bill.
Section 357 designates ARPA funding of $10 million to DSS,
effective July 1, 2021, to provide one-time grants to support nursing
homes with issued rates that are lower than calculated rates.
Section 358 designates ARPA funding of $25 million in both FY 22
and FY 23 to the Department of Mental Health and Addiction Services
(DMHAS) to establish grant programs for contracted private providers
to enhance employee wages ($15 million in each year) and support
facility costs ($10 million in each year).
Section 360 designates $15.4 million in state Medicaid funds
appropriated to DSS for the purpose of adjusting nursing home rates
for facilities that provide enhanced health care and pension benefits for
facility employees.
Section 361 increases the minimum per diem, per bed rate for
intermediate care facilities to $501. Associated Medicaid funding of
$1.6 million in both FY 22 and FY 23 is provided in the DSS budget in
HB 6689, the FY 22 – FY 23 budget bill.
Section 362 reduces the copay under the state-funded Connecticut
Home Care Program from 9% to 4.5% of the cost of care. Associated
funding of $1 million in both FY 22 and FY 23 is provided in the DSS
budget in HB 6689, the FY 22 – FY 23 budget bill.
Section 363 increases the benefit amount paid to families for
children born while enrolled in the Temporary Family Assistance
(TFA) program by eliminating the "family cap" provision. Associated
funding of $300,000 in FY 22 and $400,000 in FY 23 is provided in the
DSS budget in HB 6689, the FY 22 – FY 23 budget bill.
This section also requires, beginning July 1, 2024, a cost of living
adjustment whenever funds appropriated for TFA lapse, are not
otherwise budgeted, and providing such COLA would not create a
deficiency in the following years. This could result in a revenue loss to 2021SB-01202-R00-FN.docx Page 29 of 41
the Resources of the General Fund by expending funds that would
otherwise lapse.
Sections 364 - 366, which clarify stimulus checks are exempt from
cash assistance eligibility calculations, has no fiscal impact.
Sections 367 and 369 expand Medicaid coverage to services
provided by acupuncturists and chiropractors and increase rates for
nurse-wives and podiatrists. Associated state Medicaid funding of
$1,034,000 in FY 22 and $1,319,000 FY 23 is provided in the DSS budget
in HB 6689, the FY 22 – FY 23 budget bill.
Section 368 conforms to current practice and has no fiscal impact.
Section 370 implements prompt payment standards resulting in
additional reimbursement for services paid by third party insurers.
Associated state Medicaid savings of $2 million in FY 22 and $1 million
in FY 23 is reflected in the DSS budget in HB 6689, the FY 22 – FY 23
budget bill.
Sections 371 - 372 extend postpartum services for HUSKY eligible
women from two to twelve months. Associated state Medicaid funding
of $300,000 in FY 22 and $1.9 million in FY 23 is provided in the DSS
budget.
Section 373 prohibits the state from reducing funds for or
recovering funds from non-profit providers of human services due to
the forgiveness of COVID related loans. This could result in foregone
savings to the extent the state otherwise would have reduced
payments to or recovered funds from such providers.
Section 374 provides rate increases for Medicaid waiver services,
certain home health services, and services under the state-funded
homecare program. Associated state funding of $5 million in both FY
22 and FY 23 is provided in the DSS budget in HB 6689, the FY 22 – FY
23 budget bill.
Section 375 allows state contracted providers of human services to 2021SB-01202-R00-FN.docx Page 30 of 41
retain realized savings, provided all contractual obligations are met,
and prevents the state from reducing future contracts solely to reflect
such savings amount. This could result in foregone savings to the
extent the state otherwise would have retained such funds.
Section 376 provides a 10% increase in base rates and a $3.00
increase for mileage-based rates for emergency and non-emergency
ambulance services. Associated state Medicaid funding of $2.8 million
in both FY 22 and FY 23 is provided in the DSS budget in HB 6689, the
FY 22 – FY 23 budget bill.
Section 377 directs funding of $62.07 million in FY 22 and $123.2
million in FY 23 appropriated to OPM in the budget to support rate
increases for certain Department of Developmental Services contracted
providers for purposes of employee wage and benefit enhancements.
Section 378 provides a 4% rate increase for chronic disease
hospitals. Associated Medicaid funding of $1,802,000 in both FY 22 and
FY 23 is provided in the DSS budget in HB 6689, the FY 22 – FY 23
budget bill.
Section 379 maintains the inpatient, per diem rate of not less than
$975 for Natchaug Hospital. Associated state Medicaid funding of
$410,000 in FY 22 and $450,000 in FY 23 is provided in the DSS budget
in HB 6689, the FY 22 – FY 23 budget bill.
Section 380 clarifies income eligibility under the unborn child
option and does not alter the fiscal impact of the underlying bill.
Section 381, which make technical and conforming changes, have
no fiscal impact.
Sections 382 - 383 establish a minimum budget requirement (MBR)
for FY 22 and all future fiscal years. These sections also clarify that
COVID-19 related federal funds, as well as state school security grants,
may be excluded from MBR calculations, which results in a potential
savings to municipalities. Additionally, these sections: (1) prohibit
towns from seeking a reduction in the MBR based on any decline in 2021SB-01202-R00-FN.docx Page 31 of 41
students that occurred in FY 21, which prevents potential savings to
affected municipalities, and (2) allow towns to appropriate additional
funds for education in FY 22 under certain circumstances, in order to
comply with the MBR.
Sections 384 - 386 adjust the Education Cost Sharing (ECS) formula
and phase-in schedule for certain towns, producing town grants
totaling approximately $2.1 billion in FY 22 and $2.2 billion in FY 23 as
under HB 6689, the FY 22 – FY 23 budget bill. The ECS adjustments
are expected to increase entitlements by $45.6 million in FY 22 and
$91.2 million in FY 23 compared to FY 21, or by $14 million and $28.1
million respectively compared to current law.
The formula's student weight changes are: (1) the English language
learner weight is increased from 15 percent to 25 percent; and (2) the
threshold for qualifying for the low-income student concentration is
lowered from 75 percent to 60 percent, and the student weight for this
factor is increased from 5 percent to 15 percent. The regional bonus
calculation is adjusted to increase the per-student bonus and include
endowed academy students for whom sending towns pay tuition.
Additionally, towns that otherwise would have experienced ECS
decreases in the biennium will instead receive their FY 21 entitlements
in both FY 22 and FY 23. These towns will resume the decrease
schedule in FY 24, reaching full funding in FY 30. There is no change
to the phase-in schedule for towns considered under-funded, which
will continue to receive increases and then be fully funded in FY 28.
Section 387 provides that the State Department of Education shall
use reasonable means to provide aid to school districts and endowed
academies related to federal funds in instances where they would
otherwise be ineligible.
Section 388 replaces the existing per-pupil grant to state charter
schools with a weighted student grant structure. This section results in
state charter school grants that are anticipated to cost an additional
$4.2 million in FY 22 and $7.6 million in FY 23, compared to 2021SB-01202-R00-FN.docx Page 32 of 41
maintaining the grant at $11,250 per student. These costs are funded
within HB 6689. The weighted student grant is based on the ECS
foundation, ECS student weights as revised by this bill, and charter
operator student demographics.
The shift to a weighted student grant will be partially phased in
during FY 22 and FY 23. In FY 22, state charter schools will receive a
weighted per-student grant equal to the ECS foundation of $11,525
plus 4.1 percent of the difference between the foundation and a fully
funded weighted student grant. In FY 23, the per-student grant will
equal the ECS foundation plus 14.76 percent of the difference between
the foundation and a fully funded weighted student grant.
Section 389 makes changes to the procedures for charter schools to
make material changes in their programs and results in no fiscal
impact.
Sections 390 – 392 result in additional flexibility for the state to
make magnet school payments.
Section 393 eliminates the potential for a proportional reduction in
magnet school operating grants should appropriations be insufficient
to make full grant payments. This results in a potential cost to the state
which in turn would be a potential revenue increase to magnet school
operators. The scope of the potential impact is dependent upon the
state appropriation and the eventual grant calculation which is
enrollment driven.
Section 394 makes a clarifying change regarding the magnet school
transportation payment.
Section 395 distributes $5 million to Priority School Districts based
on their total ECS need students, HB 6689, the FY 22 - FY 23 budget
bill, includes funding for this purpose.
Section 396 makes the Youth Service Bureau (YSB) of Somers, which
applied for YSB grant funding in FY 21, eligible for YSB
funding. Funding of $14,000 in both FY 22 and FY 23 is provided in 2021SB-01202-R00-FN.docx Page 33 of 41
the DCF budget in HB 6689, the FY 22 – FY 23 budget bill for the cost
associated with this provision.
Section 397 permits students in the Technical Education and Career
System, for the graduating classes of 2023 and 2024, to graduate from
the system without completing one credit in world languages.
Section 398 allows the existing tuition and fees waiver for Ansonia
students in Derby's College Connections program to be used for the
costs of another Derby, or Ansonia, manufacturing program operated
by the Board of Regents during FY 20 or any future year.
Section 399 allows a municipality to contribute up to two percent of
the annual district budget to the reserve fund for capital and
nonrecurring expenditures.
Section 400 requires the Department of Agriculture (DoAg) to
administer the CT Grown for CT Kids Grant Program to assist local
and regional boards of education to develop farm-to-school programs
that will increase the availability of local foods in child nutrition
programs. This implements HB 6689, the FY 22 and FY 23 budget bill,
which provides $250,000 to DoAg in each of FY 22 and FY 23 for this
purpose.
Section 401 extends the Open Choice program to Norwalk and
Danbury. This results in an additional cost of $275,000 in FY 22 and
$900,000 in FY 23, which is included in HB 6689, the FY 22 - FY 23
budget bill. Funding includes start-up costs, professional development,
community support, transportation, and a $4,000 per pupil
reimbursement for 50 participants in each of the two new
communities.
Sections 402 - 408 extend the cap on statutory grants through FY 23.
This results in a state savings of approximately $70 million in FY 22
and $75 million in FY 23.
Section 409 requires the Office of Fiscal Analysis to analyze a
proposal to overhaul several major state education grants and report to 2021SB-01202-R00-FN.docx Page 34 of 41
the legislature by January 15, 2022, which results in no fiscal impact as
the office has sufficient expertise to complete these requirements.
Sections 410 - 411 requires the State Department of Education
(SDE), by January 1, 2023, in collaboration with the State Education
Resource Center, to develop a model curriculum for grades
kindergarten through eight. This is anticipated to cost the state
approximately $360,0000 within SDE. Due to the timing of the
requirements contained within the bill, SDE will require additional
staff. Based on the development of previous model curriculum, it is
estimated that SDE would require four durational education
consultants, with an annual salary of $90,000 each, to complete the
required tasks. Section 29 (25) of HB 6689, the FY 22 -FY 23 budget bill,
provides up to $360,000 to the State Department of Education, in Other
Expenses, for the purposes of model curriculum, in FY 22.
Sections 412 - 413 adds Native American studies to the social
studies curriculum, beginning in FY 24. This could result in a minimal
cost to local and regional school districts associated with additional
printing and dissemination of materials. The costs would vary by the
size of each district and the additional materials required to
incorporate Native American studies into the social studies
curriculum.
Sections 414 - 419 establish the minority candidate certification,
retention, or residency year program for educators, and requires a
portion of Alliance District funds (a component of the Education Cost
Sharing grant for recipient towns) to be spent on program
activities. The State Department of Education is required to annually
withhold ten percent of each Alliance District’s increase (AD) in those
funds (from FY 20), beginning in FY 23, and the funds will be released
to each town for residency program-related costs, including hiring and
retention. If a board of education does not apply for some or all of the
withheld funds within an additional fiscal year, the town may
experience a revenue reduction, but it is anticipated all affected towns
will apply, given the bill’s mandate for these towns to participate in a 2021SB-01202-R00-FN.docx Page 35 of 41
minority teacher recruitment residency program.
The amount withheld from each Alliance District in any year
depends on each town’s change in Alliance District funding compared
to FY 20. These funds are anticipated to total approximately $11.9
million in FY 23, across the 25 Alliance Districts that will receive ECS
increases compared to FY 20. The median amount per affected
Alliance District is approximately $360,000. Because the withholding
under the bill is a percentage of the increase in ECS funds, the amount
withheld will grow annually until FY 28, as ECS grants to impacted
towns rise under the ECS formula phase-in.
Section 420 requires SDE to study strategies for easing the barrier of
Praxis II to teaching candidates, and does not result in a fiscal impact.
Sections 421 and 422 make clarifying and technical changes that do
not result in a fiscal impact.
Sections 423 - 439 results in a cost to the state in both FY 22 and FY
23 of approximately $830,000. This includes funding for five durational
Education Consults with an annual salary of $110,000 each, for total
Personal Services costs of $550,000 plus an additional $227,150 in
fringe benefits, to address the requirements for remote learning. In
addition, equipment and information technology costs are anticipated
to be approximately $50,000, annually. Development of the virtual
model is likely to require at least two years to accomplish. HB 6689, the
FY 22 -FY 23 budget bill, includes funding for this purpose.
Sections 430 - 443 results in a cost to the state beginning in FY 22 of
$1,050,000 which includes $750,000 in personnel services (seven
positions) within the State Department of Education (SDE) to staff the
Center for Literacy Research and Reading Success and associated
fringe benefits of $300,000. Additionally, the bill results in a yearly cost
to the SDE, beginning in FY 23 of $12,860,000 to expand intensive
reading intervention within the Alliance Districts and to provide
technical assistance to local and regional boards of education in the
provision of professional development, pursuant to section 10-148a, 2021SB-01202-R00-FN.docx Page 36 of 41
and in-service training, pursuant to section 10-220a, related to the
teaching of the black and Latino studies course approved pursuant to
this section. Costs associated with the provision of intensive reading
intervention include items such as literacy/reading coaches and
external reading interventionists. HB 6889, the FY 22 - FY 23 budget
bill, contains 7 positions and corresponding of $750,000.
Sections 444 - 453 make various technical and clarifying changes to
Sheff v. O'Neill statutes, and do not result in a fiscal impact.
Section 454 increases, beginning in FY 22, the per pupil vocational
agriculture grant from $4,200 to $5,200. This is anticipated to result in
an additional cost of $3.7 million annually, which is included in HB
6689, the FY 22 - FY 23 budget bill.
Section 455 - 457, which make technical and conforming changes,
have no fiscal impact.
Sections 480 - 485 transfer funding of $262.7 million in FY 22 and
$276.3 million in FY 23 from the Municipal Revenue Sharing Account
(MRSA) to the General Fund. This funding supports corresponding
General Fund appropriations for 1) Motor Vehicle Property Tax grants,
and 2) Tiered PILOT grants distributed pursuant to PA 21-3.
The bill specifies that MRSA will support the cost of Tiered PILOT
in excess of General Fund appropriations. It is estimated that the total
cost of Tiered PILOT is $310.4 million in FY 22, resulting in a revenue
gain to municipalities of approximately $146 million. Additionally,
MRSA will support 1) $7 million in regional services grants in both FY
22 and FY 23 and estimated revenue sharing grants of approximately
$38.1 million in FY 22 and $47.6 million in FY 23.
The bill (1) increases the PILOT reimbursement rate for certain tribal
property and for the Connecticut Port Authority and (2) expands the
State Property PILOT to include special taxing districts. These changes
increase the total cost of Tiered PILOT by up to $4 million.
Sections 523 - 531 make a number of changes to bond 2021SB-01202-R00-FN.docx Page 37 of 41
authorizations that result in a net increase of $5 million of General
Obligation bonds in FY 22 and $60 million in FY 23. To the extent these
bonds are allocation and spent, there would be a commensurate
increase in debt service.
Sections 532 - 533 modify the Baby Bond program by limiting
funding to what is allocated by the State Bond Commission in any
given year, up to the cumulative amount of General Obligation bonds
effective at that time. If the funding allocated by the bond commission
is insufficient to provide a maximum deposit of $3,200, the per child
deposit would be reduced proportionately to the amount of annual
funding and the number of eligible births. This results in potential
savings to the state, to the extent the amounts allocated and
subsequently deposited are lower than the amounts currently
required, as established in HB 6690.
Sections 534 and 537 remove or repeal the following sections of HB
6690, which results in the impacts specified. Repeal of section 119
removes Jefferson Elementary School from the priority list, precludes a
revenue gain to the city of New Britain and cost to the state of up to
$52.25 million, and precludes a cost to New Britain of up to $2.75
million. Removal of subsection (b) of section 124 and repeal of section
125 removes an audit holdback waiver for specified projects in West
Haven, which was anticipated to alter the timing but not the amount of
eventual state reimbursement of school construction costs. Repeal of
section 126 removes a project at E.C. Goodwin Technical High school
and precludes a potential cost to the state of up to $40 million.
Section 535 allows DECD to use funds from bond proceeds, certain
federal funds, or other department resources, including revolving loan
funds, to be used to implement an Economic Action Plan. To the extent
funds are made available, the section allows DECD to provide grants
for major projects up to $100 million or matching competitive grants of
up to $10 million.
Section 536 delays the effective start date of certain contracting
standards from July 1, 2021 to July 1, 2022. To the extent this delay 2021SB-01202-R00-FN.docx Page 38 of 41
alters the total cost of projects during FY 22, there would be a
proportional change to the state and municipal cost for school
construction projects.
Section 539 removes language related to the remote school learning
plan, which is replaced with the language contained in Sections 42 and
43, above.
Sections 540 – 544 make a number of conforming changes that do
not result in any fiscal impact.
The bill makes multiple adjustments to state tax and revenue
policies, with an overall net increase in revenues. A summary and
details are provided below.
Estimated revenue impacts in total (in millions)
Fund FY 22 $ FY 23 $ FY 24 $ FY 25 $ FY 26 $
General Fund (GF) 1,041.8 1,621.9 163.1 144.5 92.9
Special Transportation Fund
(STF)
- 2.5 2.5 2.5 2.5
Tourism Fund 3.1 - - - -
Estimated revenue impacts by Section (in millions)
Sections Policy Fund FY 22 $ FY 23 $
7 Implement a repayment schedule of bond
funds issued on behalf of the Paid Family
Medical Leave Authority
GF - 1.7
81-86 Transfer iLottery revenue to Debt Free
Community College account – out years
impact
GF - -
458, 459,
461
Maintain the corporation business tax
surcharge through Income Year 2022
GF 80.0 50.0
460, 461 Adjust the capital base tax method GF 20.9 29.2
462 Restore the R&D tax credit to 70% of liability GF (6.5) (17.2)
463 Adjust the carryforward of new R&D tax
credits – out years impact
GF - -
464 Raise the aggregate cap on the Insurance
Reinvestment (Invest CT) Fund – out years
impact
GF - - 2021SB-01202-R00-FN.docx Page 39 of 41
Sections Policy Fund FY 22 $ FY 23 $
465 Expand potential use of the film production
tax credit (at a discount)
GF 2.2 4.3
466 Adjust the earned income tax credit rate GF (34.1) (34.1)
468 Maintain limits on property tax credits
through Income Year 2022 GF 53.0 53.0
469 Extend the existing tax exemption for
pensions/annuities to income from IRAs out
years impact GF - -
470 Repeal the admissions tax for certain types of
venues GF (11.0) (11.0)
471 Exempt breast-feeding supplies from sales
tax
GF (0.5) (0.5)
471 Exempt breast-feeding supplies from sales
tax – minimal revenue loss
STF/MRSA
472 Allow certain businesses to keep a portion of
the sales tax they collect on sales of meals
and beverages for FY 22 GF (7.0) -
473 Reduce the alcohol excise tax rate on beer –
out years impact GF - -
474-479 Impose a convenience fee for credit/debit
card use
GF - 2.5
474-479 Impose a convenience fee for credit/debit
card use
STF - 2.5
480-485 Transfer from the Municipal Revenue
Sharing Account (MRSA) to support
municipal transition (i.e., car tax) grants and
expanded PILOT spending in the General
Fund
GF 262.7 276.3
486 Implement a temporary tax amnesty
program GF 40.0 (4.0)
487 Transfer from the General Fund to the
Tourism Fund
GF (3.1) -
487 Transfer from the General Fund to the
Tourism Fund
Tourism 3.1 -
488 Delay historical GAAP (Generally Accepted
Accounting Principles) deficit payment to FY
24
GF 85.1 85.1
489 Transfer from American Rescue Plan (ARP)
federal funds
GF 559.9 1,194.9
490-495 Ban flavored vaping products GF (1.3) (2.5)
496-502 Limit public assistance recoveries GF (6.0) (6.0)
501-512 Implement a captive insurers initiative GF 7.5 0.2
513 Establish a sales tax exemption for beer
supplies – out years impact GF - -
516-522 Reduce tax rates for Ambulatory Surgical
Centers – out years impact GF - -
Section 463 adjusts the carryforward of new R&D tax credits 2021SB-01202-R00-FN.docx Page 40 of 41
Limit carryforward of new R&D tax credits to 15 years
Precludes potential revenue losses in future years
Section 464 raises the aggregate cap on the insurance reinvestment
fund
Increase the aggregate program cap by $200 million
Approx. $20 million revenue loss to the General Fund beginning
in FY 26
Section 467 requires child tax credit planning by the Office of Policy
and Management (OPM) under certain conditions
Requires the OPM to submit a plan to provide a state child tax
credit if/when the federal benefit is reduced
There is no fiscal impact to produce the plan
Section 469 extends existing tax exemption for pensions/annuities to
income from IRAs
Over four years beginning in Income Year 2023, implement a
100% exemption from the personal income tax, subject to
income thresholds
Fully implemented, the revenue loss is estimated to be $77.8
million in FY 27 and beyond
In addition, the section conforms statute to current revenue
estimates by allowing claimants to take either the teachers’
pension exemption or the general pension an annuity
exemption, whichever is more lucrative.
Section 473 adjusts the alcohol excise tax rate
Reduces the excise tax on beer from $.24/gallon to $.20/gallon
Approximate $2 million revenue loss annually beginning in FY
24
Section 513 establishes a sales and use tax exemption for brewery
production
Establishes a sales and use tax exemption on machinery and
production materials for the manufacturing of beer effective
July 1, 2023.
This results in a revenue loss of $1.3 million annually to the
state beginning in FY 24.
Sections 516-522 reduce the ambulatory surgical center tax rate 2021SB-01202-R00-FN.docx Page 41 of 41
Lowers the ASC Tax rate from 6% to 3% effective July 1, 2023.
This results in an estimated $9.5 million revenue loss annually
to the state beginning in FY 24.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
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.