OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5038
AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET
RECOMMENDATIONS CONCERNING EDUCATION.
Primary Analyst: SB 4/25/22
Contributing Analyst(s):
Reviewer: JS
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
Education, Dept. GF - Cost See Below See Below
Education, Dept. GF - Savings $678,953 1.1 million
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 23 $ FY 24 $
Various Local and Regional
School Districts
See Below See Below See Below
Explanation
The bill increases the per-pupil Open Choice grant by $2,000 to
receiving districts for each student from the Hartford (Sheff) region.
This results in an additional corresponding revenue gain to local and
regional school districts in the Hartford region that participate in Open
Choice. This change is implementing language for part of the recent
Sheff settlement, which is in effect.
The bill also renews the Alliance District program for FY 23 through
FY 27 and phases out the Alliance District portion of the ECS grant to
the few towns that will no longer qualify (graduated Alliance Districts),
impacting the graduated, new, and continuing Alliance Districts.
Additionally, the bill makes adjustments to ECS that provide: (1)
enhanced protection from losses for all towns in FY 23, and for Alliance
Districts and graduated Alliance Districts in subsequent years, and (2) a 2022HB-05038-R000628-FN.DOCX Page 2 of 2
smoother phase-in and phase-out process. These changes, combined
with the annual updates to ECS calculation data, result in ECS grants
that are: (1) in FY 23, $678,953 less than required under current law; (2)
in FY 23, approximately $6 million less than the FY 23 appropriation;
and (3) in FY 24, an estimated $1.1 million less than current law.
The bill makes various other procedural and operational changes to
the technical and career schools, which are not anticipated to result in a
fiscal impact.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.