OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
EMERGENCY CERTIFICATION
HB-5506
AN ACT ADJUSTING THE STATE BUDGET FOR THE BIENNIUM
ENDING JUNE 30, 2023, CONCERNING PROVISIONS RELATED TO
REVENUE, SCHOOL CONSTRUCTION AND OTHER ITEMS TO
IMPLEMENT THE STATE BUDGET AND AUTHORIZING AND
ADJUSTING BONDS OF THE STATE.
Primary Analyst: RJW/LW 5/2/22
Contributing Analyst(s): NA, SB, DD, LD, ME, CG, LG, EMG,
WL, PM, MM, MP, CP, MR, PR, AS, ES, JS, CW, EW
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
All App Fund - See
Below
Significant Significant
Note: App Fund=All Appropriated Funds
Municipal Impact:
Municipalities Effect FY 23 $ FY 24 $
All Municipalities See Below Significant Significant
Explanation
The table below presents the FY 23 balance for the General Fund,
Special Transportation Fund, and the other appropriated funds.
Budget Balance
Fund
FY 23 $
Revenue Approp.
Surplus/ Balance
After
Revenue
Cap
(Deficit)
General 22,388.2 22,089.2 299.0 19.2
Special
Transportation 2,091.9 1,826.2 265.7 239.6 2022HB-05506-R00-FN.DOCX Page 2 of 39
Other Funds 281.1 280.7 0.4 0.4
TOTAL 24,761.2 24,196.0 565.1 259.1
The bill includes appropriations in the nine funds totaling $24.2
billion in FY 23. The table below summarizes the appropriations by
fund.
Appropriated Fund Summary
Gross Appropriations by Fund
FY 23 Original
$
FY 23 Revised
$
FY 23
Revisions $
General Fund 21,661,537,548 22,229,354,644 567,817,096
Special Transportation Fund 1,921,830,975 1,938,161,303 16,330,328
Banking Fund 29,521,021 29,710,672 189,651
Insurance Fund 122,471,874 123,155,240 683,366
Consumer Counsel and Public Utility
Control Fund
30,976,441 32,716,567 1,740,126
Workers' Compensation Fund 26,955,096 27,257,008 301,912
Mashantucket Pequot and Mohegan
Fund
51,472,796 51,481,796 9,000
Criminal Injuries Compensation Fund 2,934,088 2,934,088 -
Tourism Fund 13,069,988 13,444,253 374,265
Total Gross Appropriations 23,860,769,827 24,448,215,571 587,445,744
General Fund Lapses
Unallocated Lapse (48,715,570) (48,715,570) -
Unallocated Lapse - Judicial (5,000,000) (5,000,000) -
CREATES Savings Initiative Lapse (73,487,242) (73,487,242) -
SEBAC Specialty Drug Savings - (13,000,000) (13,000,000)
Total General Fund Lapses (127,202,812) (140,202,812) (13,000,000)
Transportation Fund Lapses
Unallocated Lapse (12,000,000) (12,000,000) -
Temporary Federal Support for
Transportation Operations
(100,000,000) (100,000,000) -
Total Transportation Fund Lapses (112,000,000) (112,000,000) -
Net Appropriations by Fund
General Fund 21,534,334,736 22,089,151,832 554,817,096
Special Transportation Fund 1,809,830,975 1,826,161,303 16,330,328
Banking Fund 29,521,021 29,710,672 189,651
Insurance Fund 122,471,874 123,155,240 683,366
Consumer Counsel and Public Utility
Control Fund
30,976,441 32,716,567 1,740,126
Workers' Compensation Fund 26,955,096 27,257,008 301,912
Mashantucket Pequot and Mohegan
Fund
51,472,796 51,481,796 9,000
Criminal Injuries Compensation Fund 2,934,088 2,934,088 -
Tourism Fund 13,069,988 13,444,253 374,265 2022HB-05506-R00-FN.DOCX Page 3 of 39
Gross Appropriations by Fund
FY 23 Original
$
FY 23 Revised
$
FY 23
Revisions $
Total Net Appropriations 23,621,567,015 24,196,012,759 574,445,744
The FY 23 growth rate for all appropriated funds is 6.4% over the FY
22 appropriation. See the table below for details.
Budget Growth
Fund
FY 22 FY 23 FY 23 FY 23 FY 23
Approp.
Original
Approp.
Change to
Original
Approp.
Change from
FY 22
$ $ $ % $ $ %
General 20,746.4 21,534.3 554.9 2.6% 22,089.2 1,342.8 6.5%
Transportation 1,721.8 1,809.8 16.4 0.9% 1,826.2 104.4 6.1%
Other Appropriated 275.1 277.4 3.3 1.2% 280.7 5.6 2.0%
TOTAL 22,743.3 23,621.6 574.4 2.4% 24,196.0 1,452.7 6.4%
Spending Cap
The budget is under the spending cap by $0.2 million in FY 22 and
$8.6 million in FY 23. These calculations reflect a deappropriation of $22
million in FY 22 from the Debt Service account contained in section 306
of the bill.
Section 10 – 11 reallocates federal American Rescue Plan Act (ARPA)
funding and allocates the portion of ARPA funding unallocated by SA
21-15, the FY 22 and FY 23 budget. This results in a total of $1,752.3
million in new ARPA allocations for a variety of initiatives and grant
programs. This funding, plus all previous allocations, represents the
total ARPA award to Connecticut via the State and Local Fiscal
Recovery Fund and the Capital Relief Fund.
The budget reallocates one existing ARPA expenditure allocation of
$2 million for the Connecticut Airport Authority. The remaining
reallocation is achieved by (1) reducing ARPA revenue replacement
funds by $559.9 million in FY 22 and $880 million in FY 23, and (2)
allocating the available balance of SLRFR ($233 million) and CPF ($77.4
million).
Sections 12 - 54 include carryforward funding for various purposes. 2022HB-05506-R00-FN.DOCX Page 4 of 39
The following table provides a brief description of the funds being
carryforward from the balance available from funds pursuant to PA 21-
1 (JSS), Section 308(a) and from anticipated balances from certain
accounts in FY 22 for initiatives in FY 23.
Summary of Carryforwards and Revenue Diversions for FY 23
Section Agency Fund Title
Carryforwards
$
Revenue
Diversions $
12(b)47 Secretary of the
State
General Fund Election security and public education
campaign
2,000,000
12(b)48 Reserve for
Salary
Adjustments
General Fund To support wage payouts and increase
funding available for state employee and
National Guard premium pay.
28,861,306
12(b)49 Workers'
Compensation
Claims -
Administrative
Services
General Fund To settle workers' compensation claims 15,000,000
12(b)50 Department of
Emergency
Services and
Public
Protection
General Fund For police and public safety officer training 500,000
12(b)51 Labor
Department
General Fund To support the restructuring of the
unemployment insurance system
459,159
12(b)52 Labor
Department
General Fund To support the restructuring of the
unemployment insurance system
200,000
12(b)53 Labor
Department
General Fund To support enhanced employee wage record
reporting
235,000
12(b)54 Commission
on Human
Rights and
Opportunities
General Fund To support durational staff 441,320
12(b)55 Commission
on Human
Rights and
Opportunities
General Fund To automate portions of the affirmative
action process
200,000
12(b)56 Department of
Public Health
General Fund For information technology costs related to
water well oversight
50,000
12(b)57 Office of Early
Childhood
General Fund Provide funding for the Nurturing Families
Network home visiting program
1,000,000
12(b)58 University of
Connecticut
General Fund For costs of the twenty-seventh payroll
during the fiscal year ending June 30, 2023
7,991,695
12(b)59 University of
Connecticut
Health Center
General Fund For costs of the twenty-seventh payroll
during the fiscal year ending June 30, 2023
5,129,011
12(b)60 University of
Connecticut
Health Center
General Fund For AHEC, for costs of the twenty-seventh
payroll during the fiscal year ending June 30,
2023
14,455
2022HB-05506-R00-FN.DOCX Page 5 of 39
Section Agency Fund Title
Carryforwards
$
Revenue
Diversions $
12(b)61 Connecticut
State Colleges
and
Universities
General Fund For Community Tech College System, for
costs of the twenty-seventh payroll during
the fiscal year ending June 30, 2023
4,866,346
12(b)62 Connecticut
State Colleges
and
Universities
General Fund For Connecticut State Colleges and
Universities, for costs of the twenty-seventh
payroll during the fiscal year ending June 30,
2023
5,026,555
12(b)63 Connecticut
State Colleges
and
Universities
General Fund For Charter Oak State College, for costs of the
twenty-seventh payroll during the fiscal year
ending June 30, 2023
107,099
12(b)64 Department of
Economic and
Community
Development
General Fund To support the establishment of nonstop air
service to Jamaica
2,000,000
12(b)65 Department of
Energy and
Environmental
Protection
General Fund Interim staff support for implementing
federal infrastructure bill
100,000
12(b)66 Governor's
Office
General Fund Interim staff support for implementing
federal infrastructure bill
100,000
12(b)67 Department of
Revenue
Services
General Fund Interim staff support for implementing
federal infrastructure bill
200,000
12(b)68 Office and
Policy and
Management
General Fund Interim staff support for implementing
federal infrastructure bill
100,000
12(b)69 Department of
Agriculture
General Fund Provide funds for the care and custody of
animals that have been seized
200,000
12(b)70 Department of
Agriculture
General Fund Provide funds for the Climate Smart Farming
program
7,000,000
12(b)71 Department of
Energy and
Environmental
Protection
General Fund Provide funding for vouchers for electric
vehicles
10,000,000
12(b)72 Department of
Energy and
Environmental
Protection
General Fund Sustainable Material Management (SMM)
grant program
5,000,000
12(b)73 Department of
Administrative
Services
General Fund Maintenance of state properties 915,460
12(b)74 Department of
Transportation
General Fund Interim staff support for implementing
federal infrastructure bill
100,000
12(b)75 Auditors of
Public
Accounts
General Fund Provide funds for accrual payments 200,000
12(b)76 Attorney
General
General Fund Provide funding for data security
consultants
250,000 2022HB-05506-R00-FN.DOCX Page 6 of 39
Section Agency Fund Title
Carryforwards
$
Revenue
Diversions $
12(b)77 Department of
Economic and
Community
Development
General Fund Provide support to Ball and Socket in
Cheshire
300,000
12(b)78 Department of
Economic and
Community
Development
General Fund Provide support to Stepping Stone in
Norwalk
100,000
12(b)79 Department of
Economic and
Community
Development
General Fund Provide a grant to the town of Sprague
streetscape improvements that consist of
LED lighting
1,300,000
12(b)80 Department of
Economic and
Community
Development
General Fund Provide a grant-in-aid to Amistad Center for
Art and Culture in Hartford
100,000
12(b)81 Department of
Social Services
General Fund Provide a grant-in-aid to Mothers United
Against Violence
100,000
12(b)82 State
Department of
Education
General Fund Provide a grant-in-aid to East Hartford Little
League
75,000
12(b)83 State
Department of
Education
General Fund Provide a grant-in-aid to Connect
Interscholastic Athletic Conference
50,000
12(b)84 Department of
Economic and
Community
Development
General Fund Provide a grant-in-aid to Beta Iota Boule
Foundation
100,000
12(b)85 University of
Connecticut
General Fund Provide funds to conduct training that will
result in certification Green Snow Pro
roadside salt applications
142,000
12(b)86 Department of
Emergency
Services and
Public
Protection
General Fund Provide funding for the deadly weapon
offender registry document management
system
95,605
12(b)87 Office of Policy
and
Management
General Fund Provide funds for the removal of debris from
the Housatonic River
150,000
12(b)88 Department of
Emergency
Services and
Public
Protection
General Fund Provide funds for a durational grant
administrator
104,000
12(b)89 Office of Early
Childhood
Education
General Fund Provide a wage supplement and childcare
enhancement grant program
20,000,000
12(b)90 Department of
Administrative
Services
General Fund Provide funding to address elevator
inspection backlog
2,500,000
12(b)91 Department of
Economic
Development
General Fund Funding to conduct a study of Brainard
Airport
1,500,000 2022HB-05506-R00-FN.DOCX Page 7 of 39
Section Agency Fund Title
Carryforwards
$
Revenue
Diversions $
12(b)92 Office of Policy
and
Management
General Fund To support cost of accrued payouts 11,450,000
12(b)93 Office of Policy
and
Management
General Fund Provide a grant-in-aid to Rell Center at the
University of Hartford
50,000
12(b)94 Department of
Economic
Development
General Fund Provide a grant-in-aid to the Slater Museum
of Norwich
500,000
13 Office of Policy
and
Management
General Fund To support cost of accrued payouts 9,688,694
14 Labor
Department
General Fund To support the costs of administering the
unemployment insurance program
25,000,000
15 Department of
Administrative
Services
General Fund Restore lapsed funding for the Firefighters
Cancer Relief Fund
800,000
16 University of
Connecticut
Health Center
General Fund Replenish the Medical Malpractice Trust
Fund
20,000,000
17 Office of
Health
Strategy
General Fund Provide funds to support a biennial
statewide health care facilities and services
plan as required under section 19a-634 of the
general statutes.
400,000
18(a) Department of
Transportation
Special Trans. Provide matching funds for projects funded
whole or in part by the Infrastructure
Investment and Jobs Act, P.L. 117-58
50,000,000
18(b) Department of
Transportation
Special Trans. Provide matching funds for projects funded
whole or in part by the Infrastructure
Investment and Jobs Act, P.L. 117-58
50,000,000
19 State
Department
Education
General Fund Study of adequacy of social workers in LEAs 150,000
20 State
Department of
Education
General Fund Funding to conduct a study concerning
mental health issues in high school athletes
100,000
21 Department of
Mental Health
and Addiction
Services
General Fund Funding to conduct a comprehensive
Gaming Study
1,250,000
22 Department of
Agriculture
General Fund Grant to Brass City Food Hub 125,000
23 Legislative
Management
General Fund Removal of Mason Statute from the state
capitol building
100,000
24 Office Policy
and
Management
General Fund Provide funds to support Non-Union wage
adjustments
23,000,000
25 Judicial
Department
General Fund Provie funds to support to support a study of
inmate mental health by the sentencing
commission in conjunction with IMRP
500,000
26 Judicial
Department
General Fund Funds for the Counsel for domestic violence Unexpended
balance
2022HB-05506-R00-FN.DOCX Page 8 of 39
Section Agency Fund Title
Carryforwards
$
Revenue
Diversions $
27 Connecticut
State Colleges
and
Universities
General Fund Provide funds to support an e-commerce
training program
65,000
28 State
Department of
Education
General Fund Provide funds to support a study of Unified
School District #1
50,000
29 Department of
Emergency
Services and
Public
Protection
General Fund To support police crisis intervention training 100,000
30 Department of
Economic and
Community
Development
General Fund Provide a grant-in-aid to American Legion
Post 85 in Baltic
4,000
31 Department of
Transportation
Special Trans. Provide funds to support Grant to conduct a
dredging study conducted by the
Connecticut Port Authority
3,000,000
32 Workers'
Compensation
Commission
Workers'
Compensation
Fund
Funds to support wages increases for
Workers' Compensation Commissioners
200,000
33 Judicial
Department
General Fund Provide funds to support the career
pathways program
150,000
34 Department of
Economic and
Community
Development
General Fund Provide funds to support the Coast Guard
Academy Office of Military Affairs for its
library
1,000,000
35 Department of
Labor
General Fund Funds provided to support the domestic
workers' education training grants – other
expenses
unexpended
balance
36 Judicial
Department
General Fund Unexpended balance of Other Expenses for
the purpose of funding consultants for
information technology security
enhancement projects
unexpended
balance
37 Office of Policy
and
Management
General Fund OPM shall not make reductions in allotments
to implement budgeted lapses if the budget
is projected to be in surplus
-
38 Department of
Transportation
Transportation
Fund
Provide funds to public safety related to free
bus services.
780,000
39 Department of
Social Services
General Fund Provide funds to support group home
workers.
16,500,000
40-47 Office of State
Comptroller
General Fund Provide funds to support to the Connecticut
premium pay account.
30,000,000
48-49 University of
Connecticut
General Fund Provide funds for temporary operating
support
7,500,000
50-51 UConn Health
Center
General Fund Provide funds for temporary operating
support
7,500,000
52 Legislative
Management
General Fund Provide funds to support additional
personal services.
3,000,000 2022HB-05506-R00-FN.DOCX Page 9 of 39
Section Agency Fund Title
Carryforwards
$
Revenue
Diversions $
53 Department of
Revenue
Services
General Fund Provide funds to support administration of
the childcare tax credit.
375,000
54 Department of
Energy and
Environmental
Protection
General Fund Provide funds to support durational staff.
1,500,000
Section 55 transfers $20 million from the Community Investment
Account (CIA), for FY 23 as follows: (1) to the Department of
Agriculture, $5 million to implement a farm manure management
system program; (2) to the Department of Housing, $5 million for
eviction prevention to be divided as follows (A) $2 million for project
longevity housing vouchers to be issued in Hartford, Waterbury,
Bridgeport and New Haven, (B) $1.5 million for the Rent Bank, and (C)
$1.5 million for Coordinated Access Networks; (3) to the Department of
Economic and Community Development, $5 million for historic
preservation; and (4) to DEEP $5 million for open space. The current
cash balance of the CIA is approximately $25.2 million.
Section 56 allows any lapsing funds in the Open Choice account to
be used for the Legacy Foundation for wrap-around services.
Section 57 clarifies that not less than $3.5 million for grants-in-aid
under the Connecticut Summer at the Museum Program under the
Department of Economic and Community Development in FY 22 shall
be made available for grants-in-aid to for-profit entities.
Section 58 allows funds allocated by carry forward in the FY 22 & FY
23 budget to not lapse and to be made available for its intended purpose
until Dec. 31, 2026.
Section 59 specifies the use of $9,000 in funding that the budget
allocates to three state-recognized Native American tribes from the
Pequot fund. This has no fiscal impact.
Section 60 allocates $5,295,000 of grants to be made available for
specified providers from the Judicial Department Youth Services 2022HB-05506-R00-FN.DOCX Page 10 of 39
Prevention General Fund account.
Section 61 requires the Department of Children and Families and the
Division of Public Defender Services (PDS) to develop a plan for
achieving federal reimbursement of legal representation in child
protection proceedings and allows the Secretary of the Office of Policy
and Management to make $150,000 available to PDS for legal counsel
for qualified cases.
Section 62 requires the Department of Children and Families (DCF)
to develop a plan to expand coverage and improve outcomes for youth
service bureaus. Associated ARPA funding of $2 million is allocated to
DCF in the bill for this purpose.
Section 63 requires the Connecticut Port Authority to conduct a
dredging study and to report the results to the Environment and
Appropriations Committees by January 1, 2023. Section 31 includes up
to $3 million of carry forward funding for these purposes.
Section 64 requires the Office of Policy and Management to submit a
report concerning carry forward funding. This has no fiscal impact.
Section 65 specifies that grants received by victim services providers
from the Judicial Department must only be the actual amount that the
grant is reduced by the Victims of Crime Act Assistance of 1984 amount.
Section 66 specifies the distribution of $25 million in ARPA funding
allocated to the Office of Policy and Management by PA 21-2 and
reallocated by this bill for multipurpose community facilities.
Section 67 requires that the Office of Legislative Management (OLM)
submit to the legislative leaders for written approval contracts that
exceed $50,000. OLM must receive written approval of the majority of
the legislative leaders, including approval of at least one of the minority
leaders. After 60 days if the contract has not been approved by the
majority of legislative leaders, including at least one minority leader, the
contract will be deemed approved. This provision has no direct fiscal
impact. 2022HB-05506-R00-FN.DOCX Page 11 of 39
Section 68 establishes an Office of Aquatic Invasive Species (AIS) in
the Connecticut Agricultural Experiment Station (CAES). The bill
includes funding of $300,000, plus associated fringe benefits, for costs to
establish this new office.
Sections 69 - 70 allow for the creation of collaborative drug therapy
management policies and agreements between prescribing practitioners
and pharmacists. The bill provides a General Fund appropriation of
$98,918 to the Department of Consumer Protection to hire one drug
control agent. The new position is needed to review the collaborative
drug therapy agreements and enforce the expanded scope of practice
for pharmacists.
Section 71 changes the pharmacist license expiration date from
biennially to annually and changes the fee from $120 every two years to
$100 every year resulting in a revenue gain to the state over a two-year
period.
Sections 72 – 74 have no fiscal impact as they are reserved.
Section 75 requires the State Fire Administrator to pay $500 to each
volunteer fire company that responds to calls on certain highways. The
bill provides a General Fund appropriation of $1.5 million to the
Department of Emergency Services and Public Protection (DESPP) to
provide these reimbursements.
Section 76 requires the Department of Mental Health and Addiction
Services (DMHAS) to conduct a study by August 2023, and every ten
years after, concerning the effect of legalized gambling. Associated
funding of $1,250,000 is carried forward from FY 22 for this purpose.
Section 77 eliminates the payments towns are required to make
associated with the unfunded accrued liability for state troopers in the
Resident State Trooper program from 50% to 0%. Funding of $2,883,600
is provided in the revised FY 23 budget bill to fund the associated costs.
Section 78 requires DESPP to administer a grant program for speed
enforcement on rural roads resulting in no fiscal impact, the agency has 2022HB-05506-R00-FN.DOCX Page 12 of 39
the resources to administer the program. The bill provides an ARPA
appropriation of $2.6 million in FY 23 to fund the grant program.
Section 79 results in a significant cost to the Office of Higher
Education (OHE) beginning in FY 23 associated with the creation of a
health care provider loan reimbursement program. OHE does not
currently have the funds available to operate this program. The scope of
the costs is dependent upon the number of reimbursements awarded
annually. OHE would require one full-time program administrator in
FY 23 and beyond, resulting in annual salary expenses of approximately
$90,000 and corresponding fringe benefit costs of approximately
$36,477. Additionally, OHE would require up to $50,000 in FY 23,
associated with software and information technology upgrades. The bill
includes $4.6 million in FY 23, $3 million in FY 24 and $3 million in FY
25, from ARPA funds, for this program.
Section 80 establishes a community gun violence intervention and
prevention program in the Department of Public Health (DPH). This
results in a total cost of $400,000, including two positions ($150,000) and
operating expenses ($250,000) provided in the bill. ARPA funding of $1
million is allocated in FY 23 to DPH to support the cost of program
grants.
Section 81 establishes a Commission on Community Gun Violence
Intervention and Prevention to advise DPH and does not result in a
fiscal impact.
Sections 82 - 89 require free menstrual products to be available in
certain settings. This results in an annual cost to local and regional
boards of education, which must offer free menstrual products in certain
restrooms beginning in FY 24. The overall cost to the districts is
dependent upon any additional product they would have to purchase,
and the number of total dispensers installed (with a per-dispenser cost
of $200 to $400).
The bill's requirements also result in an annual cost to the constituent
units, beginning in FY 24. The costs to the University of Connecticut 2022HB-05506-R00-FN.DOCX Page 13 of 39
(UConn) and UConn Health Center are anticipated to be minimal, and
an annual cost of less than $10,000 to the Board of Regents (BOR) across
all institutions is expected.
The bill provides $2 million in ARPA funding in FY 23, through the
Department of Public Health, in order to reduce the cost of these
requirements to the affected entities. If any additional grants, or
donations, are available to meet these requirements, the costs to school
districts and the constituent units may be lower.
Section 90 requires the State Library Board to consult with the
Department of Aging and Disability Services and the advisory board for
the blind and physically disabled before making certain changes to
library services. This has no fiscal impact as the library board is a
private, third-party entity.
Section 91 changes the Teachers' Retirement System valuation from
being performed on a biennial basis to an annual basis. Under current
law, the June 30, 2022 actuarial valuation, establishing the TRS
actuarially determined employer contribution for FY 24 and FY 25 will
be completed in November 2022 and is funded in the agency's FY 23
budget. This change will result in an additional cost of approximately
$60,000 in FY 24 to support the actuarial costs for the June 30, 2023
valuation.
Section 92 requires the Governor's budget document to include an
explanation of how the budget furthers the Governor's efforts to ensure
equity in the state. This has no fiscal impact.
Sections 93 - 95 clarify that all funding accrued to the Municipal
Revenue Sharing Account during a given fiscal year shall be distributed
to municipalities during, or immediately subsequent to, that fiscal year.
As an illustration, this precludes funding accrued prior to July 1, 2022
but deposited into MRSA after July 1, 2022 from being used for FY 23
MRSA grants. The bill results in such revenue being distributed as FY 2022HB-05506-R00-FN.DOCX Page 14 of 39
22 grant funding to municipalities. FY 22 revenue deposits into MRSA
are anticipated to total $414.7 million.
The bill also allows the City of New Haven to resubmit its FY 23
claims for Tiered PILOT grant calculations. This grant is paid partially
from General Fund (GF) appropriations and the balance, after
appropriations are spent, from the Municipal Revenue Sharing Account
(MRSA). As the budget does not appropriate additional GF funding for
this purpose, it is assumed that any increase in New Haven's FY 23
Tiered PILOT grant that occurs as a result of a resubmitted claim would
be paid via MRSA.
Secs. 96 – 116 replaces the existing Connecticut Retirement Security
Authority Board with the Connecticut Retirement Security Advisory
Board and makes the Comptroller responsible for administering the
Connecticut Retirement Security program. Associated funding of
$700,000 is provided to OSC in the bill to reflect the cost of the provisions
in the bill.
Section 117 allows the Adjutant General to issue a military funeral
honors ribbon and the bill provides a General Fund appropriation of
$10,000 to the Military Department for this purpose.
Section 118 increases the per day compensation of honor guard
members from $50 to $60 and the bill provides a General Fund
appropriation of $80,000 to the Military Department to fund this
increase.
Sections 119 – 120 make changes to the debt free community college
program that are not anticipated to require additional funding in FY 23.
These sections allow unspent program funds to carry forward into the
next year, which is anticipated to cover the additional FY 23 cost of
expanding eligibility to include half-time students.
Section 121 requires two community college entrepreneurial centers
to offer seminars free of charge to small business employees. The bill
provides $65,000 in carryforward funding to the Board of Regents in FY 2022HB-05506-R00-FN.DOCX Page 15 of 39
23 for the seminar costs.
Section 122 requires DAS to post links for judicial branch, legislative
branch and constituent units of higher education employment
opportunities on the DAS executive branch employment opportunities
website. This has no fiscal impact.
Section 123 transfers administering authority of Project Longevity
from the Office of Policy and Management to the Judicial Department.
The FY 23 budget transfers funding of $1,124,373 from OPM to the
Judicial Department (JUD), and provides an additional $2.3 million
General Fund appropriation to JUD to expand Project Longevity.
Section 123 transfers administering authority of Project Longevity
from the Office of Policy and Management to the Judicial Department.
The FY 23 budget transfers funding of $1,124,373 from OPM to the
Judicial Department (JUD), and provides an additional $2.3 million
General Fund appropriation to JUD to expand Project Longevity.
Section 124 establishes a task force to study and make
recommendations concerning certificates of need, which shall submit a
report on its findings and recommendations by January 15, 2023. This
section has no fiscal impact as PA 17-236 prohibits transportation
allowances for task force members.
Section 125 – 126 have no fiscal impact as they are reserved.
Section 127 requires any that any over-collection of recoveries for the
State Employees Retirement System (SERS) funds must be deposited to
the State Employees Retirement Fund (SERF). Currently, any over-
collection of recoveries is deposited to the General Fund as revenue,
while under-collections result in a reduced contribution to SERS. To the
extent that there is such over-collection of recoveries, there will be
increased deposits to SERF and a reduction to General Fund revenues. 2022HB-05506-R00-FN.DOCX Page 16 of 39
Section 128 allows state agencies to designate agency EV charging
stations as either (1) available for public use; (2) for the sole use of state
employees; or (3) for a combination of both state employees and the
public. It further requires state agencies to collect fees on non-state
vehicles for such use and to deposit the revenue into the fund from
which the expenses for installing the relevant EV infrastructure were
paid, resulting in a revenue gain to the respective fund (primarily GF or
STF). Additionally, violations of these provisions are infractions and
result in potential minimal revenue gain to the GF.
Section 129 results in potential savings to the General Fund by
allowing state agencies’ expenditures that are associated with activities
authorized under PA 21-1 JSS, AAC Responsible and Equitable
Regulation of Adult-Use Cannabis, to be paid out of Social Equity and
Innovation Fund. The Social Equity and Innovation Fund, created under
PA 21-1 JSS, is a separate, non-lapsing fund that is funded by certain
licensing fees and a portion of the state cannabis tax.
Section 130 allows OLM to post notices to solicit competitive bids or
proposals on its website. If the bid or proposal is estimated to exceed
$50,000 OLM can solicit by public notice on the State Contracting Portal
instead of in three daily newspapers. This will result in an annual
savings to OLM of approximately $10,000.
Section 131 – 134 increases the salaries of all judges, judge trials
referees, and family support magistrates by 5%. The budget contains
General Fund appropriation of $2.2 million in the Judicial Department
for such increases and $200,000 in carry forward funding in the Workers'
Compensation Commission (WCC) Personal Services account. The
salaries of the WCC commissioners are calculated using the salary of a
Superior Court judge.
Section 135 requires the Department of Public Health (DPH) to
proportionately adjust certain ambulance rates in accordance with any
increases provided for related Medicaid rates. This has no fiscal impact
as it does not change emergen cy or nonemergency medical
transportation rates paid via Medicaid. 2022HB-05506-R00-FN.DOCX Page 17 of 39
Section 136, which requires DPH in collaboration with DSS to
establish a working group on emergency medical services and report by
1/1/23, has no fiscal impact as the agencies have the expertise necessary
to meet the requirements of the bill.
Section 137 results in a revenue loss to municipal stormwater
authorities by expanding the types of fee reductions that they must
provide to properties in their district. It is anticipated that such revenue
loss would be offset by increases in fees assessed to users who do not
receive the credit under the bill's provisions.
Section 138 requires the Office of Legislative Management (OLM) to
provide to nonpartisan legislative employees with the same special
lump sum payments as union employees received in the SEBAC 2022
agreement. The lump sum payment of $2,500 is anticipated to cost
$500,000 in FY 22 (current fiscal year) and can be covered by OLM's FY
22 appropriation. The FY 23 $1,000 lump sum payment is anticipated to
cost $200,000 and funding for it is in the bill.
Sections 139 - 142 require road salt applicator training to be provided
to state, municipal, and private applicators, and establishes a voluntary
registration process for such applicators within the Department of
Energy and Environmental Protection. The bill provides $142,000 in
carryforward funding to the University of Connecticut in FY 23 to fund
the training. Requires any person who installs residential water
treatment systems to provide customers with written information on the
importance of testing the drinking water for the presence of sodium and
chloride. This has no fiscal impact on the state or municipalities
Sections 143 - 144 establish the Connecticut Premium Pay Program
to provide payments to eligible applicants from the Connecticut
Premium Pay account. Associated funding of $30 million is carried
forward in FY 23 to the Office of the State Comptroller (OSC).
Sections 145 - 146 authorizes the Department of Agriculture (DoAg)
to make reimbursements to farmers who are implementing climate-
smart agriculture and forestry practices. The bill provides $7.0 million 2022HB-05506-R00-FN.DOCX Page 18 of 39
of carry forward funding for this purpose.
Section 147 requires the Department of Public Health to maintain
and operate a statewide stroke registry. This results in a total cost of
$82,000 to support one position ($72,000) and Other Expenses ($10,000)
which is included in the bill.
Section 148 – Allows Legislative Commissioner's Office to make
technical and grammatical changes as necessary and has no fiscal
impact.
Sections 149 - 151 lower the threshold for blood lead levels in
individuals at which the Department of Public Health (DPH) and local
health departments must take certain actions. This results in a cost to
local health departments of up to $5.5 million in FY 23 and $20 million
in FY 24 associated with increased operational costs and abatement
activities due to lowering the blood lead level threshold. ARPA funding
of $20 million in FY 23 and $10 million in FY 24 is allocated to DPH to
support lead investigation, abatement, and remediation to housing in
Connecticut, at the municipal level.
Section 152 results in a cost to the Department of Social Services
(DSS) associated with Medicaid coverage for services that address the
health impacts of high childhood blood lead levels in Medicaid eligible
children. The extent of the cost is dependent on any additional services
considered to be appropriate by DSS and federally approved, as well as
the associated cost and utilization of such services and available funding
to support such costs.
Section 153 – establishes a working group on matters regarding lead
poisoning prevention and treatment which has no fiscal impact.
Section 154 permits the Department of Economic and Community
Development (DECD) to contract with nongovernmental entities for the
purpose of administrating 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 2022HB-05506-R00-FN.DOCX Page 19 of 39
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.
As of April 1
st
, the unallocated balance for Small Business Express is
$9 million. Additionally, $25 million will become effective under current
law to start FY 23.
The bill does not change GO bond authorizations relevant to the
program.
Section 155 specifies that funding designated to the state's Economic
Action Plan may not exceed $200 million and codifies the Innovation
Corridor and the Connecticut Communities Challenge programs as part
of the state's Economic Action Plan.
1
The bill does not change any GO bond authorizations to support the
Economic Action Plan. However, $25 million of previously authorized
Urban Act funds were allocated for the purposes of the Connecticut
Communities Challenge Grant Program at the March 31, 2022 meeting
of the State Bond Commission. 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 more rapidly than they
otherwise would have been.
The bill has no fiscal impact by codifying the Innovation Corridor
program and Connecticut Communities Challenges program to be in
accordance with the Economic Action Plan. Both programs were
established by DECD in fall 2021.
Section 156 allows the application fee received under the tax credit
for rehabilitation of certified historic structures program to be used to
fund programs that advance historic preservation in the state. There is
1
Current law allows the use of bond funds, federal funds under the American Rescue
Plan Act, and other available sources to support the Economic Action Plan. 2022HB-05506-R00-FN.DOCX Page 20 of 39
no fiscal impact as the bill does not change the rate of the fee.
Under current law, the fee, which may be up to $10,000 per
application, may only be used for the administrative related
expenditures. As of June 30, 2021, there is a balance of approximately
$200,000 in available revenue from the fees collected over time.
Section 157 makes a technical change that has no fiscal impact.
Section 158 results in a potential minimal cost in FY 23 only by
requiring DECD in consultation with the Department of Revenue
Services to conduct a study regarding the extension of research and
development tax credits to pass-through entities. There would be a cost
only to the extent that the agencies would require third party
consultation to assist in research for the study.
Section 159 has no fiscal impact by requiring the Department of
Energy and Environmental Protection (DEEP), before posting a notice
of intent to adopt certain regulations to (1) provide a draft of the
proposed regulations to the working group; and (2) allow the members
to provide advice and feedback on the draft. This has no fiscal impact as
DEEP currently has staff for this purpose.
Section 160 which requires the Chief Workforce Officer to develop a
model student work release policy, results in a cost of up to $90,000 in
FY 23 for a durational Educational Consultant. The bill includes funding
for this purpose.
Section 161 increases, from $1,000 to $5,000, the amount of
uncollectible claims that the Office of Policy and Management may
authorize the cancellation of. To the extent that this reduces the number
of uncollectible claims that are ultimately received by state agencies,
there is a revenue loss that is expected to be minimal.
Section 162 requires the Department of Energy and Environmental
Protection (DEEP) to implement the Sustainable Materials Management
Grant Program. The bill carries forward $5 million in FY 23 for this grant
program. 2022HB-05506-R00-FN.DOCX Page 21 of 39
Section 163 alters the provision of grants made under the
Redemption Center Grant Program administered by DEEP. This has no
fiscal impact since no new funding is provided for in the budget.
Sections 164 - 168 establishes the sustainable materials management
account as a separate, nonlapsing account within the General Fund, to
be administered by DEEP. It requires funds collected by the alternative
compliance payment for Class II renewable portfolio standards to be
deposited into this account, resulting in a revenue gain. It then requires
DEEP to establish and administer a sustainable materials management
program for solid waste reduction through the provision of funding
from this newly established account for grants, revolving loans,
technical assistance, consulting services and waste characterization
studies to support municipalities, nonprofits and regional waste
authorities. The bill includes $5.0 of carry forward funding for this
program.
Section 169 eliminates a reporting requirement of the Office of Policy
and Management and has no fiscal impact.
Section 170 enables the Commissioner of the Department of
Administrative Services (DAS) to purchase the energy production plant
in Hartford which produces and provides steam and heated and chilled
water for the Capitol Area System, including certain state agencies. It is
anticipated that the purchase would produce long-term savings and
cost avoidance to the agencies impacted, according to projections by the
DAS that reflect increasing efficiencies in the facility's operation due to
planned investments in its infrastructure. The DAS projections
demonstrate state agency savings of over $20 million in total over
twenty years relative to the current contract to purchase energy from the
facility, in addition to the avoidance of potential future costs to the
agencies consuming energy from the facility as planned or unplanned
maintenance and repair costs are incurred and passed on to the state.
There is no anticipated, additional projected cost to the State
Treasurer's debt service line item because General Obligation bond 2022HB-05506-R00-FN.DOCX Page 22 of 39
funds authorized for the program (over $15 million in total) have
already been allocated and made available.
Section 171 and 172 expand dental and vision coverage for State of
Connecticut employee dependents through age 26. This is not expected
to result in a fiscal impact.
Sections 173 – 182, 184 – 193 makes various changes to the statutes
governing the Teachers' Retirement System that serve to clarify the
administration of benefits or bring the statutes into conformity with
federal law and do not result in a fiscal impact.
Section 183 increases the Teachers' Retirement Board (TRB)
municipal retiree health insurance subsidy as follows: from $110 to
$220 per month for retired members/spouses participating in a health
insurance plan maintained by a board of education and from $220 to
$440 per month for retired members/spouses participating in a health
insurance plan maintained by a board of education who are 65 or older,
not eligible for Medicare Part A without cost and paying more than $440
per month for health insurance. This results in an estimated state cost of
$4.7 million which is included in the bill.
Section 194 approves the memorandum of agreement between the
PCA Workforce Council and the New England Health Care Employees
Union, District 1199, SEIU, submitted to the General Assembly for
approval on April 20, 2022. The estimated cost of this two-year
agreement is $712,000 in FY 22, $22.1 million in FY 23 and $13.3 million
annualized, with an associated federal grants revenue gain of $103,000
in FY 22, $5.3 million in FY 23 and $3.1 million when annualized. The
bill reflects the necessary funding in DSS and DDS.
Section 195 establishes new violations under the state’s paid family
and medical leave law, which does not result in any fiscal impact.
Section 196 has no fiscal impact by expanding the types of small
businesses that the Office of Small Business Affairs in the Department
of Economic and Community Development shall aid and encourage to 2022HB-05506-R00-FN.DOCX Page 23 of 39
include those owned and operated by persons who identify as lesbian,
gay, bisexual, transgender, queer or other persons who identify as part
of the LGBTQ+ community.
Section 197 adds to the definition of reproductive health care
services to includes all medical care relating to treatment of gender
dysphoria and does not result in a fiscal impact.
Section 198 transfers $12 million annually from the General Fund to
the Tobacco Health Trust Fund beginning in FY 23.
Section 200 requires each person to present a driver's license or
identity card when purchasing cigarettes or tobacco products resulting
in no fiscal impact to the state.
Section 201 requires the Department of Administrative Services
(DAS) to monthly report to the Appropriations Committee on: (1) the
number of vacant positions in each agency; (2) the number of people
hired by each agency; and 3) the number of people who refused an offer
of hire by a state agency. There is no fiscal impact to DAS to complete
this monthly report.
Section 202 results in a cost to the Department of Mental Health and
Addiction Services (DMHAS) associated with establishing a
psychedelic-assisted therapy pilot program to provide grants to
applicants to provide MDMA-assisted or psilocybin-assisted therapy to
qualified patients, as part of an expanded access program approved by
the federal Food and Drug Administration (FDA). The pilot program
will be administered by the Connecticut Mental Health Center (CMHC)
and funded through the Qualified Patients for Approved Treatment
Sites Fund, known as the PAT Fund, established by the bill and within
available appropriations. The extent of the cost is dependent on
available funding, the scope of funding requested by eligible applicants,
and related costs to administer the pilot program.
Sections 203 establish an advisory board and make various technical,
conforming and other changes that have no fiscal impact. 2022HB-05506-R00-FN.DOCX Page 24 of 39
Sections 204 - 206 require the Department of Consumer Protection to
adopt certain drug schedules and consider certain federal guidelines for
adoption resulting in no fiscal impact to the state.
Section 207 expands the Connecticut Essential Workers COVID-19
Assistance program to include those essential workers in the Center for
Disease Control's 1c vaccine group and makes programmatic changes.
These provisions have no net fiscal impact as they do not change the
total funding available for the program.
Section 208 makes a technical change regarding food establishments
and the liquor control act resulting in no fiscal impact to the state.
Section 209 makes various reporting changes required of the
Commissioner of Correction resulting in no fiscal impact to the state.
Section 210 – 211 – Sections are reserved no fiscal impact.
Section 212 requires the Commissioner of Emergency Services and
Public Protection (DESPP) to establish and administer a pilot program
regarding implementation of a fire and rescue service data collection
system resulting in an annual cost to the state of $156,212.
DESPP will need to hire a part-time durational project manager
($40,000 in salary and $16,212 in fringe benefits per year) to create and
administer the program, process applications, and work with the
selected participants. The department would also need to contract with
a data analytics organization ($100,000 per year) to amalgamate data
from the National Fire Incident Reporting System in order to effectively
analyze and develop the necessary reporting required under the bill.
Section 213 reduces the state unemployment insurance tax for 2023
only, which results in a revenue loss to the Unemployment Insurance
(UI) Trust Fund of approximately $40 million. Section 10 of the bill
provides a separate allocation of $40 million in ARPA funds to the UI
Trust Fund to offset this reduction.
Sections 214 - 217 adopt the most recent amendments made by the 2022HB-05506-R00-FN.DOCX Page 25 of 39
National Association of Insurance Commissioners (NAIC) to the Model
Insurance Holding Company Act concerning group capital calculation.
These sections are not anticipated to result in a fiscal impact because the
Insurance Department has the necessary resources and expertise to
implement them.
Section 218 – Establishes a working group on the potential federal
legislation to criminalize Coercion which has no fiscal impact.
Sections 219 – 229 expand the Office of Health Strategy’s (OHS)
duties to include, among other things, setting annual health care cost
growth benchmarks, health care quality benchmarks, and primary care
spending targets, codifying provisions of Executive Order 5. These
sections require private health carriers in Connecticut to develop at least
two health enhancement programs (HEPs) under their policies. It is
anticipated that the Insurance Department, which may adopt
implementing regulations under the bill, can review compliance within
existing resources. It is unknown if there will be a fiscal impact to fully
insured municipalities as a result of HEP provisions of these provisions.
Section 227 changes the CON application fee from $500 to a range of
$1,000 to $10,000 depending on the proposed project's cost. Based on a
four-year average of CON proposals, the bill's fee schedule is
anticipated to generate an additional $100,000 in annual revenue. The
current fee of $500 generates approximately $12,500 annually. This
increase in the application fee results in a cost to UConn Health Center
each time the entity applies for a CON. The health center expects to
apply for one CON in either FY 23 or FY 24. The cost will be equal to the
difference between the current fee ($500) and the new fees based on
project costs ($1,000 to $10,000).
Section 230 allows registered optical establishments to remain open
to sell prescription eyeglasses and contact lenses during regular
business hours in the absence of a licensed optician, under certain
circumstances. There is no fiscal impact as the Department of Public
Health has the expertise to handle this provision.
Section 231 requires that the Treasurer, when determining the use of 2022HB-05506-R00-FN.DOCX Page 26 of 39
Budget Reserve excess funds, appropriates the excess funds first to the
State Employees Retirement Fund, second to the Teachers' Retirement
Fund, and third to make additional payments to the unfunded past
service liabilities which is not anticipated to result in a fiscal impact.
Section 232 increases the minimum per diem, per bed rate for
intermediate care facilities to $501. The bill provides Medicaid funding
of $2.8 million to the Department of Social Services (DSS) to support the
cost associated with this provision.
Section 233 adds to the list of professionals who can apply for a
Department of Public Health (DPH) grant program for community-
based providers of primary care services. The bill allocates ARPA
funding of $4.6 million to the Department of Public Health (DPH) to
support the cost of such grants. Additional ARPA funding of $3 million
is allocated in both FY 24 and FY 25.
Sections 234 - 235 extend state-funded health coverage to children
ages 12 and under, regardless of immigration status, and allow eligible
children to remain on the program until age 19. Associated state funding
of $400,000 is provided in the bill under HUSKY B in DSS.
Section 236 reduces participant cost sharing from 4.5% to 3% for the
State Funded Home Care Program. Funding of $500,000 is provide in
the bill to fund the associated costs in DSS.
Section 237 increases the minimum amount of assets a community
spouse of an institutionalized Medicaid eligible individual can retain
from $27,480 to $50,000. Funding of $4.5 million is provided in the bill
to fund the associated costs in DSS.
Sections 238 – 239 change the standard of need for the Temporary
Family Assistance (TFA) program to 55% of the federal poverty level
(FPL), which expands eligibility and impacts HUSKY C and Jobs First
Employment Services. The bill reflects associated funding of $5.5 million
in DSS and $500,000 in the Department of Labor (DOL) to support the
cost of these provisions. 2022HB-05506-R00-FN.DOCX Page 27 of 39
Section 240 maintains the $500 per bed per day rate for ventilator
beds in chronic disease hospitals through FY 23. Funding of $2,365,000
is provided in bill to fund the associated costs in DSS.
Section 241 limits standard dental visits at Federally Qualified
Health Centers (FQHCs) to same-day visits. Medicaid savings of $1
million is reflected in the bill associated with this change.
Sections 242 - 243 transfer the administration of the Community
Health Worker Grant Program and associated American Rescue Plan
Act (ARPA) funding from DPH to the Department of Social Services
(DSS). Section 242 also adjusts how the funding can be distributed,
increases the grant amount per community health worker, extends the
date by which grants must be distributed, and makes conforming
changes. Associated ARPA funding of $6 million is transferred from
DPH and new funding of $1 million is reflected in the bill for DSS.
Section 244, which expands how temporary financial relief can be
provided to nursing homes using federal ARPA funds, has no net fiscal
impact as it does not change the total funding allocation available for
such relief.
Section 245 establishes a community ombudsman program within
the Office of the Long-Term Care (LTC) Ombudsman, which is an
independent office within the Department of Aging and Disability
Services (ADS). Funding of $98,000 and one Ombudsman Supervisor
position is provided in the bill to support the program.
Sections 246 - 247, which make changes related to contracts between
homemaker-companion agencies and clients, have no fiscal impact to
the state or municipalities.
Section 248 provides support to Federally Qualified Health Centers
(FQHCs) for long-acting reversible contraceptives (LARCs). Associated
ARPA funding of $2 million is provided in the bill to fund the associated
costs. 2022HB-05506-R00-FN.DOCX Page 28 of 39
Section 249 requires Medicaid coverage for services provided by
licensed naturopaths for adults 21 years and older. Funding of $100,000
is provided in the bill to fund the associated costs in DSS.
Section 250 specifies that home and community-based services
provider payments disbursed by state agencies with ARPA funding
cannot be cost recovered or otherwise offset by those agencies. This
precludes any savings associated with such recoveries or offsets.
Section 251 requires that if there is available funding after OPM
allocates funding to DDS state-contracted providers for wage
enhancements in FY 22 and FY 23 then OPM shall disburse such funds
as a cost-of-living adjustment to those providers. This precludes any
savings associated with lapsing funds.
Section 252 adds the executive director of OHS to the statutory
definition of a department head. This has no fiscal impact.
Section 253 - 254 transfer the administration of the Covered
Connecticut Program from the Office of Health Strategy (OHS) to DSS
and make other technical and conforming changes that have no fiscal
impact.
Section 255 makes the Youth Service Bureau (YSB) of Wolcott, which
applied for YSB grant funding in FY 22, eligible for YSB funding.
Funding of $14,000 in FY 23 is provided in the DCF budget for the cost
associated with this provision.
Section 256 results in a cost to the General Fund within the State
Department of Education and a corresponding savings to qualifying
towns in FY 23 related to magnet school tuition. The section provides
Sheff towns, along with New Britain and New London, assistance in
paying such tuition when more than four percent of a town's resident
students are tuitioned magnet students. The bill provides for this
purpose $3.9 million from the General Fund for East Hartford and
Manchester in FY 23 and beyond, and $11 million from ARPA in FY 23
for other qualifying towns. Funding is distributed proportionately if the 2022HB-05506-R00-FN.DOCX Page 29 of 39
assistance is not fully funded.
Section 257 results in a cost to SDE of approximately $1 million
annually beginning in FY 23, associated with removing the cap on the
Adult Education grant. Various local and regional school districts
receiving an adult education grant could receive additional funding.
Funding is provided in the bill.
Section 258 requires an increase in state charter school funding in FY
23 by approximately $3 million above the originally appropriated
increase, through raising the FY 23 level of the partial phase-in to a
weighted student grant. The necessary funding through the State
Department of Education is provided in the bill. State charter schools
receive a per-student grant equal to $11,525 plus 25.42% of the difference
between that amount and the school operator's fully funded weighted
student grant (based on the ECS student weights).
Sections 259 and 260 require, beginning in FY 23, each paraeducator
employed by a local or regional board of education to participate in a
professional development program. This results in a cost and
corresponding state mandate to local and regional boards of education.
The boards will be required to offer the professional development and
provide any substitute coverage for paraeducators participating in the
professional development. The scope of the cost will be dependent on
the size of the district, the number of paraeducators, and the structure
of the professional development. The bill provides $1.8 million in ARPA
funding in FY 23 for paraeducator professional development.
Section 261 requires the Office of Early Childhood (OEC) administer
an emergency stabilization grant program for school readiness
programs. The bill carries forward associated funding of $20 million in
OEC for this purpose.
Section 262 increases the appropriation for the bilingual education
grant by $1,916,130 beginning in FY 23, which doubles the grant and
results in a revenue gain to recipient school districts. This additional
funding is included in the bill. 2022HB-05506-R00-FN.DOCX Page 30 of 39
Section 263 requires SDE to conduct a study of the Gilbert School's
funding process and does not result in a cost as SDE has the expertise
necessary to do so.
Section 264 makes a technical change that ensures the current magnet
operator of the Edison Middle School receives payment in FY 22, and
the funds are currently available.
Sections 265 and 266 require rather than allow climate change to be
included in the required public-school curriculum beginning in FY 23.
To the extent that a local or regional school district is not already
including climate change, and would be required to produce additional
materials, a minimal cost to the district could occur.
Section 267 requires SDE to conduct a study of special education
spending by local and regional boards of education. The department
will use the data collected to estimate the General Fund costs of
providing Excess Cost reimbursement at various per-student spending
thresholds. This does not result in a cost as SDE has the expertise
necessary to complete the study in FY 23.
Section 268 requires a higher level of reimbursement from the
General Fund through the State Department of Education to local and
regional boards of education for special education Excess Cost expenses.
The section establishes that if full funding is not appropriated, then a
tiered system based on town wealth must be used. The tiered system
provides for reimbursement ranging from 70% for wealthier towns to
76.25% for the least wealthy, while the reimbursement percentage
currently is an estimated 66%. The section is anticipated to result in an
additional annual cost to the General Fund and corresponding revenue
gain to boards of education of approximately $15.5 million, beginning
in FY 23. Funding is provided in the bill. The cost to the state and
revenue gain to boards of education will vary based on actual qualifying
expenditures.
Section 269 renews the Alliance District program for FY 23 through
FY 27. The sections provide the designation to the 33 currently 2022HB-05506-R00-FN.DOCX Page 31 of 39
designated towns and the three additional towns that are now among
the lowest scoring. The three towns new to this program have an
Alliance District portion of the ECS grant that is equal to any Education
Cost Sharing (ECS) increase from FY 22, while towns continuing in the
program maintain a portion equal to any ECS increase from FY 12.
Sections 270 - 272 make adjustments to the ECS formula that provide:
(1) enhanced protection from losses for all towns in FY 23 and for
Alliance Districts in subsequent years, and (2) a smoother phase-in and
phase-out process. These changes, combined with the annual updates
to ECS calculation data, result in ECS grants totaling approximately $2.2
billion in FY 23, as appropriated in this bill. This is an estimated increase
of $39.6 million from FY 22. The sections maintain the underfunded
towns' phase-in process of annual increases to full funding in FY 28, and
the overfunded towns' phase-out process of decreases to full funding
from FY 24 through FY 30.
Section 273 increases the per-pupil Open Choice grant by $2,000
beginning in FY 23, within available appropriations, to receiving
districts for each student from the Hartford region. This results in a
corresponding revenue gain to local and regional school districts in the
Hartford region that participate in Open Choice. Funding is provided in
the bill.
Sections 274 - 302 make conforming changes to the transfer of the
Connecticut Technical Education and Career System from SDE to an
independent agency, and do not result in a fiscal impact.
Section 303 makes a procedural change regarding magnet school
supplemental transportation grant payments and does not result in a
fiscal impact.
Section 304 makes a procedural change that does not result in a fiscal
impact.
Sections 305 - 309 adjusts appropriations for the fiscal year end June
30, 2022. A total of $312.5 is provided in General Fund appropriations to 2022HB-05506-R00-FN.DOCX Page 32 of 39
cover various account shortfalls that is offset by $312.5 million in
reductions to various accounts. In addition, $1.0 million is provided to
cover a deficiency in the Special Transportation Fund that is offset by a
reduction of $1.0 million.
These sections do not result in a net impact to the General Fund or
Special Transportation Fund. Please see the table below for detail of the
section's appropriations and reductions.
General Fund Appropriation Increases and Reductions
(in millions)
Agency FY 22 $
Section 1 - General Fund Increases:
Office of Policy & Management – Reserve for
Salary Adjustment (RSA)
224.1
University of Connecticut 25.1
University of Connecticut Health Center 24.0
Connecticut State Colleges & Universities
21.6
Department of Administrative Services 14.5
Dept. of Energy and Environmental Protection 1.5
Department of Economic & Community
Development
1.2
Office of Chief Medical Examiner 0.3
Office of Higher Education 0.2
Total - General Fund Increases 312.5
Section 2 - General Fund Reductions:
Department of Social Services (143.2)
Department of Correction (69.0)
State Comptroller (35.0)
Department of Children and Families (32.0)
State Treasurer (22.0)
Teachers' Retirement Board (7.0)
Office of Legislative Management (4.0)
Total - General Fund Reductions (312.5)
NET General Fund Impact -
Transportation Fund Appropriation Increases and Reductions
(in millions)
Agency FY 22 $
Section 3 - Transportation Fund Increases:
Department of Administrative Services 1.0
Total - Transportation Fund Increases 1.0
2022HB-05506-R00-FN.DOCX Page 33 of 39
Agency FY 22 $
Section 4 – Transportation Fund Reductions:
Department of Motor Vehicles (1.0)
Total - Transportation Fund Reductions (1.0)
NET Transportation Fund Impact -
Sections 310 - 365 increase General Obligation (GO) bond
authorizations by a net of $237.5 million (increases of $660.6 million
partially offset by reductions or cancellations of $423.1 million) and
Special Tax Obligation (STO) bonds by $20 million.
To the extent that these authorized funds are allocated by the State
Bond Commission and issued by the Treasurer, there is a potential
increase in future debt service payments for the General Fund (GO
bonds) and Special Transportation Fund (STO bonds).
Section 366 approves a total of $196.9 million in state grant
commitments for school construction projects, including: (1) $137.3
million for projects on the education commissioner's project priority list
and (2) $59.6 million for previously authorized projects that have
changed substantially in cost or scope.
These grants-in-aid will be financed through the issuance of General
Obligation (GO) bonds, which will be authorized in future fiscal years.
Sections 367 - 370 & 375 - 383 make various changes to school
construction projects process and cost eligibility, including allowing a
larger space standard for school buildings built between 1950-1959,
moving projects for school administration buildings from the list of
allowable non-priority list reimbursements to needing legislative
approval through the priority list process, automatically moving
projects through the process when a certificate of occupancy has been
granted, and removing a requirement for newspaper notice for
construction contracts. To the extent these changes alter the total cost of
future projects, the altered cost would be shared between municipalities
and the state at the appropriate reimbursement ratio. 2022HB-05506-R00-FN.DOCX Page 34 of 39
For projects authorized in FY 25 or later, there is a potential 5 percent
decrease in reimbursement for school construction projects failing to
meet certain contractor standards. To the extent this changes future
reimbursement rates, there would be a commensurate change in
revenue gain to relevant municipalities and change in debt service for
the State.
School construction grants are financed through the issuance of
General Obligation (GO) bonds in future fiscal years. The bill does not
authorize new GO bonds. The bill may result in future General Fund
debt service costs to be altered to the degree that it causes authorized
GO bond funds to be expended at a different rate than they otherwise
would have been.
Section 371 establishes a reimbursement program, administered by
the Department of Administrative Services (DAS), for local and regional
school HVAC system installation, repair, and upgrades that is similar
to, though separate from, the school construction reimbursement
program established in CGS 10-283. State reimbursement levels are set
annually based on municipal wealth and population information from
20 to 80 percent of project costs, with possible increases of up to ten
percentage points for projects and recipients meeting certain criteria.
The grant is financed using $75 million of ARPA funds and $75 of GO
bonds. The program is expected to be administered by DAS within
existing resources, resulting in no new fiscal impact to the agency.
Section 372 establishes a pilot program for HVAC training within the
Office of Workforce Strategy, in consultation with DOL, OHE, and
CTECS, which is expected to cost approximately $70,000 for a durational
Project Coordinator under OWS. Similar workforce training programs
under OWS have been funded using a combination of federal funds and
GO bond funds; the main bond funding for workforce training
programs under OWS is the CareerConnect program, which has been
authorized $40 million of GO bond funds under current law. 2022HB-05506-R00-FN.DOCX Page 35 of 39
Section 373 results in a cost and mandate to local and regional school
districts by requiring inspections and evaluation of heating and
ventilation systems by certified technicians on a scheduled basis. Such
costs are anticipated to be no more than $2,500 per inspection.
Additionally, should the inspection call for corrective actions there are
potential costs to districts, which may in some cases be significant.
Section 374 establishes a working group regarding school air quality
and has no fiscal impact.
Sections 384 - 409 not withstand certain aspects of the underlying
school construction projects and reimbursement statutes. Various
projects are described with a collective potential cost to the state and
revenue gain to municipalities of at least $640.1 million. As with projects
on the priority list, future costs are expected to be financed through GO
bonds.
Policies Impacting Revenue – in $ millions
Section Policy Fund FY 22 FY 23 FY 24 FY 25 FY 26
412
Increase the maximum
property tax credit to $300
GF - (60.0) (60.0) (60.0) (60.0)
412
Restore eligibility for the
property tax credit
GF - (53.0) - - -
413
Increase the state EITC
rate to 41.5%
GF - - (49.0) (49.0) (49.0)
414
Accelerate the schedule
for tax exemptions for
certain income from
pensions & annuities
GF - (42.9) (29.3) (15.6) -
415
Provide a temporary child
tax rebate
GF - (125.0) - - -
416
Establish a credit against
the personal income tax
for parents who
experience the birth of a
stillborn child
GF - (0.3) (0.3) - -
419-422
Adjust the unclaimed
property program
GF - (1.6) (1.6) (1.6) (1.6) 2022HB-05506-R00-FN.DOCX Page 36 of 39
Section Policy Fund FY 22 FY 23 FY 24 FY 25 FY 26
423
Expand the tax credit
program for businesses
that make eligible
education loan payments
on a qualified employee's
behalf
GF - (9.4) (9.9) (10.4) (10.9)
424-428
Establish a ("JobsCT") tax
rebate program under
which companies may
claim tax credits (capped
@ $40m annually) for
reaching certain job
creation targets.
GF - - - (40.0) (40.0)
429
Extend the manufacturing
apprenticeship tax credit
to pass-through entities
GF - (5.0) (5.0) (5.0) (5.0)
431-432
Transfer XL Center retail
sports wagering revenues
to the CRDA to support
XL Center operations
GF - (0.7) (1.3) (1.3) (1.3)
433
Provide certain tax
exemptions or refunds to
manufacturers of beer or
wine
GF - (2.8) (0.5) (0.5) (0.5)
434
Exempt from the sales
and use tax purchases
from by certain water
companies
GF - (3.4) (3.4) (3.4) (3.4)
STF - (0.3) (0.3) (0.3) (0.3)
435 Extend the gas tax holiday STF - (150.0) - - -
436
Expand the exemption
from motor fuels tax to
EMS systems
STF - (0.5) (0.5) (0.5) (0.5)
437-438
Create an exemption from
the gross receipts tax on
natural gas
STF - (1.3) (1.3) (1.3) (1.3)
439
Repeal movie theater
admissions tax
GF - (2.5) (5.0) (5.0) (5.0)
440, 482
Repeal the ambulatory
surgical center tax
GF - (18.0) (9.4) (9.9) (10.4)
441-452
Provide Tax Amnesty for
Certain Insurers
GF - 7.5 0.2 0.2 0.2
453-460
Limit state recovery of
public assistance
payments
GF - (8.5) (8.5) (8.5) (8.5)
461-462
Limit the liability of an
individual for repayment
of costs incurred while
incarcerated
GF - (5.4) (5.4) (5.4) (5.4) 2022HB-05506-R00-FN.DOCX Page 37 of 39
Section Policy Fund FY 22 FY 23 FY 24 FY 25 FY 26
477-478
Reduce Revenue
Replacement from ARPA
2021 - Federal Stimulus
GF (559.9) (880.0) - - -
16
Transfer to UCONN
medical malpractice
account
GF (20.0) - - - -
15
Transfer to firefighters'
cancer relief account
GF (0.8) - - - -
59
Adjust transfer to the
Pequot/Mohegan Fund
GF - - - - -
479
Transfer from FY 22 to FY
23
GF (125.0) 125.0 - - -
Sections 417 - 418 reduce the motor vehicle mill rate cap from 45 to
32.46 and make corresponding changes to the mill rate cap
reimbursement grant formula. The revised FY 23 budget provides $100
million for reimbursement.
Section 430 requires the Capital Region Development Authority to
produce a report that analyzes the benefits and opportunity costs to the
city of Hartford and the state of the Brainard Airport property. The bill
provides $1.5 million in carry forward funding to support this report.
Section 463 requires the Office of Early Childhood (OEC) to establish
and administer the Start Early - Early Child Development Initiative to
provide grants for research and early education service providers to
support the growth and enhancement of a system of high-quality early
childhood care and education and support services. The bill allocates
associated ARPA funding of $20 million for Learn to Grow to OEC for
this purpose.
Section 464 expands penalties for violations of various provisions of
the standard wage law, which results a potential minimal revenue gain
from civil penalties to the extent there are violations found.
Section 465 adjusts the content and deadline for the biennial tax
incidence study by the Department of Revenue Services, does not result
in any fiscal impact. Under both the bill and current law the study 2022HB-05506-R00-FN.DOCX Page 38 of 39
would next be due in FY 24, with an associated cost of approximately
$375,000 assuming it is produced by a third party.
Sections 466 - 467 establishes certain reporting requirements for
municipalities, which has no fiscal impact. It also requires the Office of
Policy and Management (OPM) to conduct a study regarding the
notification process to gas, water and utility companies of certain state
and municipal road projects. This has no fiscal impact as it is anticipated
that OPM can conduct the study with existing resources.
Sections 468 - 469 expand the time period during
which municipalities can issue 30-year deficit financing bonds. To the
extent that this is used by municipalities, it has the potential to reduce
annual debt service payments while increasing the total long-term cost
of borrowing.
Section 470 prohibits, in certain circumstances, the Department of
Economic and Community Development from removing a
municipality's Enterprise Zone designation. Municipalities with
enterprise zone designations are eligible for Distressed Municipalities
grant funding. As such, the bill precludes 1) any reduction in the cost to
fully fund the grant that would occur if a municipality was no longer
eligible; and 2) any corresponding revenue loss such municipality
would incur as a result.
Sections 471 - 472 establish the Connecticut Career Accelerator
Program Account within OWS's CareerConneCT workforce training
program. The initiative is anticipated to cost up to $100,000 for a
consultant and have costs associated with providing income share
agreements to assist eligible participants with tuition cost of
Commercial Driver's License training programs. The program is funded
through $5 million of GO bond funds, which are reflected in the bond
authorization portion of the bill.
Sections 473 – 474 limit the use of contingency fee agreements in the
assessment appears process. This has no fiscal impact. 2022HB-05506-R00-FN.DOCX Page 39 of 39
Sections 475 – 476 which do not result in any fiscal impact to the state,
clarify that the Capital Region Development Authority (CRDA) may
solicit private investment funds from businesses to finance projects in
conjunction with CRDA with certain terms and requirements. Under
current practice, CRDA seeks out opportunities to leverage private
investment for appliable projects.
Section 481 repeals the supplemental grant program for volunteer
fire companies providing services on certain highways resulting in no
fiscal impact to the state because the program is inactive.
Section 484 of the bill repeals section 201 of PA 21-2 which lapsed
funding of $449,124 on July 1, 2021 (FY 22) and will lapse funding of
$454,355 on July 1, 2022 (FY 23) for five positions in the SCSB. This
results in funding for the SCSB to hire five new positions.
The Out Years
Fund
FY 24 $ FY 25 $
Revenue Approp.
Surplus/
Revenue Approp.
Surplus/
(Deficit) (Deficit)
General 21,812.4 22,614.4 (802.1) 22,381.8 22,913.2 (531.4)
Special Transportation 2,274.9 2,014.9 260.0 2,268.1 2,091.3 176.8
Other Funds 281.1 280.7 0.4 281.1 280.7 0.4
TOTAL 24,368.4 24,910.1 (541.7) 24,649.9 25,004.5 (354.6)
Fund
FY 26 $
Revenue Approp.
Surplus/
(Deficit)
General 23,047.4 23,322.7 (275.3)
Special Transportation 2,267.7 2,157.1 110.6
Other Funds 281.1 280.7 0.4
TOTAL 25,596.2 25,760.6 (164.3)
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.