OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-9
AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET
RECOMMENDATIONS FOR GENERAL GOVERNMENT.
AMENDMENT
LCO No.: 6511
File Copy No.: 642
Senate Calendar No.: 457
Primary Analyst: NA 5/4/22
Contributing Analyst(s): DD, ME, CG, EMG, MR, ES, JS, CW, EW (FN)
OFA Fiscal Note
State Impact: See below
Municipal Impact: See Below
Explanation
Section 1 reallocates $3.1 million in American Rescue Plan Act
funding and results in to net change in the total award allocated.
Section 2 allows carryforward funds provided to the Department of
Labor to be utilized for indirect overhead costs, in addition to salary and
fringe benefit costs. This does not result in any fiscal impact.
Section 3 changes a reporting date and has no fiscal impact
Sections 4 and 5 make the following adjustments related the
implementation of the activities authorized under PA 21-1 JSS, AAC
Responsible and Equitable Regulation of Adult-Use Cannabis.
Specifically, the bill:
Extends by one fiscal year the deposit of certain cannabis-related
licensing fee and taxes into the cannabis regulatory and investment
account. The funds are to be allocated to pay the state costs associated 2022SB-00009-R00LCO06511-FNA.DOCX Page 2 of 5
with the implementation of the certain activities pertaining to the
cannabis industry.
Any balance remaining in the fund at the end of FY 23 shall be
deposited into the General Fund.
Extends by one fiscal year the deposit of certain cannabis-related
licensing fee and taxes into the social equity and innovation account.
The funds are to be allocated to pay the state costs associated with the
implementation of the certain activities pertaining to the cannabis
industry.
At the end of FY 23, $5 million from the account, or the remainder of
the account if there is less than $5 million shall be transferred to the
General Fund. All other funds are to be transferred to the Social Equity
and Innovation Fund.
It should be noted that the General Fund is currently funding
cannabis-related state agency costs until such time that the cannabis
revenues are generated and deposited into these accounts
Section 6, which directs the Department of Public Health (DPH) to
proportionately adjust certain ambulance rates, has no fiscal impact as
it does not change rates for such services paid by the state via Medicaid.
Section 7 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.
Section 8 modifies and expands an existing homeownership
incentive program in Hartford, which may result in a minimal General
Fund revenue loss to the extent the geographical expansion results in
additional program participants. It also precludes potential municipal
revenue losses (given constant mill rates) by eliminating property tax
abatements under the program. 2022SB-00009-R00LCO06511-FNA.DOCX Page 3 of 5
Section 9 waives interest on delinquent property taxes for certain
social clubs. This results in a revenue loss in municipalities where such
social clubs reside, to the extent that they currently have delinquent
property taxes.
Section 10 expands the type of property in the City of Hartford that
is assessed as residential, rather than apartment property. As the
residential assessment ratio in the City is lower than the apartment
assessment ratio, the bill results in a shift in the City's grand list away
from such properties.
Sections 11 and 12 make a technical change to the name of the
Schaghticoke Tribe, which has no fiscal impact.
Section 13, combined with Section 27, expands the types of school
construction projects that are eligible for minimum reimbursements, as
compared to the projects eligible under sec. 511 of HB 5506, which is
repealed in section 27 of this amendment. To the extent projects are
submitted and the statutorily calculated reimbursement rate would be
less than the rates indicated, there would be increased costs to the state
and increased revenue to involved towns. The impact of new projects
on the school construction priority list will be reflected when such
projects are considered by the legislature in the future.
Section 14 and 22 require the State Fire Administrator to pay $500 to
each volunteer fire company that responds to calls on certain
highways. HB 5506, the revised FY 23 budget bill, provides a General
Fund appropriation of $1.5 million to the Department of Emergency
Services and Public Protection (DESPP) to provide these
reimbursements. This section also specifies that municipalities cannot
reduce funding to a volunteer fire company due to these
reimbursements.
Section 15 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 to the
extent allowed under federal law. This precludes any savings associated 2022SB-00009-R00LCO06511-FNA.DOCX Page 4 of 5
with such recoveries or offsets.
Section 16 clarifies the reference to the Substance Use Disorder
Waiver Reserve Account line item in DSS, which has no fiscal impact.
Section 17 makes a technical change and has no fiscal impact.
Section 18 makes a clarifying change which has no fiscal impact.
Section 19 makes a technical change and has no fiscal impact.
Section 20 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 qualified
patients MDMA-assisted or psilocybin-assisted therapy, as part of a
research program approved by the federal Food and Drug
Administration (FDA). The pilot program will be administered by a
medical school in the state and within available appropriations. The
extent of the cost is dependent on available funding, qualified patients,
and related costs to administer the pilot program.
Section 21 makes a technical change which has no fiscal impact.
Section 23 strikes sections 202 - 206 of HB 5506, the revised budget
bill, eliminating the associated cost of those provisions.
Sections 24 and 25 repeal language in HB 5506, the revised budget
bill, related to the home and community based services ombudsman
and cost recoveries of ARPA funding. This eliminates the fiscal impact
associated with those provisions
Section 26 repeals the provision of HB 5506, as amended, increasing
the Earned Income Tax Credit (EITC) to 41.5% of the federal EITC
beginning with the 2023 income year. This eliminates the associated
annual revenue loss of $49 million in FY 24 and beyond.
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 2022SB-00009-R00LCO06511-FNA.DOCX Page 5 of 5
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.