OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-417
AN ACT CONCERNING AMNESTY FOR NONFRAUDULENT
UNEMPLOYMENT OVERPAYMENTS.
Primary Analyst: CW 4/12/22
Contributing Analyst(s):
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
Labor Dept. GF -
Appropriation
50 million None
Labor Dept. GF - Cost 2,574,145 2,489,239
State Comptroller - Fringe
Benefits
1
GF - Cost 885,072 907,199
Department of Revenue Services GF - Precludes
Revenue Gain
None See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which establishes the Pandemic Unemployment
Nonfraudulent Overpayment Program and requires the Department of
Labor (DOL) to administer it, process claims, and award assistance to
affected claimants, results in costs of $3.5 million in FY 23, $3.4 million
in FY 24 and $3.5 million in FY 25.
2
In order to implement the bill's provisions, it is anticipated that DOL
would require one Operations Coordinator ($84,858 for salary and
$34,393 for fringe benefit costs), four Programs & Services Coordinators
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 40.53% of payroll in FY 23.
2
For context, there are currently about 24,000 identified nonfraud cases, and the
number will continue to increase. 2022SB-00417-R000447-FN.DOCX Page 2 of 2
($77,322 for salary and $31,339 for fringe benefit costs each), six Clerks
($41,785 for salary and $13,027 for fringe benefit costs each), and 30
Employment Security Intermittent Interviewers ($51,296 for salary and
$20,790 for fringe benefit costs each). There are also associated overhead
costs estimated at $340,400 in FY 23 and $200,900 in FY 24 and FY 25 for
computers, office supplies, etc., as well as mailing costs estimated at
$50,000 annually for FY 23-FY 25.
The bill appropriates $50 million from the General Fund for the
program in FY 23 and allows up to 5% to be used to support
administrative costs (up to $2.5 million). sHB 5037, the revised FY 23
budget bill, as favorably reported by the Appropriations Committee, is
under the spending cap by $4.6 million in FY 23. The appropriation
contained in the bill would result in the budget being over the spending
cap by $45.4 million in FY 23.
The bill specifies that payments made under the program are exempt
from the state personal income tax, which precludes a revenue gain in
FY 24, FY 25, and FY 26.
3
The Out Years
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $ FY 27 $
Labor Dept. GF - Cost 2,545,198 None None
State
Comptroller -
Fringe Benefits
GF - Cost 929,879 None None
Department of
Revenue Services
GF - Precludes
Revenue Gain
See Above See Above None
Note: GF=General Fund
Municipal Impact: None
3
This assumes program payments would be fully disbursed by the 2025 income year.