OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-423
AN ACT IMPROVING INDOOR AIR QUALITY IN PUBLIC SCHOOL
CLASSROOMS.
Primary Analyst: CW 4/4/22
Contributing Analyst(s): SB, DD, EMG, CP
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
Labor Dept. GF - Cost 562,493 542,756
State Comptroller - Fringe
Benefits
1
GF - Cost 198,797 203,767
Treasurer, Debt Serv. GF - Cost Significant Significant
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 23 $ FY 24 $
Local and Regional School
Districts
STATE
MANDATE
2
-
Cost/Revenue
Gain
Potential
Significant
Potential
Significant
Explanation
The bill, which establishes a school indoor air quality assessment and
ventilation monitoring program and expands allowable non-priority list
expenses to include installation, remediation, and replacement of
HVAC systems to comply with temperature and humidity ranges
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
State mandate is defined in Sec. 2-32b(2) of the Connecticut General Statutes, "state
mandate" means any state initiated constitutional, statutory or executive action that
requires a local government to establish, expand or modify its activities in such a way
as to necessitate additional expenditures from local revenues. 2022SB-00423-R000320-FN.DOCX Page 2 of 4
established within the bill, represents a significant cost to the state and
potential cost and revenue gain to municipalities.
Program Development and Implementation Costs
The bill requires the Department of Labor (DOL), in consultation with
the Office of Policy and Management and the State Department of
Education, to establish the school air quality program by June 30, 2023,
post the requirements on DOL's website, review the program every
three years or in the event of a public health emergency, and ensure
compliance. In order to accommodate these requirements, DOL would
need six positions (one Occupational Health and Safety Manager, two
Occupational Hygienists, and three Occupational Health and Safety
Officers) at a total annualized cost of $706,523 ($502,756 for salaries and
$203,767 in fringe benefit costs). Additionally, DOL would incur costs
for overhead, supplies, and equipment (including six indoor air quality
instruments and a velometer) at a cost of $72,000 in FY 23 and $40,000 in
FY 24.
Program Compliance Costs
Under the requirements of the bill, municipalities need to install
HVAC systems to keep temperature and humidity within allowable
ranges. Results of the 2021 School Facilities Survey
3
show that 31% of
responding school districts have indicated that all district facilities are
air conditioned across the district and approximately 40% of schools
were reported to have central air for the full facility. Those schools
without universal air conditioning will likely need some level of HVAC
installation or upgrade in order to avoid the school closure mandate.
This results in a cost to those municipalities, which may be partially
reimbursed by the state under the expanded school construction
program (see details below).
The bill requires local and regional school districts to close for the day
if the mandated public school temperature range cannot be maintained
3
https://portal.ct.gov/-/media/DAS/Communications/Communications -List-
Docs/Special-Reports/SCG1050-School-Survey-Report.pdf 2022SB-00423-R000320-FN.DOCX Page 3 of 4
for two or more consecutive school activity hours and prevents any staff
member from a pay reduction who was scheduled to work on that day.
This could result in an additional cost to local and regional school
districts associated with paying hourly employees for days the school
was closed. The cost to the district would be dependent on the number
of staff and days the school must remain closed.
Additionally, the bill establishes a complaint and investigation
process related to mold, evidence of pest infestation, hazardous odors
or chemicals, and poor indoor air-quality. This could result in
additional costs to local and regional school districts associated with
staff time and resources necessary for the investigation. The costs to
districts would be dependent on the severity of and the steps required
to investigate the complaint, but are anticipated to be significant.
School Construction Program
The school construction program is funded using General Obligation
(GO) bonds, in two large tracts: priority list projects (i.e., larger projects
approved in legislation) and non-priority list projects. Non-priority list
projects currently include emergency items, such as fire or catastrophe
damage, leaking roofs, or code violations. The bill expands the non-
priority list projects to include HVAC upgrades necessary to maintain
temperature and humidity within allowable ranges.
Non-priority list projects are allowed at the discretion of the
Commissioner of Administrative Services within available resources of
the program. As of March 1, 2022, the unallocated bond balance
available under the school construction authorization is $636 million,
with another $550 million effective under current law to start FY 23. The
bill is expected to result in an increase in the use of GO bond funds for
non-priority list reimbursable expenses, which would expedite
anticipated debt service from existing bond authorizations.
The bill does not change GO bond authorizations relevant to the
program. However, those funds are necessary to support both priority
list and non-priority list projects. The most recent estimate by the 2022SB-00423-R000320-FN.DOCX Page 4 of 4
Department of Administrative Services indicated approximately $2.6
billion worth of outstanding long-term liability for current grant
commitments, to be paid over the next several years.
4
The expanded
use of current authorizations for HVAC upgrades through the non-
priority list program will necessitate increased bond authorizations for
the program in the future, which will increase long-term debt service
costs.
Specific costs for eligible projects, including the marginal increase
from expanded eligibility, can only be determined as project expenses
are incurred by municipalities and state reimbursements are sought and
offered.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, the number of complaints
and investigations, and the terms of any bonds issued for the school
construction program
4
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content/uploads/2021/12/CTState04a-FIN.pdf