OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-472 AN ACT CONCERNING THE RECOMMENDATIONS OF THE RISK - LIMITING AUDITS WORKING GROUP. Primary Analyst: LG 4/13/22 Contributing Analyst(s): CP, JS OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 23 $ FY 24 $ Secretary of the State GF - Potential Cost See Below See Below UConn Various - Cost 625,000 400,000 Note: GF=General Fund; Various=Various Municipal Impact: Municipalities Effect FY 23 $ FY 24 $ Various Municipalities Cost See Below See Below Explanation This bill implements risk-limiting audits by January 1, 2024 for state elections but maintains the existing post-election audit process for federal and state primaries and municipal elections. The bill is anticipated to result in costs to municipalities and the University of Connecticut, and potential costs to the Secretary of the State (SOTS), as described below. The bill allows the (SOTS) to prescribe instructions for the registrars of voters to conduct the risk-limiting audits. Under this bill, election officials who participate in administering and conducting risk-limiting audits must be compensated at the municipality's standard rate of pay for electors. These requirements will result in various costs to municipalities beginning in FY 24. The extent of the cost will depend on 2022SB-00472-R000480-FN.DOCX Page 2 of 2 the requirements of the risk-limiting audit and the level of compensation for the election officials. The bill expands the University of Connecticut's post-election responsibilities to include risk-limiting audits, which is estimated to result in costs of at least $625,000 in FY 23 and $400,000 in FY 24, as well as additional costs in the out years. It is anticipated that the FY 23 costs will consist of an estimated $600,000 in personnel costs (including fringe benefits), for two new personnel (a Principal Investigator and an Engineer) and supplementary time from existing staff. Additionally, $25,000 in equipment and travel expenses are expected. After the year of start-up, costs will decline to approximately $400,000 in FY 24 and FY 25, then remain at approximately $225,000 annually thereafter. These costs may be borne by either the General Fund or the university's other revenues (e.g., tuition). If wage costs are funded through the General Fund, then the fringe benefits costs will be incurred within the Office of the State Comptroller. The bill also expands the SOTS's responsibility to include risk- limiting audits. The SOTS may incur costs for additional staff and technology depending on the extent of these responsibilities. Additionally, the bill establishes a pilot program to conduct risk- limiting audits at municipal elections in 2023. The pilot program will consist of three municipalities, randomly selected by the SOTS. This may result in various costs in FY 23 to each municipality selected. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.