OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5441
AN ACT CONCERNING CLINICAL PLACEMENTS FOR NURSING
STUDENTS, THE ESTABLISHMENT OF REGISTERED
APPRENTICESHIPS FOR TEACHERS, REPORTING BY THE OFFICE
OF WORKFORCE STRATEGY, PROMOTION OF THE
DEVELOPMENT OF THE INSURANCE INDUSTRY AND A
STUDENT LOAN SUBSIDY FOR HIGH -DEMAND PROFESSIONS.
Primary Analyst: RDP 3/24/23
Contributing Analyst(s): SB, EMG, MP, ES, CW, EW
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 24 $ FY 25 $
Department of Revenue Services GF - Revenue
Loss
None Up to 1.5
million
Department of Revenue Services GF - Cost Up to
100,000
None
Public Health, Dept. GF - Cost 160,000 164,000
State Comptroller - Fringe
Benefits
1
GF - Cost 68,512 70,225
Treasurer, Debt Serv. GF - Cost See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The sections of the bill that are anticipated to have a fiscal impact are
included below.
Section 2 establishes an income tax credit for preceptors to be
administered by the Department of Public Health (DPH), which results
in: 1) a General Fund revenue loss of up to $1.5 million annually
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 42.82% of payroll in FY 24. 2023HB-05441-R000264-FN.DOCX Page 2 of 3
beginning in FY 25, and 2) a one-time cost of up to $100,000 to the
Department of Revenue Services in FY 24 only associated with
programming updates to the CTax tax administration system and
myconneCT online portal, and form modification, 3) a cost to DPH of
$160,000 in FY 24 and $164,000 in FY 25 for two Financial Examiner
positions and, 4) associated fringe benefit costs of $68,512 in FY 24 and
$164,000 in FY 25 to the Office of the State Comptroller – Fringe Benefits.
DPH staff are needed to process program applications, render decisions
on program eligibility within 30 days upon receipt of applications, and
issue credit certification letters, anticipated to number approximately
375 annually.
Section 4 eliminates the sunset date of October 1, 2025 for the Office
of Workforce Strategy (OWS) to provide an annual report on the
workforce training programs funded through the OWS. It is anticipated
that OWS can produce this report annually within existing resources.
However, the level of funding available for OWS’ workforce training
programs in the out years is uncertain.
Background
The workforce training programs under OWS are primarily funded
through $70 million in American Rescue Plan Act (ARPA) funds, which
are required to be fully expended by the end of calendar year 2026. In
addition, $40 million in state General Obligation (GO) bond funds have
been authorized to support OWS’ workforce training initiatives, of
which $5 million has been allocated to date.
Section 8 authorizes $7 million in GO bonds each fiscal year starting
in FY 24 for the student loan subsidy program established in this act, to
be administered by the Connecticut Higher Education Supplemental
Loan Authority. To the extent the new bonds authorized are fully
allocated and expended, there would be an increase in annual General
Fund debt service costs until such bonds are fully repaid. At current
market rates, total repayment costs over 20 years for $7 million of GO
bond authorizations are estimated to be approximately $10.9 million. 2023HB-05441-R000264-FN.DOCX Page 3 of 3
The bill creates an annual new GO bond authorization, which would
continue to add $7 million of new bond authorizations each year until
changed or repealed. Additional years of authorization past the initial
year would increase the potential costs proportionately – for example,
10 years of authorizations would be $70 million of bond authorizations
at a total estimated debt service cost of $109 million.
To the extent the new bonds authorized are certified by the Treasurer,
and are fully allocated and expended, there would be an increase in
annual General Fund debt service costs until such bonds are fully
repaid. However, when portions of an authorization are specified to
become effective in future years, the full authorization amount is
typically known at the time of adoption. The total potential debt service
cost is unknowable, given the lack of a finite amount or time frame of
the bond authorization.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, the $1.5 million annual
aggregate cap on credits allowed under the bill, and the terms of any
bonds issued.