OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6862
AN ACT CONCERNING BROADBAND CONSTRUCTION AND
THE PREVAILING WAGE.
Primary Analyst: LG 4/11/23
Contributing Analyst(s): LG, CW
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 24 $ FY 25 $
Various Municipalities STATE
MANDATE
1
- Cost
Potential Potential
Explanation
The bill makes changes to the state's broadband grants program,
which result in potential increased costs to municipalities beginning in
FY 24.
The bill (1) makes broadband installation projects funded by certain
state grants subject to the state's prevailing wage law; (2) prioritizes
grants to applicants that meet certain criteria; and (3) makes other
changes not anticipated to result in a fiscal impact. The prevailing wage
provision may result in a potential cost to municipalities (for the
municipal share of the project cost) as there will be increased contractual
costs for these projects beginning in FY 24, to the extent that these
projects currently fall below the existing prevailing wage threshold.
There is also potential for increased costs to municipalities beginning in
1
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. 2023HB-06862-R000491-FN.DOCX Page 2 of 2
FY 24 associated with the applicant criteria.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.