OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5002
AN ACT CONCERNING EARLY CHILDHOOD CARE AND
EDUCATION.
Primary Analyst: MM 4/22/24
Contributing Analyst(s): LD, ME, EMG, CR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Treasurer GF - Cost Up to
75,000
-
Treasurer, Debt Serv. GF - Cost See Below See Below
Resources of the General Fund GF - Revenue
Loss
50,000,000 -
Treasurer ECCEF - Revenue
Gain
50,000,000 -
Office of Early Childhood GF - Cost See Below See Below
State Comptroller - Fringe
Benefits
1
GF - Cost At least
68,000
At least
68,000
Legislative Mgmt. GF - Potential
Cost
Minimal Minimal
Note: GF=General Fund; ECCEF=Early Childhood Care and Education Fund
Municipal Impact: None
Explanation
Section 1 establishes the Early Childhood Care and Education Fund
and requires the Office of the State Treasurer to administer it. A one-
time cost of up to $75,000 is associated with establishing the fund in
accordance with the bill's requirements.
Section 2 establishes the Early Childhood Care and Education Fund
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 41.25% of payroll in FY 25. 2024HB-05002-R000594-FN.DOCX Page 2 of 3
Advisory Commission within the Office of Legislative Management
(OLM) resulting in a potential cost to OLM. This section allows
Commission members to seek travel expense reimbursements or
stipends resulting in a potential minimal cost to OLM to the extent these
are approved and issued by the agency.
Section 3 authorizes $50 million in General Obligation bonds to be
used by the Office of Early Childhood for the purpose of implementing
programs and initiatives enacted to support early childhood education
and childcare needs in the state. To the extent bonds are fully allocated
and expended, total debt service is expected to be approximately $71.5
million over the 20-year duration of the bonds, with annual payments
starting no earlier than FY 26.
Section 4 transfers $50 million from the General Fund to the Early
Childhood Care and Education Fund.
Section 5 results in a cost to the Office of Early Childhood (OEC)
beginning in FY 25 to establish the Tri-Share Pilot Matching Program
serving New London County. The bill requires OEC to enter into an
agreement with an administrator, which would receive up to ten
percent of the funds allocated for the program to support administrative
costs. The extent of the costs to establish and operate the program is
dependent on the amount of funds allocated by the state.
Section 6 of the bill results in a cost to OEC beginning in FY 26
associated with establishing and administering a wage supplement and
childcare program enhancement grant. The extent of these costs is
dependent on the scope of the grant program to be developed by OEC,
pursuant to the bill. OEC will incur additional annual staffing costs of
approximately $165,000, with associated fringe benefit costs of
approximately $68,000, to support administration of the program. For
context, the annual starting salary of a Fiscal Administration Officer and
Associate Accountant is $76,386 and $88,106, respectively.
The Out Years 2024HB-05002-R000594-FN.DOCX Page 3 of 3
The annualized ongoing fiscal impact identified above would
continue into the future subject to the terms of any bonds issued.