OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5472
AN ACT CONCERNING MUNICIPAL FINANCE AND AUDITS.
Primary Analyst: LG 4/10/24
Contributing Analyst(s): DD
Reviewer: RW
OFA Fiscal Note
State Impact: None
Municipal Impact: See Below
Explanation
The bill makes various changes to the procedure and criteria for
municipal tier designation by the Municipal Accountability Review
Board (MARB) or the Municipal Finance Advisory Commission
(MFAC). Any fiscal impact to municipalities is dependent on changes to
tier designation. Under current law, the Office of Policy and
Management (OPM) may distribute money from the Municipal
Restructuring Fund to tier II, III, and IV municipalities.
The bill also makes the following changes to municipal auditing
requirements; (1) increases from the maximum penalty that OPM can
assess on a municipality for missing an audit filing deadline from
$10,000 to $50,000, (2) allows OPM to assess the penalty as a reduction
in one or more grants, and (3) limits the amount of additional time OPM
may grant a municipality to file its audit.
This results in a potential cost or revenue loss to municipalities
beginning in FY 25 to the extent that a penalty is assessed on a
municipality for missing an audit filing deadline.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to penalties assessed.