OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-254 AN ACT CONCERNING THE RECOMMENDATIONS OF THE RISK- LIMITING AUDITS WORKING GROUP. Primary Analyst: TM 4/3/24 Contributing Analyst(s): DD Reviewer: PR OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 25 $ FY 26 $ Secretary of the State GF - Cost 1,931,400 632,000 Note: GF=General Fund Municipal Impact: Municipalities Effect FY 25 $ FY 26 $ Various Municipalities Cost 50,000 50,000 Explanation This bill implements risk limiting audits and results in annual costs to the Secretary of the State (SOTS) of $1.9 million in FY 25 and $632,000 in FY 26 and annually thereafter. Costs of $1,571,400 in FY 25 and $422,000 in FY 26 are associated with the bill's requirements for SOTS to provide instructions and materials for risk limiting audits. This will require a one-time cost to support equipment for municipalities of $1,379,400 1 in FY 25, as well as an ongoing annual cost of $192,000 for risk limiting audit software and as part of an amended agreement with the UCONN voter center. There will be an additional cost of $230,000 per year beginning in FY 26 associated with ongoing maintenance and upkeep. 1 This includes the equipment necessary to complete the audits at the local level, including printing costs. 2024SB-00254-R000248-FN.DOCX Page 2 of 2 Additionally, it is expected that SOTS will incur costs of $360,000 in FY 25 and $210,000 in FY 26 to contract with the UConn Voter Center to assist implementing the bill's provisions. These costs, which are paid by SOTS but ultimately borne by UConn, are associated with developing and testing auditing software and processes and conducting the audits. The bill alters standards of risk limiting audits and results in additional costs to municipalities. This comes primarily from the additional cost of labor to complete risk limiting audits. The bill requires that the officials administering and conducting the risk limiting audit must be compensated at the municipalities standard rate of pay for electors. The extent of the cost depends on the requirements of the risk limiting audits, the number of them conducted and the level of compensation for the election officials within each municipality is estimated at approximately $50,000 per year 2 . The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation. 2 The estimated cost for election labor for two officials per town working six hours at the existing hourly rate is anticipate at $49,961.90.