OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-422
AN ACT CONCERNING FIREFIGHTER RECRUITMENT AND
RETENTION.
Primary Analyst: RP 4/3/24
Contributing Analyst(s): SB, EMG, NN, MP
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Higher Education Constituent
Units
Tuition Funds -
Revenue Loss
Potential
Significant
Potential
Significant
CHFA CHFA -
Cost/Potential
Revenue Impact
See Below See Below
Note: CHFA=Resources of CHFA
Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $
Various Municipalities Transfer See Below See Below
Explanation
The bill makes various changes regarding the recruitment and
retention of firefighters, resulting in the various impacts described
below.
Section 1 requires the Connecticut Housing Finance Authority
(CHFA) to establish a new program of mortgage assistance for
uniformed members of fire departments, which results in costs to CHFA
from the quasi-public’s own resources beginning in FY 25, associated
with developing and marketing the program.
1
If CHFA provides fire
1
CHFA is a quasi-public authority that issues its own federally tax-exempt and taxable
mortgage revenue bonds. The authority primarily pays its operating expenses using 2024SB-00422-R000266-FN.DOCX Page 2 of 4
fighters with existing first-time homebuyer mortgage products at a
reduced interest rate (currently a 0.125% discount is offered for similar
programs), changes to CHFA’s operating revenues are anticipated to be
minimal. Costs or revenue loss for providing other forms of assistance
would depend on: (1) the number of firefighters assisted and (2) the type
of assistance provided.
CHFA has various existing programs that can help firefighters
purchase a house where they work, including the First Time
Homebuyers Program, the Down Payment Assistance Program, and the
Time to Own Forgivable Down Payment Assistance Program, the latter
two of which are both supported with state bond funding. Given the
low utilization rate of CHFA’s other occupation-specific mortgage
assistance programs, the bill is not anticipated to materially change the
rate of spending.
2
Sections 2-4 result in a potentially significant annual revenue loss
beginning in FY 25 to the higher education constituent units, associated
with waiving tuition for certain firefighters and their dependents. The
tuition waivers will be available to: (1) a firefighter who has at least two
years of service in Connecticut and (2) any dependent child of a
firefighter who has at least five years of service in the state. The bill also
requires Connecticut State Colleges and Universities (CSCU) to waive
tuition for certain students attending the state fire school.
There are an estimated 26,400 state and local firefighters in
Connecticut. It is unknown how many individuals will be eligible for
the tuition waiver and take advantage of it, or which constituent unit
they would choose to attend. The scope of the revenue loss will vary
based on the number of waivers and the institution waiving tuition. For
example, 500 additional tuition waivers at UConn for the
undergraduate level results in a revenue loss of approximately $8.5
funds derived from the excess of interest income from loans over bond interest
expenses.
2
Out of the 3,147 first mortgages originated through CHFA in 2023, 1 was under the
Police Homeownership Program, 29 were under the Teachers Mortgage Assistance
Program, and 25 were under the Military Program. 2024SB-00422-R000266-FN.DOCX Page 3 of 4
million annually while 1,000 additional community college waivers
results in a revenue loss of approximately $4.6 million annually. To the
extent that some of the waiver beneficiaries enrolling in CSCU
institutions might not have otherwise attended, these institutions may
experience higher fee and other revenue (e.g., room and board) due to
the bill. The exact number of additional waivers that would occur
because of the bill is unknown, but the revenue loss to the constituent
units may be significant.
Examples of Tuition Waiver Value, FY 25
# of Students UConn CSUs
CT State
Community College
Per-Student Value of
Undergraduate Tuition
Waiver, FY 25 17,012 6,998 4,608
100 1,701,200 699,800 460,800
500 8,506,000 3,499,000 2,304,000
1,000 17,012,000 6,998,000 4,608,000
Sections 5-6 establish the Volunteer Firefighter Length-of-Service
Award Program Trust Fund and result in no fiscal impact as the monies
within the fund will be used to make payments towards the operational
costs.
Section 7 extends deadlines for the previously established task force
to study the shortage of firefighters and emergency medical services
personnel in the state, resulting in no fiscal impact to the state.
Section 8 may result in a transfer of funds between municipalities
beginning in FY 25 as it requires any municipality that hires a firefighter
from another municipality within two years of the firefighter
completing entry-level training to reimburse the initial hiring
municipality 50% of the total training costs. Municipalities that hire a
firefighter from another municipality within two years of certification
will incur a cost equal to half of the actual cost of the firefighter's entry-
level training. Municipalities that lose a firefighter to such a transfer 2024SB-00422-R000266-FN.DOCX Page 4 of 4
would realize a corresponding revenue gain equal to this cost.
3
There is
no fiscal impact to municipalities that do not hire or lose a firefighter
under these conditions.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the type and amount of CHFA
mortgage assistance provided, tuition waivers granted, and
intermunicipal firefighter transfers.
3
The cost of entry-level training is estimated to be at least $50,000 depending on the
salary, fringe benefit rate, and training method of the firefighter.