OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-432
AN ACT CONCERNING STATE CONTRACTS WITH NONPROFIT
HUMAN SERVICES PROVIDERS.
As Amended by Senate "A" (LCO 5531)
House Calendar No.: 489
Senate Calendar No.: 259
Primary Analyst: LG 5/6/24
Contributing Analyst(s):
Reviewer: RW
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Policy & Mgmt., Off. GF - Cost 200,000 200,000
State Comptroller - Fringe
Benefits
1
GF - Cost 80,000 80,000
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill requires the Office of Policy and Management (OPM) to (1)
conduct a review of the state purchase of service contracts with
nonprofit human service providers, (2) provide a report on this review
once every five years beginning February 1, 2026, (3) conduct a review
of any reports that nonprofit human services providers are required to
file with state agencies and (4) submit a report on this review once every
three years beginning February 1, 2025.
This results in a cost to OPM of up to $200,000 beginning in FY 25 for
two additional staff and a cost of $82,300 beginning in FY 25 to the Office
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. 2024SB-00432-R01-FN.DOCX Page 2 of 2
of the State Comptroller for associated fringe benefits.
The bill also requires private provider organizations to receive
payment within 45 days after the receipt of a claim, or receipt of services,
whichever is later. This is not anticipated to result in a fiscal impact to
the state.
Senate "A" alters the original bill by moving out the date of one of the
reports required by OPM, reduces the number of contracts OPM must
review each year, removes various other requirements, and requiring
private providers to receive payment within 45 days of a claim.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely
for the purposes of information, summarization and explanation and does not represent the intent of the General
Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of
informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.