OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-7195 AN ACT CONCERNING UNEMPLOYMENT BENEFITS FOR PARAEDUCATORS. Primary Analyst: DD 4/2/25 Contributing Analyst(s): DD, CF, CR Reviewer: JS OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 26 $ FY 27 $ Labor Dept. GF - Cost 36,561 8,855 Note: GF=General Fund Municipal Impact: Municipalities Effect FY 26 $ FY 27 $ Local and Regional School Districts Cost Potential Significant Potential Significant Explanation The bill results in a cost to the Labor Department (DOL) of $36,561 in FY 26 and $8,855 in FY 27, and results in a potential cost to local and regional school districts annually beginning in FY 26. The bill changes the process for determining if a paraeducator is eligible to receive unemployment benefits, and requires districts to submit information to DOL for DOL to make that determination. The bill results in a cost to DOL of $36,561 in FY 26 and $8,855 in FY 27 related to consultant and vendor costs needed to create the technology to securely accept the information that districts must provide and to make the necessary updates to ReEmployCT. 1 By changing the process for determining if a paraeducator is eligible 1 DOL’s unemployment tax and benefits system. 2025HB-07195-R000524-FN.DOCX Page 2 of 2 for unemployment benefits, the bill potentially increases the number of paraeducators who could receive unemployment benefits. This results in costs to local and regional school districts annually beginning in FY 26. Districts are reimbursable employers of the Unemployment Compensation Fund (UCF), which means that they reimburse the UCF dollar-for-dollar for the benefits paid to their former employees. To the extent that more paraeducators receive unemployment benefits as a result of the bill, there is a corresponding cost to districts to reimburse the UCF. That cost will vary based on the number of paraeducators receiving benefits, and the total amount of benefits received, and may be significant. Districts may incur additional one-time costs to purchase or upgrade any software needed to submit information to DOL pursuant to the bill's provisions. Any costs will vary based on the manner that DOL prescribes to submit such information. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of paraeducators who receive unemployment benefits and the total amount of benefits received. Costs to DOL identified above are not expected to be incurred after FY 27.