OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa SB-376 AN ACT ELIMINATING SERVICE IN TIME OF WAR AS AN ELIGIBILITY CRITERION FOR CERTAIN STATE AND MUNICIPAL VETERANS' BENEFITS. Primary Analyst: DD 3/4/25 Contributing Analyst(s): LD, ME, LG, WL, PM, JP, BP, ES Reviewer: JS OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 26 $ FY 27 $ Soldiers, Sailors & Marines' Fund SF - Cost 540,000 540,000 Military Dept. GF - Cost 120,000 160,000 Motor Vehicle Dept. TF – Potential Revenue Loss Minimal Minimal Constituent Units of Higher Education OF - Potential Revenue Loss Minimal Minimal Note: SF=Special Fund (Non-appropriated); GF=General Fund; TF=Transportation Fund; OF= Other Fund Municipal Impact: Municipalities Effect FY 26 $ FY 27 $ All Municipalities Revenue Loss None See Below Various Municipalities Potential Revenue Loss Minimal Minimal Explanation The bill expands certain benefits, currently available to veterans who served in a time of war, to veterans who served during peacetime, resulting in numerous fiscal impacts. The bill results, annually beginning in FY 26, in a cost to the Military Department, and the Soldiers, Sailors, and Marines Fund, and a potential, minimal revenue loss to the Department of Motor Vehicles and to the constituent units of higher education. It also results in a revenue loss to all municipalities 2025SB-00376-R000036-FN.DOCX Page 2 of 4 annually beginning in FY 27 and a potential revenue loss to various municipalities annually beginning in FY 26. Sections 1 – 3 result in a potential, minimal revenue loss to the constituent units of higher education annually beginning in FY 26. The bill expands, to veterans who did not serve during a time of war, a tuition waiver currently available only to veterans who did serve during a time of war. It is not known how many peacetime veterans are currently attending the constituent units, but the number is expected to be minimal. According to the federal Department of Veterans Affairs (VA), eras of peacetime include periods between: (1) WWII and the Korean War; (2) the Korean War and the Vietnam War; (3) the Vietnam War and the Gulf War; and (4) after the end of the war in Afghanistan. The VA indicates that there are currently no veterans who served entirely since the end of the war in Afghanistan. If ten veterans at each constituent unit receive a tuition waiver as a result of the bill, the total revenue loss (assuming undergraduate, in- state tuition rates) would be $286,160. This is broken down by unit as follows: (1) $170,100 for UConn; (2) $69,980 at the Connecticut State Universities; and (3) $46,080 at CT State. Sections 4 - 5 have no fiscal impact. They expand a requirement to add points to an examination for employment to peacetime veterans. Previously this requirement was only available to veterans with wartime service. This is not anticipated to result in a fiscal impact to the state or municipalities as it would not increase the number of individuals hired. Sections 6 - 7 result in a cost to the Department of Veterans Affairs and its Soldiers, Sailors, and Marines Fund (SSMF) of an estimated $540,000 annually beginning in FY 26. The bill expands access to temporary financial assistance via the SSMF to include peacetime veterans. It is anticipated this will result in around 200 veterans applying. 2025SB-00376-R000036-FN.DOCX Page 3 of 4 Section 8 results in a potential minimal annual revenue loss beginning in FY 26 to the Special Transportation Fund by broadening the eligibility for certain motor vehicle benefits and fee exemptions. The population that would be newly eligible under this section is unknown but expected to be small. Section 9 results in a revenue loss to all municipalities annually beginning in FY 27 by expanding eligibility for the property tax exemption described in CGS Sec. 12-81(19). If the newly eligible peacetime veterans and spouses own homes at the state average rate 1 , it would result in an estimated annual revenue loss of $800,000. The impact will be dependent on the number of peacetime veterans and their spouses who apply for the exemption. Section 10 removes wartime service as a requirement for a veteran to receive an honor guard detail at a funeral resulting in a cost to the Military Department of approximately $120,000 in FY 26 2 and $160,000 annually beginning in FY 27. Removing the wartime service requirement increases the number of veterans eligible for honor guard details at funerals by 35%. 3 Section 11 exempts all veterans from a municipal permit fee related to peddler or hawking on public streets or state highways. Previously this exemption only applied to veterans with wartime service. This may result in a revenue loss beginning in FY 26 to the extent municipalities have an ordinance that imposes this fee. 4 Any revenue loss will be dependent on the number of permit fees that would have otherwise been required. The Out Years 1 https://www.census.gov/quickfacts/fact/table/CT/HSD310223 2 The cost in FY 26 reflects nine months of expenditures due to the bills October 1, 2025, effective date. 3 There are approximately 112,000 wartime veterans and 40,000 peacetime veterans in the state. The average honor guard expenditures for wartime veterans from FY 20 to FY 24 is approximately $455,000 per year. 4 The maximum for this permit fee is $200 a year. 2025SB-00376-R000036-FN.DOCX Page 4 of 4 The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the number of peacetime veterans who use the benefits described above.