AN ACT CONCERNING AUTHORIZATION OF STATE GRANT COMMITMENTS FOR SCHOOL BUILDING PROJECTS AND CONCERNING CHANGES TO THE STATUTES CONCERNING SCHOOL BUILDING PROJECTS.

OFA Fiscal Note

SEE BELOW

The amendment increases the project cost for the Worthington Hooker School in New Haven. It is estimated that the additional cost is $12.0 million.

The amendment increases the project cost for two vocational-technical schools; A.I. Prince and Henry Abbott, and results in additional costs of $10.2 million ($7.3 for A.I. Prince and $2.9 for Henry Abbott) .

Sections 501-504, 507, 508, 510, 512, 513, 517, 518, 522, 529 do not have a fiscal impact, as the projects contained within the sections must still be approved by the State Department of Education (SDE) and the General Assembly, under future actions.

Section 505 results in an additional cost of $750, 000 associated with the zero carbon footprint demonstration project located in West Hartford.

Section 506 results in a projected additional cost to the state of approximately $1.9 million in FY 09 ($3.8 total over completion of the project) associated with projects that would have otherwise been ineligible, in the town of Scotland.

Section 509 results in no fiscal impact as the language is clarifying in nature.

Section 511 results in an additional cost of $700, 000 in FY 09 associated with interdistrict magnet preschools in West Hartford.

Section 514 results in no fiscal impact. Based on a recent Superior Court case (Fletcher-Thompson Inc. vs. Trumball) municipalities may choose a qualified bidder, other than the lowest bidder, so long as due diligence requirements are met.

Section 515 results in a savings to the town of Portland of approximately $4.5 million, associated with ineligible projects the town would have had to pay back to SDE, and thus results in a revenue loss of approximately $4.5 million to the state.

Section 516 results in an additional cost to the state of approximately $1.3 million in FY 09 for the town Middletown.

Section 519 results in an additional cost to the state of $3.0 million for the Woodward School in New Haven.

Section 520 and 521 results in a potential cost to municipalities to choose to hold a referendum to alter their grade structure. The extent of the costs to municipalities to hold a referendum depends on the population of the town, and whether the referendum is submitted to electors at a regular election or at a special election. The cost for a referendum at a regular election is minimal, relating to the printing of referendum ballots and associated referendum signage. The cost to conduct a referendum at a special election varies by town population. Small towns, such as Andover and Roxbury, can hold a referendum for $1, 000. Large cities, such as Bridgeport and Stamford, could incur costs ranging from $45, 000 to $85, 000, to hold a referendum at a special election.

Section 523 and 524 are associated with the 2008 Sheff settlement. The sections provide a mechanism by which the constituent units of higher education and third party non-for-profits may apply to operate a magnet school. The sections do not result in a fiscal impact as all new magnet schools must be approved by SDE.

Section 525 is associated with the 2008 Sheff settlement, and results in an additional cost to the state of $80.0 million for the Goodwin Magnet School in East Hartford.

Section 526 and 527 authorizes $23.0 million in General Obligation (GO) bonds for various school construction projects detailed in the above sections. The total General Fund debt service cost for principal and interest payments on this amount over 20 years assuming a 5.0% interest rate, is $30.5 million. The first year that the state will experience costs associated with the bonds depends on when they are allocated through the State Bond Commission and when the funds are expended. It is anticipated that this additional funding will be sufficient to accommodate the additional costs of the various sections contained in the amendment.

Section 528 requires the Commissioners of Education and Developmental Services, and the President of Southern Connecticut State University (or their designees) to define autism and developmental disabilities, and to define a state-wide plan to incorporate methods of teaching children with autism and developmental disabilities into programs, requirements, and training.

Section 528 also requires that while developing recommendations related to programs, requirements, and training, the Commissioners of Education and Developmental Services, and the President of Southern Connecticut State University must take into consideration a set of issues (defined by the bill) related to children with autism and developmental disabilities. The bill is anticipated to result in a minimal cost to the Connecticut State University System (CSUS) associated with faculty release time, and is not anticipated to result in a cost to the Department of Education, Department of Developmental Services, or other entities required to consult.

Section 530 results in a future cost to SDE which in turn would be a future revenue gain to New Canaan by making a school construction project which was not competitively bid eligible for state school construction reimbursement. The fiscal impact would be dependent upon the actual project costs submitted by New Canaan which would occur in a future fiscal year.

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.