OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http: //www.cga.ct.gov/ofa
sSB-465
AN ACT ESTABLISHING AN ADULT LITERACY BOARD.
AMENDMENT
LCO No.: 6096
File Copy No.: 598
Senate Calendar No.: 395
OFA Fiscal Note
Agency Affected |
Fund-Effect |
Policy & Mgmt., Off. |
All Funds - See Below |
Municipalities |
Effect |
All Municipalities |
See Below |
Explanation
Fund |
FY 09 Net Original |
FY 09 Net Alternative Budget |
Difference |
General Fund |
17, 073, 023, 475 |
16, 853, 449, 052 |
-219, 574, 423 |
Special Transportation Fund |
1, 154, 226, 399 |
1, 136, 819, 098 |
-17, 407, 301 |
Mashantucket Pequot & Mohegan Fund |
86, 250, 000 |
86, 250, 000 |
0 |
Soldiers', Sailors', and Marines' Fund |
3, 296, 553 |
3, 296, 553 |
0 |
Regional Market Fund |
1, 013, 140 |
1, 013, 140 |
0 |
Banking Fund |
18, 961, 133 |
19, 299, 369 |
338, 236 |
Insurance Fund |
24, 086, 076 |
24, 505, 211 |
419, 135 |
Consumer Counsel & Public Util Control Fund |
24, 242, 276 |
24, 650, 201 |
407, 925 |
Workers' Compensation Fund |
24, 005, 496 |
24, 303, 690 |
298, 194 |
Criminal Injuries Compensation Fund |
2, 625, 000 |
2, 625, 000 |
0 |
All Appropriated Funds |
18, 411, 729, 548 |
18, 176, 211, 314 |
-235, 518, 234 |
Summary of Revenue
The table below summarizes the General Fund and Transportation Fund revenue changes as a result of the amendment.
Impact | |
General Fund |
|
Tax Changes |
-$57.0 million |
Revenue Transfers |
-132.0 million |
Expenditure Related Revenue Changes |
81.1 million |
Net Impact |
-$107.9 million |
Transportation Fund |
|
Tax Changes |
-$25.0 million |
Revenue Transfers |
52.0 million |
Net Impact |
$27 million |
Grants to Towns
Grants to towns would increase by $10.7 million to $2, 916.0 million in FY 09 from the original FY 09 appropriation of $2, 905. 3 million. These figures include the use of FY 07 surplus in FY 09.
Spending Cap
The Alternative Budget FY 09 Budget Revisions, on a net all funds basis, is $356.7 million under the statutory spending cap.
Budget Growth Rate
The budget growth rate, based on OFA adjustments for all appropriated funds, is 3.4% for FY 09 over estimated expenditures for FY 08.
Carry Forward and Budget Implementation Provisions
The budget contains General Fund carry forwards from FY 08 to FY 09 totaling $191.4 million, which reduces any anticipated current year surplus. These and other provisions are detailed below:
Section |
Agency |
Description |
Fiscal Impact |
507 |
Division of Special Revenue |
Carries forward up to $350, 000 in funds previously carried forward into FY 09 for a study of legalized gambling and establishes a June 30, 2009 deadline for the study |
Carries forward $350, 000 |
508(a) |
Office of Policy and Management |
Carries forward up to $100, 000 in Other Expenses from FY 08 into FY 09 for payments to the Connecticut Data Center |
Carries forward $100, 000 |
508(b) |
Office of Policy and Management |
Carries forward the unexpended balance of funds previously carried forward for Energy Contingency into FY 09 |
Carries forward an estimated $7.6 million |
508(c) |
Office of Policy and Management |
Carries forward up to $2.9 million in Justice Assistance Grants from FY 08 into FY 09 |
Carries forward an estimated $2.0M |
508(d ) |
Office of Policy and Management |
Carries forward the unexpended balance of funds from FY 08 into FY 09 for Regional Performance Incentive Grants |
It is anticipated that there are no funds available to carry forward |
508(e) |
Office of Policy and Management |
Carries forward up to $100, 000 in Distressed Municipalities funds from FY 08 into FY 09 for Smart Growth - Modifications of Connecticut's Land Use Law |
Carries forward $100, 000 |
508(f) |
Office of Policy and Management/ State Comptroller |
Carries forward up to $1, 550, 000 from FY 08 into FY 09 from PILOT MME and transfers it to the Comptroller for consultants, software and training associated with an Enterprise Performance Management Business Analytical Reporting system |
Carries forward $1, 550, 000 |
508(g) |
Office of Policy and Management/ Department of Information Technology |
Carries forward the unexpended balance of funds previously carried forward for Licensing and Permitting Fees and transfers it to the Department of Information Technology for E-Government Licensing |
|
509 |
Department of Information Technology |
Carries forward the unexpended balance of funds from FY 08 into FY 09 for Internet and Email services for completing the email archiving system |
|
510 |
Department of Information Technology |
Establishes the maximum number of positions that may be filled from the Technical Services Revolving Fund at 200 for FY 09 |
|
511 |
Department of Public Works |
Carries forward up to $250, 000 from FY 08 to FY 09 for Rents and Moving |
Carries forward $250, 000 |
512 |
Department of Public Safety |
Carries forward up to $535, 000 in funds previously carried forward for helicopter maintenance |
Carries forward $535, 000 |
513(a) |
Department of Motor Vehicles |
Carries forward up to $300, 000 from FY 08 to FY 09 in Personal Services and transfers it to Other Expenses for costs of implementing security measures in accordance with the federal Real ID Act |
Carries forward $300, 000 |
513(b) |
Department of Motor Vehicles |
Carries forward up to $150, 000 from FY 08 to FY 09 in Equipment and transfers it to Other Expenses for implementation costs with processing all credit and debit cards in all motor vehicle branches |
Carries forward $150, 000 |
514(a) |
Department of Banking |
Carries forward up to $750, 000 from FY 08 to FY 09 for Other Expenses for improvements associated with the new office lease |
Carries forward $750, 000 |
514(b) |
Department of Banking |
Carries forward up to $50, 000 from FY 08 to FY 09 for Other Expenses for Information Technology upgrades |
Carries forward $50, 000 |
514( c) |
Department of Banking |
Carries forward up to $250, 000 from FY 08 to FY 09 for Equipment and makes it available for improvements associated with the new office lease |
Carries forward $250, 000 |
515(a) |
Department of Insurance |
Carries forward up to $151, 751 from FY 08 to FY 09 for Personal Services is transferred to Other Expenses for consultants to design a Business Continuity and IT Disaster Recovery Plan |
Carries forward $151, 751 |
515(b) |
Department of Insurance |
Carries forward up to $150, 000 from FY 08 to FY 09 for Fringe Benefit is transferred to Other Expenses for work on the Connecticut Regulatory Information System |
Carries forward $150, 000 |
516 |
Department of Labor |
Deems $33 million of the amount credited to the state's account in the Unemployment Trust Fund to be deemed appropriated, and directs up to $5 million to be used to improve agency information systems |
|
517(a) |
Workers' Compensation Commission |
Carries forward up to $1.1 million from FY 08 to FY 09 for Other Expenses shall be available for data migration and the Middletown office relocation |
Carries forward $1, 100, 000 |
517(b) |
Workers' Compensation Commission |
Carries forward up to $70, 000 from FY 08 to FY 09 for Equipment shall be available for the Middletown office phone system and server hardware upgrades |
Carries forward $70, 000 |
518 |
Workers' Compensation Commission |
Carries forward the unexpended balance of funds from FY 08 to FY 09 for Indirect Overhead is transferred to Other Expenses and shall be available for data migration and for the Middletown office relocation |
Carries forward $200, 000 |
519 |
Department of Environmental Protection |
Carries forward the unexpended balance of funds previously carried forward into FY 09 for Lobster Restoration |
Carries forward $100, 000 |
520 |
Department of Environmental Protection |
Permits the Commissioner of DEP to use up to $300, 000 of the Underground Storage Tank Petroleum Clean-Up account within the Environmental Quality Fund to contract for services to evaluate, audit, and repair state-owned underground storage tanks. |
|
521 |
Department of Public Health |
Credits $800, 000 to the Newborn Screening Account, and shall be available for expenditure by the department for the purchase and upgrades to the newborn screening technology and for the expenses of the testing |
Increases by $300, 000 amount dedicated to this purpose in FY 09 over current law. Reduces General Fund revenues by $300, 000 in FY 09. |
522(a) |
Department of Public Health |
Carries forward from FY 08 to FY 09 the unexpended balance of funds for the Loan Repayment Program |
No impact is anticipated |
522(b) |
Department of Public Health |
Carries forward from FY 08 to FY 09 the unexpended balance of funds for the Nursing Student Loan Forgiveness Program |
Carries forward an estimated $125, 000 |
523 |
Department of Mental Retardation/ Department of Education |
Carries forward up to $500, 000 from FY 08 to FY 09 for Personal Services and transfers it to the Department of Education for School Accountability for the development of secondary math model curricula and a formative assessment plan |
Carries forward an estimated $500, 000 |
524 |
Department of Mental Retardation/ Regional Community Technical Colleges |
Carries forward up to $610, 280 from FY 08 to FY 09 for Personal Services and transfers it to the Regional Community Technical Colleges for Operating Expenses for the development of a nursing program |
Carries forward an estimated $610, 280 |
525 |
Department of Social Services/ Office of Health Care Access |
Carries forward $250, 000 from FY 08 to FY 09 the Other Expenses appropriated to the Department of Social Services and transfers it to the Office of Health Care Access for a study of hospital reimbursement systems |
Carries forward $250, 000 |
526 |
Department of Social Services/ Office of Health Care Access |
Carries forward $100, 000 from FY 08 to FY 09 the Other Expenses appropriated to the Department of Social Services to conduct a study, in consultation with the DSS, DPH and OPM of primary care service capacity and identify geographical or population gaps in access |
Carries forward $100, 000 |
527 |
Department of Social Services |
Carries forward from FY 08 to FY 09 for Other Expenses and transfers it to the HUSKY Outreach to develop a program to educate and inform patients |
Carries forward $100, 000 |
528 |
Department of Social Services |
Carries forward up to $20 million from FY 08 to FY 09 from Medicaid for any settlement agreement in Carr, et al v. Wilson-Coker, DSS Commissioner |
Carries forward $20 million |
529 |
Department of Social Services |
For FY 09, permits the Commissioner of Social Services, in consultation with the Office of Policy and Management, to increase dispensing fees paid to licensed pharmacies to assist with the transition to the average manufacturer price reimbursement methodology required under the federal Deficit Reduction Act of 2005. |
This section results in no fiscal impact. |
530(a) (b) (c) |
Department of Social Services |
Carries forward the unexpended balance of Medicaid funds for costs incurred due to the transition to non-risk contracts under the HUSKY program and recoups FY 08 and FY 09 HUSKY funds from contractors due to the transition to non-risk contracts under the HUSKY program, and makes such funds available under the Medicaid program |
The final figure for this carryforward is not known. The department has indicated that this carryforward could be up to $60 million. |
531 |
University of Connecticut Health Center/ Office of Policy and Management/ Department of Social Services |
Permits up to $5, 000, 000 in FY 09 appropriations to the UCHC to be transferred by OPM to DSS for Disproportionate Share - Medical Emergency Assistance to maximize federal reimbursement |
Allows for federal revenue maximization |
532 |
Department of Veterans' Affairs/ Office of Policy and Management/ Department of Social Services |
Permits any FY 09 appropriation, or portion thereof, made to the Department of Veterans' Affairs to be transferred by OPM to DSS for Disproportionate Share - Medical Emergency Assistance to maximize federal funds |
Allows for federal revenue maximization |
533 |
Department of Social Services |
Increases from $11 to $12 million the amount transferred from the Tobacco Health Trust Fund to the Department of Social Services for the implementation and administration of the Charter Oak Health Plan |
Reduces principle of the Tobacco and Health Trust Fund by $1 million in FY 09. Under current law, the balance in the fund would be $28.1 million as of 6/30/09. It should be noted that a $1million transfer from the fund to DSS for the CHOICES program is repealed within section 593 of the amendment below. |
534(a) |
Department of Education |
Carries forward up to $150, 000 from FY 08 into FY 09 for Other Expenses for expenditure on a family resource center study |
Carries forward an estimated $150, 000 |
534(b) |
Department of Education |
Carries forward up to $100, 000 from FY 08 to FY 09 for Priority School Districts for the secondary school reform costs study |
Carries forward an estimated $100, 000 |
535 |
Department of Higher Education |
Permits up to $152, 000 in funds appropriated for Alternate Route Certification in FY 09 to be used for other expenses in support of he current operation of the Alternate Route to Certification program |
|
536 |
Department of Correction |
Carries forward up to $750, 000 from FY 08 to FY 09 for Inmate Medical Services |
|
537 |
State Treasurer- Debt Service |
Carries forward up to $13 million from FY 08 to FY 09 for Debt Service |
Carries forward an estimated $13, 000, 000 |
538 |
State Comptroller - Fringe Benefits |
Carries forward the unexpended balance of funds appropriated from the FY 07 anticipated surplus for Other Post Employment Benefits from FY 08 into FY 09 |
Carries forward an estimated $10 million |
539 |
Department of Environmental Protection |
Carries forward up to $450, 000 in fund previously carried forward for Beach Erosion |
Carries forward an estimated $450, 000 |
540 |
Department of Education |
Carries forward the unexpended balance of funds appropriated for After School Funds |
Estimated amount carried forward is $2, 600, 000 |
541(a) |
State Library |
Carries forward the unexpended balance of funds for Computer Access |
Estimated amount carried forward is $200, 000 |
541(b) |
State Library |
Carries forward the unexpended balance of funds from the FY 07 surplus for the Arts Inventory into FY 09 |
Estimated amount carried forward is $75, 000 |
542(a) |
Department of Mental Health and Adaptation Services |
Carries forward the unexpended balance FY 07 surplus funds for Grants to Substance Abuse Services and makes them available in FY 09 for Mercy Housing and Shelter |
Carries forward an estimated $200, 000 |
542(b) |
Department of Mental Health and Adaptation Services |
Directs up to $1.1 million for the Pre-Trial Alcohol Substance Abuse Program be available for the Regional Action Councils in FY 09 |
Implements a provision of the budget |
543 |
Office of Policy and Management |
For FY 09, specifies that certain residential care private providers serving DCF clients shall be receive a cost of living adjustment from OPM |
Implements a provision of the budget |
544 |
CSU |
Carries forward up to $500, 000 in Operating Expenses for the Institute for the Study of Crime and Justice |
Carries forward an estimated $500, 000 |
545 |
Commission on Human Rights and Opportunities |
Carries forward up to $150, 000 from FY 08 into FY 09 in Other Expenses for a disparity study |
Carries forward an estimated $150, 000 |
546(a) |
Office of Legislative Management |
Carries forward up to $97, 000 for Redistricting from FY 08 into FY 09 |
Carries forward an estimated $97, 000 |
546(b ) |
Office of Legislative Management |
Carries forward up to $950, 000 in Minor Capital Improvement from FY 08 to FY 09 |
Carries forward an estimated $950, 000 |
546(c) |
Office of Legislative Management |
Carries forward up to $550, 000 in Other Expenses from FY 08 to FY 09 for House Chamber Voting Boards |
Carries forward an estimated $550, 000 |
547 |
Office of State Ethics |
Carries forward up to $413, 000 in Information Technology Initiatives from FY 08 to FY 09 |
Carries forward an estimated $413, 0000 |
548 |
Office of Policy and Management/ Department of Economic and Community Development |
Carries forward up to $428, 500 in Other Expenses funding previously carried forward to prevent base closure is carried forward and transferred to the Office of Military Affairs within the Department of Economic and Community Development |
Carries forward an estimated $428, 500 |
549 |
Department of Transportation |
Carries forward up to $750, 000 in SE CT Intermodal Transportation Center funds from FY 08 to FY 09 |
Carries forward an estimated $750, 000 |
550 |
Department of Higher Education |
Carries forward up to $100, 000 for Other Expenses from FY 08 to FY 09 and transfers it to Opportunities in Veterinary Medicine |
Carries forward an estimated $100, 000 |
551 |
Department of Economic and Community Development |
Carries forward the unexpended balance of funds for the Main Street Initiatives from FY 08 to FY 09 |
Estimated amount carried forward is $80, 000 |
552 |
Department of Administrative Services |
Carries forward $62, 900 in Personal Services from FY 08 to FY 09 and transfers to the Correctional Ombudsman |
Estimated amount carried forward is $62, 900 |
553 |
State Comptroller |
Carries forward up to $365, 000 for Personal Services from FY 08 to FY 09 |
Carries forward and estimated $365, 000 |
554 |
Various |
Directs OPM to transfer funds appropriated to the Private Providers account for a 1% cost of living adjustment |
Implements a provision of the budget |
555(a) |
Department of Public Health |
Carries forward up to $1.5 million in Community Health Services from FY 08 to FY 09 |
Carries forward an estimated $1, 500, 000 |
555 (b) |
Department of Public Health |
Carries forward up to $1.5 million in School Based Health Clinics from FY 08 to FY 09 |
Carries forward an estimated $1, 500, 000 |
555(c ) |
Department of Public Health |
Carries forward the unexpended balance of funds made available for various projects to the Department of Public Health from the Tobacco and Health Trust Fund for asthma, disease prevention and health promotion into FY 09 |
|
556 |
Department of Social Services |
Carries forward the unexpended balance of funds made available to the Department of Social Services from the Tobacco and Health Trust Fund for the Charter Oak Plan from FY 08 to FY 09 |
Carries forward an estimated $1, 500, 000 |
557 |
Military Department |
Carries forward the unexpended balance of Veteran's Service Bonus funds from FY 08 to FY 09 |
Estimated amount carried forward is $525, 000 |
558 |
Department of Social Services |
Establishes a reporting requirement on the status of implementation of the biennial programmatic changes and the HUSKY Plans transition |
Carries forward an estimated $1, 500, 000 |
559 |
Department of Higher Education |
Carries forward up to $200, 000 for ECE-Collaboration with Higher Ed from FY 08 to FY 09 |
Carries forward an estimated $200, 000 |
560 |
Office of Legislative Management |
Carries forward up to $15, 000 in FY 07 surplus funds for the Connecticut Academy of Science and Engineering from FY 08 to FY 09 |
Carries forward an estimated $15, 000 |
561 |
Department of Education |
Carries forward up to $880, 000 for the Early Childhood Advisory Cabinet from FY 08 to FY 09 |
Carries forward an estimated $880, 000 |
562 |
Department of Insurance |
Carries forward up to $45, 000 of Personal Services funds which have previously been carried forward and transfers it to Other Expenses for FY 09 for phone system programming |
Carries forward an estimated $45, 000 |
563 |
Department of Education |
Carries forward up to $50, 000 of Other Expenses to FY 09 for the Child Poverty Council |
Carries forward an estimated $50, 000 |
564 |
Secretary of the State |
Carries forward up to $70, 000 of Other Expenses funds to FY 09 for the preparation and publication of the State Register and Manual |
Carries forward an estimated $70, 000 |
565 |
Department of Information Technology |
Carries forward up to $225, 000 in Other Expenses for Portal Web Content Management System |
Carries forward an estimated $225, 000 |
566 |
Department of Social Services |
Carries forward up to $100, 000, 000 of the Medicaid funds from FY 08 to FY 09 for provider rate increases |
Carries forward an estimated $100, 000, 000 |
567 |
Department of Administrative Services |
Carries forward $237, 100 from Personal Services from FY 08 to FY 09 and transfers it to Other Expenses |
Carries forward an estimated $237, 100 |
568 |
State Treasurer |
Carries forward up to $85 million in FY 07 surplus funds used to defeasance of the ECLM Clean Energy bonds to FY 09 |
|
569 |
Department of Economic and Community Development |
Carries forward up to $10 million of funds for the State Assisted Housing Sustainability Fund to FY 09 |
Carries forward an estimated $10 million |
570 |
Department of Economic and Community Development |
Carries forward the unexpended balance of funds for Southeast CT Marketing Plan from FY 08 to FY 09 |
Carries forward an estimated $100, 000 |
571 |
Comptroller |
Directs the Comptroller to designate $80 million of the resources of the General Fund for the FY 07 to FY 09 |
|
572(a) |
Department of Social Services |
Carries forward a total of $7, 857, 140 from Other Expenses to FY 09 as follows: $1, 460, 000 for information technology consultants related to Raymond v. Rowland; $1, 395, 140 for physical facility improvements to implement requirements of Raymond v. Rowland; $2, 557, 000 for information technology hardware and support to implement Raymond v. Rowland; $500, 000 for an on-line client application system; $375, 000 for a fall prevention program. |
Carries forward an estimated $7, 857, 140 |
572(b) |
Department of Social Services |
Carries forward up to $570, 258 in HUSKY funds from FY 08 to FY 09 for Managed Care Organization payment delays for the HUSKY B program |
Carries forward an estimated $570, 258 |
572(c ) (1) |
Department of Social Services |
Carries forward up to $23, 058, 474 for Managed Care Organization Payment delays for the HUSKY A program |
Carries forward an estimated $23, 058, 474 |
572(c ) (2) |
Department of Social Services |
Carries forward up to $4.5 million for grants to federally qualified health centers |
Carries forward an estimated $4, 500, 000 |
572(d) |
Department of Social Services |
Carries forward up to $390, 000 in funds previously carried forward for Hospital Hardship to FY 09 for monthly distributions to Charlotte Hungerford Hospital through September 30, 2008 |
Carries forward an estimated $390, 000 |
572(e) |
Department of Social Services |
Carries forward up to $750, 000 for Elderly Services to FY 09 to be used as follows: Up to $500, 000 for Senior Centers; and up to $250, 000 for Elderly Case Management for Municipalities. |
Carries forward an estimated $750, 000 |
572(f) |
Department of Social Services |
Carries forward up to $75, 000 for Nutrition Assistance to FY 09 for the New Britain Food Pantry |
Carries forward an estimated $75, 000 |
572(g) |
Department of Social Services |
Carries forward up to $2, 280, 500 for Housing Homeless Services to FY 09 to be used as follows: up to $100, 000 for Beyond Shelter Services; up to $150, 000 for child care services in shelters; up to $238, 000 for the Connecticut Women's Consortium; $86, 250 for a grant to study homelessness among veterans in Middlesex county; $56, 250 for New Haven End Homelessness; $900, 000 for counselors for homeless shelters; and $750, 000 for AIDS housing. |
Carries forward an estimated $2, 280, 500 |
572(h) |
Department of Social Services |
Carries forward up to $102, 500 for School Readiness funds for FY 09 for licensing issues with the Solar Youth and Skills Camp |
Carries forward an estimated $102, 500 |
572(i) |
Department of Social Services |
Carries forward up to $1, 221, 250 for Community Services to FY 09 to be used as follows: up to $50, 000 for the Jewish Federation for Citizenship Training; up to $75, 000 to the Westrock Neighborhood Corporation; up to $300, 000 for New Samaritan; up to $131, 250 for Patient Navigator; up to $265, 000 for Asset Building; up to $250, 000 for elderly transportation; and up to $150, 000 for a program for grandparents. |
Carries forward an estimated $1, 221, 250 |
572(j) |
Department of Social Services |
Carries up to $500, 000 for Human Services Infrastructure Community to FY 09 for Community Action Programs |
Carries forward an estimated $500, 000 |
572(k) |
Department of Social Services |
Carries forward up to $100, 000 for Teen Pregnancy Prevention to FY 09 for such purposes |
Carries forward an estimated $100, 000 |
573 |
Department of Social Services |
Upto $82 million of federal funds received by the Department of Social Services during FY 08 for expenditures for Managed Care Organization payment delays for the HUSKY program or for costs related to implementing Medicaid provider rate increases is deemed received in FY 09 |
Ensures that revenue assumed for FY 09 is received in FY 09 |
574 |
Various |
Requires that agencies pay private providers within 45 days of request for payment or the agency will pay the private provider an additional 15% annual interest. |
Under normal practice, no fiscal impact. If agencies are late in payment, an indeterminate cost will result due to the 15% interest. |
575 |
Department of Transportation |
Requires the department to establish a fuel cell program |
|
576(a) (b) |
Department of Environmental Protection |
Requires the Department of Environmental Protection, to provide a grant, within available appropriations, to the City of Norwalk's Department of Public Works in consultation with the towns of Darien and New Canaan to study the Five Mile River, Stoney Brook, and Goodwives Creek portions of the Norwalk River Watershed and develop a watershed and flood management plan and report such findings by January 1, 2009. |
Implements a provision of the budget, which contains $200, 000 in the Department of Environmental Protection |
577-579 |
Court Support Services Division (CSSD) of the Judicial Department; Department of Public Safety |
Effective October 1, 2008, requires the taking of DNA samples, prior to sentencing, from any person convicted of a class A or class B felony. |
Implements a provision of the budget, which contains $96, 375 in the Judicial Department to take DNA samples and $34, 900 in the Department of Public Safety to analyze DNA samples. The FY 10 cost of the bill's changes are: $128, 500 to the Judicial Department; and $46, 500 to the Department of Public Safety |
580 |
Department of Social Services |
Requires the Commissioner of Social Services to amendment the state Medicaid plan to include hospice services as an optional service covered under the Medicaid program |
No fiscal impact |
581 |
Various |
Establishes the Early Retirement Incentive Program (ERIP) |
Results in anticipated FY 09 General Fund savings of $163.1 million |
582 |
Various |
Specifies that up to 100% of positions vacated by the Department of Correction, the Department of Public Safety and faculty at a constituent unit of higher education as a result of ERIP may be refilled |
This section will mitigate the General Fund ERIP savings ($163.1M in FY 09) anticipated in the budget |
583 |
Various Municipalities |
Permits a municipality to establish a local property tax relief for program for persons aged 65 years or older who volunteer their services for certain organizations, up to $750 |
Municipalities that adopt this ordinance will experience a revenue loss which will likely necessitate a minimal increase to their mill rate or modifications to their budget to offset this loss. |
584 |
Auditors of Public Accounts |
Permits the Auditors to audit municipalities that receive more than 35% of their funding from state funding. |
Implements a provision of the budget, which contains $500, 000 in the Auditors of Public Accounts for this purpose |
593-594 |
Repealer |
Repeals the FY 09 transfer of $1 million transfer from the Tobacco and Health Trust Fund to the Department of Social Services for the CHOICES program; additionally it repeals the transfer of funds from the Office of Policy and Management to the Department of Environmental Protection for the Water Planning Council; and repeals the transfer of $17, 065, 577 from the PILOT Manufacturing Machinery and Equipment account to FY 09 to implement the provisions of PA 08-1, JSS |
§§ 585 & 586 – JOB CREATION TAX CREDITS
Fiscal Impact
The amendment is anticipated to result in General Fund revenue loss of $2.5 million per year beginning in FY 09.
To the extent that applications for the credits significantly increase due to the specified expansions, the Department of Economic and Community Development (DECD) will require additional personnel (annual salary of $65, 000 and full fringe benefits of $38, 100) to review and process applications and to monitor credit approval and compliance.
The amendment is also expected to result in the following costs to the Department of Revenue Services: (1) a one-time cost of $200, 000 for systems development and computer programming in FY 09 and (2) an ongoing cost of approximately $275, 000 per year beginning in FY 09 to process claims.
Summary
The state offers tax credits against the corporation, insurance premium, and utility company taxes to companies that create at least 10 new full-time jobs in the state. The maximum credit is 60% of the state income tax withheld from each new employee's wages for up to five successive years.
This amendment:
1. extends the job creation tax credit against the corporation, utility, and insurance premium taxes to any company that creates at least one, rather than a minimum of 10, new full-time job in the state;
2. establishes a similar credit against the personal income tax, thus allowing entities that are not subject to the corporation, utility or insurance premium taxes, such as partnerships, S corporations, and limited liability companies, to take advantage of the credit; and
3. increases the limit on total aggregate credits from $10 million to $12.5 million per year and applies the limit to the total credits against the both personal income and business taxes.
The amendment also eliminates the current procedure for claiming annual credits through the Department of Economic and Community Development (DECD) commissioner and instead subjects credit claims on tax returns to regular Department of Revenue Services' (DRS) corporation and personal income tax audit and deficiency assessment requirements. Current law requires the DECD commissioner to issue allocation notice when she approves an application for a credit. Within 30 days of the end of the taxpayer's income year, the taxpayer must give the commissioner information about the number of new jobs created during the year and the income taxes withheld from the new employees' wages for the year. The commissioner must, within 60 days after the close of the taxpayer's income year or 30 days after the taxpayer provides the required information, whichever comes first, issue an eligibility certificate that includes the taxpayer's name, number of new jobs created, and the amount of the credit for the year. Upon request, the commissioner must give the DRS Commissioner a copy of the eligibility certificate.
The amendment retains the current procedure for applying for the business tax credits through the DECD commissioner and extends the same application requirements to the personal income tax credit. It retains the existing credit recapture provisions for situations when the number of credit-eligible new employees decreases in the four successive years after the year the business or person first claimed the credit.
Finally, the amendment eliminates the DECD commissioner's authority to combine approval of a job creation credit application with the exercise of her other powers, including offering other forms of economic development assistance.
EFFECTIVE DATE: July 1, 2008 and applicable to income and tax years starting on or after January 1, 2008.
§587 – BUSINESS ENTITY TAX
Fiscal Impact
The amendment is anticipated to result in a General Fund revenue loss to the Business Entity Tax of $17.5 million in FY 09 and $35 million per year beginning in FY 10.
Summary
The amendment reduces the business entity tax from $250 to $125 for 2008 tax year and eliminates it entirely for tax years starting on or after January 1, 2009.
Under current law, the tax is $250 per year and applies to any Connecticut or out-of-state S corporation, limited liability company, limited liability partnership, or limited partnership that is required to register with the secretary of the state before transacting business in Connecticut.
EFFECTIVE DATE: July 1, 2008 and applicable to tax years starting on or after January 1, 2008.
§§ 588 &589 – ESTATE AND GIFT TAXES
Fiscal Impact
The amendment is anticipated to result in a General Fund revenue loss to the Unified Gift and Estate of $12 million in FY 09, $26.5 million in FY 10, and $30 million per year beginning in FY 11.
Summary
The amendment phases out the “cliff” in the estate and gift taxes affecting estates and gifts valued at over $2 million. Under current law, an estate or gift valued at $2 million or less is not taxed while the full value of any estate or gift valued more than $2 million is taxable. This structure produces a “cliff” in which a $1 increase in the value of a gift or estate from $2, 000, 000 to $2, 000, 001 increases its tax from zero to $106, 800. The bill phases out the cliff over two years, reducing it by 50% for deaths occurring and gifts made between January 1, 2008 and December 31, 2008 and eliminating it starting with such events occurring on or after January 1, 2009.
Current and proposed tax rates are shown in the table below. The proposed rates apply to deaths occurring on or after January 1, 2008. The new gift tax rates apply to gifts made on or after January 1, 2008 and cover the aggregate gifts a donor makes on or after January 1, 2005, with a credit allowed for any state gift tax the donor previously made on such gifts.
CURRENT AND PROPOSED ESTATE AND GIFT TAXES
VALUE OF GIFT OR ESTATE |
CURRENT TAX (Add cols. C & D) |
PROPOSED TAX (Add cols. E-1 or E-2 & F) | ||||
Col. A: Over |
Col. B: But not over |
Col. C: Tax on Col. A |
Col. D: Tax rate on excess over Col. A |
Col. E-1: Tax on Col. A (Deaths occurring and gifts made January 1, 2008 – December 31, 2008) |
Col. E-2: Tax on Col. A (Deaths occurring and gifts made on or after January 1, 2009) |
Col. F: Tax rate on excess over Col. A |
0 |
$2, 000, 000 |
NO TAX |
NO TAX |
NO TAX | ||
$2, 000, 000 |
2, 100, 000 |
5.085% of the excess over 0 |
$50, 900 |
0 |
5.085% of the excess over $2, 000, 000 | |
2, 100, 000 |
2, 600, 000 |
$106, 800 |
8.0% |
56, 000 |
$5, 100 |
8.0% |
2, 600, 000 |
3, 100, 000 |
146, 800 |
8.8% |
96, 000 |
45, 100 |
8.8% |
3, 100, 000 |
3, 600, 000 |
190, 800 |
9.6% |
140, 000 |
89, 100 |
9.6% |
3, 600, 000 |
4, 100, 000 |
238, 800 |
10.4% |
188, 000 |
137, 000 |
10.4% |
4, 100, 000 |
5, 100, 000 |
290, 800 |
11.2% |
240, 000 |
189, 100 |
11.2% |
5, 100, 000 |
6, 100, 000 |
402, 800 |
12.0% |
352, 000 |
301, 100 |
12.0% |
6, 100, 000 |
7, 100, 000 |
522, 800 |
12.8% |
472, 000 |
421, 100 |
12.8% |
7, 100, 000 |
8, 100, 000 |
650, 800 |
13.6% |
600, 000 |
549, 100 |
13.6% |
8, 100, 000 |
9, 100, 000 |
786, 800 |
14.4% |
736, 000 |
685, 100 |
14.4% |
9, 100, 000 |
10, 100, 000 |
930, 800 |
15.2% |
880, 000 |
829, 100 |
15.2% |
Over $10, 100, 000 |
1, 082, 800 |
16.0% |
1, 032, 000 |
981, 100 |
16.0% | |
EFFECTIVE DATE: July 1, 2008. The estate tax changes apply to estates of decedents who die, and the gift tax changes apply to calendar years starting, on or after January 1, 2008.
§ 590 – TEMPORARY REDUCTION IN MOTOR FUEL TAX
Fiscal Impact
The amendment is anticipated to result in a one-time Transportation Fund revenue loss to the motor Fuels Tax of $25 million in FY 09. It should be noted that Section 593 of the amendment transfers an additional $55 million from the General Fund to the Transportation Fund to accommodate this policy change.
Summary
From midnight on July 1, 2008 to 11: 59 p.m. on September 1, 2008, the amendment reduces the motor fuel tax rates by 10 cents per gallon. It applies to taxes on gasoline, gasohol, diesel, and other motor vehicle fuels.
During the two-month period, the amendment reduces the per-gallon tax on gasoline and gasohol from 25 cents to 15 cents, the tax on propane and natural gas from 26 cents to 16 cents, and the tax on diesel to 10 cents below the amount determined by the DRS commissioner starting July 1, 2008.
EFFECTIVE DATE: July 1, 2008
§§ 591 – PETROLEUM PRODUCTS GROSS EARNINGS TAX CHANGES
Fiscal Impact
The amendment is anticipated to result in a General Fund revenue loss to the Petroleum Products Gross Earnings Tax of $25 million per year beginning in FY 09 and $55 million beginning in FY 14.
The amendment will also preclude a General Fund revenue gain, which could be significant, if the wholesale price of fuel exceeds the $2.55 cap.
Summary
Tax Rate
The amendment eliminates increases in the petroleum products gross earnings tax rate scheduled to take effect on July 1, 2008 and July 1, 2013. It freezes the tax at the current 7% rate. Under current law, the tax rate is scheduled to increase to 7.5% on July 1, 2008 and 8.1% starting July 1, 2013.
Tax Base
The percentage tax rate specified above applies to the gross earnings distributors receive from the first sale of covered petroleum products in Connecticut. For purposes of liability for the tax, the amendment caps these gross earnings at $2.55 per gallon.
EFFECTIVE DATE: July 1, 2008
§ 592 – PETROLEUM PRODUCTS GROSS EARNINGS TAX REVENUE TRANSFERS TO THE SPECIAL TRANSPORTATION FUND
Fiscal Impact
The amendment increases the annual transfers of petroleum products gross earnings tax revenue from the General Fund to the Special Transportation Fund by $55.0 million per year starting with FY 09. This will result in a revenue loss to the General Fund and revenue gain to the Transportation Fund of $55.0 million beginning in FY 09.
Summary
The law requires the comptroller to transfer a specified amount of revenue from the petroleum products gross earnings tax each quarter from the General Fund to the STF. The amendment increases the total of these quarterly transfers by $55 million per year as shown below. The increased revenue transfers start in FY 09.
Fiscal Year |
Annual Revenue Transfer | |
Current (millions) |
Proposed (millions) | |
2008 |
$127.8 |
No change |
2009 |
141.9 |
$196.9 |
2010 |
141.9 |
196.9 |
2011 |
165.3 |
220.3 |
2012 |
165.3 |
220.3 |
2013 |
165.3 |
220.3 |
2014 and after |
179.2 |
234.2 |
EFFECTIVE DATE: July 1, 2008
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.