SB 425 — AN ACT REQUIRING ANNUAL STATE AGENCY PERFORMANCE PLANS.

Senate General Assembly RaisedFile Bill No.

425362 February Session, 2026 LCOSubstitute Senate Bill No.

2593425 ReferredSenate, toApril 2, 2026 The Committee on GOVERNMENTGovernment OVERSIGHTOversight Introducedreported by:through SEN.

(GOS)GADKAR-WILCOX ANof ACTthe REQUIRING22nd ANNUALDist., STATEChairperson AGENCYof PERFORMANCEthe PLANS.Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT REQUIRING ANNUAL STATE AGENCY PERFORMANCE PLANS.

(b) Not later than July 1, 2027, and annually thereafter, each state agency shall develop and implement aan annual performance plan that outlines the state agency's strategic and operational goals.

The Office of Policy and Management shall establish guidelines for suchthe plansperformance andplansandshallprovidetraining shallandtechnical provide training and technical assistance ininperformance plan development and implementation to state agencies upon request.

(c) Not later than January 1, 2028, and annually thereafter, each state agency shall report on the state agency's performance plan and its progresssSB425 in/ attainingFile the strategic and operational goals established in the state agency's plan developed pursuant to subsection (b) of this section during the prior year to the Office of Policy and Management, LCO No.

2593362 1 ofsSB425 2File Raised Bill No.

425362 progress in attaining the strategic and operational goals outlined in the state agency's performance plan from the prior year to the Office of Policy and Management, and shall concomitantly submit a copy of such report to the joint standing committee of the General Assembly having cognizance of such agency, in accordance with the provisions of section 11-4a of the general statutes.statutes, except in the case of the Office of State Ethics, Freedom of Information Commission, State Elections Enforcement Commission, State Contracting Standards Board, Office of Governmental Accountability and Public Utilities Regulatory Authority, such report shall only be submitted to such committee and not to said office.

The Office of Policy and Management shall institute regular performance evaluations of state agencies other than the Office of State Ethics, Freedom of Information Commission, State Elections Enforcement Commission, State Contracting Standards Board, Office of Governmental Accountability and Public Utilities Regulatory Authority, concerning their progress toward attaining the goals outlined inintheir their performance plansplansandsuch andevaluationsshalloccur such evaluations shall occur not less than every two years.

Section 1 October 1, 2026 New section Statement of Purpose:Legislative Commissioners:

ToIn requireSubsec. executive branch state agencies to develop and implement annual performance plans.

[Proposed(b), deletionsreferences areto enclosed"plan" inwere brackets.changed to "performance plan" for consistency, and Subsec.

Proposed(c) additionswas arereworded indicatedfor byclarity. underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

2593GOS 2Joint ofFavorable 2Subst.

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362 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do 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.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Various State Agencies GF - Potential See Below See Below Cost Policy & Mgmt., Off.

GF - Cost Up to 3.16 157,500 million State Comptroller - Fringe GF - Cost 65,650 65,650 Benefits1 Note:

GF=General Fund Municipal Impact:

None Explanation The bill requires (1) all state agencies to develop and implement annual performance plans by July 1, 2027, and submit a report by January 1, 2028, and (2) the Office of Policy and Management (OPM) to establish strategic plan guidelines and assist in plan development upon request.

This results in a potential cost to state agencies associated with developing this plan and submitting a report and a one-time cost of up to $3 million to OPM in FY 27 that is dependent on costs associated with developing the guidelines and which state agencies request assistance with plan development.

Any potential costs to state agencies may shift to OPM to the extent assistance is requested.

This bill also requires OPM to institute regular performance 1The 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 41.82% of payroll in FY 27.

2This analysis assumes an average cost of approximately $100,000 per state agency.

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362 evaluations at least every two years for certain state agencies beginning January 1, 2028.

This results in a cost of $159,600 in FY 27 and an annual cost of $157,500 beginning in FY 28 to OPM for a Division Director position and corresponding fringe benefit costs to the Office of the State Comptroller.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

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362 OLR Bill Analysis sSB 425 AN ACT REQUIRING ANNUAL STATE AGENCY PERFORMANCE PLANS.

SUMMARY This bill requires (1) state agencies (any executive branch agency or entity, including public higher education institutions) to develop and implement annual performance plans and submit a related report, with exceptions, and (2) the Office of Policy and Management (OPM) to institute regular performance plan evaluations, with exceptions.