HB 7403 — AN ACT CONCERNING THE DATE FOR SUBMITTAL OF THE FISCAL ACCOUNTABILITY REPORT AND ELIMINATING THE NOVEMBER HEARING ON PROJECTED STATE AGENCY DEFICIENCIES.

General Assembly SubstituteRaised Bill No.

7403 January Session, 2019 ANLCO ACTNo. CONCERNING THE DATE FOR SUBMITTAL OF THE FISCAL ACCOUNTABILITY REPORT AND ELIMINATING THE NOVEMBER HEARING ON PROJECTED STATE AGENCY DEFICIENCIES.

6666 Referred to Committee on APPROPRIATIONS Introduced by:

(APP) AN ACT CONCERNING THE STATE BUDGET PROCESS.

Subsection(Effective (b)from passage) The Secretary of the Office of Policy and Management shall study issues relating to the state budget process, including, but not limited to, the date of adoption for portions of the budget relating to municipal aid, the adoption of revenue projections in relation to adoption of the budget, the date of deficiency hearings pursuant to section 2-36b2-36a of the general statutes isand repealedthe anddates of submission for the followingreports isrequired substitutedpursuant into lieusection thereof2-36b (Effectiveof Octoberthe 1,general 2019):statutes and consensus revenue estimates pursuant to section 2-36c of the general statutes.

(b)Not Onlater orthan beforeFebruary November1, [fifteenth]2020, twentieth, annually, the Secretarysecretary ofshall thesubmit Officesuch ofstudy, Policyin andaccordance Managementwith andsection the11-4a director of the legislativegeneral Officestatutes, of Fiscal Analysis shall each submit the following to the joint standing committeescommittee of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agenciesagencies. and finance, revenue and bonding:

(1)This Foract theshall currenttake bienniumeffect andas thefollows nextand ensuingshall threeamend fiscal years, a consensus estimate of state revenues developed in accordance with subsection (a) of section 2-36c, an estimate of the levelfollowing ofsections: expenditure change from current year expenditures allowable by consensus revenue estimates in each fund, any changes to current year expenditures necessitated by fixed cost drivers, and the aggregate changes to current year expenditures required to accommodate fixed cost drivers without exceeding current revenue estimates;

(2) the projected tax credits to be used in the current biennium and the next ensuing three fiscal years, LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07403-R011 of 2 HB.docx Substitute Bill No.

74036666 and1 theof assumptions2 onRaised whichBill suchNo. projections are based;

(3)7403 afrom summarypassage ofSection any1 estimatedNew deficienciessection inStatement theof currentPurpose: fiscal year, the reasons for such deficiencies, and the assumptions upon which such estimates are based;

(4)To therequire projecteda balancestudy in the Budget Reserve Fund at the end of each uncompleted fiscal year of the currentstate bienniumbudget andprocess. the next ensuing three fiscal years;

(5)except thethat projectedwhen bondthe authorizations,entire allocationstext and issuances in each of thea nextbill ensuingor fiveresolution fiscalor yearsa andsection theirof impacta onbill theor debtresolution serviceis ofnew, theit majoris fundsnot ofunderlined.] theLCO state;No.

(6)6666 an2 analysis of revenue2 and expenditure trends and of the major cost drivers affecting state spending, including identification of any areas of concern and efforts undertaken to address such areas, including, but not limited to, efforts to obtain federal funds;

and (7) an analysis of possible uses of surplus funds, including, but not limited to, the Budget Reserve Fund, debt retirement and funding of pension liabilities.

For purposes of this section, "fixed cost drivers" may include costs related to debt service, pension contributions, retiree health care, entitlement programs and federal mandates.

Sec.

2.

Section 2-36a of the general statutes is repealed.

(Effective October 1, 2019) This act shall take effect as follows and shall amend the following sections:

Section 1 October 1, 2019 2-36b(b) Sec.

2 October 1, 2019 Repealer section APP Joint Favorable Subst.

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