SR 12 — RESOLUTION PROPOSING APPROVAL OF AN AGREEMENT BETWEEN THE STATE OF CONNECTICUT AND THE STATE EMPLOYEES BARGAINING AGENT COALITION (SEBAC).

Senate General Assembly SenateFile Resolution No.

12466 February Session, 2024 LCOSenate Resolution No.

362712 ReferredSenate, toApril 12, 2024 The Senate Committee on APPROPRIATIONSAppropriations Introducedreported by:through SEN.OSTENofthe19thDist.,Chairperson oftheCommittee on the part of the Senate, that the resolution ought to be adopted.

SEN.

LOONEY, 11 Dist.

APP Senate Favorable LCOSR12 1/ ofFile 1No.

466 1 SR12 File No.

466 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:

See Below Municipal Impact:

None Explanation The resolution proposes approval of an agreement between the State of Connecticut and the State Employees Bargaining Agent Coalition (SEBAC).

This agreement covers one fiscal year for the period of July 1, - June 30, 2025.

The table below contains a summary of the provisions of the agreement and the associated costs to all appropriated funds.

SEBAC All Appropriated Funds Cost Estimate Description All Appropriated General Fund FY 25 $ FY 26 $ FY 25 $ FY 26 $ Wages General Wage Increase (GWI) 68,214,052 70,844,859 60,442,869 62,762,829 Annual Increment (AI) 34,962,800 57,852,286 31,146,522 50,251,123 Other Adjustments 2,804,033 2,748,088 2,804,033 2,748,088 Total Wages 105,980,885 131,445,233 94,393,424 115,762,040 Fringe Social Security, Medicare, and Unemployment 8,107,538 10,055,560 7,221,097 8,681,052 Other Post Employment Benefits (OPEB) 1,197,584 1,485,331 1,066,646 1,282,299 State Employee Retirement System (SERS) 5,913,733 7,334,644 5,267,153 6,332,061 Total Fringe 15,218,855 18,875,535 13,554,896 16,295,412 Constituent Units of Higher Education 32,700,000 32,700,000 32,700,000 32,700,000 Total 153,899,741 183,020,768 140,648,320 164,757,453 SR12 / File No.

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466 General Wage Increase and Annual Increment - Employees will receive a General Wage Increase (GWI) of 2.5% and an Annual Increment (AI) in FY 25.

Increases in costs between FY 25 and FY 26 are due to the annualization of the increases provided in FY 25.

Other Adjustments – The table below provides a summary of additional adjustments that were part of the agreement and their associated cost.

SEBAC All Appropriated Funds Other Adjustments Summary Description FY 25 $ FY 26 $ Health Non-Professional (NP-6) & Health Professional (P-1) Overtime and Shift Diff for Some Mobile Crisis Staff 79,608 79,608 Increase Grades for Supervising Psychologists 197,978 197,978 Assistant Attys General (P-6) & Asst AG-Dept Heads (P-7) Increase for Employees Receiving Less Than 5% Promotional Increase 178,157 186,263 Lump Sum for Retirement Eligible Employees Receiving Less Than 5% Promotional Increase 64,051 - St Vocation Federation Teacher Supplemental Response/Degree Scale 1,260,970 1,260,970 Professional Development Funding 650,000 650,000 Stipend for Equity/Lacrosse/Library/Media 373,269 373,269 Total 2,804,033 2,748,088 Fringe Benefits– SocialSecurity,Medicare, andretiree health related fringe benefit costs will be incurred based on the wage related provisions negotiated in the contract.

The FICA rate is 7.65% of salary.

The state contribution towards retiree health is 1.13%.

Impact to Retirement – Employees covered by this contract are members of the State Employees' Retirement System (SERS).

The pension impact of the wage related provisions assumes an average normal cost SERS rate of 5.58%.

The FY 24 and FY 25 actuarially SR12 / File No.

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466 determined contributions (ADEC) are set in the June 30, 2023, annual valuation.

Constituent Units of Higher Education - The total impact to Connecticut State Colleges and Universities, University of Connecticut, and University of Connecticut Health Center is approximately $70 million per year beginning in FY 25.

It is uncertain the total amount of funds that the Office of Policy and Management (OPM) may dedicate from the Reserve for Salary Account (RSA) to support the constituent units.

Providing funding equal to 4.5% of the FY 25 block grant appropriations ($726.6 million) would result in a transfer of approximately $32.7 million from RSA to the constituent units of higher education.

Funding Availability – Based on the most recent quarterly report provided by the Office of Policy and Management (OPM) and including the FY 25 Reserve for Salary Adjustment (RSA) appropriation, the current available fund balance of the General Fund RSA account is $190.1 million.

If the appropriated funds requirements total of $153.9 million for the SEBAC agreement relied on transfers from the General Fund RSA account, the remaining balance would be approximately $36.2 million.

Member Overview – There are approximately 46,000 state employees covered by this agreement.

These figures include both full- time and part-time employees.

Non-Appropriated Fund Impact - The agreement impacts state employees that are supported by non-appropriated funds including state employees working for the constituent units of higher education and those that are supported through federal funds.

SR12 / File No.

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466 The Out Years This contract will expire effective June 30, 2025.

The wage provisions of this resolution will remain in effect in future years subject to the outcome of the collective bargaining process.