HB 7267 — AN ACT CONCERNING THE FISCAL ACCOUNTABILITY REPORT.

Substitute House ofBill Representatives General Assembly File No.

8667267 JanuaryPublic Session,Act 2025 Substitute House Bill No.

726725-140 HouseAN ofACT Representatives,CONCERNING MayTHE 8,FISCAL 2025ACCOUNTABILITY TheREPORT. Committee on Finance, Revenue and Bonding reported through REP.

HORN of the 64th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING THE FISCAL ACCOUNTABILITY REPORT.

(b) On or before November twentieth, annually, the Secretary of the Office of Policy and Management and the director of the legislative Office of Fiscal Analysis shall each submit the following to the joint standing committees of the General Assembly having cognizance of sHB7267matters /relating Fileto No.appropriations and the budgets of state agencies and finance, revenue and bonding:

866(1) 1For sHB7267the Filecurrent biennium and the next ensuing three fiscal years, a consensus estimate of state revenues developed in accordance with Substitute House Bill No.

8667267 matterssubsection relating(a) toof appropriationssection and2-36c, an estimate of the budgetslevel of stateexpenditure agencieschange andfrom finance,current year expenditures allowable by consensus revenue estimates in each fund, any changes to current year expenditures necessitated by fixed cost drivers [,andtheaggregate changesto current year expenditures required to accommodate fixed cost drivers without exceeding current revenue estimates] and bonding:an estimate of material and likely changes to nonfixed costs;

(1) For the current biennium and the next ensuing three fiscal years, a consensus estimate of state revenues developed in accordance with subsection (a) of section 2-36c, an estimate of the level of 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 [,andtheaggregate changesto current year expenditures required to accommodate fixed cost drivers without exceeding current revenue estimates] and an estimate of material and likely changes to nonfixed costs;

and (7) [an] An analysis of [possible uses of surplus funds, including, but not limited to, the Budget Reserve Fund, debt retirement and funding of pension liabilities] the state's preparedness for plausible recession scenarios, including estimates of the size of multiyear budget deficits sHB7267that /may Fileresult from revenue declines and other contingencies, and an assessmentofthesufficiencyoftheBudgetReserveFundandotherstate Public Act No.

86625-140 2 sHB7267of File3 Substitute House Bill No.

8667267 that may result from revenue declines and other contingencies, and an assessmentofthesufficiencyoftheBudgetReserveFundandotherstate resources to address such budget deficits.

ThisGovernor's actAction: shall take effect as follows and shall amend the following sections:

SectionApproved 1July from8, passage2025 2-36bPublic FINAct JointNo. Favorable Subst.

sHB726725-140 /3 Fileof No.3

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866 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:

None Municipal Impact:

None Explanation The modifiedreporting requirementsinthebillhave no fiscalimpact, as they fall within the scope of the agencies' existing expertise.

The Out Years State Impact:

None Municipal Impact:

None sHB7267 / File No.

866 4 sHB7267 File No.

866 OLR Bill Analysis sHB 7267 AN ACT CONCERNING THE FISCAL ACCOUNTABILITY REPORT.

SUMMARY This bill changes specified components of the annual legislative reports the Office of Policy and Management and Office of Fiscal Analysis must submit on revenue and spending estimates for the current biennium and the three following fiscal years (fiscal accountability reports).

Specifically, the bill requires the reports to include an:

1.

estimate of material and likely changes to nonfixed costs, in addition to spending changes due to fixed cost drivers, as current law requires, and 2.

analysis of the state’s preparedness for plausible recession scenarios, including (a) estimating the size of multiyear budget deficits from revenue declines and other contingencies and (b) assessing whether the Budget Reserve Fund and other state resources are enough to address these deficits.

The bill also eliminates the requirements that the reports include (1) the total spending change required to accommodate fixed cost drivers without exceeding current revenue estimates and (2) an analysis of possible uses of surplus funds, including paying into the Budget Reserve Fund, retiring debt, and funding pension liabilities.

As under existing law, the reports must include:

1.

estimated level of spending change from current year spending allowed by consensus revenue estimates in each fund;

2.

any changes to current year spending needed due to fixed cost sHB7267 / File No.

866 5 sHB7267 File No.

866 drivers,suchasdebtservice,pensioncontributions,retireehealth care, entitlement programs, and federal mandate costs;