GFOA PresentationGFOA PresentationApril 2, 2009April 2, 2009

Presentation to thePresentation to theGovernment Finance Officers Association CTGovernment Finance Officers Association CT

2009 Legislative Session2009 Legislative Session

Prepared byPrepared by

Guinan Associates Guinan Associates

General 2009 Session InfoGeneral 2009 Session Info

Long sessionLong session»» Began on January 7, 2009Began on January 7, 2009»» Ends June 3, 2009Ends June 3, 2009

Budget YearBudget Year::»» The Legislature needs to adopt a balanced The Legislature needs to adopt a balanced

two year budget.two year budget.

SENATE 2008SENATE 2008

36 Total Members36 Total Members1 New Member1 New Member2424 DemocratsDemocrats12 Republicans12 Republicans

Big ChangeBig ChangeRegained a Supermajority!Regained a Supermajority!

HOUSE 2009HOUSE 2009

151 151 Total MembersTotal Members26 New Members26 New Members114 Democrats !!!114 Democrats !!!

37 Republicans37 RepublicansDemocrats gained 7 seats in the 2008 Democrats gained 7 seats in the 2008

electionselections

Big Issues for the SessionBig Issues for the Session

The BudgetThe BudgetThe Budget The Budget The BudgetThe Budget

Previous Deficit Mitigation PlansPrevious Deficit Mitigation Plans

November 24, 2008: November 24, 2008: $71.8 million$71.8 millionJanuary 14, 2009:January 14, 2009: $131 million$131 millionFebruary 25, 2009:February 25, 2009: $1.2 billion$1.2 billion

FY 09 current deficit:FY 09 current deficit: $575 million$575 million

State Deficit OutlookState Deficit Outlook

Projected DeficitProjected Deficit

FY 10FY 10FY 10FY 10

FY 11FY 11FY 11FY 11

$2.9 Billion (OPM)$2.9 Billion (OPM)$3.9 Billion (OFA)$3.9 Billion (OFA)

$3.1 Billion (OPM)$3.1 Billion (OPM)$4.7 Billion (OFA)$4.7 Billion (OFA)

Comparison: DifferenceComparison: Difference

The Governor

$6 Billion

LegislativeLegislative

$8.6 Billion$8.6 Billion

GovernorGovernor’’s Budget Changess Budget ChangesFY 10: .01% decrease in FY 10: .01% decrease in state spendingstate spending

General Fund FY 09General Fund FY 09--$18.5 billion$18.5 billionGeneral Fund FY 10General Fund FY 10--$17.5 billion$17.5 billion

FY 11: 3.5% increase in FY 11: 3.5% increase in state spendingstate spending

General Fund General Fund Expenditures FY 11Expenditures FY 11--$18.1 billion$18.1 billion

The Governor has The Governor has proposed cutting state proposed cutting state spending by $1.07 spending by $1.07 Billion in FY 10, and Billion in FY 10, and by $1.25 Billion in FY by $1.25 Billion in FY 11 from the proposed 11 from the proposed levels adopted during levels adopted during the 2007 legislative the 2007 legislative session.session.

Closing the FY 10 Budget GapClosing the FY 10 Budget Gap

$978.70

$800.10

$275

$514.50

$178.30

$159.50

Fed $

Spending Cuts

Employee Savings

Rainy Day Fund

Fund Transfers

Fee Increases

Closing the FY 11 Budget GapClosing the FY 11 Budget Gap

$980.90

$275

$680.10

$585.50

$350

$136.10

$100.80

Spending Cuts

Employee Savings

Fed $

Rainy Day

Securitazation

Fund Tansfers

Fee Increases

GovernorGovernor’’s Funding for s Funding for MunicipalitiesMunicipalities

Municipal Aid makes up $2.9 billion of the state budget Municipal Aid makes up $2.9 billion of the state budget The Governor has stated that any cuts in municipal aid is The Governor has stated that any cuts in municipal aid is only shifting the burden to towns and local taxpayersonly shifting the burden to towns and local taxpayersGovernorGovernor’’s budget maintains town aid for both years of the s budget maintains town aid for both years of the bienniumbienniumProvides relief from unfunded mandatesProvides relief from unfunded mandatesProvides incentives to encourage regional cooperation and Provides incentives to encourage regional cooperation and delivery of servicesdelivery of services

Unfunded Mandate ReliefUnfunded Mandate Relief

Prohibit new mandates unless approved by Prohibit new mandates unless approved by a 2/3rd vote of the General Assemblya 2/3rd vote of the General AssemblyDelay implementation of the InDelay implementation of the In--School School Suspension requirements until 2012Suspension requirements until 2012Provides towns 30 days to post meeting Provides towns 30 days to post meeting minutes and delays implementation until minutes and delays implementation until 1/1/101/1/10

GovernorGovernor’’s Revenue Proposalss Revenue Proposals

Governor RellGovernor Rell’’s budget proposal does not include s budget proposal does not include new or increased taxes.new or increased taxes.There are numerous fee increases on businesses, There are numerous fee increases on businesses, professional services and increases for licenses professional services and increases for licenses and registrations. 50and registrations. 50--200% Increases200% IncreasesThe Governor has also increased revenue from an The Governor has also increased revenue from an expanded bottle bill law.expanded bottle bill law.

Regional IncentivesRegional Incentives

New Regional New Regional Incentive GrantIncentive Grant$40 million of Bond $40 million of Bond FundsFunds

Minimum of 3 towns, Minimum of 3 towns, serving 50,000serving 50,000-- up to up to $3million$3millionFour or more towns, Four or more towns, serving less than serving less than 50,000 people50,000 people-- up to up to $1 million$1 million

Regional IncentivesRegional Incentives

Towns that meet criteria for Regional Towns that meet criteria for Regional Incentive Grants will receive:Incentive Grants will receive:

10% bonus in 10% bonus in LoCIPLoCIP for 3 yearsfor 3 years10% bonus in Town Aid Road for 3 years.10% bonus in Town Aid Road for 3 years.

Bonuses to be paid from existing fund!!!Bonuses to be paid from existing fund!!!

Regional IncentivesRegional Incentives

MCEP programMCEP program

MMunicipal unicipal CCapital apital EExpenditure xpenditure PProgramrogram»» $10 million of bond funding for cooperative $10 million of bond funding for cooperative

purchases of equipment with a useful life of at least purchases of equipment with a useful life of at least 5 years5 years

»» Will cover 75% of municipal costs up to $250,000Will cover 75% of municipal costs up to $250,000

GovernorGovernor’’s Education Proposals Education Proposal

No Reductions to the ECS Grant No Reductions to the ECS Grant for the upcoming bienniumfor the upcoming biennium

Maintains ECS funding at FY 08 levelsMaintains ECS funding at FY 08 levels

Maintains increased preMaintains increased pre--school slotsschool slots

Maintains aid for Higher EducationMaintains aid for Higher Education

Reduction of State Police ServicesReduction of State Police Services

Governor Rell has recommended eliminating the Governor Rell has recommended eliminating the State Resident Trooper ProgramState Resident Trooper Program

Reduces state share from 30% to 15% effective 7/1/09Reduces state share from 30% to 15% effective 7/1/09Eliminates the program completely 7/1/10Eliminates the program completely 7/1/10

Eliminates 18 State Police School Resource Eliminates 18 State Police School Resource OfficersOfficers

As We SpeakAs We Speak……

Dem Budget and Tax Package Dem Budget and Tax Package deliberated in Committee.deliberated in Committee.Committee Vote TodayCommittee Vote Today

Full House and Senate vote next Full House and Senate vote next week.week.

FEDFED’’L Stimulus ChangesL Stimulus Changes

Dem Budget HighlightsDem Budget Highlights

Incentives, maybe mandates, for some Incentives, maybe mandates, for some regional cooperation. regional cooperation. IeIe. Health districts. Health districts

>$25 m>$25 m cut in Mashcut in Mash--Pequot fund each yr.Pequot fund each yr.Eliminate Property Eliminate Property TxTx credit on Income tax credit on Income tax for manyfor manyKept many of Gov. cutsKept many of Gov. cuts

GovernorGovernor’’s Bond Proposalss Bond Proposals

Recommended cancellation of $389 million Recommended cancellation of $389 million of previously approved general obligation of previously approved general obligation bondsbondsFY 10 $687.3 million in bonding for school FY 10 $687.3 million in bonding for school constructionconstructionFY 11 $641.6 million in bonding for school FY 11 $641.6 million in bonding for school constructionconstruction

Bonding CapBonding Cap

Even w/ GovernorEven w/ Governor’’s Cuts, Bonding at 96 % s Cuts, Bonding at 96 % allowable with new Rev estimates.allowable with new Rev estimates.Finance Bonding Subcommittee cut further Finance Bonding Subcommittee cut further to bring down to 90% allowable.to bring down to 90% allowable.Subcommittee will review after Finance Subcommittee will review after Finance Package released, 4/2, after 4/15 revenuePackage released, 4/2, after 4/15 revenue

Dem Bonding PackageDem Bonding Package

Not completed yetNot completed yetWill prioritize school construction and a Will prioritize school construction and a few shovel ready projectsfew shovel ready projectsOnly a few of projects cut by Gov will be Only a few of projects cut by Gov will be added back in.added back in.

Legislative InitiativesLegislative Initiatives

Legislative Education InitiativesLegislative Education Initiatives

HB 6688 Education Grants for Magnet SchoolsHB 6688 Education Grants for Magnet SchoolsSDE will award grants for each out of district studentSDE will award grants for each out of district studentFY 10FY 10--$3000 and FY 11$3000 and FY 11--$3500 $3500 where out of district students are less than 2% of the student where out of district students are less than 2% of the student

populationpopulationFY 10FY 10--$4000 and FY 11$4000 and FY 11--$5000$5000where out of district students are more than 2% of the student where out of district students are more than 2% of the student

populationpopulationFY 10FY 10--$6000 and FY 11$6000 and FY 11--$7000$7000where out of district students are equal to or greater than 3% where out of district students are equal to or greater than 3%

of the student populationof the student population

EducationEducation

SB 1142 Relief of State Mandates on SB 1142 Relief of State Mandates on School DistrictsSchool DistrictsEliminates the mandate that local and regional board Eliminates the mandate that local and regional board of education adopt and implement written policies of education adopt and implement written policies and procedures to encourage parentand procedures to encourage parent--teacher teacher communication. These policies may include monthly communication. These policies may include monthly newsletters, required regular contact with all parents, newsletters, required regular contact with all parents, flexible parentflexible parent--teacher conferences, dropteacher conferences, drop--in hours for in hours for parents, home visits and the use of technology such parents, home visits and the use of technology such as homework hot lines.as homework hot lines.

Local Revenue OptionsLocal Revenue Options

Local Hotel Tax Options: There are various bills that Local Hotel Tax Options: There are various bills that would allow municipalities to keep a portion of the hotel would allow municipalities to keep a portion of the hotel tax up to 3% of total revenue.tax up to 3% of total revenue.

HB 6558 Allows Municipalities to charge nonHB 6558 Allows Municipalities to charge non--profit profit entities for use of municipal services such as fire, police, entities for use of municipal services such as fire, police, garbage collection etc.garbage collection etc.

HB 6560 Allows municipalities to set fees and increase HB 6560 Allows municipalities to set fees and increase fines.fines.

SB 375 Authorizes the issuance of General Obligation SB 375 Authorizes the issuance of General Obligation Bonds to municipalities to pay pension obligations.Bonds to municipalities to pay pension obligations.

Possessions of Evicted TenantsPossessions of Evicted Tenants

HB 6388 An Act Providing Mandate Relief to MunicipalitiesHB 6388 An Act Providing Mandate Relief to Municipalities

Removes towns from mandated storage of the possession Removes towns from mandated storage of the possession of evicted tenants.of evicted tenants.

Shifts burden to State Marshals and Landlords.Shifts burden to State Marshals and Landlords.

Opposed by various groups including CT Legal Aid.Opposed by various groups including CT Legal Aid.

MegaMega--MandateMandate

HB 6194 An Act Concerning Additional WorkersHB 6194 An Act Concerning Additional Workers’’Compensation Presumptions for Firefighters, Compensation Presumptions for Firefighters, Police Officers and Emergency Rescue Workers.Police Officers and Emergency Rescue Workers.

Mandates w/c benefits for multiple cancersMandates w/c benefits for multiple cancersMandates coverage for hepatitis, meningitis and Mandates coverage for hepatitis, meningitis and TBTBThis represents a huge potential cost to This represents a huge potential cost to municipalitiesmunicipalities

..

HB 6187 An Act Mandating Employers HB 6187 An Act Mandating Employers Provide Sick Leave to EmployeesProvide Sick Leave to Employees

Mandates that employers including towns and Mandates that employers including towns and cities provide paid sick leave to all employees full cities provide paid sick leave to all employees full and part time.and part time.Leave would accrue at the rate of 1 hour for each Leave would accrue at the rate of 1 hour for each 40 hours work.40 hours work.Leave can be used for illness, illness of child, or Leave can be used for illness, illness of child, or for the employee that is subject to family violence for the employee that is subject to family violence or sexual assault.or sexual assault.

HB 6541 An Act Concerning Firefighter I HB 6541 An Act Concerning Firefighter I Certification RequirementsCertification Requirements

Makes voluntary training standards Makes voluntary training standards mandatory.mandatory.

Provides no funding to cover the cost.Provides no funding to cover the cost.

HB 6496 An Act Concerning Green Cleaning HB 6496 An Act Concerning Green Cleaning Products in SchoolsProducts in Schools

Requires use of cleaning products that have been Requires use of cleaning products that have been certified as certified as ““greengreen”” by an independent third party.by an independent third party.Mandates training and refresher courses for all Mandates training and refresher courses for all facility managers and custodians.facility managers and custodians.Towns must provide notice of the green cleaning Towns must provide notice of the green cleaning program to parents via mail and posting on each program to parents via mail and posting on each individuals school website.individuals school website.

Smart Growth Smart Growth

Priority for Rep. Sharkey, new P & D ChairPriority for Rep. Sharkey, new P & D Chair

CCM is a member of the Smart Growth CCM is a member of the Smart Growth Working Group and supports several Working Group and supports several initiatives.initiatives.

Health Insurance Coverage MandatesHealth Insurance Coverage Mandates

Bone Marrow TestingBone Marrow TestingRequires Wellness IncentivesRequires Wellness IncentivesCoverage for Ostomy SuppliesCoverage for Ostomy SuppliesCoverage for Hearing Aids for ChildrenCoverage for Hearing Aids for ChildrenPrescription Eye Drop RefillsPrescription Eye Drop RefillsCoverage for WigsCoverage for Wigs

GFOA Bill GFOA Bill TrackingTracking(What(What next?)next?)

Guinan Associates has flagged 324 bills for Guinan Associates has flagged 324 bills for GFOA for the 2009 legislative sessionGFOA for the 2009 legislative session

127 bills are currently moving though the 127 bills are currently moving though the legislative processlegislative process

Many of the Many of the ““deaddead”” can still come back can still come back through the amendment process!!through the amendment process!!

WHAT NEXT???WHAT NEXT???

Are there measures that cost the state Are there measures that cost the state nothing today, that could provide real relief nothing today, that could provide real relief for you?? They could still happen.for you?? They could still happen.Talk to your Legislators.Talk to your Legislators.You are respected in Finance Matters.You are respected in Finance Matters.Local Officials and CCM.Local Officials and CCM.Call us.Call us.

Questions ???Questions ???

Guinan AssociatesGuinan AssociatesGovernment and Community RelationsGovernment and Community Relations

Mary Phil GuinanMary Phil Guinan PresidentPresident

Michael DuganMichael Dugan Vice President of Vice President of Government RelationsGovernment Relations

M. Randall Collins Jr.M. Randall Collins Jr. Government Relations Government Relations AssociateAssociate

Rebecca BrockwayRebecca Brockway Association ManagementAssociation ManagementChangeWorkChangeWork Training and FacilitationTraining and Facilitation