Appropriations Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6438
AN ACT MAKING DEFICIENCY APPROPRIATIONS FOR THE FISCAL YEAR
Title: ENDING JUNE 30, 2021.
Vote Date: 4/21/2021
Vote Action: Joint Favorable Substitute
PH Date: 4/13/2021
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF THE BILL:
Governor Lamont
REASONS FOR BILL:
The bill authorizes funds for several state agencies to allow them to cover shortfalls in the
current fiscal year. Since it is difficult to anticipate extraordinary circumstances that may
place additional demands on agencies (court orders, increased caseloads, public health
concerns, etc.), deficiency appropriations are necessary in order for agencies to meet their
fiscal obligations.
SUBSTITUTE LANGUAGE: (LCO 7175) The substitute language is an update and
refinement of the available financial information and greater detail of the disbursements. The
substitute bill also includes and delineates the use of the unexpended balance of funds
appropriated to DSS under Medicaid.
RESPONSE FROM ADMINISTRATION/AGENCY:
Melissa McCaw, Secretary, Office of Policy and Management, outlined projected necessary
changes to the underlying bill as of March 19, 2021. She noted that further adjustments were
anticipated before the bill went to the House Floor. The Secretary highlighted the need for 25
million dollars to completely cover COVID-19 testing costs. The Office of Policy and
Management would stand ready to assist the Committee and the Office of Fiscal Analysis in
any way.
Dr. Andrew Agwunobi, CEO, UConn Health, said that the Health Center's deficit was due to
sharply decreased clinical revenue due to the pandemic. Another driver was the unfunded
legacy costs assigned to the Health Center to help cover unfunded pension liabilities, noting
that most other agencies did not incur these costs. They requested an additional 22.7 million
dollars beyond the 50 million dollars proposed in the bill for this purpose.
Kevin Lembo, Comptroller, Office of the State Comptroller, testified for the purpose of putting
on the record that, after conversations with OPM, the Office of the Comptroller would not be
offering fringe benefit support for appropriations made to the University of Connecticut Health
Center.
Miriam Delphin-Rittmon, Commissioner, Dept. of Mental Health and Addiction Services, said
that the agency's deficiency was due primarily to increased needs in the Professional
Services line item for contracted doctors and nurses and in the Worker's Compensation line
item. They would be working closely with OPM to refine the numbers moving forward.
Dr. James Gill, Chief Medical Examiner, testified that the FY20 budget did not anticipate the
increased demands on the office due to the pandemic. The deficiencies appeared in the
funds for staffing costs, primarily overtime and shift differential pay.
David Lehman, Commissioner, Dept. of Economic and Community Development, the
deficiency in the agency budget was largely due to a COVID-19 shortfall of revenue in the
Capitol Region Development Authority's budget.
Joseph Geremia, CFO, Capital Region Development Authority, said that CRDA's budget is
primarily tied to revenues generated from managing the State's large entertainment and
sports venues, including the CT Convention Center, Rentschler Field and the XL Center.
Those venues, and their associated parking lots, had been suspended from activity during
the pandemic and thus revenue had not been generated. The costs of maintaining those
facilities were ongoing.
David Pajak, Director of Insurance and Risk Management, Dept. of Administrative Services,
testified that the additional funds from the Special Transportation Fund were needed to
support the operations of the State Insurance and Risk Management Board. Mr. Pajak said
that unanticipated increases in both rail and bus liability insurance premiums and several
large claim settlements that fell beyond the Board's standard projections accounted for the
shortfall.
\Angel Quiros, Commissioner, Dept. of Corrections, said that the Department's deficiencies
were experienced in the Personal Services and Inmate Services accounts driven by the
continuing needs of the pandemic. Some of the costs had been offset by a surplus in the
Pardons and Parole account.
NATURE AND SOURCES OF SUPPORT:
None Expressed
NATURE AND SOURCES OF OPPOSITION:
None Expressed
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Reported by: Elizabeth Gillette Date: April 28, 2021
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