AN ACT IMPLEMENTING THE REVENUE ITEMS IN THE BUDGET AND MAKING BUDGET ADJUSTMENTS, DEFICIENCY APPROPRIATIONS, CERTAIN REVISIONS TO BILLS OF THE CURRENT SESSION AND MISCELLANEOUS CHANGES TO THE GENERAL STATUTES.

OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ↓ (860) 240-0200

http: //www.cga.ct.gov/ofa

HB-6652

AN ACT IMPLEMENTING THE REVENUE ITEMS IN THE BUDGET AND MAKING BUDGET ADJUSTMENTS, DEFICIENCY APPROPRIATIONS, CERTAIN REVISIONS TO BILLS OF THE CURRENT SESSION AND MISCELLANEOUS CHANGES TO THE GENERAL STATUTES.

AMENDMENT

LCO No.: 8530

Agency Affected	Fund-Effect	FY 12 $	FY 13 $
Treasurer, Debt Serv.	GF - Savings	See Below	See Below
Treasurer, Debt Serv.	TF - Savings	See Below	See Below

Municipalities	Effect	FY 12 $	FY 13 $
Various Municipalities	Savings	See Below	See Below

Explanation

The amendment increases the threshold at which the payment of prevailing wages to construction workers is required, from $400, 000 to $800, 000 for new construction projects and from $100, 000 to $200, 000 for renovation and remodeling projects. This is expected to results in a savings to the state and municipalities for new construction projects and for renovation projects valued between these amounts. The savings will primarily be in bond funds (debt service payments) because most construction and renovation projects are funded with General Obligation (GO) or Special Tax Obligation (STO) bonds. The amount of the savings cannot be quantified but a 1996 study conducted by the Legislative Program Review and Investigations Committee on the impact of prevailing wage laws on the cost of construction concluded that these requirements add from 4% to 7% to the total cost of projects.

The table below provides a history of prevailing wage thresholds in CGS Sec. 31-53(g) :


PREVAILING WAGE THRESHOLDS
YEAR/ACT	NEW BUILDING	RENOVATIONS
PA 91-74	$400, 000	$100, 000
PA 85-355	$200, 000	$50, 000
PA 79-325	$50, 000	$10, 000
1961	$5, 000	$5, 000

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does 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.