CT Paid Leave Authority staff report December shortfall but fund balance remains strong; minutes tabled after no quorum

Dave, a staff member, told the CT Paid Leave Authority at its meeting that for the month of December 2025 the authority’s operating results were "just over negative $959,000," and he described a $234,000 positive variance for that month.

He said payroll and related expenses for December were $676,000, contact-center costs $136,000, outreach $90,000 and software licenses $21,000. Year to date (including a redesignation transfer), Dave said the authority’s results were negative $12,600,000 with an overall positive variance of about $1.6 million against the budget, while noting a roughly $52,000 negative variance in fund recovery penalties.

On the contribution account, Dave said monthly activity was "just over negative $37,000,000," producing a $1,036,000 negative variance for December. He identified benefits paid as the main driver, reporting benefits spending just under $38,000,000 for the month (about $9.5 million per week) and a benefits-related negative variance of about $1.6 million year to date.

Dave reported contributions for the month of about $822,000 (a $490,000 positive variance), fund recovery receipts near $53,000, and investment income around $1,900,000. He said the portfolio was earning about 3.9% at present versus a budgeted rate of about 4.1%.

Year-to-date activity across funds, Dave said, was almost negative $11,700,000, which he described as roughly a $21,400,000 negative variance versus budget. He attributed that variance primarily to two items: benefit spending that was about $16.5 million higher than budgeted and contribution revenue running about $6.5 million below budget. He said the contribution fund balance remained over $574,100,000—about $8,000,000 higher than the same time last year.

On the balance sheet, Dave listed total assets at $579,700,000 and said the short-term investment fund accounted for most of that ($556,000,000). He said bond funds available were about $1,100,000, operating funds just over $2,100,000, an impressed account at Aflac held $17,000,000 for benefit payments, fixed assets were $2,200,000, and liabilities were about $11,200,000; Dave noted the next bond repayment in June.

Looking ahead, Dave said the year-end projection (including the redesignation transfer) is expected to be negative $12,700,000, a $1,600,000 positive variance versus budgeted expectations. He cited payroll timing (positions being filled later than budgeted), a lower-than-expected pension overhead rate and reduced IT consultant spending as the principal drivers of the favorable variance.

Dave provided economic context, noting Connecticut labor-market indicators were cooling (slower job growth and declining labor-force participation) and an unemployment rate of about 3.8%. He mentioned a recent Macy’s layoff announcement of roughly 1,000 employees as part of that backdrop. He said contributions for the latest quarter were due next week and that staff, working with actuaries at Spring, would analyze the incoming data and update projections if warranted.

Melissa, a board member, asked whether a slide showing month-over-month revenue growth (about $800,000) was consistent with a year-to-date decline. She asked, "Was that—was that correct?" Dave responded that the monthly positive variance likely reflected timing differences (some employers and employees pay during the month rather than at quarter end), and that December results also included refunds paid for overpayments and one-time items discussed previously. He said January contributions were expected to be closer to $95 million–$100 million and that staff would reassess when the quarter’s data were available.

Because the body did not have a quorum, the presiding officer announced that approval of the Dec. 19 minutes would be tabled until the next meeting. Members noted they could not make a formal motion to adjourn; the presiding officer closed the meeting administratively at 09:21.

Next steps: staff will analyze the incoming quarterly contribution data with actuaries and present any recommended projection adjustments at the next board meeting. The Dec. 19 minutes remain tabled until the authority has a quorum.