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CT Paid Leave Authority reviews five‑year expenses as benefits top $445 million
Summary
Authority staff presented a five‑year historical review showing operating expenses at roughly $37–$39 million while benefits paid rose to more than $445 million; staff said expense share has declined and highlighted major categories including benefit administrative fees, payroll, outreach and IT.
The Connecticut Paid Leave Authority reviewed its five‑year expense trends on Oct. 9, presenting data that show operating expenses running roughly $37 million to $39 million while benefit payments have climbed to more than $445,000,000.
David "Dave" Salazar Austin, who led the finance review, told the board the proportion of expenses to total outlays has fallen—from about 22.7% in fiscal year 2022 (a partial year of benefits) to around 8% in the most recent year—because benefits have grown faster than administrative costs. He identified the largest administrative categories as benefit administrative fees paid to Aflac, authority administrative fees, payroll, contact center costs and outreach spending.
Salazar Austin said the authority's paid‑leave administrative expenses have run roughly $12 million to $14 million in recent years, with outreach spiking to about $1.4 million in FY25 because the authority launched a Community Education Coordinator (CEC) initiative. Payroll increased materially early in the agency's life—from about $2 million to $5 million in one year—when staff rose from 19 to 33 full‑time equivalents, he said, but the authority is now hiring more selectively.
The presentation also noted a roughly $2.1 million annual bond repayment (current interest around 3.5%) for systems investments, a completed state seed‑repayment obligation in October 2022, and year‑to‑date investment income and contribution account balances that staff described as healthy. Salazar Austin said fund‑recovery activity (printing, postage and other costs) produced penalties and interest that more than covered the recovery expenses.
During questions, board members pressed for more detail on penalty revenue and staffing. Salazar Austin said he would provide a fuller penalty‑revenue breakdown in the regular financial statement presentation but reported later in the meeting that fund‑recovery penalties were $672,000 for fiscal 2025 and $809,000 in the first full year penalties were instituted; year‑to‑date fund‑recovery activity was described as roughly $1,950,000. He said benefit payment run‑rates averaged roughly $9.6 million–$9.9 million per week in recent months.
The authority's contribution account was reported as over $629,700,000. Staff emphasized conservative budgeting and a practice of underspending budgets when appropriate, noting a procurement process (RFP) and selective use of external consultants to control costs.
The board did not take formal action tied to this presentation beyond asking for additional follow‑up on penalty revenues and a request to match union classifications to the operating chart for clarity on which positions are covered by collective bargaining.
