April financials: contributions rise while benefit payouts drive budget variances at CT Paid Leave Authority

The Connecticut Paid Leave Finance and Audit Committee reviewed April financials May 22 and heard that the program continues to experience strong contribution inflows alongside elevated benefit payouts that are widening year‑to‑date variances versus budget.

Dave (staff presenting the budget review) said operating account activity for April was just under positive $3 million. Operating expenses for the month totaled about $1.069 million, including payroll and benefits (~$686,000), the contact center (~$137,000), outreach (~$145,000) and software licenses (~$34,000). Year‑to‑date operating activity is negative roughly $8.9 million; that figure includes a $14.2 million redesignation transfer from operating reserves to the contribution fund earlier in the fiscal year.

For April benefit payouts, Dave reported nearly $40.4 million paid — a weekly run rate of roughly $10.1 million — which is a modest increase from the prior month. Contribution net activity for April was reported at $102 million for the month; for the most recent quarter contributions totaled $150.7 million, 5% higher than the same quarter a year earlier. Staff noted that newly included non‑certified school employees accounted for $3.3 million of the quarter‑over‑quarter increase (about 46% of the quarter’s incremental change).

Dave said the contribution fund cash balance on a cash basis at the end of April was over $662 million and total assets were just under $671.5 million, with the largest holding ($636 million) in short‑term investments. On projections, the operating reserve fund is expected to show roughly negative $11.9 million of activity for the year (including the redesignation), and the contribution fund is projected to show negative roughly $14 million of activity as higher benefit payments persist.

In Q&A, Mike asked whether the Authority can track how many employees are subject to the program over time; staff said the covered population estimate is about 1.5 million and noted employer‑reported counts can be unreliable (national employers sometimes report total employees rather than Connecticut‑only counts). Staff said they use estimation approaches and will continue to monitor population and wage trends to inform projections.

No motions or votes were taken because the committee did not have a quorum; staff will continue to monitor contribution and benefit trends and incorporate that analysis into future projections and recommendations.