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Budget Snapshot: K-12 Education Funding in Appropriations Committee's Budget, FYs 2026-27

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On April 22, 2025, the Connecticut General Assembly's Appropriations Committee introduced and passed its recommended state budget for fiscal years 2026 and 2027. In addition to adjusting funding for K-12 public education, the proposed budget contains a number of policy changes that impact students and districts throughout Connecticut.

This nonpartisan analysis details these changes to state education funding in the Appropriations Committee's budget, and provides a brief overview of the general fiscal outlook of the state budget and economy.

Key Takeaways & Changes in Governor's Budget Proposal

Education Cost Sharing (ECS) Funding

  • Completes the ECS formula phase-in schedule
    • Fully funds ECS grants in FY 2026, and beyond, for towns considered "underfunded" according to the ECS formula.
  • Continues ECS hold harmless provision for "overfunded" towns
    • Under current law and Governor Lamont's budget proposal, towns considered "overfunded," according to the ECS formula, would receive gradual decreases in their ECS grants beginning in FY 2026.
    • The Appropriations Committee's budget pauses any decreases for the next two fiscal years and holds "overfunded" towns harmless at their FY 2025 grant amounts.

Special Education

  • Provides historic increase in Excess Cost grant funding
    • An additional $124 million would be allocated to the grant in both FY 2026 and FY 2027.
  • Establishes grant to incentivize creation of in-district programs
    • $9.9 million would be appropriated in FY 2027 for districts creating specialized in-district special education programs to reduce outplacements. 

Magnet Schools, AgriScience Programs, and Charter Schools

  • Continues partial implementation of student-centered funding for FY 2026 and future years
    • Maintains partial extension of ECS weighted funding to students attending public schools of choice (magnet schools, AgriScience programs, and charter schools).
    • Students at magnet schools and AgriScience programs would continue to receive 42% of their full weighted funding amount.
    • Charter school students would continue to receive 56.7% of their full weighted funding amount.
  • Maintains cap on general education tuition charged by magnet schools and AgriScience programs
    • The per-student tuition amount an operator of a magnet school or an AgriScience program may charge a local or regional school district would remain capped at 58% of the per-student tuition amount the operator charged in FY 2024.
  • Funds new charter schools in New Haven and Stamford
    • An additional $2.5 million would be appropriated in FY 2026 and FY 2027 to open the Stamford Big Picture Learning Academy and Taino Co-LAB New Haven.

Citation
School and State Finance Project. (2025). Budget Snapshot: K-12 Education Funding in Appropriations Committee's Budget for FYs 2026-27. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/Appropriations%20Committee%20Budget%20FYs%20
2026%20and%202027%20-%20Education%20Funding%20Snapshot.pdf.

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Snapshot