Budget Snapshot: Education Funding in Governor's Proposed Budget Adjustments for FY 2025

On February 7, 2024, Governor Ned Lamont released his recommended budget adjustments for fiscal year 2025 — the second year of the state's biennial budget.

The governor's proposal would alter the current state budget, which was passed and signed into law in June 2023, and make a number of changes to policies and funding for K-12 education — including reducing funding appropriated for public schools by $62.9 million.

This nonpartisan analysis details the changes to state education funding contained in the governor’s proposed budget adjustments, and provides a brief overview of the general fiscal outlook of the state budget and economy.

Key Takeaways & Changes in Governor's Budget Proposal

• Reduces overall funding for K-12 education by $62.9 million.
  
• Maintains the Education Cost Sharing (ECS) formula phase-in schedule, which was accelerated by the legislature last year to provide greater funding to historically underfunded districts faster than previously scheduled.
  • NOTE: Adjustments in ECS funding levels — both at the town level and overall — in the governor's proposed budget are the result of the ECS formula annually accounting for changes in enrollment, student needs, and community wealth. The ECS funding levels in the governor's proposed budget DO NOT reflect a policy change or additional funding beyond what towns are currently entitled to under state statute.
    
    
• Eliminates the $150 million Education Finance Reform line item currently in the budget for FY 2025, and redistributes a portion of those funds that were dedicated to public schools to other programs.
  
• Eliminates $54.3 million for magnet schools from the Education Finance Reform line item and instead provides a 3% per-student grant increase to magnet schools.
  
• Eliminates tens of millions of dollars in savings to local school districts by removing cap on general education tuition charged by magnet school operators and AgriScience programs.
  
• Eliminates $11.4 million for the Open Choice program from the Education Finance Reform line item and instead provides a 3% per-student grant increase to participants in the Open Choice program.
  
• Eliminates $7.2 million for AgriScience programs from the Education Finance Reform line item and instead provides $1.2 million to fully fund the current statutory grant.
  
• Continues phase-in of weighted student funding for charter schools and adjusts for enrollment changes.