Excess Cost Grant & FY 2023 Budget Changes

The Excess Cost grant is the State of Connecticut’s method for sharing in the expense for students who have extraordinary special education needs and associated costs.

Passed during the 2022 legislative session, Section 268 of the adjusted state budget for fiscal year 2023 (H.B. 5506), increased the appropriated amount of the Excess Cost grant from $140.6 million to $156.1 million, and amended the formula for reimbursement that was set out in Connecticut General Statute 10-76g. While done in an effort to make the Excess Cost grant more equitable by providing slightly greater reimbursement to lower-wealth communities, the modifications made to the grant’s allocation formula have created unforeseen issues.

This document explains how the previous Excess Cost grant was allocated, how the newly amended grant will be allocated, and the issues created with the new grant allocation formula.