Connecticut cities and towns receiving Municipal Revenue Sharing grants are currently subject to a municipal spending cap, which limits how much they can increase their expenditures year-over-year.
If a municipality exceeds the spending cap, it is subject to a reduction in its Municipal Revenue Sharing grant, which provides additional state funding to cities and towns, particularly those with mill rates exceeding 25 mills.
This frequently asked questions document discusses the municipal spending cap and its impact on Municipal Revenue Sharing grants.
Citation
School and State Finance Project. (2025). FAQs: Municipal Revenue Sharing Grants and the Municipal Spending Cap. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/
Municipal%20Spending%20Cap%20FAQs.pdf.