On June 3, 2025, the Connecticut General Assembly adopted a new biennial state budget for fiscal years 2026 and 2027. In addition to adjusting funding for K-12 public education, the adopted budget contains policy changes that impact students and districts throughout Connecticut.
This nonpartisan analysis details these changes to state education funding in the budget, and provides a brief overview of the general fiscal outlook of the state budget and economy.
Key Takeaways & Changes in Adopted Budget
Education Cost Sharing (ECS) Funding
- Fully funds ECS grants for first time in history
-
- Completes the ECS formula's phase-in schedule and fully funds ECS grants in FY 2026, and beyond, for towns considered "underfunded" according to the formula.
- Continues ECS hold-harmless provision for "overfunded" towns
-
- Pauses, for the next two years, previously scheduled decreases in ECS funding for towns considered "overfunded" according to the ECS formula.
- For FYs 2026 and 2027, "overfunded" towns will receive their FY 2025 ECS grant amounts.
Special Education
- Maintains funding bump for Excess Cost grant
-
- The additional $40 million in funding for FY 2025 that was passed by the General Assembly in March is continued for the Excess Cost grant in both FY 2026 and FY 2027.
- Provides $30 million in each year for new special education grant
-
- Creates the ECS-based Special Education and Expansion Development (SEED) grant to provide funding to districts specifically for special education purposes.
- To fully fund the new grant, approximately $191 million is required in each year. However, since the appropriated amount for the program is $30 million in both FY 2026 and FY 2027, grants made to districts will be reduced proportionally.
- As a result, for FY 2026, districts will receive approximately 15.7% of their calculated fully funded grant amount.
- Establishes grant to incentivize creation of in-district programs
-
- $9.9 million is allocated in FY 2027 to aid districts developing or expanding in-district or multi-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 will continue to receive 42% of their full weighted funding amount.
- Charter school students will 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 remains capped at 58% of the per-student tuition amount the operator charged in FY 2024.
- For magnet schools that began operating after FY 2024, tuition will be capped at the per-student average tuition amount that is charged by magnet schools in the same region serving similar grade ranges.
- Funds new charter schools in New Haven and Stamford
-
- An additional $2.5 million is 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 Adopted State Budget for FYs 2026-27. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/
Adopted%20Budget%20for%20FYs%202026%20and%202027%20-%20Education%20Funding%20Snapshot.pdf.