Yesterday, Governor Ned Lamont released his proposed budget adjustments for fiscal year 2027. While the governor's proposal flat funds several K-12 education grants — including the Education Cost Sharing (ECS) and Excess Cost grants — it does contain several important policy changes, funding cuts, and new or expanded initiatives.
This nonpartisan analysis details these changes to state education funding in the governor’s proposed budget and provides a brief overview of the general fiscal outlook of the state budget and economy.
Key Takeaways & Changes in Governor's Proposed Budget
Education Cost Sharing (ECS) Funding
- Flat funds ECS for 95% of districts
- Governor's budget makes no changes to the ECS formula.
- Minor funding increases are provided to 16 towns to reflect enrollment and demographic changes.
- No town receives a decrease to their FY 2026 ECS grant amount.
Magnet Schools, AgriScience Programs, and Charter Schools
- Eliminates $12 million for RESC magnets, allows tuition increases later
- Governor's proposal removes $12 million from the current state budget for supplemental funding for magnet schools operated by Regional Educational Service Centers.
- Would shift costs back to local school districts by allowing RESCs to increase the tuition they charge.
- However, RESCs would not be able to charge increased tuition in FY 2027, meaning they would need to absorb the full impact of this cut without the ability to recoup the funds through tuition billing.
- Cuts funding for AgriScience programs, allows tuition increases later
- FY 2027 funding for AgriScience programs would be reduced by $163,552 compared to current levels.
- This reduction is not based on a policy change, but rather due to updated enrollment and student-need figures.
- Like RESC magnet schools, the governor's proposal would allow operators of AgriScience programs to increase the tuition they charge local school districts beginning in FY 2028.
- Boosts charter school funding to reflect new schools, updated enrollment
- Funding for state charter schools in FY 2027 would increase by $5.3 million over current levels to reflect already approved funding for new schools in New Haven and Stamford, as well as projected increases in enrollment and updated student need data.
- The increase in funding is not based on a policy change.
Special Education
- Maintains existing funding for Excess Cost and SEED grants
- Excess Cost funding is flat for FY 2027. We estimate an additional $55.6 million is needed to fund the Excess Cost grant at its statutory reimbursement tiers. An additional nearly $91 million would be needed to reimburse districts for 100% of their excess costs.
- Overall funding for the Special Education Expansion and Development (SEED) grant remains flat at $30 million. Some districts may see declines or increases in their FY 2027 SEED grants, compared to FY 2026, due to changes in their overall special education population or their community wealth.
- Eliminates $7 million in unspecified special education funding
- The governor's proposal eliminates over $7 million in previously adopted, but unspecified, special education funding, citing a lack of defined programmatic uses.
School Breakfast & Other Initiatives
- Provides universal free school breakfast
- $12 million would be moved to the School Breakfast Program line item to support free breakfast for all students.
- The governor's proposal would also provide funds to eliminate lunch costs for students eligible for reduced-price meals.
- Funds behavioral health program, new literacy coaching network
- $5 million would be provided to expand a COVID-era behavioral health pilot program from 7 to 20 schools.
- $4.5 million would be allocated for a new statewide literacy program to place trained K-3 literacy coaches in 50 schools.
Citation
School and State Finance Project. (2026). Budget Snapshot: K-12 Education Funding in Governor Lamont's Budget Revisions, FY 2027. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/FY%202027%20Budget%20Snapshot%20Governors%20Proposed%20Revisions.pdf.