On Saturday, May 2, 2026, the Connecticut General Assembly passed a revised state budget for fiscal year 2027 that includes over $173 million in supplemental funding for local public schools and nearly $18 million in one-time funding for public school choice programs.
To help you navigate the revised state budget for FY 2027, we've put together an analysis detailing all the education funding changes in the budget and what they mean for students in your community and across the state. Additionally, we've created a resource that lists the additional state education funding each town will receive and explains how that funded was calculated and will be distributed.
Key Takeaways & Changes in Revised FY 2027 Budget
Local and Regional School Districts
Provides $173.2 million in supplementary education funding
- Funding is based off the Education Cost Sharing (ECS) formula but is not allocated as ECS funding.
- Distributed instead as one-time funding through two new grants: the Supplemental Education Aid grant and the District Relief and Compensatory Use Learning Aid (DRACULA) grant.
- Supplemental Education Aid grant amounts were calculated based on the ECS formula and provide towns with the greater of: 1) the increased amount they would receive if the ECS foundation amount were raised to $13,087 per student, or 2) a 2% increase over the town’s FY 2027 ECS grant.
- DRACULA grant provides funding necessary for every town to receive additional education funding equal to at least 4% of their FY 2027 ECS grant.
Keeps ECS formula the same
- While Supplemental Education Aid grant amounts are based off adjustments to the ECS formula, the formula was not changed in statute and the foundation amount was not increased.
- Minor ECS funding increases are provided to 16 towns to reflect enrollment and demographic changes.
- All other towns will receive the same amount of ECS funding in FY 2027 as they did in FY 2026.
- Requires a $152.2 million increase in the appropriation for ECS in FY 2028, which would be the equivalent of raising the formula's foundation amount to $13,087 based on current data. However, the budget does not contain language to direct the distribution of this funding or adjust the formula accordingly.
Allows towns to reopen their approved FY 2027 budgets
- Municipalities will have the option to adjust previously approved FY 2027 budgets to replace increased municipal funding with the supplemental state education funding.
- However, if a town adjusts its previously approved FY 2027 budget, it must provide its local or regional board of education with, at a minimum, funding equal to what the town provided in FY 2026 plus the supplemental education funding allocated to the town under the revised state budget for FY 2027.
Magnet Schools, Charter Schools, and AgriScience Programs
Allocates $8.25 million in supplemental funding to magnet schools
- Provides $5.55 million to increase per-student grant amounts for magnet schools operated by Regional Educational Service Centers (RESCs), and $2.75 million to increase per-student grant amounts for magnet schools operated by local or regional boards of education.
- Increased funding is not the result of an actual foundation adjustment, but appears to be calculated as if the foundation amount were increased in line with the growth permitted under the State’s spending cap, which would theoretically bring the foundation to $12,210 for these programs.
Reduces additional funding line for RESC magnet schools
- In the biennial budget passed last year, $12 million was set aside for supplemental funding for RESC-operated magnet schools in FY 2027. The revised budget cuts this allocation to $6.41 million, however, RESC magnet schools will receive roughly the full $12 million when combined with the other supplemental funding referenced above.
Provides $8.7 million in supplemental funding to charter schools
- Like magnet schools, the increase in funding for charter schools is not the result of an actual foundation adjustment, but appears to be calculated as if the foundation amount were increased in line with the growth permitted under the State’s spending cap, which would theoretically bring the foundation to $12,210 for these programs.
Boosts other charter school funding to reflect updated enrollment
- Formulaic funding for state charter schools in FY 2027 will also increase by $5.5 million over current levels to reflect increases in enrollment and updated student need data.
- This increase also includes an additional $225K to make $75K planning grants to three proposed charter schools.
Appropriates additional $800K for AgriScience programs
- Like the other school choice programs, this increase is not the result of an actual foundation adjustment, but appears to be calculated as if the foundation amount were increased in line with the growth permitted under the State’s spending cap, which would theoretically bring the foundation to $12,210 for these programs.
Special Education
Maintains existing funding for Excess Cost and SEED grants
School Breakfast & Other Initiatives
Provides universal free school breakfast
- Additional $12 million is appropriated to the School Breakfast Program line item to support free breakfast for all students.
- Funding is also allocated to eliminate lunch costs for students eligible for reduced-price meals.
Funds behavioral health program, new literacy coaching network
- $5 million is provided to expand a COVID-era behavioral health pilot program from 7 to 20 schools.
- $2 million is included in the budget for a new statewide literacy program to place trained K-3 literacy coaches in schools.
Citations
School and State Finance Project. (2026). Budget Snapshot: K-12 Education Funding in Revised State Budget for FY 2027. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/Revised%20Budget%20for%20FY%202027%20-%20Education%20Funding%20Snapshot.pdf.
School and State Finance Project. (2026). Town-by-Town: Supplemental Education Funding for FY 2027 Provided Under Revised State Budget. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/FY%202027%20Supplemental%20Education%20Aid%20Town%20Runs.pdf.