On May 7, 2024, the General Assembly passed H.B. 5523, a budget stabilization bill that appropriates funds for fiscal year 2025 and makes a number of different policy changes to K-12 education and other areas. Along with maintaining the $150 million in additional funding for K-12 education in FY 2025 that was allotted as part of the state budget passed last year, the bill overhauls how Connecticut distributes state education funding to school districts.
District Reference Groups (DRGs) are a classification system that groups local and regional public school districts together based on the similar socioeconomic characteristics and status of their students. Developed by the Connecticut State Department of Education, the DRGs have not been officially updated since they were first released in 2006. Although not for official use, the School and State Finance Project has replicated the DRGs using updated data and the same methodology and variables as the original DRGs.
This report highlights policies that currently exist to provide greater accountability and transparency in Connecticut K-12 education, and the impact changes passed during the General Assembly's 2023 regular legislative session will have on these existing policies.
The Connecticut General Assembly's 2023 regular legislative session resulted in a number of changes to state funding for K-12 education. This presentation details these changes and explains how they affect students, schools, and communities.
K-12 Education Funding Changes 2023 Legislative Session
Video: 2023 Legislative Session K-12 Education Funding Changes
Read More
This document details how Connecticut could use a needs-capacity formula to distribute non-education municipal aid to the state's cities and towns and help address municipal fiscal disparities. Under a needs-capacity formula, municipalities with the greatest level of fiscal disparity would receive a greater level of state funding, while municipalities with the capacity to pay for services through their own revenue raising capacities receive less or no state funding.
The State of Connecticut contains 169 towns with a wide range of wealth and resident needs. Currently, the State of Connecticut provides financial aid to towns through a variety of statutory and non-statutory grant programs. The current structure for non-education town aid does not sufficiently address the underlying municipal fiscal disparities that are caused by the unequal costs of delivering services and the low revenue raising capacity of towns in Connecticut. The purpose of this policy briefing is to introduce and examine how Connecticut can address municipal fiscal disparities by using a needs-capacity formula to distribute non-education town aid.